One of our regular commenter Musti, posed me this question at 2.00 pm today :
“Shai, As I also asked in morning regarding my position I have few lots long in NF average price 5171. What to do now hold it or exit from it.
I am not at all averse to answering queries on the blog, but feel that the question should also carry the questioner’s time frame along with his reason for the trade.
In the marketplace there exists all kinds of traders from the scalper to the day trader to the short-term (1-5 day) player to the swing trader, the intermediate term player and the investor.
At varying times these players influence the rhythm of the market.
What is important is to understand your time frame and the influence people of your timeframe make to the market.
I as a short-term trader shorted the market today after clocking 180 points from it in two days on the upside.
However as it approached 5135 at about noon I was in doubt about the future direction and decided to follow one of my trading rules which says ” When in doubt stay out “.Unfortunately market movement for the rest of the day did nothing to dispel my doubts so I will stay on the side-lines.
If you have doubts on your position, first understand your timeframe, secondly ask yourself why you got into the position and thirdly find out if the conditions in the market have changed substantially to alter your view of the trade.
Musti, as stated in the afternoon 5080-5135-5215 are the levels from here. Can go either way.