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

Monday, July 21, 2014

21072014


Nifty gaped up above PDH and BRN. Entered long on BPB of BRN. Trade did not move. Stopped out. Another short on BPB of PDH. This one also stopped out. Rest of the day Nifty was in a Barbed Wire around PDH. No other trades

35 comments:

  1. Hi ST
    Did not find space to take any trade.

    Thanks
    TBP

    ReplyDelete
  2. I have traded with nifty options chart for few reasons. please see my trade here.
    http://nsemcxpriceaction.blogspot.in/

    ReplyDelete
    Replies
    1. Option trades, IMHO is very effective while trading the extremes
      But so far I have not traded the method through options

      ST

      Delete
    2. hi NPA trader. im thinking to trade options , help me to decide
      how is brokerage in options? options move well? what r the advantages and disadvantages of options over NF?

      Delete
    3. Hi,

      IMO, Challenges in options are - we can't enter with SL orders !! So, options tend to go away few points & if a move is not fast, they tend to loose those points very easily. I find my self manytimes surrounded with such situations. So instead of Ranging days, High Volatility days are good to trade options comfortably as Trailing SL is few points only.

      Thanks,
      Deven Malhotra

      Delete
    4. Chandra Mouli,
      For 1 lot of option it will be 75% lesser brokerage than nifty futures 1 lot. More or less all brokerages charging like the same. Options move well with futures when you buy At the money or In the money options.
      Advantages and Disadvantages are,
      1.your risk is fixed even if you loose your entire premium(at expiry) when you buy options.
      2.More risk when you write(short) options. risk of unlimited loss. you need full margin like nifty futures for writing.
      3.Your risk is less if you trade out of the money options when compared to futures.
      4.You will loose your premium when there is no movement, range bound days.

      Delete
  3. ST Sir,

    Narrow range session.. attempted 3 trades, ended up with 8 point loss.
    Trades here

    ReplyDelete
  4. Hi Sir,
    A new reader of your blog, find it very interesting.
    May I pls know the reason of avoiding the BOF of LOD and when the BRN was tested for the third time I took the trade inspite of LOL.
    Was this approach correct.

    Also I might bug you with question on trades on prev days, Pls bear.
    Your service to people is highly appreciated.

    Thanks

    ReplyDelete
    Replies
    1. Avoided it as it was counter trend and PDL and BRN above
      Nothing wrong with the trade. Trade went where it was supposed to go, the other extreme of the range.
      My trades are not ideal trades.I do miss a lot and mismanage many trades.Everybody will.
      But as we gain experience, we will start making more good decisions than the bad decisions.
      Discretionary trading is all about our decisions.

      ST

      Delete
  5. Hi ST,

    Bumpy trades.. Choppy day.. My trades Here...
    Hope we get a break out tom :)

    Cheers!
    GK

    ReplyDelete
    Replies
    1. Yes very choppy
      Expected a gap closure when it refused to go up

      ST

      Delete
  6. Why my comments are not being shown.

    ReplyDelete
    Replies
    1. Comments are moderated
      Will not appear immediately

      ST

      Delete
  7. Sir good evening,sir sent a mail when time permits kindly check thnx

    ReplyDelete
  8. how u avoided PP that is taken by rose?

    ReplyDelete
    Replies
    1. My order did not trigger
      As the earlier two BO attempts failed I kept the trigger little away @ 7705

      ST

      Delete
  9. Pardon me for my wrong username "Micheal Richard". It was made to serve a different purpose (poker). Have corrected it now.
    Waiting for your clarification on my query.

    Thanks,
    Purusharth

    ReplyDelete
    Replies
    1. I have already replied to your query

      ST

      Delete
    2. Thanks for the reply sir.
      For the third test of BRN later in the day. What should be our thinking like?
      Should we look for a trend move as the short term trend was down or should we try to trade the BO as the critical mass was short. Today the BO trade was also triggered.

      Thanks

      Delete
    3. Buying the low and selling the highs are always the preferred trade
      http://niftynirvana.blogspot.in/2012/05/buy-low-sell-high.html
      Other trades are always low probability ones and involve higher risk
      Here buying the BOF of LOD is a better trade than buying a BO of BRN

      ST

      Delete
  10. Hi Chandra Mouli,
    Read your comments. Hope I do not offend by sharing what I feel trading options.
    I am great fan of options. Esplly Nifty options. Great liquidity and great bang for the buck.

    Few pointers:
    1) Dont trade options looking at NF. In this case you cant enter Limit orders on option trades.
    2) Be very swift if you want to scratch your position. With the swiftness of options one may not find a chance to do it.
    I would suggest, just look at the price movement for a week or so. How much options move vis a vis NF.

    All said and then ,you will enjoy the options trading journey

    TBP

    ReplyDelete
  11. @ chandra mouli

    regarding option , if you are new to option trading then please avoid it , simply
    there is standard rule , if future price increases then CE Will also increase and PE will decrease , BUT 30-40% OF time there is mis-pricing even in Nifty/Banknifty ATM / ITM Option , mostly rangebound market and month start and ...end of the month they will behave like MAD , they have own personality of option .
    Sir , you have knowledge about option intrinsic value , option time value ...etc . then its good ,but it is not sufficient plss try to grasp on screen /practical knowledge .
    there is TIME decay is more effective in this instrument , cause of it has limited life (one ...two...three month) , end of the month it will expire.

    ReplyDelete
  12. Hi ST,
    If long, what would be the ideal place for SL now?

    ReplyDelete
    Replies
    1. Look at the left side of the chart. What happened at 7750 level
      So isnt it better to exit the trade near that level and wait for the next signal

      ST

      Delete
    2. Hi ST,
      I am totally lost now :D what do we need to happen for entry. Looks like price is in channel and no DPs nearby. Please could you share your thoughts? Thanks a lot.

      Delete
    3. Nice spike and channel, hindsight is beautiful :)

      Delete
    4. S Roy
      What channel?
      It is all horizontal levels working well

      ST

      Delete
    5. Hi ST,
      I thought there was a spike and channel today (22nd) as price moved toward 7750 http://imagizer.imageshack.com/img673/9765/cc8618.png prior to 1:30 Am I seeing this wrong?

      Delete
    6. You are searching for patterns on charts.Then you will see many
      Once we get stopped out at a DP suspect a channel and stand out. That is all
      I can show you many more channels
      http://screencast.com/t/elqnZTR8OX7j

      ST

      Delete
    7. Dear ST,
      In that one response you have taught me sooooo many things. Thank you, this is why I like to keep asking you questions. Thanks again.

      Delete
  13. my order T- 7720.20 , L 7721 not trigered. any ticks to get order fills ? and ur order xxxx.50 any specific reason for .50

    ReplyDelete
    Replies
    1. Very rarely it happened to me
      Usually 50 paise difference get filled

      ST

      Delete
  14. Its a good technical analysis to invest in the market and good opportunity to send a best part in the trade.
    Free Stock Market Tips on Mobile

    ReplyDelete

Note: Only a member of this blog may post a comment.