Going With The 60min Flow!!!

[milkyblack]

Hello All,

NF for July 22nd

July Series

Number	Trade	Level	SL	Initial Risk	P/L(Close)	Remarks

10	Long	3927	4069-	+132		+229				

9	Short	4086-	3927+	Closed		+159	

8	Long	3890+	4086-	Closed		+196		

7	Short	4017-	3890+	Closed		+127		Gap down

6	Long 	3922+	4017-	Closed		+95		Low of consolidation

5	Short	3863-	3922+	Closed		-59

4	Long	3914+	3858-	Closed		-56		Not taken a/c gap

3	Short	4127-	3914+	Closed		+213

2	Long	4152+	4127-	Closed		-25		Gap Intraday

1	Short	4127-	4152+	Closed		-25		Gap Intraday

Total booked P/L = +625

Regards

 

[rajaram.dilipkumar]

Hi RKK

Valid point as the previous SL piviot is lower than piviot 2back. To protect the profits one can trail SL two bar low. Waiting for Saint to clarify.
Reagads
ken

Hi
Ken as vinod was saying in his thread we can protect our profits by using option .... if any body can explain how to use it then it wil be great say every 200 point profit what should we do buy/sell options ???

Regards
Satya

satya,

heging is a zero sum game .... by heging we only lose brokerage and gain nothing .... e.g if we buy puts tomorrow and hold a long cash portfolio ...day after tomorrow if the market opens circuit down then we make money on the puts but that will be offset by the portfolio losses(infact we will be in a loss as the average stock will lose more than the index)....there is no fun in buying puts with long cash . Hedging is used by institutions as they hold stakes across companies and building such porfolio again involves huge costs for them . Heging at retail level only means we are confused and when we are confused we should not trade. Buying naked calls or puts is the ideal way to make money for e.g.when we are close to major supports like nifty was at around 3800 we buy call ( even otm calls like 4200 being the range resistance) and vice-versa for major resistances ..in both cases we are going against trend and being naked calls and puts the risk taken is a bit higher...there are plenty of other strategies that we can use which are not necessarily naked but please be infromed that the % gain or loss is much more in options than in futures .... personally i trade more options than futures .

 

[milkyblack]

Hi RKK

Valid point as the previous SL piviot is lower than piviot 2back. To protect the profits one can trail SL two bar low. Waiting for Saint to clarify.
Reagads
ken

Hi
Ken as vinod was saying in his thread we can protect our profits by using option .... if any body can explain how to use it then it wil be great say every 200 point profit what should we do buy/sell options ???

Regards
Satya

Hi Satya,

Its like buying put options when we are long and buy call options when we are short! Am I right?
Plz take the right put/call strike price to make the best out of it ! Consult an option trader/an experienced person for better understanding!

Regards

 

[vinst]

NF PL now 4185.

regards,
vin

 

[Smart_trade]

Hi Satya,

Its like buying put options when we are long and buy call options when we are short! Am I right?
Plz take the right put/call strike price to make the best out of it ! Consult an option trader/an experienced person for better understanding!

Regards

What Vinod has in mind when he says protect the profit by using options is probably different.Let me explain with an example.Suppose you are short and the trade is already in profit by Rs 200/- ie the mkt has come down by Rs 200/- and suppose yr trailing stop is 150/- points away from the present price,and the mkt reverses and hits yr trailing stoploss,then you make only Rs 50/- though the trade came in profit by Rs 200/- Now to increase yr profit,when the price is down by Rs 200/- you sell at the money put and get a premium of say 150/-Now if the mkt reverses,and hits yr stoploss,then also cover yr put sold which should give you Rs 75 as profit.So yr total profit is Rs 50/- in futures and Rs 75/- in put (option ) total of Rs 125/- and if the mkt continues going down then at expiry you get Rs 200/- plus Rs 150 in at the money put making a total of Rs 350/- which is pretty good trade.Hope I am able to express myself well.

Happy Trading !!!

 

[kenneth]

Why would one like to give away the profits of 327points!!. After all it is your money

Ticker	Date/Time	Trade	Close	ENTRY	P/L	EXIT	Risk	Sell L2 SL	P/L	BUY H2 SL	
NIFTYFO	7/21/2008 12:29	Long	4125.2	3944	181.2	3763	-181	4069	148.2	4140.8	
NIFTYFO	7/22/2008 15:55	Long	4271.9	4268	327.9	4185.55	241.35 	4185.55	241.35	4273

Regards
ken

 

[milkyblack]

Hello all,

NF for the day! Looks like visual gap up opening is going to happen! Use 5 min rule! If not gap opening then the SL is 4185-

Regards

 

[babubm]

what is five minutes rule

 

[rkkarnani]

what is five minutes rule

Exit the long below the low of first 5 minute bar and go short with high of this bar as SL.... abovw which you go long again!!! Jiggling space to be allowed in each case!!!!

 

[rkkarnani]

Shall exit below long 4388 and go short with reversal SL at 4471 !!! Giving a bit of extra room in view of big gap