Markets at decision point.

Just as Indian Markets closed, there came a news flash on the TV screen saying China had cut down its CRR for banks. This triggered an immediate rally in Europe as well as in US futures. It seems reasonable to expect Indian markets to open higher tomorrow, probably moving above the 4900 resistance.
A close above 4900 will give targets of 5150 on the Nifty. If this comes about, we will be seeing an intermediate up trend. Momentum will be on the side of buyers. All of this is scenario building, but such scenarios help in making trading plans.
What can go wrong? The nifty rally may stall around 5000, where we have significant resistance. Or, tomorrow may be a one off rally day, after which the market could retreat back inside a trading zone.

How do you trade this big gap up expected tomorrow? I request readers to give their views through comments. Sharing helps everyone.

Does blogging help in trading?

Gopal asks an interesting question :” Can you cut your losses by giving regular insights on this blog? Thanks,”

I think the question is: Does writing a blog improve trading performance?

Sharing always helps the person who shares. This is a philosophical concept, very much valid in real life.So, writing a trading blog, sharing my views, knowledge, thoughts certainly helps me become a spiritual person.

But, does it help in trading?
I would say, yes. Quite often, my thoughts become clear when I am writing them. Often, ideas that have been forgotten, emerge. Then, I learn every day, from the comments that come in. (Readers are encouraged to write more comments. The advantages of writing a blog will also come to people who write comments. Both are read publicly).

There a big downside, however. If I give a technical view with specific targets that often becomes a problem. See, markets can do anything. Therefore, what I write today may not be valid tomorrow due to market action. Earlier, this used to trouble me. I felt that I was letting down my readers. Now, I recognize that most readers are smart enough to understand that I am only a messenger, the Market is the boss. So, this has been less of a problem recently.

This discussion finally leads to a conclusion: The blog is more like a trading journal. It helps the trader, and, offers some insights to readers.