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Trade Less, But Wisely; Get Rich Step by Step
MySAR (continuned...)
Learn an art to protect your employed capital
Market will give you profit sooner or later
MySAR is a magic number which reflects the balance of power within Nifty and once the power shift decisively, there are more chances of big gains. But sometimes, a keen tussle develops between buyers and sellers converting Nifty in consolidation or sideways move. In such a situation, there are two ways :
One can take trade as and when MySAR is triggered with 40-50 points of stoploss. If trade moves as per expectation, then partial or full profit should be booked with trailing stoploss. And if trade move against the expectation hitting stoploss, then trade should be reversed with stoploss and monitor the trade once again.
The other way is to identify consolidation period and spot price clusters forming support and resistance levels around MySAR level. And trader should take trade at the breakout of support or resistance with stoploss.
Those who want to succeed in stock market should know the fact: There is not any 100% perfect method or system to trade in stock market. There exist only probabilities of trading, it may go in Favour or in against, because price is moving by the mass market participants, not only by few people. Market may take turn at any point of time creating whipsaws. Such whipsaws cannot be stopped from occurring. Every trader has to accept them with smiling face as a part of trading activity. Yes.., with practice you can reduce number of whipsaws with better entry and exit with the help of your knowledge of technical analysis.
The system which takes care of your results and make you get into complacent mode is to be adopted. SAR trading, Pair trading, hedging are such systems. Along with this, you have to manage your emotions of fear and greed. Fear always plays its role when your system says buy (and in some cases sell), and greed works when your system says sell.
Whatever system you choose, understand it thoroughly first, how it works and why it works. And once you believe in it by heart, stick to it confidence, never deviate from it.
I am not an expert, nor I have authority to certify anybody's system. If any system makes money for you, it is as good as certificate for that system.
I have chosen this MySAR system as my trading technique which works well for me, and I do not want to look away from it. You should choose yours and stay loyal to it.
I emphasis here to work yourself and observe everyday......every hour how you handle the market with your applied knowledge. There are so many trading systems, so many indicators, no shortage at all. Each system has its own pros and cons, none is 100% perfect. If you do not realise this fact, your running for searching the best system will not stop.
"Longs above SAR, and Shorts below SAR" - this sentiment is easily reflected in a number, which I termed as MySAR.
When price breaches MySAR either upside or downside, does it require a certificate from any expert to declare: "MySAR triggered". If you need such confirmation, it is not lack of your knowledge, but it is lack of belief, conviction and confidence. No one can give you that. You have to go slowly, taking baby steps and expose yourself to the market with your trades and gain confidence. How long you sit around and procrastinate?
Stop & Reverse" is a simple trading method. If you find yourself difficult in trading such a simple method without another's approval, then problem lies not in method, but lies in your belief system. You need to do 'back testing' for last few say 2-3 years of daily data and decide whether such a system works or not. I have done it. You may like to do it yourself to feel confident about it.
As said earlier MySAR is just a number based on market strength and weakness as well as balance of demand and supply. Whatever the number of MySAR may be, a choppy and sideways market could give some whipsaws occasionally to shake off our confidence. However, staying with this method gives us consistent winnings. This is so because if you have incure any loss due to whipsaws, MySAR number has the capacity to recover you loss in the next reversed trade, and thus this system takes care of the employed capital itself. The only thing a trader is required to implement it with utmost confidence after observing the price movement sharply.
Unlock Your Trading Potential with MySAR Trading Strategy
MySAR is to be used for positional trade hence it is derived as per the EOD for its implementation on the next day. Means MySAR number derived as per Monday's EOD, then it should be applied on next day i.e. Tuesday, and MySAR derived as per Tuesday's EOD should be applied on Wednesday. Like this.
As said earlier MySAR is just a number based on market strength and weakness as well as balance of demand and supply. Whatever the number of MySAR may be, a choppy and sideways market could give some whipsaws occasionally to shake off our confidence. However, staying with this method gives us consistent winnings. This is so because if you have incure any loss due to whipsaws, MySAR number has the capacity to recover you loss in the next reversed trade, and thus this system takes care of the employed capital itself. The only thing a trader is required to implement it with utmost confidence after observing the price movement sharply.
As per the rule, long should be taken when the price is rising and short should be taken when price is declining. Now if on observing the chart, we notice that price is at present declining due to current continuation of downward trend, then we have to wait for the price to reverse and start rising to take a long trade. Again, we have to wait till the price crosses MySAR (which is derived as per Yesterday's EOD) from below with conviction. As and when price crosses MySAR with conviction, a long trade should be taken, say we have taken a long for 2 lots @ 15245 price considering MySAR number. This means long trade triggered as per the MySAR.
If after triggering long trade @ 15245 market falls again, we have to keep a filter of 20-30 points to MySAR and manage it. Knowing the key support level closer to MySAR helpf in filtering out the whipsaws during long trades and knowing the key resistance level closer to MySAR help in filtering out the whipsaws during short trade.
If after triggering long trade @ 15245 for two lots price moves upward, we have to keep practice to book partial profit at 50/100+ points and keep the rest of the position till a reverse trade is triggered based on each subsequent day's MySAR.
After booking out profit on partial position, say one lot, if price starts falling again, retraces substantially, try to take a new trade (rebuying) again. Rebuying the partly booked trade should be done at 50% to 61.8% of last segment of rise or at 21 or 34 HrEMA or 75 EMA in 5minute chart. Rebuying step is optional and should be implemented as per experience.
While trading any trading strategy, a trader should focus more on the strategy he has adopted and not on the number of winning or losing trades. MySAR trading technique is to earn money step by step, slowly slowly by protecting employed capital.
Following chart reveals the results of the MySAR strategy
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