Today is good example of "Pyramiding Profits"
Traded in BNF as PA looks good to me compared to NF.
After yesterday's down move, there is no follow up at open time. BNF strongly moved upside at open, making bias neutral. Later it consolidated for nearly 4 hours and gave BO upside, turning bias to Up.
Took 8 lots as risk is 30 points. Why 8 lots?
Long triggered at 26890 as BPB of RH with Initial SL 26860
1% of capital = 10K.
Quantity to Trade = (Risk per trade / SL) ==> 10000/30 ==> 333 is quantity
333 / 40 (BNF lot size) ==> 8.
Hence took 8 lots of BNF
It moved well and gave BPB of PDH setup. here i added 8 more lots and average price came to 26937. Moved SL to 26947, immediately after adding more lots. Now either BNF reduce my profit by hit SL Or i will ride if short covering gonna happen. This is what i am calling PYRAMIDING PROFITS. One must do it when price read telling us chances of winning is more.
It moved well,, exited at 27086 with gain of 149 points.
Translating overall gain into nifty 10 lots,, it comes to 127 points.
Traded in BNF as PA looks good to me compared to NF.
After yesterday's down move, there is no follow up at open time. BNF strongly moved upside at open, making bias neutral. Later it consolidated for nearly 4 hours and gave BO upside, turning bias to Up.
Took 8 lots as risk is 30 points. Why 8 lots?
Long triggered at 26890 as BPB of RH with Initial SL 26860
1% of capital = 10K.
Quantity to Trade = (Risk per trade / SL) ==> 10000/30 ==> 333 is quantity
333 / 40 (BNF lot size) ==> 8.
Hence took 8 lots of BNF
It moved well and gave BPB of PDH setup. here i added 8 more lots and average price came to 26937. Moved SL to 26947, immediately after adding more lots. Now either BNF reduce my profit by hit SL Or i will ride if short covering gonna happen. This is what i am calling PYRAMIDING PROFITS. One must do it when price read telling us chances of winning is more.
It moved well,, exited at 27086 with gain of 149 points.
Translating overall gain into nifty 10 lots,, it comes to 127 points.
Good Trade. Thanks for explaining PYRAMIDING OF PROFIT in details.
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