Yeah, good and long break.
Actually I thought about writing what I planned to do but for some reasons I left that thought. Yes, I have changed from what I was doing two months ago.
I wish I don't wanna do the mistake I was doing. This is big and a primary thing I wanna change.
I have decided to trade equity derivatives. Let see...
Dear Nac,
Urge you to understand what I am writing below:
One takes higher and bolder steps when the foundation is strong and tested. We know your trading hasn't been successful , rather an utter failure (writing this word purposefully) hence apart from changing certain habits (which only you would have known by now) you need to cut back and reduce risk on your trades.
One way is to reduce quantity of stock/value you used to trade earlier. Hence you should restart with your fresh funds without leveraging. Try it with your favourite stock or one/two large cap Index based stocks. By not levarging you will know if you have adapted the changes you planned and can evaluate the results. Only after a sustained period of time and consistently favourable results (by 'result' I do not mean profit, but successful adherence to your trading plan and method) you can get back to your initial quantity/value per trade.
Derivatives is much complex subject (especially Options) and there are various F&O statistics which can misguide you if you are new to it. Even experienced derivative traders too are not sure of interpretation of these numbers. Also theory is different than practice. Trading derivatives without much experience can simply evaporate your capital before you know it happen.
Somewhere I am getting a feeling that you want to catch up your lost capital and hence are getting from jobbing/scalping to stocks to derivatives in a span of less than 5 months. You are into full time trading so you need to be more careful of failure and set back as there aren't any/much option for you in case of wipeout.
So stick to stocks and reduce the quanity of your trade.
Welcome back,nac. It is a rather challenging time,now. Selection of the security to be traded is paramount in trading equity derivatives. And second,there are some derivatives that you can understand the movement and other that you dont. Start with the nifty and the most liquid counters-it seems the action has shifted to the largecap names. And thirdly,your time in the trade can be made dependent on your allocated capital (especially for the margin heavy contracts).
Sorry Alroyraj, but my post could interrupt your discussion, but that was not my intention.
^ Yeah, I don't find much liquidity other than nifty. I better stay with NIFTY.
How about shorting nifty? (Sep expiry)[/QUOTE]
Do what you think is right as per your trading method, seeking advise/cofirmation on trading calls is no good for either the seeker or giver. If you mix two of the best traders, you will get the worst of them (quote from some book I seem to have forgotten the title)
Regards,
