Trading Rules With Illustrations

It is not advised to carry overnight long positions when market looks weak or much volatile. Market is considered weak on the basis of FII's activities and volatility.Having observed the market dated 26.06.2020 ,it may be suggested that it is a weak market and also volatile so carrying overnight long positions are not advisable specially in Nifty and Bank Nifty .Any particular counter is also avoidable until it's showing much strength.It's better to take  risk in the next session when market opens .At the opening of the market one should focus on the strong counters and should make long position in these counters if these counters open at discount otherwise one should leave it. Here one thing is very important when  and at what time should one make long position? There is no concrete rule to deal with it. lt will be dependent on your intitution and common sense. Although it is advisable to wait for sometimes .It may be10- 15 minutes or something else as per your experience and the price of  the stocks at that time. If its showing the discount of around 2%, it is ok.It often happens that after taking long position in such counters its prices further goes down but one should wait for sometimes for coming the prices upwards. It's high probability that  prices will come in green because of strength in counters . Long positions are avoidable in discussed counters if it opens already in green.

Remember it all will happen in  normal market conditions and not in abnormal conditions.

In earlier blog I have suggested some strong counters like Infosys,TCS and IOC.Other may be NIIT TECH. Focussed on these counters and observed the price movement.

In next blog I will discuss some other situation .

Thanks to all.