General Trading Chat

[wisp]

In stray distribution it can happen....not very common though.That is why MM and risk control is important.

Smart_trade

Da, Nice video. I think however that this video will make sense only to the battle hardened For the beginners, most likely it will be just another video. Just my thought, could be wrong here.

 

[Smart_trade]

Da, Nice video. I think however that this video will make sense only to the battle hardened For the beginners, most likely it will be just another video. Just my thought, could be wrong here.

Nooooo in fact it is much more educative for new traders who have fancy ideas about trading, profits....for battle hardened seasoned traders it is a revision of what they have learned from hard knocks from the market...

Smart_trade

 

[XRAY27]

ST da !!!

I think you uploaded a video of Madan and another is pawan another winner ,OFA you are referring to him ??

 

[Smart_trade]

ST da !!!

I think you uploaded a video of Madan and another is pawan another winner ,OFA you are referring to him ??

Madan is right...but I did not refer to Pawan though Pawan too is a great trader.

Smart_trade

 

[Vipul_84]

Sir, what is the name of this strategy? Is it Ratio Spread? As I understand, we are in upswing in NF. So when we look for this kind of trades? Only in upswing? I am little surprised that in upswing, you are entering a strategy using PUTs and not using any CALLs.

Options trade Idea :

Buy X qty of 7400 puts and sell 2X qty of 7100 puts both of Feb series....this gives a trade with 28 points debit.

with 100 points profit, RR = over 3:1
200 points profit RR = over 6:1
300 points profit RR= over 9:1

The breakeven is 6800 ( plus initial debit points ) below which we will start making a loss...to hedge this, we can buy X qty of 6800 puts at 18...that fully hedges the trade but cost goes up by 18 so total cost comes to 46...

Traders should do the trade fully understanding the risk....beginners should do fully hedged trade.

Shared just to show how we can locate good trades in options.

Smart_trade

 

[Smart_trade]

Sir, what is the name of this strategy? Is it Ratio Spread? As I understand, we are in upswing in NF. So when we look for this kind of trades? Only in upswing? I am little surprised that in upswing, you are entering a strategy using PUTs and not using any CALLs.

This strategy is based on the assumption that we are in corrective upmove and the larger downmove is not yet finally over. It is a longer term trade and that is why we have chosen Feb options.

Smart_trade

 

[Vipul_84]

Thanks Sir. But if this corrective up-move turns out to be initial phase of uptrend and market rallies further to say 7800, then what would happen to this trade? Can we take such trades for every upswing in positional time frame?

This strategy is based on the assumption that we are in corrective upmove and the larger downmove is not yet finally over. It is a longer term trade and that is why we have chosen Feb options.

Smart_trade

 

[Smart_trade]

Thanks Sir. But if this corrective up-move turns out to be initial phase of uptrend and market rallies further to say 7800, then what would happen to this trade? Can we take such trades for every upswing in positional time frame?

Then our assumption is wrong and we loose 28 points risk we have taken on the trade...but if proved right , we will make multiples of that...it is based on probabilities...no one knows the final answer.

Smart_trade

 

[vikas2131]

Then our assumption is wrong and we loose 28 points risk we have taken on the trade...but if proved right , we will make multiples of that...it is based on probabilities...no one knows the final answer.

Smart_trade

did ya close ur swing trade ????

 

[Smart_trade]

did ya close ur swing trade ????

No...still long in swing.

ST