After an Indian politician playing spoil sport, Indian market is again becomes orphan, it will look towards Europe and US for the cues. Today ECB will meet. The market expectation is that it will reduce the interest rate. Tomorrow is the D-DAY for the European markets in particular and World markets in general.
So expect a yo-yo kind move in markets for the next two days. So buy on dip and sell on rise should be your trading strategy. In between there will be action in the midcap space. As many smart investors have already zeroed in on the midcap space as the valuation is mouth watering. That is why the promoters of SUN pharma picked up sizeable stake in Natco pharma. Till the Global debt issue is resolved keep your finger crossed and never leave tour trading terminal.
The best possible strategy is to change your trading strategy in the following way.
· Trade light with strict trailing stop loss
· Buy or sell in staggered way to make most of volatility
· Do not carry overnight positions except high risk traders
· Fix stop loss as per your risk appetite and position
· Fix achievable target in view of market conditions
· Exit a trade at a slightest hint of weakness
· Your 1st target is to protect capital
· Avoid buying a stock after it has run up too fast
· Never catch a falling knife( stock)
· Even if all these precautions a trade goes wrong, do not try to average or hold as it, just close the call and hunt for new opportunity.
ENJOY TRADING.
