A plunge in Indian Stock market

[Riskyman]

@SSPMS2002


only in f&o, we can go for both short & long was false statement. we can take in equity too.

Hey buddy, I want to know how you can short sell in the cash segment other than in margin trades. My broker doesn't allow for shorting in cash unless its a margin trade. Just very curious.

 

[sspms2002]

@SSPMS2002

my words about equity.................

i am trading in equities but intraday only. i am trading both long & short. i don't want to take delivery. because of sleepless nights.

most of times SSPMS2002 trades in intraday only. when the stock was in loss, then he took that for delivery. this is wrong decision. holding falling knife will cut our hands. if you has a loss trade, then square off it immediately at any cost. being prepare for closing loss trade as little as much.


the main advantage in equity is we can part quantity, and can square off different rates. if we took a lot about 250 shares in f&o, we can take in equity too, but exit in parts where we comfortable.

trading is not as only buy & sell. but it is to control our mind in buy & sell gives profits.

Very rightly pointed out Kiran..I usually take my end of day Losing trades to Delivery..but i have tried to mute them...but this time i took a winning trade for delivery and it went against...

Difficult to predict the Gap so why Predict gap as Amit pointed out..

You said very rightly..in Cash we have the flexibility which i think is good for Novice traders...

 

[sspms2002]

@SSPMS2002


with full cash (no leverage), and for intraday, why don't you took short trades? if you trade only in long, most of time you miss chances in short trading. because market gives both chances for long & shorts.

I agree with you that i take mostly LONG positions...I look at stocks and pick out stocks that may move up rather then picking stocks that may go down..

I guess i attribute it to the fact that i started trading in bull market and that kind of ingrained in my mindset..
If i get to see a bear run i might get neutralized..


But i see that there is more ease and profits on a falling stock rather than a rising stock..

I see that on a dead day the stock tend to go down..and for them going up it require input in terms of news or earnings etc..

and also the effect of any bad news move stock down faster than an upmove on a positive news on that stock...

 

[sspms2002]

A quote from a Book:

"I always wondered why it is that financial writers /Experts try so hard to determine the exact cause behind the action on a certain stock on a given day...

Doubtless it is that their Readers demand it..."


"The average trader , because of the difficult task of successfully controlling this emotions , temperament and characteristically Human Faults , has far better

chances for success if he trades for the longer term movements of a stock prices than if he attempts to trade on and off of small profits"

 

[amitrandive]

I agree with you that i take mostly LONG positions...I look at stocks and pick out stocks that may move up rather then picking stocks that may go down..

I guess i attribute it to the fact that i started trading in bull market and that kind of ingrained in my mindset..
If i get to see a bear run i might get neutralized..


But i see that there is more ease and profits on a falling stock rather than a rising stock..

I see that on a dead day the stock tend to go down..and for them going up it require input in terms of news or earnings etc..

and also the effect of any bad news move stock down faster than an upmove on a positive news on that stock...

Very true.
Fear is a more motivating factor than greed.Markets fall down with thrice the speed that they rise up.A stock which takes 5 days to rally generally looses all its gains within 3 days,hence the 5x3 pattern works for all patterns like Elliot Waves,etc.

Panic makes everyone sell harder and faster than news firing a stock up.Hence more money can be made shorting a stock than going long in it.

http://www.investopedia.com/university/shortselling/

 

[kiran_thiru]

Hey buddy, I want to know how you can short sell in the cash segment other than in margin trades. My broker doesn't allow for shorting in cash unless its a margin trade. Just very curious.

in equity short means --- you can sell shares if those were not in your demat & square off at the eod. so unless margin trading (if you not use leverage) short sell does not exsist.

most of the brokers offering short selling. ask your broker once again how to do it.

happy trading.

 

[Riskyman]

in equity short means --- you can sell shares if those were not in your demat & square off at the eod. so unless margin trading (if you not use leverage) short sell does not exsist.

most of the brokers offering short selling. ask your broker once again how to do it.

happy trading.

Of course i know what shorting is. I make a living out of it. But im a bit confused with what you are saying. Are you saying that you short sell i.e short in margin segment or in the cash segment?

 

[Riskyman]

Very true.
Fear is a more motivating factor than greed.

Well said. I make a living shorting stocks. My ratio of shorts V/s Longs is roughly at 10:1. Bull market or bear market, you end up making better returns on the short side than on longs.

 

[kiran_thiru]

Of course i know what shorting is. I make a living out of it. But im a bit confused with what you are saying. Are you saying that you short sell i.e short in margin segment or in the cash segment?

shorting in equities with margin in intraday.

 

[Riskyman]

shorting in equities with margin in intraday.

Ok so its a margin trade. Cash trades are different than Margin trade. The reason i was asking you was i think you mentioned that you were shorting in cash. Hence the confusion. Thanks for your reply.