TRADING IN TIGHT RANGE
A TIGHT RANGE STORY IN MCX
Mkt was not mving since last 30hrs.
on 31 st oct ,silver moved hardly in 400-500pt and copper in just 3-4rs.
In such time hyper active traders get very frustrated.If they are hitting stoplosses,then a big despair is there.
So,IT IS NOT IMPORTANT THAT HOW MANY TRADE ARE YOU PUNCHING WITH EVERY UP & DOWN.
CAN YOU SIT FREE WITHOUT OPENING A TRADE FOR 4-5 HRS?
THE MOST IMPORTANT LESSON TO BE STILL UNDER YOUR OWN CONTROL IN FREQUENT MARKET WAVES.
After 30 hrs of 2-3 day trading,finally range broke and there was a heavy fall in all mkt.
We sent message to wait for right time & cautioned about upcoming big move.
Now what is this right time?
When you have solid reason to open a trade?
Means sellers doubled than buyers. silver slipped from +0.5% to -0.5%. Data@2pm has been seen. stop loss level is reasonable. THAT’S ALL.
but for hyper trader it is almost impossible to sit without trade. So what is the solution?
We gave silver buy@ 56600sl 56400gold sell@27440sl27500 call in morning.
Booked silver @56900 and gold@27420 in next dip.
It gave small profit till clarity.
We suggest 1000/- every hr with hedging.
In morning buyers were more in silver & copper, so they tried to go up slightly.
We gave buy call in silver@56800sl 56580(-220pt)
In afternoon suddenly seller increased & sl hit.
After confirming for a while, we sold same silver with 300pt sl on every jump & booked in dips.
GOT 1500PT TILL -4.5% IN EVENING LOWER CKT.
then it was logical to reinvest 200 pt sl for buying in dip.bought@54250
jumped upto 55800.traders took 400 to 1200pt as their appetite.
IF SOMEONE SOLD @54000 AT-4% THEN HE HAD TO BEAR SUDDEN LOSS OF 1500PT.
Such mistake is common in momentum.
That’s why you need a serious advise after each profit/loss.