Beyond rigid rule – anticipating move and profiting from it

Superior Profit traders use unambiguous rule to identify trades. They usually wait patiently for the signal to appear.

Now, once someone gets experience using the system; and specially those who tend to focus on a small set of instruments / stocks; they get the hang of the movements. And are sometimes able to enter the trade before the system gives confirmation.

However, few things to note.

While the experts can do that, they keep their eyes and mind open. And make sure that if the trade goes against them, the Stop Loss is close by – that is, they never like to risk more.

Secondly, the anticipation of move is not something only in their mind. It has some basis in the CUE charts.

We took a similar trade on Nifty (India market Index) using Put options. The trade was taken 6 trading days ago. And today (8th Dec) the trade was exited at 96% profit.

Attached chart explains the trade. You may note that the actual Go With Flow Trend Following Short signal came about 2 days ago. And taking the trade even at that point would result in substantial profit.

Note that catching the trade early was only one part of the expertise demonstrated in the trade.

Booking profit was another part. Profit was booked precisely as it hit the Memory Support line. That was planned before the trade was entered (and this plan helped decide the strike price of the Put that was traded !).

And once price hit this target, without being emotional or looking for additional profit, half of the position was exited. This booking profit as per plan is as important as entering the trade.

CUE system makes these decisions easy. As in this case.

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