Twitter (TWTR) Weekly Trading Levels for WS 10th March

Twitter has been under pressure the whole of last week as indicated in my previous post. Twitter has formed a classic Bearish Descending triangle pattern on the daily chart. Friday’s move could be a sign of things to come this week.

On the downside we can look at $50 where some sort of buying support can come in. On the upside a break above the Triangle can take to level of $59.50.

Overall tone for the week ahead looks to be Bearish.

As usual, the market will decide it’s course of action. All we need to do is follow what it does.

Twitter WS 10th March

Following are the Trading levels for WS 10th March.

Buy above 54.20 Tgt 1 – 55.45, Tgt 2 – 57.35, Tgt 3 – 58.60

Sell below 54.20 Tgt 1 – 52.25, Tgt 2 – 51, Tgt 3 – 49

Very Important – DO NOT TRADE WITHOUT STOP LOSS. Use sound Money Management with your Trading Plan and do not over leverage vis-a-vis your trading equity.

Have a Profitable Trading week ahead!

To your Boring Success!!!

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Bank Nifty Weekly Analysis for WS 10th March

I have decided to include Bank Nifty as well in my Weekly analysis from now on. So here goes…

Bank Nifty has taken a cue from Nifty last week and made a nice up move from 10600 odd levels. It has managed to close above a key level of 11735. Next target would be 12225 where I suspect it would face strong resistance. Positional traders can look at partial profit booking at this level. I for one, would be looking at any Bearish reversal patterns that might develop at this level.

If Bank Nifty does manage to cross this hurdle, it can try to march towards it’s all time high of 13414. I suspect the PSU banks have to come to the party big time for that to happen. The up move till now has been primarily based on the strength shown by the Private Banks.

On the downside, 11170 can provide some support. Look for Bullish reversal patterns around this level.

The Daily and Weekly charts are quite bullish for Bank Nifty for this week.

As usual, the market will decide it’s course of action. All we need to do is follow what it does.

Bank Nifty Weekly WS 10th March

Bank Nifty trading levels for this week are as follows

Buy Above 11482 Tgt 1 – 12350, Tgt 2 – 12816, Tgt 3 – 13685

Sell Below 11482 Tgt 1 – 11016, Tgt 2 – 10147, Tgt 3 – 9682

Note: All levels are for Bank Nifty Spot. Kindly adjust the same for Futures.

Very Important – DO NOT TRADE WITHOUT STOP LOSS. Use sound Money Management with your Trading Plan and do not over leverage vis-a-vis your trading equity.

Have a Profitable Trading week ahead!

To your Boring Success!!!

Twitter (TWTR) Weekly trading levels for WS 3rd March

Since the last 8 Trading sessions, TWTR looks like forming a Descending Triangle. An ideal Descending Triangle trade happens when the Big move out of the triangle takes place at the 60 – 75% length of the Triangle. As seen in the chart this stage looks like now.

A down move out of the triangle can take to levels of $50. On the upside, resistance is seen at $60 which happens to be the 50 DMA.

Overall tone for the week ahead looks to be Bearish.

As usual, the market will decide it’s course of action. All we need to do is follow what it does.

Twitter WS 3rd March

Following are the Trading levels for WS 3rd March.

Buy above 55.30 Tgt 1 – 56.60, Tgt 2 – 58.20, Tgt 3 – 59.40

Sell below 55.30 Tgt 1 – 53.70, Tgt 2 – 52.50, Tgt 3 – 50.80

Very Important – DO NOT TRADE WITHOUT STOP LOSS. Use sound Money Management with your Trading Plan and do not over leverage vis-a-vis your trading equity.

Have a Profitable Trading week ahead!

To your Boring Success!!!

Plan your Trade and Trade your Plan!

Whats your Plan

This is really a no brainer. If you want to achieve success, consistent success, in this game you have to have a plan. It is similar to everything else in life. No matter which market you trade be it Futures, Commodity or Currency, you need a trading plan.

Goal Strategy

Trading has to be goal oriented. You need to set goals and a pragmatic trading plan is what helps you achieve those goals, day in and day out. Notice, I have used the word “Pragmatic” here. I have seen many new traders as well as some seasoned ones who set unrealistic, impractical goals while trading. Most newbies start with small accounts and hope to double/triple their capital every year. It is good to be optimistic but merely being optimistic is not going to make you any money in this game. You have to be cautiously optimistic. Don’t try to bite more than you can chew. Newbies keep making these mistakes and are washed out sooner than they realize.

A trading plan should reflect the personality of the trader. I cannot stress more on this! No trader is the same. What works very well for me may lead to losses for you. You can have a simple 3 step Trading Plan or any elaborate one which takes into account every nitty gritty. A simple 3 step plan would include how to get in, how to manage the trade (via SL/Trailing SL) and when lastly, when to get out. Whether you have a simple plan or a more focussed one, YOU HAVE TO HAVE A TRADING PLAN. Without it, I guarantee, you won’t last long in this game.

What is even more important than having a plan is to follow it to the tee. Once you make a plan and take it live you have to adhere to all the Trading rules in it. That is how it works. A Postit note which shouts “FOLLOW YOUR PLAN” should be stuck on every trader’s terminal. Many traders fall prey to the idea of overriding their trading plan based on gut instinct. Let me tell you this, you might be right ocassionally, but you are going to be very wrong in the long term. Trading is a long term endeavour, unless it is a pursued as a hobby in which case it will cost you a lot of money.

