After the Breakout

The Nifty moved out of its trading range, offering the possibility of a sustained up move that could eventually take it to new highs. Maybe.

For traders, there is no need to go for price predictions. A clear buy signal has come in. Positions should be built on the long side. As usual, the Markets do their own thing. They can easily come down, just as they can go up. We should not worry about the outcome of our trades. Our focus should always be on managing the trade.

Depending on your time profile, you should have the aswer to these questions:

1. At what point does the market prove me wrong?

2. How do I manage the time element? Suppose the market does not prove me wrong, but does not prove me right either, then how much time should I allow for this trade. Should time be a consideration at all?

3. In the event that the market goes in my favor, what are my ways to take profits, exit partially?

4. Finally, how do I close the trade.

Please understand that the answers to these questions are for you alone. There is no universal answer to the questions. We want the the answers so that we can have a trading plan.

MENTOR PROGRAM

If you have a burning desire to become a trader, live in NCR, have spare time in evenings / weekends, read a lot, preferably know some programming, have an interest in automated systems (even if you do not know how to develop them!), and, want to develop yourself, then write to me: sudarshansukhani@gmail.com