Valentine's day is coming and love is in the air. If you switch on television, it is difficult not to notice the advertisements on all sorts of stuff targeted at lovers keen to celebrate the upcoming Valentine's day. There are certainly advantages in real life if you are following your lover with care and appreciation. Valentine's day gift being only one of them ...
In Superior Profit, our traders seem to be hooked to another kind of love and affection. Towards the stock market. And those of us who follow our stocks and ETFs and Futures regularly reap handsome benefit. Today was another such day.
Let me explain ...
During the weekend I had met with couple of stock market lovers at the newly opened shiny shopping mall in South Kolkata in India where I am traveling now. Over a cup of coffee we were going through some stocks.
Nifty (Thomson Reuters symbol NIFc1) chart came to our notice. Nifty is the Indian stock market benchmark Index. And Nifty Futures and Options are traded heavily - like any other major market indices.
We had some interesting reading from Hop On chart of Nifty Futures. As shown below.
As we can see, since late Oct, 2015 Nifty is in downt trend forming Lower Highs in a waterfall pattern (marked as point A). Taking a Short Trend Following Trade at each of those peaks would have generated handsome profit for Swing Traders.
CUE chart also has a powerful Trend Reversal Headwind signal (showed as green or red diamonds on the Candle chart) that shows potential reversal points - catching the almost top or bottom in a stock's short term move.
During this downtrend since Oct'15, , we had two instances of Bullish Headwind (marked as point B). In both instances, taking Long Swing Trade would result in significant profit. The chart also shows a Bearish Headwind signal (marked as point C) . This had coincided with Trend Following Go With Flow Short signal (signified by magenta color Candle). That would be a clear Short Swing Trade opportunity which resulted in handsome profit again.
All those trades were in the past as we were perusing the chart. In real life, we trade at the right edge of the chart. Where things may seem blurry to most trading systems and traders. But not so in our CUE system and not to our Superior Profit traders !
At the right side of the chart - during weekend we looked at the Friday's data bar (marked as point D).
I had commented to my fellow coffee/stock lovers that Friday's bar ended right at the declining Memory line while Nifty was in overall downtrend. It had come to Value Area - an optimal place to take a trade.
That could give us a very nice opportunity to Short it on Monday using Real Time chart provided proper CUE trade signals showed up in the Fine Tune Real Time 5 Minute chart.
As it happened, on Monday (8th Feb 2016) Nfity opened near Friday's Close. Went sideways for a while and then fell in afternoon trading. Monday's bar turned magenta in the Daily Hop On chart (marked as point E) which would be a Go With Flow Trend Following Short signal in Nifty.
Some traders could have entered the Short Swing Trade at End of Day on Monday. Some may enter it at Tuesday's Open.
However, one of our traders happen to be alert to the potential of Short trade during Monday itself based on our weekend coffee / trade discussion. And using Real Time Fine Tune template (not shown here) had entered the trade in the afternoon. Right when it started the down move. How was it possible to catch the very beginning of the move in Intraday chart? That was possible by useing CUE charts's Stretch Release signal.
[To learn more about CUE Trading System you may refer to our Education Center where all the training videos and books etc. are provided on a complimentary basis to stock market lovers like yourself !]
By end of the day the position (using Nifty Feb 7500 Put) had more than 70% profit - opening price being 101.43 INR and Last Trade price being 173.7. The brokerage snapshot is shown below.
While the traders who entered trade at End of Day today or those who would enter tomorrow using Real Time chart may also have sizeable profit, this Stock Loving trader is well ahead of them. Having already secured 70%+ profit in the trade while others are seating at breakeven or might not have entered the trade at all. This trader could have also booked some profit today itself. Closing enough position so that the remaining quantity becomes a "guaranteed free trade".
This trader was able to be ahead of others - by simply following his love - and tracking a handful of symbols regularly - Nifty being one of them.
And having an unambiguous and easy to use system (CUE System of course!) allowed the trader to make decisions quickly and enter the trade at an optimal point.
Does your system allow you to reap similar profit in such a confident and easy way following your love?
Citizen of Main Street.