Some of the recent high quality setups that looked excellent but failed to deliver the expected follow through:
- NETWEB
- BHARATCOAL
- SUNFLAG
- UNIVCABLES
- DECNGOLD
- AYE
- ADANIPOWER
- JINDALSAW
For every PARAS that worked, there were 3-4 equally good looking setups that failed making it a low probable environment.
Was on a break for the past 3 weeks due to personal commitments, and the market is still behaving much the same as when I left volatile, choppy, and moving up and down without much consistency.
There have been plenty of setups, but most have failed to deliver the expected follow through. Only selective setups are working, and if you happened to be positioned in those names, you would have made some money.
Overall, this is not an easy money environment. The probability of setups working remains lower than usual, making selectivity and risk management more important than ever.
A few things that help in such environments:
- Reduce position size and let your recent trade results guide your exposure.
- Focus on stocks showing clear relative strength rather than trying to predict market direction.
- Be quick to cut losers and avoid giving setups "one more chance"
- Keep building watchlists. The stocks holding up best during difficult phases are often the first leaders when momentum returns.
- Don't judge your trading by P&L alone. Following your process and controlling risk is a win in itself during challenging periods.
- Never carry a position without profit cushion overnight.