Lets write a sneak peak of tomorrow’s Newton Session here.
So, Last week we discussed about Idea and Bosch.
As a price action trader, We were basically peeking around the psychology of traders who are already in the trade to understand their mentality.
The outcome was - “We will short on PDH (Previous day’s high) break” as it was satisfying all the conditions mentioned there.
Before - Chart Image — TradingView
After - Chart Image — TradingView
Well, as I see Zerodha, It is not showing the PL properly https://i.imgur.com/WJ3Y7rO.png
The profit is around 32400 INR.
(19650.25-18570.25)*30 = 32400
This is a very easy trade but it is looking easy because it went easy.
But, our Idea trade immediately went haywire after the trade was triggered.
But this is why we never had a stop loss, to begin with, nor did the trade was triggered at the first place !!
This was weekend level 10. The setup is posted after we see a green candle and did it triggered our “Buy here” price? after we posted the setup?
No
It fell.
We sold ATM call options on intraday as planned.
Also,
After sometime it rose up and triggered our price of Buy Here
The trader who doesn’t account to the psychological fact of “If a stock keeps falling for 10-12 days, the shorter will not book when one PDH is broken because he is sitting on massive profit but if another PDH is broken then tsunami happens.” will buy Idea and get panic and do more mistakes.
Recap done. Let’s proceed to this week’s discussion now!