There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits

Friday, December 6, 2013

06122013

Nifty opened near PDC. IR formed. Long on TST of PDL (BOF of PDC)on break of IRH. TP at BRN. Did not attempt the BOF of BRN short and TST of PDC long due to IRH. This level was 6250 NS. Finally short on BOF of BRN and TST of HOD. Scratched

8 comments:

  1. Sir,

    When you took the first trade@ 6180, it was just 10 points away from 6150 Spot. We need not pay equal importance as BRN to Spot and Future numbers ending with 50 as those ending with 100?

    I entered at BOF of BRN - your second trade. I too made a scratching exit.

    Karthikeyan

    ReplyDelete
  2. As always Thanks for chart ST.
    Skimmed through book, liked it. Will read it over weekend for sure..

    ReplyDelete
  3. Hi ST,
    Could we have shorted when prices formed HOD initially and drifted down towards IRH?? They may have cracked IRH too which eventually it did??

    Thanks,
    TBP

    ReplyDelete
  4. KS
    xx50 levels are a recent development after the introduction of new option strikes.
    DPs are not brick walls. I had written earlier this example.
    Imagine a cricket ball hitting your window pane. Whether it will break. This depend upon the strength of glass and force of hit.
    Like wise we have to take a decision considering our analysis about the strength of DP and strength of move

    ST

    ReplyDelete
  5. TBP

    It is a low probability trade.
    It may work and this time worked as the day was not a trend day. On a trend day you will get repeatedly stopped out

    Range 1 the IR
    Range 2 HOD>IRH
    Price is in range 2
    ie above range 1. Bias bullish
    Buy low and sell high of the range

    ST

    ReplyDelete
  6. Sir, Thanks for the reply. Enjoying your Book. Hope to read atleast twice, this weekend.

    Karthikeyan

    ReplyDelete
  7. Open the acc.with Zerodha. Brkg

    for single lot comes to 3 nifty

    point due to state( punjab) stamp

    duty, but still 1 nifty point

    lower than the previous brkg

    house. Tnxs. This is for

    information only.

    ReplyDelete

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