So today the index shot up 120 points. Short positions were loss making. Today's market got me thinking that all this while I have been trying to predict the market.
Now i realize that nobody can predict the market. All we can do is prepared to take profit from which ever direction market decides to take. And a broader idea of direction of the market will come from the wave count.
- So if Nifty goes up tomorrow then we are still in wave 5. Hence maintain my previous target of 6280-6330 for the fifth wave. [I have a long position open]
- In case Nifty goes down tomorrow then this is wave b of the correction and wave c would have started. Stop loss for previous and entry for this trend should be 6180.
So learning for today:
1. Do not predict the market movement. Be prepared for both sides of movement.
2. Only consider a wave if it closes in the trend. For example, couple of days back Nifty scaled 6252 and then retreated from there to close below 6200. Looking at the graphs I inferred that this is wave 5 ending. However, now that i see it maybe just the wave b correction in the 4th wave.
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