Friday, July 23, 2010

RCOM short its JULY Aug Futures ...Exit from it ... use mental stoploss orders in futures trades

Do U know market   trades for 420 minutes  from 0900 to 1530 hrs
and the total volume traded in rest 415 minutes  is lesser ...
more than that traded in each individual candle ....
that I marked in chart

Now I am trying to write   the things I noticed  in  the form of story ...

just imagine I m having my brokerage firm and having  500 lac shares of rcom in  my and my wifes acct in my brokerage firm..
generally  it is the tendency of traders they place buy / sell orders where the market is trading ...in todays case it was  188.00 ... market was falling from 191 so  every one was  short and placed stoploss as per his/her risk appetite...
 now at 188 I planned to trigger stoploss orders ....so I  placed my  sell orders in huge quantity  at  189 ,190 ,191 and started huge buying at 188 ..
result price shoot to 190.in  seconds
sl triggering  started and i sold my stuff to stoploss orders which i bought at 188  to 189 .
to hide my plan ...I did some additional trades too to hold the price above 190.50  with  my family account ... and to trap those short sellers  who were short  but  were smart too..and  dint placed sl ..
 5 or 10 minutes hold  above 191 level  is enough to create panic in small traders and they will easily come and buy at 191 they shorted at 188 hoping  60 paisa gain will  give them  1k return on 1 lot  ...but booked 6k loss due to inability to hold the position.
later I exited from scene and RCOM again reached to 188.55 in  closing time ...
when i m trading  in my family accounts i m paying nothing  as brokerage firm is mine and government taxes are almost zero on future trades.
i m gaining nothing  reason  i m trading at same rate ...buy / sale is at same rate so no capital gain...
the gain is unlimited in limited time...

what we must learn from the above story ...
avoid placing stop loss order
do not over trade
trade only if you are sure of  direction of your trade
keep  equal mtm   for emergency.

RCOM  it is crystal clear  seeing the chart that some one is involved in its irregular move ... so u must be careful while going to short it and short its July Aug all futures at each higher move  ... without  stoploss ...u will sure get benefited ,...
If u will not place stop loss  and will sell it at each high it will reach to 172 .00.
RCOM only 4 to 5 green candles having big volumes ...of weak stock ...
please refer for reality ...http://dhanvarshagrp.blogspot.com/2010/07/rcom-technically-bearish-so-why-its-buy.html


one more example in TCS....

call was short Aug futures below 880 .00 at every level ... for a target of 798 .00 posted on 5 Aug at 



In  2 Minutes 860 to 873.80
Volume in whole day ...1910,000
in two candles 845500 + 604500 = 1450,000  please see in chart
reason ....stoploss triggering of small investors


avoid placing  stop loss in system now ....Use mental stops ....


TCS made low of 857 and closed at 859.00
gained 21 points on  our short call
lot size 500 x 21 = 9500

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