General Trading Chat

[headstrong007]

Another important thing they need to decrease the lot size by half of most popular trader friendly stock futures
RELIANCE and BAJAJFINANCE too.

RELIANCE NEW LOT SIZE 500
BAJAJ FINANCE NEW LOT SIZE 250

They saw more beginners are getting trapped on these two futures due to higher lot size too.

 

[Simple.Trader]

Hello Friends,

I have shorted DHFL in the morning, yesterday. Than it made a new low and there was no buyer in best five window. Buyers freezed. I tried to get a fill by typing a new Buying Bid below 5 points of new low. But my order was rejected saying some Circuit Limit. But I saw new Buying orders from someone else at a gap of few seconds. It made new low again. Then again I gave buying order below low. Again rejected citing same reason. Seniors please help. Why I was not able to place order but someone else could. Second how to place orders out of intraday circuit limit?

Regards

Simple Trader

 

[Simple.Trader]

Hello John302928 Sir,

Your charts are very good with very good counts. I was always bad in counting legs. Thanks for sharing your analysis. If possible please make a separate thread for these charts so that it dont get buried in this fast movingthread. It would be helpful for Elliot wave students also.

One goodthing to share. Do you know that Mr Elliot Wave himself wrote in his notes that it took him three (03) years to develop a trading strategy based on his OWN technique? Three years for a person who made it. We generally loose pateince with a strategy in few months or weeks.

Hope you must have some strategy to trade your technique. Best wishes.

Regards

Simple Trader

 

[superman]

You know what is the reason of suddenly decrease of lot size what SEBI was rejecting every time.
It's the recent effect of newly increased margin thorough ASM.

There was discussion on CNBC that the recent fall in many NSE Stock Future is bcoz of suddenly liquidity crisis due to various recent restrictions. And bank nifty was facing some wide bid-ask due to increase of ASM too.

It's SEBI effect. Tried to cut retailers participation by increasing margin, as a failed effect needed to decrease lot size suddenly, now retailer will easily participate with half lot size now.

All the possible effect of bad liquidity due to such various restriction was discussed in SEBI thread but not one listen to them from higher authority and suddenly they are feeling the heat.

Now small traders will trade bank nifty more peacefully. And bank nifty options will get higher liquidity.

Retailers are in loss now. Let me explain why
The BN margins will go so much by Jan next year that you need to pay the same margins for 20 lots which you are paying now for 40 lots.This is a clever move by SEBI to make retailers happy thinking they can trade in less lots. But the margins you will be paying is same as for 40 lots !

The ROI will reduce like anything unless everyone demands extra premium after 20 lots introduction which I dont think will happen.

 

[superman]

Hello Friends,

I have shorted DHFL in the morning, yesterday. Than it made a new low and there was no buyer in best five window. Buyers freezed. I tried to get a fill by typing a new Buying Bid below 5 points of new low. But my order was rejected saying some Circuit Limit. But I saw new Buying orders from someone else at a gap of few seconds. It made new low again. Then again I gave buying order below low. Again rejected citing same reason. Seniors please help. Why I was not able to place order but someone else could. Second how to place orders out of intraday circuit limit?

Regards

Simple Trader

It should not happen. F&O scrips have no circuits !
What kind of broker give that message for F&O stocks ! If you give market BUY orders it should go through ! LIMIT orders have very low priority and may not get filled.

 

[jonty47]

Har saal mein 3-4 milte hain who claim that they have a never fail system.......hisaab laga lo ...

ST

People should understand that there's no 100% guaranteed formula, even the greatest of traders have drawdowns and losing is part and parcel of the game.

 

[john302928]

Hello John302928 Sir,

Your charts are very good with very good counts. I was always bad in counting legs. Thanks for sharing your analysis. If possible please make a separate thread for these charts so that it dont get buried in this fast movingthread. It would be helpful for Elliot wave students also.

One goodthing to share. Do you know that Mr Elliot Wave himself wrote in his notes that it took him three (03) years to develop a trading strategy based on his OWN technique? Three years for a person who made it. We generally loose patience with a strategy in few months or weeks.

Hope you must have some strategy to trade your technique. Best wishes.

Regards

Simple Trader

Hi Simple trader. Thank you for taking time and appreciating. I understand your situation in counting legs. Its not that easy. there is a saying that if we give 10 ellioticians with the same stock then there are high probabilities that everyone will come up with different counts. So dont feel bad about your counts. small piece of suggestion since you are in to elliot wave analysis. Never ever think that our counts are correct and market has to follow our counts. By using elliot wave we are not trying to bend market to follow our counts, rather we are trying to sail the market waves. that is all about elliot waves. Market is the best master. when market invalidates your count then just move on with your alternate count.

by the way i didnot know that 3 years information.thank you for sharing that. where did you get the information? if you have some materials you may please share. my email id is my traderji id with gmail

I tried to post charts by creating separate threads.It looked like traderji didnt have much of ellioticians. so i stopped posting charts. But since this is one of those difficult times for all the traders and investors so i thought of posting few charts so that that might help them to what to expect and what not to expect and realize what is going on in the market. Once in a while i take help from traderji members for different reasons. i feel its a way of giving back to the community to help fellow people

Cheers mate

 

[headstrong007]

Retailers are in loss now. Let me explain why
The BN margins will go so much by Jan next year that you need to pay the same margins for 20 lots which you are paying now for 40 lots.This is a clever move by SEBI to make retailers happy thinking they can trade in less lots. But the margins you will be paying is same as for 40 lots !

The ROI will reduce like anything unless everyone demands extra premium after 20 lots introduction which I dont think will happen.

No, its not the same but, only 62.5%.
Margin increased in BNF from 8 to 10%, it's just 2% increase means over all 25% increase. But the lot size is now decreased to half. So mathematically you are paying 125/2=62.5% margin par lot than previous one. It's far more better for retailer.
But as far as ROI etc, I have already discussed retailers in loss. But that was the SEBI's main goal to cut the participation by increasing the margin so that retailers can't touch the Futures or short options.
Due to sudden liquidity crisis SEBI forced to decrease the lot size in some futures.

Also most of small retailers are buying options, specially most of options activity in weekly options. Small lot size will cut the risk per trade by half. It's option buyers gain.

Most importantly volume will increase, so the liquidity.

 

[Riskyman]

It should not happen. F&O scrips have no circuits !
What kind of broker give that message for F&O stocks ! If you give market BUY orders it should go through ! LIMIT orders have very low priority and may not get filled.

You are unaware that your information is very wrong. Even F&O scrips have circuit filters. Every stock has a circuit filter irrespective of whether F&O or not. However, for F&O stocks circuit filters are removed at the discretion of the Exchange in consideration with volatility, liquidity etc and trading continues normally.

Attaching a quote of Reliance from NSE. You can see upper and lower Bands for the day i.e circuit levels.

 

[john302928]

You are unaware that your information is very wrong. Even F&O scrips have circuit filters. Every stock has a circuit filter irrespective of whether F&O or not. However, for F&O stocks circuit filters are removed at the discretion of the Exchange in consideration with volatility, liquidity etc and trading continues normally.

Attaching a quote of Reliance from NSE. You can see upper and lower Bands for the day i.e circuit levels.

View attachment 28908

Yes I agree with riskyman. he is right. even f&O stocks have circuit limits but most often then are revised when they hit the limit but non F&O stocks dont have that benefit. I have seen it many times stock limits revised in F&O stocks