General Trading Chat

[Smart_trade]

A senior trader who taught me a lot always used to say you cannot insist that you have to understand each and every move of the market as your birth right.If you don't understand few moves, don't trade them. Trade only when you have reasonable clarity.

ST

 

[Smart_trade]

ST da I was tracking your ratio put spread trade; is that still on.

I believe its at par or in minor losses.

Point to point if you consider,the trade is in profit so I had booked some profits on some positions on Wednessday when market was down.But still running the rest of the positions ,now my debit (initial) is recovered and average is better.Now I am riding on almost a free trade.

ST

 

[arsh22g]

Good summary by Capital Group (~1.3 tn AUM) :

https://www.americanfunds.com/conte.../documents/brochures/AF-mfcpbr-060-0116_p.pdf

 

[TracerBullet]

Hello st da, some question on VP method

1) When multiple VPL gets broken, which one should be used as vERL? Can we take the latest one?

Pic 1 is a lower degree uptrend, so vERL1 should probably be used
In pic 2, Both vERL1 and vERL3 are from previous trends, maybe neither can be used and we wait for new VPL break.
Pic 3 - vERL1 or vERL7 - 1 is from Higher degree downtrend and 7 is latest VPL of new downtrend

(All turning points are VP below)

2) Visual Sideways - Where does Sideways end on the upside? I think it should be on break of VPH2, but should we consider this as a 'Higher degree sideways' as price is still within VPH1 and VPL1

3) Now, Some small execution questions. In some examples, i see Entry on break of body instead of pivot. Is there a thumbrule for it?
Can we say - use it as alternative to p1/p2 method in strong trend to keep SL small

4) Also, Do you give any consideration to Round Number for placing order. Example if pivot low point is 166.10, would you short at 166.05 or 165.95 - considering that 166 can have some standing orders.

166.05 will give lower slippage, but gives slightly less confidence in using BO bar as tight stop.
thanks

 

[Smart_trade]

If somebody had gone long,he would have bought at 7430-40 and on Friday the market closed much above.So even if there is no hedge,I don't think he will incur major loss....

Remaining short on Friday was a risky play though it is working out now...but the markets could have opened gap up too.

Smart_trade

 

[Smart_trade]

Hello st da, some question on VP method

1) When multiple VPL gets broken, which one should be used as vERL? Can we take the latest one?

Pic 1 is a lower degree uptrend, so vERL1 should probably be used
In pic 2, Both vERL1 and vERL3 are from previous trends, maybe neither can be used and we wait for new VPL break.
Pic 3 - vERL1 or vERL7 - 1 is from Higher degree downtrend and 7 is latest VPL of new downtrend

(All turning points are VP below)

2) Visual Sideways - Where does Sideways end on the upside? I think it should be on break of VPH2, but should we consider this as a 'lower degree sideways' as price is still within VPH1 and VPL1

3) Now, Some small execution questions. In some examples, i see Entry on break of body instead of pivot. Is there a thumbrule for it?
Can we say - use it as alternative to p1/p2 method in strong trend to keep SL small

4) Also, Do you give any consideration to Round Number for placing order. Example if pivot low point is 166.10, would you short at 166.05 or 165.95 - considering that 166 can have some standing orders.

166.05 will give lower slippage, but gives slightly less confidence in using BO bar as tight stop.
thanks

1) For VERL don't consider upgrades VPs.Meaning the VPs. Should be clear VPs.

2) vIsual sideways ends when the sideways range is broken on either side.So either VPH1 or VPL 1 needs to be taken out .

3) Will allow few ticks at round numbers. Body pivots not to be considered when market is in a small sideways range....in trends,body pivot works well.

Smart_trade

 

[TracerBullet]

1) For VERL don't consider upgrades VPs.Meaning the VPs. Should be clear VPs.

Pic 1 - Is this correct - We have probable trend change, but neither VPL1/2 can be considered as vERL and we wait for VPs of new trend

Pic 2

In this case, break of VPL5 after lower VPH6 makes 5 as vERL. VPL1 and VPL3 are not relevant. Break of VPL1 which was VPL before lower degree uptrend started does not make new vERL

Edit - typos

 

[timepass]

Guys, can someone please recount the disadvantages of ELSS ?? LIC Jeevan Plus is an ELSS, isn't it ?

 

[TracerBullet]

Guys, can someone please recount the disadvantages of ELSS ?? LIC Jeevan Plus is an ELSS, isn't it ?

It seems to be ULIP which is not ELSS.

ELSS dont have insurance, they are locked for 3 years (after which you can redeem and reinvest and still gain tax exemption). Some ELSS funds are here
For me, ELSS is simple equity market investment with added benefit for saving taxes.

ULIP used to be very bad investments with high fees, upfront commissions etc. Recent Regulation may have improved them ( not sure), but i think its best to keep insurance and investment seperate. Term plans will probably be cheaper for insurance.

Edit - From Hindu link, it seems to have options for debt/equity allocation. But you can achieve same using MF and keep insurance separate. Its harder to figure out costs of these schemes and MF seems simpler to me.

 

[Smart_trade]

Guys, can someone please recount the disadvantages of ELSS ?? LIC Jeevan Plus is an ELSS, isn't it ?

LIC JEEVAN plus is not an ELSS....it is ULIP ( UNIT LINKED INSURANCE PLAN). It will give tax concessions under section 80C. It will give below average returns for first 10 years as Advisors commission which is heavy, gets front loaded...

Don't go for ULIP...better is either ELSS fund for tax concessions and appreciation and a simple term plan for risk cover.It works much better that way.Advisors try to promote ULIPS as it gives them 25-40 % commissions...don't fall for it.
Invest in it throughout the year in SIP mode.

ST