All this eventually boils down to the core principle of Discipline. You have to have the discipline to follow your plan. You cannot keep changing it every now and then. The formulation and execution of your Trading Plan will reflect and determine your trading success.

Every 6 months or so conduct a review of your trading plan. Add some news rules or delete some depending on your experience. Trading is a continously evolving occupation. You have to keep thinking, keep improving, keep adding to it. It is a a never ending catharsis of human psychology.

Remember : Your Trading Plan should reflect the kind of trader you are. Make your own plan. Do not copy someone else’s plan as that is a sure shot recipe to failure.

Trade your plan 1

If you are a trader and do not have a Trading Plan, NOW is the time to make one. It will go a long way in making you a very competent trader. One of the things I help traders in my Boring Trader Course is how to make a trading plan which suits your personality. If you need more info on The Boring Trader course do email me at theboringtrader@gmail.com. Alternatively, you can click on the Services tab to the left.

So go ahead, Plan your Trade and Trade your Plan!

To your Boring Success!!

The Virtue of Patience !!

Patience is a virtue many have but few can actually bring into practice. After Discipline, Patience has proved to be the ultimate Achilles heel of many stock market traders. Patience is the first cousin of Discipline if I can say that. If you haven’t yet mastered these two, trust me, you are not going to last long in this game.

Patience 1

So what exactly do I mean by patience and how does it integrate with trading. Let me give you my example. I have a trading system in Amibroker which displays possible buy and sell ranges. Unlike most systems, mine does not show Buy -Sell arrows. I am not comfortable with the idea of relying on a fully automated system, one which places the order on the exchange once the corresponding buy-sell is generated. I want to have the final say before placing the order. That’s just me. Now, once my system shows the buy-sell range, I look for some confirming indicators which I have added. I will not take the trade unless I get confirmation from them. Does that mean I lose out on trading opportunities? Hell no. It just delays my entry. I am happy to get in a trade I am pretty confident about instead of one where I have some doubt. Once I am in the trade, these very indicators help me stay in the trade long after my system has given the exit range.

You might be wondering where does Patience fit in all this? Patience helps me to stay on the sidelines until all my conditions are met. Sure, I can take the trade when the system spits out the first signal but that would entail me not following my trading rules (Discipline). Patience also helps me stay in the trade till my indicators are telling me to do so.

Patience 3

Trading is as much about staying on the sidelines as it about getting in. You have to recognize this. Patience is the bridge which helps you to successfully cross these sides. As much as I would like to deny it, Trading is a highly emotional game and that’s what makes it so very interesting. If you cannot control your emotions, this game is not for you. I always give the Cheetah analogy for trading. A trader should be like a Cheetah. A Cheetah will wait for hours together for the perfect set up, till all the conditions are favourable. He will wait for everything to align so that he can make a successful kill. He has the patience to wait for it. Once every condition is met, he doesn’t hold back or wastes time. He goes and makes the kill. A trader should be just that. Have patience till the perfect set up emerges and then get in the trade without thinking twice. This is what all successful traders do, day in and day out.

Patience 2

To summarize, you need loads of Patience before and after you get in a trade. Like Discipline, Patience is a must have in every traders emotional toolbox. Only YOU can develop patience. Once you have built a Trading system or trading Rules try to Paper trade them for at least a month. Check your Patience level when following the rules. It will take some time to develop, especially if you are the impatient types naturally. Trust me, you will notice a huge positive change in your trading once you master the art and virtue of Patience.

Have Patience, follow your rules and Make money.

To your Boring Success.

Taking a loss is one of the coolest thing in Trading!!

Yes! You read that right. You must have probably read that heading a couple of times just to make sure you read it right. There are a few axioms associated with Successful Boring Trading and Taking a loss and being cool about it is one of them.

At the outset let me make it amply clear (you already know this) that you are going to have a loss at some point of time in your trading. Now this could be once in a while (depending on how good your trading system/approach is) or it could be a string of losses (I will address how to handle a losing streak in a separate article). Either ways YOU WILL HAVE A LOSS AND YOU HAVE TO DEAL WITH IT. PERIOD.

How you deal with a loss determines what kind of a trader you are. The great ones just love taking a loss. They love it because they understand, appreciate and realise that they or their system have gone wrong and the predetermined loss point has hit. They take the loss and move on to the next trade. Almost with robot like precision. And it has to be robotlike. You can’t harp on a losing trade cause you would lose the next money making opportunity which presents itself.

As a Boring Trader, I think taking a loss is the coolest thing. It makes me realise, rather quickly, that I have made a mistake and lets me get out with MINIMUM DAMAGE. How cool is that? This is possible by having a predetermined Stop Loss. I will address various Stop Loss techniques in a separate post. But seriously, think about it. You are in the midst of a trade which you are reasonably confident about, yet it goes the other way and hits your stop loss. You take the loss, think for a moment or two if the reverse position needs to be taken and move on. Cool as a Cucumber. It’s that easy…..You think so? Nah, it is not that easy because it involves losing MONEY and nothing is easy when money is involved, especially losing it.

Taking a loss

So how am I so cool about losing. Easy..Remember Discipline??? YOU have to inculcate the DISCIPLINE of cutting your losses short and let your profits run (I might add).

So the next time you put on a trade and it goes the other way and hits your stop..be cool about it..know that it could have gone much worse..think if a reverse trade needs to be taken and move on…This will take practise..a lot of it but trust me you will be glad you did it in the end.

Go ahead..Be Boring and Make some money!!

To your Boring Success!!!