QUESTION – Why So much Importance should be given to 16 January 2018 ?
ANSWER – Because of Price Volatility seen both in Domestic & International Markets.
Price Volatility is indication of lively Market and that has be bore, irrespective of everything or everyone; And if you wish to run away from Price Volatility that means you should not be in Stock Market, whether A Trader likes it or not.
All in all, fluctuation makes either Profit or loss for you. Try to Use it for your benefits.
International Price Volatility seen as on 16 January in “DOW JONES”:
After long weekend, (Monday was holiday) when DOW opens for Trading on Tuesday it was plus near about 280pts at opening, during course of the day, reversed all the gains, even saw 100pts negative from last closing but finally recovered all losses to close minus 10pts.
Which Means near about 480pts Intraday Swing in 26000 Index.; near about 2% Intraday Price Volatility and that to be in world’s most stable Index.
Mind You, on top of that, DOWJones had seen fastest 1000pts Rise from 25000 to 26000
Now imagine NIFTY trading in 2% range (that’s 200pts plus); HOW, people will react to that ?
Domestic Price Volatility seen as on 16 January:
Nifty was down only 40pts whereas Mid-Cap & Small-Cap Index were down more than 2.5% a piece each. And Rocket Clients had 6 Positions Open in their account, namely,
Now, You are requested to note our various selection criteria and that is,
~ None of above two Positions are of same sector Stock.
~ Neither of above Stocks are Inter-group Stocks (example TATA, ADANI, BIRLA, ADAG Groups etc.) nor they are high beta (highly speculative) in nature.
~ All above Stocks are backed by Strong businesses Fundamentals and they are Operational, day-in day-out without fail.
~ Neither Government had initiated any action against them nor they did something bad their own (Example – Results, Announcements, etc…)
~ Above Stocks are belongs to different Nifty Sectors (Nifty50, Nifty100, Nifty 200 etc.)
~ Most Importantly, All were given when they gave true (bullish) breakout after spending considerable time in base building process. In other words, none of them were Momentum and/or chased by us in any manner.
Please share your thoughts in Comment Box if you feel that ROCKET missed any precaution and/or filtration to generate safe & sound Trading Positions for the Clients.
Who wants to incur losses, obviously no one !
But still loss happens. Why ?
Because real culprit is nothing but Price fluctuation (whether normal or abnormal) that motivates people to book losses out of Fear, Panic and Confusions.
Remember, Price Fluctuation can also make Profits for you if used correctly.
Now, it is very important that we should discuss (mention) about our internal workings AND thoughts on, before and after giving trading positions to Clients, (Paid & Trial)…
First: We are Tracking only 155 Stocks out of 200 plus Derivatives Stocks to maintain focus.
Second: Giving Trading Positions only in Direction of NIFTY, Bullish means only BUY Calls.
Third: Giving Trading Positions only after 3:10pm, just to subside Intraday Price Action.
Fourth: ROCKET follows two kind of STOP-LOSS. Namely,
a) Stock Specific Stoploss, and
b) Nifty Trend Change Stop Loss
Only during abnormal market movements (as seen on 16 Jan), our stock specific Stoploss gets hits. Here, we follow Nifty SL, Screen Shot attached…
Anyways, Classic Bull Market Corrections are Sudden, Deep and unexpected, but the good news is that they are always temporary; which we saw happening today.
Anyone, who exited from their longs yesterday out of panic or worst reversed longs into Short Sells would be regretting it for long time.
Best Advise is to refine best possible Entry and have flexible approach while booking losses.
This article does not mean that ROCKET Trades is not ready to book losses. Rather, our focus is only at logical but not Panic exit.
Closing my write-up by wishing you to keep Booking Profits by Trading Safely !
Thanks for Reading.
Get in touch with us at,
~ WhatsApp Number: 09900330558
~ E-Mail ID: Rocket@RocketTrades.com
For any more details, doubt, feedback; Speak with Nilesh Jain on 09900330558