Short Sell in Futures
Pattern: Shooting star after a strong upmove.
Wave: 5th.
William %R: overbought
Support: 3822 - lower edge of long candlestick
Entry Date: 12-11-2010
Exit Date: 15-11-2010
Entry Price: 4120 in futures.
Exit Price: 3940 in futures.
This was my first short sell trade. The markets were weak in the last week. But Titan rallied a good 10% in 1 session. The very next day, there was a nice shooting star, in the overbought condition.
The trade lasted just 2 sessions,I imagined this black hammer kind of thing that suggested selling might have stopped.
But it still gave me more profits than any of my previous trades. That's because
1. Fear is a more powerful emotion than greed.
2. It might take a million shares to be traded for the prices to go up. But it takes only a tenth for it to push it down.
3. Gravity pulls down almost any stock. Even if its Titan.
No comments:
Post a Comment