Let me tell you why You Will Blow Your Mind For Missing This Opportunity.
One stock, one week holding and profit of Rs. 90,000.
If You would have hold it for one more day then you would have made at least another Rs. 1,00,000.
If you buy the good many shares of a good company at best price but you lack the patience to hold it until it gives you desired profits, everything is in vain.
Patience is the utmost important element to make supernormal profits.
Why is patience so important?
There can be three incidents after you get into a trade.
- Markets shots up and your account is in profits immediately, not much patience is needed
- Market Falls immediately, Comparatively higher patience is needed
- Market starts consolidating, much more patience is needed because you may not know how long the consolidation will continue and which way the market will break out after it.
In technical terms, “Consolidation is said to be the phase where the stock or the entire market trades in a range for longer than usual”.
If you are not in a position and the market is consolidating you can wait and enter after the confirmation of breakout. Lucky guys.
But if you have already took the position and the market is consolidating you are in a glitch. What should you do?
Should you exit during the consolidation phase?
Should you exit after the confirmation?
What if, if the trend confirmation takes place against your position?
The answers to these questions will always be dominated by your Pain level/stress level. In simple words your risk taking ability.
Do you think you need a more critical thinking to make Supernormal profits.
How does this thought helped our traders to make Supernormal profit of 90k in just a weeks time.
Case study :
Biocon Limited FNO Lot size : 1800
Recommendation Rate: 540
Stop Loss : 520
Target : 590 (achieved)
High after our recommendation 652
- On Hourly charts, Biocon Was Consolidating between 549-534 a trading range of 15 Rupees between Horizontal lines H1 resistance line & H2 the support line. It had a strong support of line H3, was earlier playing resistance at point 0. Then gave support at 525 & point 5 like earlier. Line H2 gave support at point 3, 4 & 7; whereas line H1 a was resisting around 549 for several times.
- Trend line was drawn by connecting point A&B.
- A Buy Call was generated @ 540 With A stoploss of 1% below the low of point 5.
- Target price of 590 was a fibonacci level of 1.618% of range between 565-525 at point A & point 5 Respectively.
BIOCON SHOT UP LIKE A ROCKET and did not just stop at 590 but kissed 652 in a style.
What do you need to do is ask 3 Questions to yourself
- What do I do when my position get stuck in a consolidation phase ?
- Do I have a knowledge of my pain level before entering a position ?
- How do i find consolidation phases and act upon it?
“Patience & Temperament with right strategy are the essential qualities for winning the supernormal reward in trading“.
Stay tuned for next Strategy and a Case study.
Thanks for sharing . . .
Happy Reading… Happy Trading . . . Be a Wealthy Trader . . .
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