Effort + Discipline = Success

This being my first note on this platform, I must commence this with thanks to King Nag (affectionate nick name for our dear Nagi) On this platform, I am going to leave the actual counting to guruji. We do not want two of us burning the mid night oil for the same objective. The first post here is dedicated to King Nag whose initiative has provided all of us a brand new platform. My hope is one day this platform will rise well over the level of the platform provided my mmb. I am sure it will, when we, as usual, make the Disciplined effort to attain that goal. In real life or in the market I am of the opinion that EFFORT + DISCIPLINE adds up to success. If it does not, then we need to examine one or both of them in depth. It works for me and I sure hope it works for the rest of you all. Using the Effort + Discipline with just the absolute basic knowledge of how Technical Analysis works, one can be a successful trader. CAUTION: What I am about to describe below works on very short time frame and hence may suit day trades and swing trades for one to a few days. The objective of the trade is to limit the risk aspect to a very minimum. After all, in the markets we have ZERO control over the reward while we have FULL control over the risk. I prefer to excercize this FULL control in support of Rule No. 1. There are two rules for this kind of trade and incidentally they stay the same for any kind of trade as far as I am concerned. Rule 1 - Capital Conservation at all cost. Rule 2 - Keep the loss short and let the gains run. If any other rule besides this is causing KONFUZION - I suggest we have one more rule: Rule 3 - When KONFUZED - Please refer to Rule 1. Game over. Now to the actual nitty gritty. Requirement listed in random order except the first one which is absolutely necessary to trade: 1) Capital 2) Ability to read a chart - especially to recognize the reaction highs (RH) and reaction lows (RL) on an intraday chart. So far we have dealt with the "EFFORT". We now move on to "DISCIPLINE". Wait for the underlying to post either an intraday high or low. Using the basic philosophy which ofcourse has become part of my trading life "Go short at resistance and long at support". For longs - buy low, sell high and for shorts - sell high and buy low is the mantra. If our stock or index opens and makes a new high for the day, we watch and wait for the next move. We will call this first RH. If the next move is corrective and does not go below the open, that would be the first RL. Go long just above the first RL with a strict, HARD STOP LOSS a point below the open (also the day's low at this time). When action gets close to the 1st RH, liquidate 1/2 the holdings for gains and leave the SL untouched on the other 1/2. If the price action continues to go beyond the 1st RH and posts its 2nd RH, Go short with a SL to buy back a point above the 2nd RH at the same time - revise the SL on the balance

1/2 of the long position to a point below the 1st reaction high. If the SL is triggered on the long, it has violated the 1st RH - The longs will deliver similar gains on the entire positon and we are now riding the short postion to gains. Its time to lock in gains on 1/2 the short position when the SL on the long is triggered.. SL on the other 1/2 to be left untouched. If the SL on the short positon does not get triggered and the underlying continues to post a new RL which is lower than our open. We may be on to some astounding gains. For those who are new, I suggest start with only one side trades, Those who can grasp the info, process it and can quickly convert it into action - can play both side. What is important is the discipline part - waiting for the reaction highs or lows and getting out when the trade goes against us with a minimal loss. The EFFORT, gives us the know how to enter the trades and the DISCIPLINE, the know how to EXIT the trades while respecting our Rule 1 and allowing the Rule 2 deliver gains. To be successful, the effort part can come up short once in a while but the Discipline part can NEVER EVER be compromised under any circustance. This in view of the ultimate respect to Rule No. 1 Have a great weekend and cheerz Waverider