How to exit Nifty and stock profitably ? Nifty in all time highs !! Congrats those who really benefited ! In my analysis FII are the major gainer. Not the retail investor. Most of the traders exited early and missed Nifty rally. Traders normally experience a situation exit early and became mere spectators of the rally. Then they regrets and they may risk taking position at the highest level not knowing that is going to be a bearish turning point. Another group exit the long positions and immediately going for short. What is the rationale? Just you are falling the slave of your emotions. Please go to the basic technical and risk management theories. More than all be disciplined in taking position. Don’t marry a share . Don’t worry one of your share going against your analysis. It is found that people are successful in taking entry in an equity. Most of the time stocks moves in their favor. But how many of them get the maximum benefit on rally. Majority never get it. Buying at low and selling at high is not at all possible. But as a trader you must clearly look at the momentum . There are so many indicators used to detect the genuine momentum. We advised traders to get the share even in high levels so that they can exit at the higher levels. Tata elxi was an example. When the momentum confirming the buying started , we start buying and our exit was timely. We have traded Tata elxi, Voltas, Adani, IDFC, JP etc in last 30 days period. We entered in these shares during the middle of the rally. There are chartists preaches on exit strategy. Charts may sometimes misleading. Go to the basic. Check whether what was your rationale for taking position. If that reason is still exists go for holding it. There may be slight pull backs. Check the volume. Last day too I had been discussing about this exit strategy with an analyst. I got answer. But it was not convincing. So I decided to go with my own strategy of exiting based on a formula derived from last few days price penetrations I back tested the method. Thankfully it was working 70 percent of times. So for the time being I am sticking on this system of entry and exit. Read More excellatrader/News%20View.aspx?id=323&market=Market%20Analysis
Posted on: Sat, 08 Mar 2014 06:11:25 +0000
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