Buy Low,Sell High

Money is made by buying low and selling high . It is a universal truth. Trading cannot be different.
The problem is  many traders do not know  where  exactly the lows and the highs are.You need a slight change in perspective to know this.

Markets move in short term ranges. A trend is a series of range breakouts.When the Markets break to new highs, it is always in the lower end of the range above.Once you become comfortable with this reality, you can always trade whether it is trending or ranging.

If you are not comfortable trading counter trend, stay with the trend. If the current price range is above the previous one, the trend is up, and try to  buy the range low.If we are in a lower price range only attempt to sell the range highs

Many "Gurus" advise to trade trends and stay out when markets range. I do not subscribe to this view.

Do not miss my earlier post. Click to read

Learn to trade sideways markets so that you can trade all the markets

Reading: One Trick Ponies

Jack Schwager’s new book "Hedge Fund Market Wizards"

Schwager:  You have seen a lot of traders.  What are the characteristics of traders who succeed?

Clark: They all work hard. Nearly all the successful traders I know are one-trick ponies.  They do one thing, and they do it very well.  When they stray from that single focus, it often ends in disaster.  In the hedge fund world, you will see traders who do one thing very well, make a lot of money at it, and then think, This one thing is very boring. I can do other things because I am a genius. So they start doing other things.


Schwager:  But successful traders who are one-trick ponies, when that trick stops, they learn another trick.

Clark: That is exactly what happens, but some traders will change while their one trick is still working and destroy it.  You need to be a bit obsessive to do the same thing 10 hours a day.  People who are obsessive can become very good traders.


Steve Clark: Do More of What Works and Less of What Doesn’t.

25052012

Nifty gaped down and remained within the last swing of the previous day. Last swing of the previous day acted as a range.FTC below the swing low gave a long signal. TP at BRN as there was no immediate follow through after the breakout..First BOF of PDH/PDC gave some profit. Second one was a scratch