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Friday, April 16, 2010

We were caught in between the hell and deep sea...At last,We escaped with profits

As the title of this post indicates that we were caught in an un-comfortable situation today.
"We were caught in between the hell and deep sea"... at last we could hold our breath for a while and find a way out to slip out from the hold of the hell with the learned wisdom by our years of experience. One can not see from the sea top, what is there under the deep sea.We have to dive and explore under the sea to see things clearly.
The last few days the banknifty future were trading in red and every one out there in the market were selling at every peaks..and we were one among the crowd.The over all market is in correction mode and everone was selling,selling only..Due to the selling pressure the compression was so much and that was exploded like an artician and spill to the roof, that was unexpected by many.
Today the market slides down from its opening to the low from 9330 level to 9270 level and surged to 9300+ level. We went short in 9320.00 level without any stop loss and hoped it will slide to the lower levels after wards.We were very much confident that, the market will fall and all technicals were in our favour during that time...But the market went against our wishes from 9320 level to 9378,9400 and at last it went to 9428.00 that was the day high.Imagine the situation almost 100+ points we were in minus(Loss) and all our clients were really supported us..They used to trades in 10 to 30 lots.Few clients were started asking shall we book the loss ??..We had no words to say..The market jumped up against the on going trend...So,'We were caught in between the hell and deep sea'.There seems to be no way out for the traders except booking loss..which is very heavy to bear.

.What one can do at this situation?
As an experienced Technical Analyst we were very cool , and tackled the situation very wisely.The market in our perception is :- 'A simple arithmatic problem to be solved..we see things in terms of Numbers..not as money.'

We sold at 9422 and covered the same at 9370 level again sold at 9406 and covered at 9380 wise, we have done more than 6 trade and raised our selling average. At last we covered the short in 9345.00 level during the end of the market.

The overall trades that made us to make 180+ points, As a net profit (including the loss and brokerage) Many of our clients who were in loss about 100 points made profits at the end.Few of our clients made a profits of more than one lakh rupees.

Being a trader?
if, we would have been a trader in this above situation...what would have we done today?

As a trader the total perception is different from a TA. They see things in terms of money.if one would have gone short and market went up aginst 100 points means -> 500 (10Lots) X 100 = Rs.50,000/- as a loss.The mind of the trader will refuse to think..the clarity will be gone/ fade away due to the fear of (Notional) simply funk.One can not find a way out!!.The whole being and the psychology that changes instantly.A kind of irritation comes in.

.Here where the 'Technical Analyst' play an vital role.

The technical analyst see things in numbers, not as money. The simple arithmatics that works..whenever there is an opportunity available for an averaging he/she will take the full advantage of the market and get along with the trend and sail the ship even in a 'heavy strom' by just making (Adjusting the wind shield) few perceptional changes in attitude and adjust or accept things as it is , and swim along with the flow (Not Against it).One can win only if they, can accept,absorb and adjust themself's to get along with the flow.Thats what we have done today.

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