Nifty Futures Trading

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Sunil

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whenever in a confirmed trend, then news just pour in to support that trend..

RIL results InLINE
Inflation ROC slowing - this week 11.89% vs 11.91%
LEFT no longer left with ruling govt
monsoon revival's reports
 

milkyblack

Well-Known Member
Hi All on Traderji,

Here are the rules which I have fixed...I hope I have covered everything in this..Please let me know if you have any suggestions..
1) Before entering a trade the SL will be fixed
2) The SL will never be moved under any circumstances...Under ANY CIRCUMSTANCES
3) For Intraday SL will be 8 points or previous pivots and the aim of each trade will be to get 12 points
4) After 12 points, if trend favours,trailing stop loss will be used
5) For Positional Trading the SL will never exceed 100 points
6) Will be going for maximum 3 trades intraday if all are successful
7) Aim is to get 100 nifty points every week excluding brokerage
8) Will be trading with 1 lot and 2nd lot will be used only for support under crictical conditions
9) Ultimately will enjoy trading
10) and finally there wont be any emotions in any trade and will Keep Walking!!!

Will be starting paper trading from Monday after going through SAINT's docs again..Will keep updating here my positions..

Regards
Lalith
I do not know if you have consulted anyone to develop the rules... but other than sticking to the SL all have flaws!

Even the SL level is major mistake... else explain why 8 pts and 100 pts? Any logic? How do you know that you will get 12 pts? What if you get 11 pts...

Now do not think that I am discouraging your effort.... but as you said you going to paper trade... you will YOURSELF find out the flaws in the rules! And I am sure that you will modify the rules ... next time you post your rules ... you will notice the positive change!

The Rule 10 put it to point 1 and then you will see automatically your rules will change accordingly... your rules still filled with emotions!

Do not feel offended friend with my post! Just my views.... hope it helps!

Regards
 
C

Czar

Guest
whenever in a confirmed trend, then news just pour in to support that trend..

RIL results InLINE
Inflation ROC slowing - this week 11.89% vs 11.91%
LEFT no longer left with ruling govt
monsoon revival's reports
It is said that all major companies prepare 3 balance sheets, 1 the true 1 & the other 2 for the operator, 1 good & 1 bad, depending on markets...:eek:
 

Sunil

Well-Known Member
my little advice for those interested in positional trading (especially contra positional trading):

First of all, if one decides to go short (or buy put) when the market in an uptrend, for example, then one should not take such position only because of emotional reasons that market had gone up a lot, it's over-bought, etc. Yes, these are also important, but they are secondary - they will not give you an idea of entry point.
ONLY CHART-READING & STUDYING will provide you with a level to enter a positional trade (contra or otherwise); and also with a reasonable SL.

These important levels are known as RSR (resistance-support-resistance) levels. On charts, they show that they do not break easily without meaningful reaction - sort of "lakshman rekha". In other words, they act as very strong support while coming down and as resistance, while coming up.
Usually, these are round figure nos. with +/- 15pts. - but not in every case, as chart will tell you.

And positional trading does not mean that you should have a 100 pt SL from your entry level - let only the chart say..

I'll give two recent instances:
When Nifty SPot was near 3800, I had bought a call option - not because it had fallen much, oversold, etc.. no, these are secondary - charts told me that 3775 is a very good RSR level. (I had also posted about this level). So, I had kept my SL below 3775 (in options, one can keep a bit comfy round figure of 3750)
Yesterday, I had mentioned about 4515-4535 band resistance. This was another good RSR level, as per the charts, which I used along with some indicators like over-bought, downward sloping line (from Jan peak), profit-booking time, etc.... I had bought Put option, with SL above 4550 (comfy, as per charts - 4570)....

Contra trend trade is very risky, but not unreasonable - if you combine it with good/reasonable entry levels (and not just emotions), then it can be rewarding...
For finding a good RSR level, one should have intraday charts beginning from previous month (sometimes last 2 months) and not just EOD chart.
And yes, never average your loosing trade - if you dont have stomach to bear initial losses (may or may not arise), I would advise to use OPTIONS, where you know from beginning what will be your limited maximum loss, and you have time till expiry to let your trade go through. Also, going for half of your normal quantity (which you trade with for intraday trading) is advisable.

This is not intended for those who have just started trading nifty, or those who have just begin to learn/read/comprehend charts....
This is for people like my member-friend Lalith who realise the risk-reward in a contra-trend positional trade, and wish to add something to their bread-&-butter intraday trading.


I again stress - positional trading should be done sometimes along with intraday trading, but contra-trend positional trading is very risky (but rewards may be higher sometimes, if your entry level is good).
 

Sunil

Well-Known Member
NIFTY SPOT LEVELS FOR TODAY'S TRADING

Profit-booking, which started yesterday, seems to continue today also - thanks to global markets. (yesterday's decent good local news might be ignored... let's see)

No point in giving resistance levels, as today's support levels will come into picture (and keep this thing in mind, some supports act as resistances on way up)

4450 - Pivotal point of today - coincidentally, it was yesterday's pivot too... crossing this level will quiten the bears a bit.. otherwise it would be a good entry level for them to go short

4400-4390: yesterday, this had passed the psychology test, but I doubt today's gap down will eat this level in one gulp...

NOW, 5DAY CHARTS INDICATE THAT BELOW 4385 SPOT, THE NEXT BIG SUPPORT COMES AT 4260-4240, THANKS TO THE BIG GAP-UP OF WEDNESDAY...

Here, I'll bring my infamous 4315-4350 (june) gap resistance which was gulped down easily on wednesday's gap up.
So, below 4390, next support comes at 4355-35-15.
4355 is the S1 for today.

And today will be the psychology test of 4315-4300.

I'll look to close my PUT here around 4315-4335, and will go long for intraday (maybe scalping - depends on where we open) at 4315 with SL below 4300.

Just 5 days to expiry - if 4315/00 is held today, then we might just consolidate between 4300-4450 till expiry... (hajmola to digest the big rally)
 

Sunil

Well-Known Member
(attempting to put forward strategies for FUT):

1. Sell below 4425 for 4400/4380 (this might not happen if big gap down)

2. Sell below 4380 for 4360/4340/4315

3. Buy at 4315 SL below 4300 for scalping some reversal

4. Sell below 4300 for 4275/4250


(PS - I am not that good with FUT levels)
 
(attempting to put forward strategies for FUT):

1. Sell below 4425 for 4400/4380 (this might not happen if big gap down)

2. Sell below 4380 for 4360/4340/4315

3. Buy at 4315 SL below 4300 for scalping some reversal

4. Sell below 4300 for 4275/4250


(PS - I am not that good with FUT levels)
Sunil,

Thanks a lot dude.. u really explain things in laymen terms.. hats off to you my friend.
 

Sunil

Well-Known Member
Nifty Fut ;there seem to be good support in the zone 4421 to 4409 & Resistance @ 4468.00 in 30 mins chart.
dada, please let me know this (as i dont have access to any tech software)

in 60min, has the HH, HL support pivot been broken???
if not, then what is that level...???
 
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