This post is for subscribers who trade on Order Flow, but cannot be online all the time.
If you have activated your cell phones to receive order flow alerts, you should have received the signals from our order flow charts.
We have a time stamp visible on the alerts, so in case you have a delay running into a few minutes, you may wish to check back on the call or let the trade pass.
Once you are in the trade, you need to have a copy of the prime levels handy with you.
If the signal is a Buy signal Above PP0, then the stop loss would be PS1 and target would be PR1.
If the signal is a Sell signal below PP0, then the stop loss would be PR1 and target would be PS1.
If the Buy signal is generated above PR1, then stop loss would be PP0, and target would be PR2.
If the Buy signal is generated above PR2, then stop loss would be PR1, and target would be PR3.
If the signal is a Sell signal below PS1, then the stop loss would be PP0 and target would be PS2.
If the signal is a Sell signal below PS2, then the stop loss would be PS1 and target would be PS3.
As traders, we recommend you trade in multiple lots. Once can trade in 2 minis instead of one full Nifty.
You can also book 50 % at a target level and reverse the balance when the new signal appears.
As a trader, you have to realise that it is not possible to pick up every single rupee from a trade. There is no trader who has sold consistently at the very top and bought at the very bottom. As long as your trade is profitable and you have made a profitable exit, at the mentioned point, you should be happy about your trade. There will always be new opportunities in the market for you to take advantage of.
Also trade every single order flow signal which comes along. Do not be disappointed with an occasional whipsaw.I've seen up to 3 signals which come in the space of five minutes, only to see the fourth signal run away to handsome profits. The gains from the last signal far outweigh the losses from the earlier ones.
It's part of a traders life to get wrong trades, but as long as you take every trade that come along you will ensure that you have a profitable end to your day.
The chances of getting in a wrong trade are at the highest in the first ten minutes of the signal and reduce exponentially as time wears on. This means that if your buy/ sell signal survives the first ten minutes, you are on the road to make a profit from that trade however small.
And lastly, there's nothing right or wrong about a chosen trade. These are just situations in the market. Our trading is about value and going with the flow. and if you believe that, there nothing better than order flow for trading.
