and the total volume traded in rest 415 minutes is lesser ...
more than that traded in each individual candle ....
that I marked in chart
Now I am trying to write the things I noticed in the form of story ...
just imagine I m having my brokerage firm and having 500 lac shares of rcom in my and my wifes acct in my brokerage firm..
generally it is the tendency of traders they place buy / sell orders where the market is trading ...in todays case it was 188.00 ... market was falling from 191 so every one was short and placed stoploss as per his/her risk appetite...
now at 188 I planned to trigger stoploss orders ....so I placed my sell orders in huge quantity at 189 ,190 ,191 and started huge buying at 188 ..
result price shoot to 190.in seconds
sl triggering started and i sold my stuff to stoploss orders which i bought at 188 to 189 .
to hide my plan ...I did some additional trades too to hold the price above 190.50 with my family account ... and to trap those short sellers who were short but were smart too..and dint placed sl ..
5 or 10 minutes hold above 191 level is enough to create panic in small traders and they will easily come and buy at 191 they shorted at 188 hoping 60 paisa gain will give them 1k return on 1 lot ...but booked 6k loss due to inability to hold the position.
later I exited from scene and RCOM again reached to 188.55 in closing time ...
when i m trading in my family accounts i m paying nothing as brokerage firm is mine and government taxes are almost zero on future trades.
i m gaining nothing reason i m trading at same rate ...buy / sale is at same rate so no capital gain...
the gain is unlimited in limited time...
what we must learn from the above story ...
avoid placing stop loss order
do not over trade
trade only if you are sure of direction of your trade
keep equal mtm for emergency.
RCOM it is crystal clear seeing the chart that some one is involved in its irregular move ... so u must be careful while going to short it and short its July Aug all futures at each higher move ... without stoploss ...u will sure get benefited ,...
If u will not place stop loss and will sell it at each high it will reach to 172 .00.
RCOM only 4 to 5 green candles having big volumes ...of weak stock ...
please refer for reality ...http://dhanvarshagrp.blogspot.com/2010/07/rcom-technically-bearish-so-why-its-buy.html
one more example in TCS....
call was short Aug futures below 880 .00 at every level ... for a target of 798 .00 posted on 5 Aug at
In 2 Minutes 860 to 873.80
Volume in whole day ...1910,000
in two candles 845500 + 604500 = 1450,000 please see in chart
reason ....stoploss triggering of small investors
avoid placing stop loss in system now ....Use mental stops ....
TCS made low of 857 and closed at 859.00
gained 21 points on our short call
lot size 500 x 21 = 9500
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