Did you miss the rally after the BREXIT event?

Did you miss the market rally after the BREXIT event? Feeling sorry that you missed the bus? Well, don’t. Markets throw us opportunities every now and then. I know a couple of friends who went long at 7940 on June futures on the BREXIT day. They trade using charts. And then there are a few others who went long at 8120. They trade using a stop and reverse system. If you really feel, you missed the rally start reading the charts. There are lot of videos and books to help you learn technical analysis. Else, follow a stop and reverse system and stick to it no matter what your judgment is about the markets.

Check these two tables. In the last 13 years, in the month of August, markets have fallen by an average of 7.25% from the highs it made in July. The highest fall was in 2011 where it fell by 17.78% and the lowest was in 2010.

In August 2003, Nifty moved up by 13.96% from the July highs. On an average Nifty moved up by just 1.91% from the July highs. Proper usage of Straddled and Strangles can help you increase the probability of success. Happy trading!