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PLEASE UNDERSTAND BEFORE YOU
TRADE
TRADING GUIDELINES (or how to
trade using this sheet):
1. This model is based on the
premise that the TREND LEVEL is the most important price
level that decides the intraday trend. Much like how the door or a window
hangs by a hinge and sways in the wind, the intraday trend also hangs by
this TREND LEVEL and
swings because of the demand-supply, volatility and market sentiments
prevailing in the market. Hence its importance in intraday trading.
2. Opening Price is
considered around close of previous day. Avoid BUYING if Prices open
abnormally High and Avoid SELLING if prices open too low.
3. If the market price is stable
above the TREND LEVEL, then GO LONG. and book profit near the resistant level
(res1 and res2)
4. If
the market price is stable below the TREND LEVEL, then GO SHORT. and book profit near the support level (sup1 and sup2)
5. STOP
LOSS: Since you are aware of the 'potential returns' at
the time of initiating an intraday trade (difference between the entry price
and profit targets), you should set up an appropriate STOP LOSS around
1% above below of the trade price to protect yourself if the market turns and
goes against you.
6. ALTERNATE STRATEGY: If
you have already initiated a trade with clear-cut profit targets and a stop
loss level, and find during the course of the trading day that the market
turns and goes the other way and crosses the TREND LEVEL, then trade again:
.For instance, if your first trade was a LONG trade
and the market price drops through the TREND LEVEL to lower price
levels, then GO SHORT.
. And, if your first trade was a
SHORT trade, and the market price rises through the TREND
LEVEL to higher price levels, then GO LONG.
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