Profiting in falling market

Market witnessed a steep fall today. Nifty closed below 8000.This was the lowest closing level of last seven months. Weak monsoon may be a reason. Broader markets were selling.

When market behave like this, so called buy and hold strategy will not work. Trader need to adjust with the market spikes and sudden sell off. In normal scenario traders got trapped in fake break outs. This happened in last day and last week. Market showed a fake signal of recovery. But signals were not strong and never gave exact idea of weak economic conditions.

One cannot predict market with perfect accuracy. Only a trader can do is trade with the daily trend. Today market opened in green. Many traders thought there would be a continuation of last days rally. But market decided something else. Traders who missed last days rally entered in the market during morning itself. Finally they were all hitting stop losses.

So we can assume in such market buy and hold or long only trades will never work. That is the reason Excella Trader always advised traders to follow our intraday calls. New traders who entered in the beginning of bull market used to think they are the masters and no one can beat them. This thought will end when trend fades. Then they run for cover. They finally end up in long term mantra.

In many years stock market experts promoted a very simple and easy investment advice. Buy and hold. It became an acceptable norm for beginners, individuals, and fund managers because of its winning streak in long period and cost efficiency. But do not advice long term for a customer who want a quick gain and do not want to wait for several months or years.

Long term trading is not putting all your money at one time and in one shares it has lot of strategies.

In Excella trader is trader’s paradise. New traders may feel it as a scary market.  But in such a volatile market Excella Trader will give extra ordinary gains.

Above is the Nifty futures prediction from Excella trader. This we generated before the market open. We made short entry at 8097 with a target of 8022.  Our profit was 75 points. earlier we made a long entry and made a stop loss at 20 points. So our Net profit from trading Nifty was 55 points today. If trader tradng only 1 lot could have achieved a profit of Rs. 1375.