Nifty Futures Trading

[columbus]

Inflation=12.63%

 

[nagendra_gb]

i would still advise u (like last time) of following Vinodji's mechanical trading.
A modification in it I would suggest for you is to enter a position using this ratio:
One lot of ATM options
+
Two lots of mini futures
(keep this ratio, and scale up acc to your risk taking liquidity)

Now, one thing that mech. trading lacks is profit-booking levels. Now, in this thread's cousin (positional), most of the members mention the upcoming strong support/resistance level which can threaten the current trend as suggested by mechanical trading)...

Initially, book out your profits in mini futures together (or one-by-one, as u gain experience) at/near such strong RSR levels. Then, keep the options position open & SAR it as suggested by mech. trading. Add on those closed 2 minis when such RSR level is broken convincingly, so that u continue with the trend.
Atlleast, if such RSR actually proved to the fullstop for ongoing trend, you would have already booked out partly even before the mechanical trading reverses.

Believe me, I have been doing like this, and I have been successful in this. Atleast, booking out partly gives u an initial peace of mind... rest, follow the mechanics of the system.

Thus, besides intraday trading & personal positional trading, I also indulge in this modified mechanical trading (original by Vinodji)

After seeing Sunil's reply even i want to share my trading style.. As sunil knows me i was doing intraday but was loosing much.. so now a days i have changed my trading style a bit. I will follow saint sir going with 60 min flow and will take position in say one lot nifty. at the end of the day if am long on nifty futures i will take one put call which is in the money and vice versa.. many times this has saved me.. for example yesterday when i was long i had took 4400 put call so in the morning when we reversed trade i came out with minimal loss. Today i have taken 4300 put. May be tomorrow morning if at all markets opens gap up say 50 points then i loose 50 points on futures but same will be compensated with options. But my todays profit will remain intact.

Sunil and others please comment on this method..

 

[Czar]

4000 & 4200 puts seeing heavy buying, what the heck is the rally kaput ?

so someone knew 4 days back....

 

[lalpar]

czar,

dont u think that these inflation numbers and etc are just a reson to set panic...There are times when everything is ignored and market moves up...if tomight OIL fall by $5 then market will move up...

We small traders can never find out why market moves up or down its only charts or technicals that help...

Tomorrow if market moves up then everyboy will say we have discounted for inflation today...If it falls tomo again then they will asy inf is a concern..so these are just reasons to trap!!!

 

[nagendra_gb]

See crude at 119 and inflation very bad... may be tomorrow gap down ..

 

[Czar]

czar,

dont u think that these inflation numbers and etc are just a reson to set panic...There are times when everything is ignored and market moves up...if tonight OIL fall by $5 then market will move up...

We small traders can never find out why market moves up or down its only charts or technicals that help...

Tomorrow if market moves up then everybody will say we have discounted for inflation today...If it falls tomo again then they will asy inf is a concern..so these are just reasons to trap!!!

well sadly crude is now up by 4$, & it really does'nt matter about crude or dow or anything else, its all to balance the imbalance, which Technicals provide some insight into, so we here rely on it, rest all is hog-wash to take money out of your pockets, by those having more money power.

Now everyone knew that one down leg was pending & for the rally to continue it should not breach 4197 on the downside, but how many made money on that deduction ? not many, so to interpret is 1 thing & to follow it is another....

 

[nagendra_gb]

well sadly crude is now up by 4$, & it really does'nt matter about crude or dow or anything else, its all to balance the imbalance, which Technicals provide some insight into, so we here rely on it, rest all is hog-wash to take money out of your pockets, by those having more money power.

Now everyone knew that one down leg was pending & for the rally to continue it should not breach 4197 on the downside, but how many made money on that deduction ? not many, so to interpret is 1 thing & to follow it is another....

Rightly said Czar.. Satyajit was clearly indicating that 4197 is the next level but still we did not listen to charts...

 

[Czar]

Only 15 mins left for 10 hours break.

oh good you spoke about Da, so da, what's the secret ????

 

[uasish]

Lalith,

Disturbing to know your Loss,as you have identified the Short comings hence shortly you will conquer those challenging areas until then plz keep your position size less than your normal one,Mkt will be there,losses can be recovered later but now focus on those areas.
To suggest is easy but to do it is difficult,personally have lot of faith on you guys.

Cheers.

Asish

 

[Prabhjeet]

After seeing Sunil's reply even i want to share my trading style.. As sunil knows me i was doing intraday but was loosing much.. so now a days i have changed my trading style a bit. I will follow saint sir going with 60 min flow and will take position in say one lot nifty. at the end of the day if am long on nifty futures i will take one put call which is in the money and vice versa.. many times this has saved me.. for example yesterday when i was long i had took 4400 put call so in the morning when we reversed trade i came out with minimal loss. Today i have taken 4300 put. May be tomorrow morning if at all markets opens gap up say 50 points then i loose 50 points on futures but same will be compensated with options. But my todays profit will remain intact.

Sunil and others please comment on this method..

Nagendra may be you have capped the downside by using options but you are also capping the profits and also think of the brokerages involved in buying options & time decay etc. You may loose most of your profits this way.

I dont think this is a good idea, only my view