Friday The 13th: Bad Luck Or Good?

Wow, it was real volatile today!! Even on intraday basis my stops are taken twice in Nifty future. As usual a losing day teaches you something. Your losing trades do not diminish you as a person. Losing trades are simply by-products of the business that you are in. The most successful traders in the world have losing trades each and everyday.

So lets discuss on how to survive a volatile market?
Deal with your losses: Sometimes you just have to admit when you are plain wrong about a trade that you made. If an extra volatile market, even holding on to a bad trade for an extra day can cost you plenty. It is better to admit when you are clearly wrong and cut a small loss before it can become a sizable loss.
Deal with your gains: It might seem silly, but you have to also figure out a rational way to deal with your winning trades. It seems simple, but winning trades can put you off balance by making you feel like you cannot make a mistake. It’s important to keep an objective eye, even if you are making a large amount of winning trades.
Know when to back off: Sometimes the market lacks any kind of sense whatsoever. It will keep pulling you in, and then taking out your stop and dragging your account balance down. It’s ok, to step back and leave the market for awhile until it settles down. There is money to be made every day.
Risk Management: There could be no better time to use proper risk management than during a volatile market. Risk management can save your trading account!
Position Sizing: When the swings are wild, trade smaller. The size of the moves will make up for smaller position size. A large position size will just make you feel nervous as the market whips around with your trade. This could make you do something you will regret later when the market takes off on your intended direction.
Correct use of Stops: Special care needs to be taken on the placing of stops in an overly volatile market. Most of the time, tight stops will not work at all in a wild market. Trades will need room to breathe. Otherwise traders can be stopped out often by price whipsaws. If using the proper position sizing, it is ok to use a wide stop to let your trade breathe. But most of the times, our first stop gets hit before we realise that the market is going to be volatile.


Now, what to expect tomorrow "Friday The 13th" in Nifty future? Watch out at 4971. Desicive crossover above 4971 will take Nifty future to 4988/5005/5023 levels in little time. Now if crosses 5023 and trades above it for 5 minutes, get ready for fireworks till 5046/5067. Now, if can't cross 5023 and trades below 4957, we can again witness slide till 4942 and if 4942 is broken bears will have an upper hand and take it till 4919, the last hope for bulls. Because if 4919 is broken with volume, road is all clear for bears till 4870.

Bank Nifty future, my subscribers has really minted money today as we went short @ 9270 level. Just see it has fallen till 9011, offerring intraday profit opportunity of 250+ points. Upside hurdles in Bank NF is at 9132/9162/9189 and downside support exists at 9073 level. Either side break will set the mood tomorrow.


Nifty future important levels for Friday, 13th November:
R3 5118, R2 5067, R1 5018, Pivot Point 4968, S1 4919, S2 4868, S3 4819.
Bank Nifty future important levels for Friday, 13th November:
R3 9623, R2 9477, R1 9303, Pivot Point 9157, S1 8984, S2 8838, S3 8665.
See earlier posts Lets Trade Nifty Future Intraday Using Pivot Points - The Complete Know How (Part I, Part II and Part III) to know how to trade these levels.

Now join me live in Stock or Nifty/Bank Nifty Future trading in my live trading room. See the Premium Serives page for more details.