HOW TO ADD PROFIT IN A RALLY?
(multiple lots with minimum risk
Trading is like fishing.
You just keep sitting with your tools & wait.
Fish may come in minutes or hours.NO one knows when it will happen.
Today , comdex was in red all over.
gold was red with minimum minus percentage.
means it was relatively strong.
In downside market,
all commodities may be red.
We need to see that which commodity is near ATP,
and tending to come up in each recovery,
then this will be the best commodity to buy.
That is why we sent GOLDM buying call.
Goldm was running @26375 at that time.
If all market goes down further and there is no recovery at all,then buying in any commodity will be risky.
So we took a caution.We gave a stoploss buying above days resistance 26450.
Stoploss was 50pt (26400)
When buying activated above 26450, and became stable above that level .
You can buy 3 more lots in a small dip near 26420-26430 sl 26400.
Extra risk will be -600 for 3 lots.
In a sudden recovery,
goldm went to 26570.
one can buy 3 lots with almost 70to 120pt.
and we get +3000 in -1000 sl.
When you multiply lots ,then book part profit fast in any positive wave.
or book part loss in negative wave.
It’s not good to hit sl of 5 lots,you can exit in 3 lots and may reenter at lower levels.