Day Trading Stocks & Futures

[Vertigo_1985]

re: Day trading Nifty & Banknifty Futures

Very true ST bhai ...

Buying options in this MKT especially pre event ,is a loosing proposition even before the Option was bought, be it a CE or a PE ....

The IVs were so high, the Nifty PEs would have barely money even if bought around at the top.

7500 PE had a low of 49.5 on 7th July.
Even after the MKT correcting by 300 points, its todays closing is ~ 108.

The CEs bought pre event meanwhile got butchered.

Buying OTM options pre event with a high VIX value ought to be a big no no imho ...

There is too much generalization regarding how you cannot make money swing trading options, how buying ce or pe is a loosing proposition before an event going on....
Suppose you bought 7500 pe on wednesday @ 90, it made high of 135 on thursday which gave plenty of room to exit with profit. If nifty had crossed 8000 then would the ce still be losing ?
you are correct when you say "Buying OTM options pre event with a high VIX value ought to be a big no no imho" but its not because its a sure loosing thing because if it was then everyone would be selling and making mobey.. its correct because its very-very difficult to manage the risk in such situations ..

 

[Smart_trade]

re: Day trading Nifty & Banknifty Futures

ST Da, this post got buried down, please answer whenever you can.

Regards,

First we have to identify the trend. Assuming the trend is down, we wait for a corrective upmove ( rally ) and look the sell in that rally. Sell could below the pivot low in a rally, or VWAP levels etc

On current volatility, trading on 15 min bars keeps our stops at a long distance. 3 min or 5 min is better in my view.

Smart_trade

 

[TradeJoker]

re: Day trading Nifty & Banknifty Futures

IIP Data: May Mrg growth at 4.8% vs 2.6% in April | Mining growth at 2.7% vs 1.2% in April | Electricity growth at 6.3% vs 11.9% in April
May industrial output at 4.7 pct y/y -

IIP came after closing

 

[TradeJoker]

re: Day trading Nifty & Banknifty Futures

"great opportunity for investors" - analysts

 

[Smart_trade]

re: Day trading Nifty & Banknifty Futures

i did not got answer from ST. but Sudoku1 bhai changed trend.
is ST sir elaborate about trend will be helpful.

Posting a chart of 3 min timeframe in NF showing current leg of the downtrend. The red lines are showing successively lower tops and lower bottoms. Once in a downtrend, sell every rally the last PL in a rally as shown by red horrizontal lines marked.

This is a short term trend we are talking about....used for day/swing trades.

Smart_trade

 

[Smart_trade]

re: Day trading Nifty & Banknifty Futures

The trend gives us bias or a direction to trade from short or long side. Trend is the most important observation in any chart and how one should trade it.

Smart_trade

 

[nirav_j]

re: Day trading Nifty & Banknifty Futures

There is too much generalization regarding how you cannot make money swing trading options, how buying ce or pe is a loosing proposition before an event going on....
Suppose you bought 7500 pe on wednesday @ 90, it made high of 135 on thursday which gave plenty of room to exit with profit. If nifty had crossed 8000 then would the ce still be losing ?

Well, it did make a low of 32 too
would have taken a brave soul to hang on, before getting an opportunity to sell at 135 ...

The high IVs ensured that one would need a move of 300+ points in either direction to make some good money on the option trades.

a 300 point move on the index normally yields about 2x to 3x when IVs are not inflated.

Hi,

Could not understand what combo 13 ,Is it Some MA Crossover combo ??
Also what does number signify on the Bars ??

Thanks in advance

Hi,

TD Combo and TD Sequential are price exhaustion techniques which help identify low risk opportunities @ turning points ... The numbers are counts of bars which meet set up conditions of the method ...

check this thread out for more in depth info.
http://www.traderji.com/technical-analysis/23286-thomas-demark-sequential-system.html

 

[timepass]

re: Day trading Nifty & Banknifty Futures

IIP came after closing

Yeah.. but the currencies cooled down in the last few minutes of trade (before 5pm)

 

[TraderRavi]

re: Day trading Nifty & Banknifty Futures

First we have to identify the trend. Assuming the trend is down, we wait for a corrective upmove ( rally ) and look the sell in that rally. Sell could below the pivot low in a rally, or VWAP levels etc

On current volatility, trading on 15 min bars keeps our stops at a long distance. 3 min or 5 min is better in my view.

Smart_trade

we trade from one side only right ? like short in downtrend and ignoring the sharp rallies like one today @ 1 pm , as trading from both sides requires extra nimble skills.

 

[Smart_trade]

re: Day trading Nifty & Banknifty Futures

we trade from one side only right ? like short in downtrend and ignoring the sharp rallies like one today @ 1 pm , as trading from both sides requires extra nimble skills.

Yes trading contratrend is trading a corrective move which is laborious, small and at times frustrating. Trading in direction of the trend is easy, less taxing and more profitable...so which one would you choose ?

There are some contratrend traders who think that it is a challenge trading against the trend...so let them have the challenge...we would rather prefer to have money out of trading and that too with less work....

But when we get a steep move, trading contratrend and catching the reversal is a great play..but will need some experience in that.

Smart_trade