Why a view is Important for me.

This week, I have suggested that I will be looking to buy the Nifty with stop at 4900. My view was of support around the 4900 zone. Fortunately, the Nifty gave two up moves, which has resulted in rpofitable trades. Since I was only a buyer, I could focus on the buy signals that came in intra day charts. Please understand that I have no control over what the Nifty actually does. I have control only over my actions. My actions were: buy if the opportunity arises, then keep a stop. The market could easily have slipped below 4900, stopping me out. In fact, after stopping me the Nifty could then have started an up move all over again.

My point is: Once I have a view based on charts, my trading plan becomes easy and clear. I will be wrong, and, quite ofen I am. That is not a worry. What is important is to have a plan. Then probability will eventually work in my favor.

For many days, I have not been trading in Gold and Silver since I have a bullish view while markets were not giving any buy signals. Then, yesterday, Silver finally made a symetrical triangle suggesting a sell signal. The chart was posted in real time in this blog. That pattern gave me a view. I have taken the short sell. It may or may not make money. That is not within my control at all.

To sum up: I am perfectly content to wait – for patterns that give me a view. if there is no view, there is no urgency to trade.