Today should see one more gap open. Previous posts have discussed The process of trading a gap open. The same process can be used to exit short positions. Wait fair a specified period of time - 15 minutes to 45 minutes. Then, identify the high and low of this period. If the Nifty crosses the high, short positions should be closed immediately. If your system demands an immediate exit at the open, then follow your system.
What about traders who are long? The same process can be used to decide on an exit. If the nifty goes below the low, you may consider exiting, wholly or partially.
For new positions, same rules apply. First, decide on your view. Do you have a bullish view or a bearish view. Then take a position on a breakout or breakdown.
Friday, October 7, 2011
trading with a gap open
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2 comments:
I have seen that as ONES IPO was giving remarkable return to short term Investor,,,for last 6/7 months nifty range is so good its giving the same return to short term trader/positional trader....
sir ji you gave seminar on 14 may 2011 along with vivek ratan for
Topic: Day Trading Strategies and Methods
•How to develop a view on markets each day before we actually start trading ? if possible upload presentation. or please write on it
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