General Trading Chat

[timepass]

Many hedge funds take large bets for showing large profits which give them large clientele and huge bonuses for the managers. In many cases losses are hidden with the hope that eventually the bet will workout and all will be well. But if the large bets fail then they have a serious problems.

Same as someone trading 20 nifty futures in 1 lakh capital.

Smart_trade

Maybe the large hedge fund managers don't use 50x leverage or so for large bets.

 

[Singhraja]

St Sir can you share a example with chart of swing how you manage on short time.e frame and long time frame

 

[timepass]

How's the small investor sentiment in the last few years in our markets. Here, an american report says that since 2008, the funds' participation has gone up while a whole generation may stay away from the markets.

People hate the stock market, and that might not change for 'decades'

Business Insider
Bob Bryan
April 14, 2016
>>(Andrew Cooper/The Weinstein Company)
Samuel L. Jackson in "The Hateful Eight"

People just don't like the stock market, and they probably won't for a long time.

Since the end of the financial crisis, individual investors have invested nearly nothing in the stock market in aggregate. Individual investors may be suffering a crisis of confidence, and retail buying may not be coming back any time soon.

"Look, it took over a decade of incredibly high dividend yields to bring people back to the stock market after the Great Depression," Mike Thompson, head of S&P Global Market Intelligence's Investment Advisory Services told Business Insider.

"It's going to take years and years to get average investors back into stocks this time."

This crisis of confidence also has shown up in investor sentiment surveys, according to the analysts at Bespoke Investment Group.

"Since the end of the financial crisis in 2009, our view has been that it’s going to take decades, not months or years, for individual investors to fully trust the market again," said a note circulated by Bespoke on Wednesday.

"This view has certainly played out during the current bull market, because over the last seven years we have yet to see any individual investor sentiment readings turn excessively bullish."

Bespoke came to the conclusion by measuring the difference in the proportions of bullish institutional and individual investors in Yale's investor sentiment survey. Since the middle of the last decade, individual sentiment has generally run below that of institutions, meaning wealthy individual investors are more worried about the market than large scale fund managers.

"It appears that all of the lost money from the Dot Com bubble and the Financial Crisis has permanently scarred a generation of individual investors, and only time and a new generation will be able to change this dynamic," said the note.

In Bespoke's assessment, this is a phenomenon that could persist until the old guard gives way to investors that have fewer traumatic memories of the crisis. According to Thompson, it won't be quite as hard as that, but a long period of stock price growth along with serious incentives similar to the dividend growth seen after the Great Depression would be needed.

Either way it seems that mom and pop investors are wary of dipping their toes in the stock market waters, and it's unlikely they are going to be taking a dip any time soon.

>(Bespoke Investment Group)

Screen Shot 2016 04 13 at 6.07.14 PM

 

[amandeep86]

Many hedge funds take large bets for showing large profits which give them large clientele and huge bonuses for the managers. In many cases losses are hidden with the hope that eventually the bet will workout and all will be well. But if the large bets fail then they have a serious problems.

Same as someone trading 20 nifty futures in 1 lakh capital.

Smart_trade

But dont they have auditors. ..These hedge funds are institutional traders whom we alwasys blame for taking our stoplosses...such kind of risk errors cant be expected

Sent from my GT-I9060 using Tapatalk

 

[ankur07090]

I had never traded in equity futures. so some basic questions. Can anybody please tell.

1. What is volatility of stock futures like AXIS bank, YES bank........
2. What should be filter used when we enter into trade like if I buy above a candle then what points filter should be used ?

thanks

TP bhai,

I think u trade in equity futures. Can you please share your views...

 

[timepass]

TP bhai,

I think u trade in equity futures. Can you please share your views...

I haven't traded these counters, but as a rule of thumb you can keep the stoploss the previous minor pivot or 0.2 x ATR(10) on the daily.

 

[Smart_trade]

But dont they have auditors. ..These hedge funds are institutional traders whom we alwasys blame for taking our stoplosses...such kind of risk errors cant be expected

Sent from my GT-I9060 using Tapatalk

There are ways of hiding these losses from the auditors...reporting false positions,transferring some positions outside out of view of auditors and regulators.The management is involved in such misreporting else if real risk control and transperency is observed such things cannot go undetected. There are ways of putting a cover on these bad positions and the insiders know it. The auditors many times fail to unearth these frauds.

ST

 

[timepass]

There are ways of hiding these losses from the auditors...reporting false positions,transferring some positions outside out of view of auditors and regulators.The management is involved in such misreporting else if real risk control and transperency is observed such things cannot go undetected. There are ways of putting a cover on these bad positions and the insiders know it. The auditors many times fail to unearth these frauds.

ST

Yeah... also called Chinese accounting, or Mallaya Technologies

 

[Smart_trade]

St Sir can you share a example with chart of swing how you manage on short time.e frame and long time frame

I was purposely avoiding to post charts and explain it further. If from my earlier two posts you have not understood it,chances are that you are not getting the core concept behind this. If handled in a wrong way,this will result into losses and as usual the technique will get a bad name. Will post more some other time once people get some experience in swing trading.

Smart_trade

 

[Mungus]

I was purposely avoiding to post charts and explain it further. If from my earlier two posts you have not understood it,chances are that you are not getting the core concept behind this. If handled in a wrong way,this will result into losses and as usual the technique will get a bad name. Will post more some other time once people get some experience in swing trading.

Smart_trade

you always avoid saying this about Swing Trading.Dont know why

if you could throw 3-4 trend and range charts on us,may be some of us will get benefit as not everyone understand thru words.Some of us need an image