Trading one side of the Market

My post titled Do you need to hedge your trades has evoked many thoughtful comments from readers. All the comments are worth reading.

Dinesh Rishi says
Quote:
“In some of your posts you have mentioned that you trade only one side of market.
Plz explain something

“about one side trading” 
UnQuote

My Notes:

Traders should be aware of the trend. Most of our trading should be done in the direction of the trend. In fact, we do not have to do anything. Our trading setups should give us only those trades which are with the trend.

However, markets do move in both sides – up and down. Often, traders will feel that there are trading opportunities which are against the trend. Such opportunities should be ignored. We should decide the direction in which we want to trade and then stick to it. For intra day traders, a vie should be taken at the start of trading and for that day trades should be done only in that direction. This is a flexible concept. The trader may take a view that he will trade a breakout or breakdown from the first 60 minutes range. Here, he is not having a predetermined view, but is asking the market to give a trend. That is fine.

I feel that buy and sell trades should not be taken in any one trading session because this reflects a confused mind. Again, there will be rare exceptions, but the general idea is to have a view on the trend, then go on that side.