Today's blog is yet again going to be short. I will be posting more on my trades and the psychology behind it.
So yesterday I booked my big loss. Today, I got carried away yet again because Stochastics MTM & RSI was way too high for Bank Nifty and we ended up shorting it at 24304 and it ended up going to 24382. So I'm in a loss of Rs.3100/- and I'm hoping it will go down tomorrow morning because everything is high. But the only catch was that EMA was going up and we failed to see that yet again.
But on the positive side of things, we stuck to our first rule which was trade only Bank Nifty & Nifty. Hoping for a miracle tomorrow. Let's see tomorrow. I will be closing my position if Bank Nifty goes above 24400. And I will go on the long side depending on EMA, Sotchaistics MTM, and RSI.
Today I traded with Rahul and his cousin as well. His cousin told me about how he lost Rs.40k in the market. He held that position for 2 weeks and it automatically got squared off because he didn't have the margin to trade. And the next day it shot up to double his price and he felt like shit. This is what the stock market can do to you if you are not on your toes and not trading the smart way.
Lessons I learned from today:
- I will be only put in my trades when EMA gives me a signal even though Stochastics MTM & RSI are way high.
- I will check the reason behind each candle by checking the hashtag on twitter and following key bank nifty traders
- I will invest my money in bitcoins once it goes down.
- I will do my own trades and not be influenced by Rahul.
Hoping for the unthinkable tomorrow.
Let's see what happens. 'Fingers crossed.'