Just 3

in one single day

the market does a hundred things

and makes a trader do a hundred and one!

right?

wrong!!

--

market just does at most

3 things

in entire day!

--

i studied minutely

nifty movement for 27 trading days

from 7dec2010 to 13jan2011

and here is what i found

--

10 out of 27 days

whatever first direction nifty took at opening

it moved in the same direction

for the entire day!

--

13 out of 27 days

nifty changed the first direction

and then kept moving that way for the rest of the day!

--

and only for the rest of 4 days

out of 27 trading days

the market changed direction for the third time!

--

never did the market change its direction

for the 4th time!

--

the first direction

was taken typically between 9.15am and 11:30am

--

the second direction

if taken

was taken typically between 11:30am and 1pm

--

the third direction

if taken

was taken typically between 1pm and 3pm

--

sowhat does it mean?

--

first, we don't need to

keep criss-crossing the heavy traffic

trading street like a confused dog!

just 1 or 2 or at most 3 shots are enough

....if carefully chosen!!

--

when you have rightly identified a direction

just fill it, shut it and forget it

till the next direction change

if any!

--

and if the second direction-change happens

just relax

and expect it to be

among the 23/27 times when there is no third direction!

--

and of there is the third one

book profit for the second one

take the third trade

leave the terminal

pick the coffee mug

and go relax in the garden till 3.25pm.

then book the profit for the third trade

and wait for the next sunrise!

--

give the profit time to grow.

don't panic at market's 100 bluffs!

only 3 are genuine!!!