A wide miscoception is that DISCRETIONAY TRADING is "Buy anything that moves" just like an army command "Shoot anything that moves"
But good disc. traders have objective trading rules for entry/exit/PS/RM. They apply discretion only on whether to take trade or not
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🔁🔁🔁
But good disc. traders have objective trading rules for entry/exit/PS/RM. They apply discretion only on whether to take trade or not
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🔁🔁🔁
Such discretion can come from anything. There are traders who weighs market breadth along with own trading signals. If AD ratio is Positive, going long, especially in LTF is a suicidal attempt.
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2/7
There are traders who tries to align the market sentiments in their trading. If nifty is trading abv day open while BNF is trading below that, usually its chaos in market. Many avoids signals in such situations.
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3/7
Another such notable point is the avoule being traded in specific sectors. Suppose u got a good buy signal in Mphasis while the volumes traded in IT sector on that day is poor, its likely to b trap for the bulls with sector showing no strength
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4/7
Yet another situation is where choosing directional strategies and non directional ones. If the previous week ended with an NR21 pattern, chances are quite high that even with a slight increase in volume, it makes a fresh trending move
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5/7
If the market is expecting a news such as RBI policy anouncement, earning report, or any crucual policy anouncement by FM/PM etc, waiting for the situation to clear is only a sensible thing to do even with a good trading signal as per the rules one adopt.
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6/7
There are plenty of such conditions,each traders looks at. Its only wise to add such impactful circumstances into the decision making process. Only thing is that he must b logical and objective in incorporating such things.
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7/7
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