When you draw trend lines, a beginner has to make it a habit to revisit it everyday. And if in doubt, take a smaller position and hedge with strict SLs. This is really easy. I still dont do it. Hope/Fear/Doubt - still in me, an absolute no-no for trading. The last runup was easy if one had done their homework and had a plan on May 25 trading. Why ? The lows joining Nov2009 and Feb2010 when extended goes exactly to 4780-4800 where Nifty bounced off on May 25/26. Could it have gone lower ? Ofcourse, hope is ur SL would have supported you.
Was it the right trade ? No, because there was no confirm. But it is a better read than "hoping" to catch the bottom. And we are hedged. See the small oval in the chart. Disclaimer: It is a bad idea for anybody to try to catch tops and bottoms without doing TA. Even so, it is extremely hard. That one trade which is the bottom or the top are just plain lucky and even they did not expect it.
PS - I did not catch this bottom or even the runup till I got the confirm on Thursday.
Was it the right trade ? No, because there was no confirm. But it is a better read than "hoping" to catch the bottom. And we are hedged. See the small oval in the chart. Disclaimer: It is a bad idea for anybody to try to catch tops and bottoms without doing TA. Even so, it is extremely hard. That one trade which is the bottom or the top are just plain lucky and even they did not expect it.
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