Bank Nifty trading at Life Highs, Weekly Analysis

Last Week we gave Bank Nifty Trend Deciding level as 12800 and it did 2 target on downside and achieved all upside targets. Bank Nifty has made a fresh lifetime high of 13355 and closed above its previous life time high of 13303 on Nov 2010
As discussed in Nifty Weekly Analysis, Nifty gave a breakout above 6120 and Bank Nifty  above 12800, So lets discuss how to trade Bank Nifty in coming week.

Bank Nifty Hourly

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Nifty closes at Multi year high,Weekly Analysis

Last week was one of the most dramatic week in recent time with Sensex plunging 400 points on Monday and recovering and positing a spectacular 500 points rally and closing Market  above 28 week high. Standard and Poor affirming India’s sovereign rating at BBB- and saying that there was one in three chance of a rating downgrade over the next 12 months did not affect the market mood.Next week  SBI, L&T results this week.So lets see how to approach nifty trading for next week.
Last week we gave Trend Deciding level as 6120 Nifty achieved 1 weekly targets on upside and all 3 downside triggered.

 Nifty Hourly Chart

Nifty Hourly charts is now facing..

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risk reward analysis

Many traders I have interacted with every first question comes up "Bramesh What is Risk to Reward Ratio your system gives, I ask what is your expectation most of amateur will answer at least 80%." I just smile and try to explain the why traders looks for such rosy percentage.  We just need to understand the basic maths behind trading.
Most of professional traders are likely to lose atleast 35-35% of their trades and some even 60% of time. But still they make money, How is this possible. Let me elaborate with the same in remaining part of article.
Before you start trading make sure you and your mind understand losing is part of trading and losses will be there. So do not ge disheartened when you see losses..

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US Dollar at 3-Year High, Whats next

USD has surged to 3 year high as market rumors are going Fed will cut down on QE in coming months. USD is trading at 84.393 highest level sinse July 2010.Lets analyze technically how long can the move last.

USD Hourly Chart

As per hourly charts USD is trading above its Fibo channel line and next target comes at ..

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Are you BAD Trader?

Its an well known  adage in Stock market "90% of trader lose money, 5% are at breakeven and only 5% are highly profitable trader".
So trading seems to be highly profitable profession if you are in top 5%  but its a loss making profession for remaing 95%.
So let me discuss few characteristic of Bad traders

• A Bad trader will always be a forecaster of market tops and bottom, You will speculate that market cannot go above the certain level or cannot go down below certain level. You will involve bias in your trading and when market starts going against you , you will talk of all kind of conspiracy theories market is rigged, Operator are making stop losses hit etc.

“Don’t try to buy at the bottom and sell at the top. It can’t be done except by liars.” -Bernard Baruch

A sure way of analyzing yourself is Ask yourself the following question ..

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