A volatile trading session offers two possibilities—the risk of losing a larger portion of capital and the opportunity to yield above-average profits.
And that’s where the Discipline factor comes into play, which is a must-needed trait to become a profitable trader. A discipline to wait for the right opportunity to arrive for taking the trade.
And today’s Intraday session was something like this where the waiting for the right trade opportunity paid handsomely in the end.
So, let’s have a look at today’s Nifty Intraday 05-minute chart to see how and when the right opportunity came for a profitable trade.
Nifty today opened gap-up. And after that, it fell by nearly 200 points. And then it jumped 220 points higher. Too much volatile it was.
But as I said, it needs proper discipline, especially on such volatile trading days, to generate profit. And I did the same I waited with discipline for the right opportunity to come.
And then, the right opportunity arrived near 12:30 pm when the Nifty broke the Hook point on the chart, and that breakdown confirmed the bearish trend for the rest of the day. And from that breakdown, the Nifty fell 165 points.
And here is how I used that sell signal for taking the intraday trade.
So, we trade the volatile trading sessions with discipline because volatility is a double-edged sword.
If you keep discipline and wait for the right opportunity to arrive, you will win. But if you lose discipline and jump to make a trade by just seeing the price going up and down, you may lose a big amount of capital. So, remember, ALWAYS wait for the right opportunity.
Below are a few more posts to help you understand the process of the Hook timing method.