Read on Twitter
#Thread
Holding Onto a winning trade.
With Actual trade example.
As promised, putting out this thread to Explain importance of riding a winning trade.
1/n
Share & RT for sure if u find value addition. Have taken so much of efforts to write this one.
Holding Onto a winning trade.
With Actual trade example.
As promised, putting out this thread to Explain importance of riding a winning trade.
1/n
Share & RT for sure if u find value addition. Have taken so much of efforts to write this one.
Will keep this simple. Whenever you're in a trade, Ask yourself 2 questions.
1) Is this a 'Trending' move or just a 'Scalp & run'...?
2) Pullbacks - Is this 'just' a retest or Sign of reversal.
3) Where is a Possible Exit point from Scaling in & Out Perspective.
2/n
1) Is this a 'Trending' move or just a 'Scalp & run'...?
2) Pullbacks - Is this 'just' a retest or Sign of reversal.
3) Where is a Possible Exit point from Scaling in & Out Perspective.
2/n
Most Imp question is No. 1How to decide if it's a Trending day or Scalp & run day.
Relation with PDH & PDL with their respective volumes at these levels. Important Support & Resistances broken.(These can be Pivot S/Rs, Trendline zones, Fibonacci levels, etc)
3/n
Second Important aspect is Deciding if it's a just a retest or possible sign of reversal.Every BreakOut level 'has' to be retested. If the momentum is so strong it may give just a hint of retest (check 1 or 3 min chart) & regain it's momentum.4/n
Possible signs of Reversal include Bounce off Pivot S/R, Trendline S/R & Imp Demand & Supply zones.Most Reversals will Happen at Crucial Supports & Resistance zones only. So, if you've an open Position, Scale out slowly at these points & wait for price reaction here.
5/n
Deciding Possible Exit Points from Price action perspective. Again this point includes most probable areas that could stop the momentum. Say Pivot Points, PDH, PDL IMP Support n Resistance. Try to scale out some Positions here.
& Decide the next decision Based on PA.
6/n
Now coming Back to Actual Trading. What keeps you from pulling off big winning trades is 'YOURSELF'.Sitting tight on a Profit is no joke in reality.
You need to have Enough patience thru the pullbacks, that reduces ur unrealized gains.(talking abt Trending move)
7/n
The ONLY Solution For Managing Psychology in winning trades is to 'not look' at your MTM Constantly when trade is open. Focus on chart more.The live MTM Can Hijack your mind in ways u can't even comprehend.
So, Better Focus on Chart
n maintain patience.8/n
Example -Staying in a winning trade & Getting Out of it only when It's necessary & not just Bcz 'you want to'.
Let's Go thru. the winning trade that I made last month that did the job of weeks for me.
Here's the Detailed Trade.
https://twitter.com/arunjagtap007/status/1247838478068404224?s=19
9/n
Now, to Explain the Process of Psychology behind these trade. I've to Pullout some Screenshots from #TheLearningProgram that day.Day is 8th April 2020.
First instance of long
Bounce off Pivot.But, I need Confirmation from VWAP to Decide If it's a Winning trade or Not.
10/n
Next step was to watch it's behaviour around VWAP + OR High.
Both Got Cleared + Volume was huge.
Great. It's 100% winning trade. Gotta stay as long as trend lasts.
Now, the 8800CE I bought @ 82 is 180+
Obviously, there are emotions.
But, I know know 'Retest is must' here.
11/n
Both Got Cleared + Volume was huge.
Great. It's 100% winning trade. Gotta stay as long as trend lasts.
Now, the 8800CE I bought @ 82 is 180+
Obviously, there are emotions.
But, I know know 'Retest is must' here.
11/n
Retest Done here. But, my main Edge came to help here.
The 8800CE Which was at 180+ came down to 130 within 3 minutes.
I know that lots of chunk of my Greens is eroded. But, I'm focused on chart. So I don't care. Bcz, It's 'just an OR Retest'
12/n
Most of You'd know 50 Points in NIFTY Options is no joke.So, I'm specifically looking for certain Parameters in PA to Stay in this trade.
(Obviously the SL is Trailed @ much higher price than C2C, so Fear factor is gone)
After successful retest, Price Broke PDH.
13/n
At this Point, As the Price moved higher, I've Trailed the SL Much higher & it's a super Profitable trade now.
Final Step, need to take care of Exit.
So, looked at Various data points of OI & PA. & Finally Noticed Strong Resistance at Pivot R & Exited.
14/n
Final Step, need to take care of Exit.So, looked at Various data points of OI & PA. & Finally Noticed Strong Resistance at Pivot R & Exited.
14/n
Final Outcome --Perfectly, Rode the Trend from 82 to 312 for almost 4X.
& Initial SL was only 15 Points here. So, RR becomes like 1:15
15/n
Trade -
So, To summarise, if u want to hold a winning trade in Best ways Possible, Better get command on Psychology in live market first.
Follow the steps mentioned in first few parts of the thread. & Thank me later.
I hope, this thread will add tremendous value for you.
Thanks
Follow the steps mentioned in first few parts of the thread. & Thank me later.
I hope, this thread will add tremendous value for you.Thanks
