Nifty Analysis for 8thAugust2011

Nifty Conservative Trading 
--------------------------------
Nifty Monthly  Long above 5705(HEMA)  and 5299 (LEMA)  (TREND UP ABOVE  5469)
Nifty Weekly   Long above 5628(HEMA)  and 5357 (LEMA)  (TREND UP ABOVE  5441)
Nifty Daily    Long above 5396(HEMA)  and 5308 (LEMA)  (TREND UP ABOVE  5353)
Nifty Hourly   Long above 5223(HEMA)  and 5183 (LEMA)  (TREND UP ABOVE  5203)


Nifty  JNSAR
---------------------------------------
Nifty Weekly JNSAR  5497  -stay short
Nifty Daily  JNSAR  5428  -stay short
Nifty Hourly JNSAR  5237  -stay short 


Nifty Havala Level
-----------------------------------------------
30-Jun-11   5487


Nifty Aggressive  Trading
---------------------------------
Range 56  min 5390 max 5290
STOP LOSS 10 points only.


Support and Resistance
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5114-5182-5225-5296-5350-5393-(5433-5460)-5490-5502-5532-5539-5550-5580-5606-5616-5630-5658-5667-5729-5754-5775-5865-(5940-5965)-6090-6175-6250-(6325-6350)


Open Interest 
-----------------------
Support    5000
Resistance 5400


Trade Conclusion
--------------------------------
Below 5200 => I will short the market for target 5101.
5281-5330 is the resell area with strict stop loss.

5 FUNDAMENTAL TRUTHS OF TRADING

Read it every day...................

Mark Douglas, a person I consider one of the pioneers of trading psychology talks about these 5 Fundamental Truths to trading along with 7 Principles of consistency in his book Trading In The Zone (A book ever trader should own). I think it’s really important to understand all of these truths and principles and believe them if you want to be consistent in your trading.

THE 5 FUNDAMENTAL TRUTHS OF TRADING:

1. Anything can happen.

2. You don’t need to know what is going to happen next to make money.

3. There is a random distribution between wins and losses for any given set of
variables that define an edge.

4. An edge is nothing more than an indication of a higher probability of one thing
happening over another.

5. Every moment in the market is unique.

THE 7 PRINCIPLES OF CONSISTENCY:

1. I objectively identify my edges.

2. I predefine the risk of every trade.

3. I completely accept the risk or I am willing to let go of the trade.

4. I act on my edges without reservation or hesitation.

5. I pay myself as the market makes money available to me.

6. I continually monitor my susceptibility for making errors.

7. I understand the absolute necessity of these principles of consistent success
and, therefore, I never violate them.