Monday, March 30, 2009

Nifty Trade Setups

This blog is dedicated to Nifty Trade Setups.

Briefly, what are they?

Trade setups are a set of rules which are applied to market data to decide when to buy and when to sell. So the rules tells us to buy/sell based upon market movements and the system.

How does that make a difference

That makes a difference where it matter most - controlling human emotions - greed and fear. When I dont have to make the decisions, the system does that for me, I dont get involved emotionally and greed and fear dont have a chance to take over. This ultimately results in much better trading and greater profits. Not least because such setups are tested with lots of historical data to quantify how the system performed in the past.

If the setup performed well for a large period, then it can be expected to continue to do so in the future as well with reasonable certainity. Even if did not, the system would have inbuilt rules so that losses can be cut at some point and do not take over the system itself.