February 6, 2013

When Plan Fails... TataSteel

Trader Ed , written post about Tatasteel future.

He mentioned about  Possibility of sellers emerging around 401.50.

So that was possible Trade Idea we had in mind before Market Open.

And as we all Know markets are dynamic, there is continuous new information we get.
& we have to  keep assessing new information as it comes, to place n confirm Trade we planned.

Now Today Tatasteel Opened Above VA, Tested VAH and  it moved up very fast  (Open test Drive ) towards our ref point.

Here we get Alert that @ Open traders are not showing up on Sellers Side, Momentum is Totally Against us.
To Short @ ref point, we needed to See some weakness.
May be Rotations or Delta Divergence.
And clearly there were no Rotations, and Due to Data problem for exchange side, could confirm Delta at Open.

So We negate earlier stand/Plan And Skipped The trade. ( Which was Updated at Open ).

Its very easy when everything goes according to our plan, its important what we do when it doesn't.
Personally i don't believe in immediately  reversing Trade if it doesn't move according to plan,i Skip trade.

Here is chart,


Hope it helps n clarifies , why Trade  was skipped. 

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