Never Ending Cycle:
Today’s Topic is favourite time pass for all, namely Bulls, Bears, and the group who has nothing to do with Stock Market, per-se but they would also readily & frequently keep offering their own take on current Market valuations (read NIFTY, SENSEX prevailing levels) and next possible correction (rather, impending CRASH!).
However, Few may hit bulls eye correctly by forecasting exact resistance zone well in advance, may be because they are proven lucky soul or based on Hard-work done over the years, who knows! But, Most of them would miss the mark with wide margin.
But still, everyone is entitled to do prediction based on their own choose parameters which could be anything (Fundamental, Technical, Past Experiences, etc…)
But for ROCKET Trades, this is a serious Business because we are get paid for this only.
Listing out, our last three relevant articles, and it is a humble request to read all three before proceeding further to understand entire sequence of our thoughts and analysis working. Paid Clients are aware therefore may proceed further.
First & Oldest among current Ones: Published on Sunday, 29 October 2017
Second One: Published on Saturday, 11 November 2017
Third & Latest One: Published on Saturday, 18 November 2017
Importance of Market Participation
One thing which every one learns in a hard way (including ourselves at Rocket), is that never be biased on market, whatsoever.
Some learns by booking losses by going against Market tide and Rest by missing out on Profits… by not participating in the prevailing Market Trend, being Up or Down.
Confession: We had experienced both of above, but under different business cycle, over time. Same had been the case for most of the Transparent & genuine Analysts.
Advice: Either be in Market all the time or be out from Market for rest of the life.
Because, there is no correct time and/or Specific level on NIFTY which guarantees or rather ensures that from, here-on, a trader would get only Profits.
Successful Formula for Stock Market Survival
Now, you are reading still, which means you had decided to be a participating soul, of-course for obvious reason of earning regular income.
We need to get three things right, back to back, for regular, consistent Income from Markets, namely,
First: Adviser’s Infrastructure (Tested & evolving Proprietary Trading Strategy)
Second: Client Infrastructure (Sufficient & enduring Trading Capital, Cash & emotional)
Third: Positive Mind-Set of Client & Adviser comes by doing honest, genuine working together.
Even then, things may go wrong. That’s why we need to respect and follow Stop-loss to cut losses short. Agreed that sometimes, Stop-loss turns out to be a false alert but no compromise on Trading discipline, whatsoever.
And, according to us, Stop Loss is the most important aspect of overall Trading Strategy.
Importance of Correctly Choose Stop-Loss
There are mainly two kinds of Stop-Loss strategy one can choose to follow, namely
First: Nifty level &/or Sector Specific Index Based (both running &/or closing basis)
Second: Stock Specific based (both running &/or Closing basis)
Closing basis Stop-losses are more useful in Range bound (consolidating Market conditions) & low beta Stocks, commodity, and currency Pair.
Running basis Stop-losses are to be used in Strongly trendy Markets (either Up or down) and while trading in High beta Stocks, commodity, and currency Pair.
Identification of current Market conditions, well in advance, and application of Stop-loss, accordingly is the most difficult work for us and which is something cannot be expressed by words alone. Rather, this should be shown in actual working therefore comes automatically in overall trading performances, but over time.
Most Importantly, hitting Stop loss is not a sin, rather blessings in disguises.
Focus should be on relative Out-performance and it is not mean only Profit booking. Even booking INR1000 less loss vis-a-vis follow trader is also out-performance.
Furthermore, @ROCKET we believe that identify proper stop-loss for on-going trend is not a 100% full proof strategy, therefore not a complete work, itself. Rather, taking proper Entry in Trend Reversal is the actual work of an analyst.
Lastly, Sustainable Money can “ONLY” be made from active trading participation.
- Above WhatsApp Screen Shot was sent to Paid & Trial Clients at a same time on Thursday 23 November 2017, (yesterday afternoon).
- This article may not be covering all the market wide points, views, opinion therefore should not be taken as an concluded content.
- Stock Market Trading especially Futures & Options is high risk, high reward game and may not be suitable for every investor / trader.
- This post is nothing but to explain our view, opinion about Trading in general.
- At the maximum, we can do is to send timely & clearly explained message. Acting on advice is client’s (sole) discretionary and therefore, beyond our scope of work.
- We don’t do Intraday, Penny Stocks, rarely does Options. Main Focus is on Futures.
Thanks for Reading.
Get in touch with us at,
~ WhatsApp Number: 09900330558
~ E-Mail ID: Rocket@RocketTrades.com
For any more details, doubt, feedback please Speak with Nilesh Jain on 09900330558