Tag Archives: Pivot Trading

Nifty and Bank Nifty Technical Analysis for 12 Sept’13

Nifty as on 11 Sept’13– 5913.15 (+216.35)    Bank Nifty as on 11 Sept’13– 10369.10 (+180.85)

Nifty is struggling to sustain above 5900 levels, but still it has not put down hands, making efforts to stretch further. Possibly, support from Bank Nifty and CNX IT Index can come to rescue, and even later performers metal and cement sector stocks are performing at this time.

Nifty Trading Strategy

Broadly, Nifty remained range bound in last session, neither bulls get something to cheer not bear players. Nifty moving and closing above 5900 levels, increases the possibility of further extension in prices, but there is equal probability so can’t bet conclusively. At this juncture we would like to take help of Gann Square of Nine calculator and prefer to go for Pivot Trading.

Keep visiting Way2Profits, for unbiased view on the market.

Why to Trail, Stop Loss?

In most of my articles I mentioned about trailing stop loss. I am sure experienced traders know this concept very well, and know how to utilize this in best possible manner. But novice traders may get confused many a times that why to trail stop loss, how to trail stop loss any few other points.

Let me begin with, basic understanding of Trailing Stop Loss.

After initiation of trade once stock moves in desired trend, trailing stop loss can be used to avoid the potential loss of profits.  In simpler words, if traders buys the stock and price moves in favor of trade on upside, it is always desirable to progress stop loss order in your favor. For example if Traders Buys Nifty lot near 5850 and Nifty moves to 5880, it is always advisable to progress your stop to your cost price.  Here simple rule applies, once stock achieve 1:1 ratio in favor of your trade, trader should always trail stop to cost price and wait for further directional move.  By this trader is rest assures that now he has nothing to lose from his pocket, and now he is trading at break-even level, in worst case scenario he can trail stop to nearest level of current market price to book profit in 1:1 ratio.  By following this rule, in long term trader not only protect his capital from drain but also builds a wealth and simple discipline will make him confident about taking a trade.

I advise my readers to trail stop loss even when you are following Gann Square of Nine rules, Camarilla Trading method, or any positional trading strategy, it will be always highly useful. (Experienced traders can excuse)

So, if you want to earn with confidence, than try to follow some simple discipline, and you’ll surely see your confidence building up, which is nothing but another Way To Profits…