General Trading Chat

[amitrandive]

The moves on such news event days are volatile and it is very difficult to catch volatility in which markets may swing both ways....

Today I dont expect any big move either side.So buying a straddle may not be a good idea as premiums will drop after the announcement.

Smart_trade

Sir

Any specific reason for this ?

 

[Smart_trade]

Sir

Any specific reason for this ?

Market has come up 300 points from the bottom and the corporate performance,bank NPAs etc are not good....so any action from RBI is not going to be a game changer in present environments.

Smart_trade

 

[cinderblock]

That's great..but one curious query (since you are an 'old-timer' ), if we are expecting a sudden move (say 100 points in NF), is it wise to put SLM orders (both long and short) at a width of say 30 points from the current price?

It's like buying a straddle, but committing only after the move happens. I haven't done this, but I have no clue about the slippage that might happen when such a fast move happens.

The funny thing is even though I know the strategy is a "long term" loser - you should go ahead and try it. If you haven't done it before you will try it. If not today then at some other point. But rest assured you will

Today's a good day as any :thumb:

 

[timepass]

Market has come up 300 points from the bottom and the corporate performance,bank NPAs etc are not good....so any action from RBI is not going to be a game changer in present environments.

Smart_trade

I think that "inaction" will not be a game changer, but action surely will.

 

[vikas2131]

Elections are coming around once again..Inflation is inching up ..Contoling it more important than anything else..

 

[arsh22g]

The funny thing is even though I know the strategy is a "long term" loser - you should go ahead and try it. If you haven't done it before you will try it. If not today then at some other point. But rest assured you will

Today's a good day as any :thumb:

I have tried it with options during Nov rate cut , futures have delta of 1, so a bit scared because of slippage.
Even if there is a millisecond delay in order routing to exchange, slippage can be huge in such a fast up-move, making the trade highly risky.

 

[cinderblock]

I have tried it with options during Nov rate cut , futures have delta of 1, so a bit scared because of slippage.
Even if there is a millisecond delay in order routing to exchange, slippage can be huge in such a fast up-move, making the trade highly risky.

From experience - greater the slippage the more is the likelihood of the trade becoming a winner.

If there is no slippage inspite of the news then it means there are a lot of orders in the direction opposite yours.

 

[arsh22g]

From experience - greater the slippage the more is the likelihood of the trade becoming a winner.

If there is no slippage inspite of the news then it means there are a lot of orders in the direction opposite yours.

I am not talking from perspective of amount of orders, because my order will anyways be tiny compared to the size of the market. It's about how fast your order gets in the queue, depending on the broker's infra. If an institutional trader is running the same strategy, his delay will be minuscule due to co-location. Even if the strategy is going to work, I will be exposed to more risk as my order will be further away from the start of the move.

 

[TracerBullet]

Some suggestions pls Any good reads you have done lately

Adding a little more Am looking at mid timeframes. Not 15 min trades. Any method which would give some indication on where price is headed for next few hours or days.

Which ones seems good Volumes, pattern recognition or any indicators.

Adding I ve read little stuff on MM, psychology, RR.

Some options, i haven't read them yet
- ST thread on Demark stuff, if not read.
- Long-Term Secrets to Short-Term Trading - This might compliment Pivot Method
- Adam Grimes - nice blog. Can also try free course + has book

- Pratap/xray threads - but dont know if they can be tuned for higher TF
- Another intraday - Open trader (Market profile) - Expensive course but you can 'sample' it before buying. ( google it )

Also ST gave method for Hourly Reversals using Trend change of VP method some time back. Could not find post using google, but here is the text

- Intraday and swing has different systems,and different criteria but basics are same
- Without going into specifics, just see hourly or 4 hrs timeframe chart
- We are trading above ERL, pivot high made above ERL with higher pivot low....definite sign of trend having reversed at least for some time
- Then catch this reversal with stop at 5 min pivot low and you have a trade with great RR and with such RR you can never lose in swing trade
- Ouch....I have given out all the specifics

 

[timepass]

"no change policy from RBI" says Latha on CNBC