100% profit in 6 months...!

[AW10]

Its effective price. I dont have a fairy god mother who granted me a special price...:lol:

say u short at 4900 and then reverse the trade to long at 4800 and carry it for the next day, your effective price is last price long minus the profit u got by jobbing. i.e. u got a profit of 100 points from the short, u minus that from the price u went long, so your effective price of the long is 4700...

Linkon, this logic of calculation also confuses me.. atleast it does not fit my trading belief.
Why do we have to count 100 rs of profit from previous +ive trade ? Are these 2 trades interdependent or statistically they are mutually independent events ? Do you also carry forward losses of previous trade in next trade ?
In above scenario, What if market goes back to 4750.. the trade will still look like you are in profit.. but actually, u have given back the profit that market gave you ?

I think, handling this issue is lot more to do with your belief about Your Deposited Trading Capital v/s Money given by market as profit. Do you see them with the same or different coloured glass.

Maybe you would like to address this when looking into psychological aspect of trading.

All the best and happy trading.

 

[linkon7]

Linkon, this logic of calculation also confuses me.. atleast it does not fit my trading belief.
Why do we have to count 100 rs of profit from previous +ive trade ? Are these 2 trades interdependent or statistically they are mutually independent events ? Do you also carry forward losses of previous trade in next trade ?
In above scenario, What if market goes back to 4750.. the trade will still look like you are in profit.. but actually, u have given back the profit that market gave you ?

I think, handling this issue is lot more to do with your belief about Your Deposited Trading Capital v/s Money given by market as profit. Do you see them with the same or different coloured glass.

Maybe you would like to address this when looking into psychological aspect of trading.

All the best and happy trading.

Actually, its a habit i made when i first started using this strategy. all nifty trading activity is added and the net result is subtracted from the last point i went long or added to the last point i went short. This helps me track my performance in terms of jobbing. My mental target is to push the effective cost price of Nf as far as possible from the strike price of the straddle.

Somewhere down the line i treat this like a video game. Jobbing for points. even if there is 4-5 points in the trade, i feel like jumping in and grabbing it and add the diff (minus 2 for brokerage) to the effective price. End of the day, i like to see how well i played the day.

Like you pointed out, i need to stop differentiating between the color of money. I do give back a lot of money that a bit of seriousness can save. I took 3 short trades today totally against the trend, simply because the sl was 5-6 points and i already had 57 points in the bag. I effectively reduced the profit to 25 points.

To counter this urge, i used to set myself a target of a set amount of points and once achieved, i would stop trading. I normally complete my tgt within the first hour and then rest of the day is spent in giving back some of it.

Dada warned me that Rash driving kills...always. Market's just waiting to humble me.

 

[sumitdasjoshi]

i have 5000 put what to do now

 

[sbhav]

certainly possible.......provided exit strategy is fine tuned

all the best.

bhavani.s

 

[linkon7]

i have 5000 put what to do now

sell a 4900 put if we trade above 4936-50 region.

 

[shankarss]

Go Short on 4600 put any quantity.

 

[shankarss]

Dear All

One more Stradegy go short on 4900 call and buy Nifty Future. Profit is intact. This stradegy is based on technical chart. Follow different stradegy and you can win, subject to follow technical chart.

Email ID :*****************

SS

 

[linkon7]

Go Short on 4600 put any quantity.

Can you please give me a few reasons why you feel shorting 4600 put is real safe. I can think of a few reasons why its not safe yet:

* 4966 is the 38% retracement of this fall... we havnt even tested that level yet. But looking at the pace of the fall, 5030 (50% retracement) is where most of the bears would place their SL.

* after 9 days of continuous lower lows and lower highs, today we managed to break that trend. Unless a breach of 4935 (day before's High) takes place tomorrow, shorters will take this opportunity to hammer it down further.

* We has a hammer the day before and today we had a green day. That's normally a confirmation that a bottom is in place. Bears would run for cover and bulls would be aggressive buyers towards the end of the day. But the last half hour saw selling pressure. Now if selling pressure comes towards a fag end of a confirmed trend reversal day, i would be worried.

* All leading indicators pointed towards a extremely oversold conditions. A dead cat bounce was always on the cards. But thats not a signal to go counter trend.

* S&P broke important 1088 support levels. They ignored good results and general feeling is market is ahead of valuations and need to correct.

* china is really putting a lot of pressure. it was down 2% today and dragged a lot of asian index with it.

* after almost 10 months of positive flow by the FII, January saw the first negative monthly flow. Why hope that they will suddenly put money back into the same market they are so eager to get out of...

* this years budget is more concentrated on withdrawal of stimulus package and fiscal deficit. Expecting a pre budget rally is only possible after we trade above the 5160 mark.

 

[linkon7]

Dear All

One more Stradegy go short on 4900 call and buy Nifty Future. Profit is intact. This stradegy is based on technical chart. Follow different stradegy and you can win, subject to follow technical chart.

Email ID :*****************

SS

this is even more confusing...

how is profit intact in covered call. You are limiting the profit potential to net premium received and are protected on the down side upto the same amount of premium received. But the delta of the call will be half that of NF and time decay wont set in so fast.

Or am i missing something...?

 

[sumitdasjoshi]

linkion one more question if suppose feb expire in less than 5000 than i will be profit or whatplz explain i can take this put till expire .