Price of Ignoring the Screen.

3rd week of march.

Ignoring the Screen made me pay my approx 30% of profits earn this month.

It was 15.03.10 & nifty was in uptrend since last 12 conseccutive trading days, so correction was expected, 

nifty gave down ORB after gap down, in which SAR (5130) was take out. 

 So, i went short at 5115 (nifty future)

but at the time of closing i forgot that nifty closed very much near my SAR level.

so i didnt do anything on that day.

Than on next day on 16th march 2010 SAR was at 5120 and i simly ignored the fact ,

by telling myself that whenever new position start SAR is always near the buy/sell level  (but thats very much imp for me to manager at 10 min chart level)

on 16th after opening it remained in tight range,

which made me ignore it. but the fact was that it was trading above SAR.

and before i can realise it started rallying ., so i thought its just a small short covering,

 and i made another mistake.

Shorted another nifty at 5137 @ 9.55am,

without thinking of stoploss.

But it never came to those levels. ( It still didnt -  I m writing this after a week on 23.03.10)

and i waited .......... and waited..........but no luck.

Than  on next day also it didnt gave me any chance to cover at lower levels.

and finally on 18th march at 5235 i covered all lots.

with 100 Points loss` on each lot.

This wouldnt have happened if i had kept a close tab on my SAR & 10 min charts.

It took away months 30% profit - which i earned slowly slowly option writing.

NIFTY FUTURE TRADING IS NOT PROFITABLE (ATLEAST NOT FOR ME....)

Comments by real trader on ilango`s blog.

live nifty said...

Hi to all, i am nifty positional trader, my system based on purely demand and supply of the market without using any indicator and always be in a market either short or long. But holding future or stocks for about 10 to 15 days with "sit tight mind set" gives good returns, as we are retail trader our mind habituated to intraday tradting with predicting mind set. Market is divine place where there is a God(psychological mindset of humans). He moves here and there as if we want to make money we have to be a follower of Him, not a predictor of His way.Ilango sir can gives variety of knowledge but as a student we have to pick right system to our personality, that's key success in trading. If we follow a one system, THERE IS A NO QUESTION OF WHERE TO ENTER, WHERE TO EXIT AND WHERE TO PUT STOP LOSS. First of all we have to create one system it contains all rules regarding entry,eixt and stoploss. Do your trade based on your system and put your system one side and gather your knowledge day in and day out. Gathered knowledge should be used for improve your system and not for INSTANT TRADING DECEISION.From my experience intraday trading is more difficult than positional trading because positional trading is equal to school level and intraday is equal to ph.d level without passing school we can't pass ph.d. Psychology,money management and position size is a abcd, all we knows but we ignore it.Just a simple example if want take one lot in nifty, we have Rs.2,50,000 in cash for positional trading( 100 points volatility 2% money management rule). How far we are adhere to this simple rule? I am holding my long from 4810 still now and my sl at 5205. If market trade belows 5205 for an hour, i reverse my positon to short and sl would be 5282. This my positional view. All guys forgive me if i anything written wrong. Happy trading. Thank you,

March 20, 2010 10:30 AM 

 

I had reproduced his comments here for my future reference.

whenever i want to indulge in intraday trading i refer to this post.