Regular Income From Markets. Risk Free. Takes no Time

[ravinder0509]

you are right...trailing stop loss is better suited to range breakout trades. This was a breakdown failure trade and mostly the first target is always days high...am I right Amit as you are the best person to tell.

 

[jamit_05]

you are right...trailing stop loss is better suited to range breakout trades. This was a breakdown failure trade and mostly the first target is always days high...am I right Amit as you are the best person to tell.

The fact I was trying to point out is, sometimes a Breakout Failure is so strong that it consumes everything in its path... and goes below the recent Range as well; A breakout failure has also led to a Range Breakdown. At such times hold your positions and pray to God that your fingers keep to themselves.... and not muddle the best day of the entire month

 

[jamit_05]

Those who might want to buy a pair... this is a good chance... cost is 92; buy and hold till Friday EOD. This range is likely to break by Friday... profit is highly likely.

 

[jamit_05]

Position Sizing and MM.

The objective of this post is to show ones approach towards fulfilling his objective. How he suits his MM and PS plan to meet his objective of doubling money.

Please review it. If there are questions about MM and PS techniques I will try my best to attend them.

 

[augubhai]

Those who might want to buy a pair... this is a good chance... cost is 92; buy and hold till Friday EOD. This range is likely to break by Friday... profit is highly likely.

Tried to buy at 92 - was unsuccessful. I was placing a 2L order, and did not notice that one of the legs was Sell, instead of Buy. Not a problem, will try to enter if it opens lower, closer to 5300 tomorrow.

I have been watching options for the last 2 days, and have one observation to share. There seems to be a small sell-off in options in the last 5 minutes. So if you wait till the last minute, you may get your pair at a lower cost. Also, at market open, the options seem to be cheaper, and after the first 5 minutes gain some premium.

Just an observation in the last couple of days... Not sure if the observation holds true on days of increased volatility

 

[healthraj]

This month it might be a typical F&O calendar month.

When I say typical I mean
Week 1 - Non-trending - Open positions are being made - Not good for Options Trading
Week 2 - Could be trending - Fight between Bulls and Bear - Might be good for Options
Week 3 - Could be trending - Fight between Bulls and Bear - Might be good for Options
Week 4 - Non-Trending - Postions are being closed - Not good for Options Trading

So normally when the market is NOT-TRENDING avoid the Strangle Options strategy.
In NON-TRENDING days/week actually you can for strategies to eat premiums.

See my diary for more information on Trending Vs Non-Trending trading in Futures.
http://www.traderji.com/trading-diary/69299-raj-trading-diary-15.html

So today also the market was rangebound. Made 77 points profit.
The advantage of assuming the market as Rangebound is that we will trade the full range. In a trending market normally we don't trade the full range because the signals are generated later. Please see my thread for today's chart.

Hopefully I think Friday would be a Trending day. So options traders can take positions for tomorrow to play the strangle strategy. Hopefully the market will also open slightly negative or gap down tomorrow. So it would be a wonderful opportunity to take positions. My assumption is that the market outlook for July is BULLISH.

 

[healthraj]

Re: Position Sizing and MM.

The objective of this post is to show ones approach towards fulfilling his objective. How he suits his MM and PS plan to meet his objective of doubling money.

Please review it. If there are questions about MM and PS techniques I will try my best to attend them.

Can you please explain the columns "10" and "20"?

 

[healthraj]

The fact I was trying to point out is, sometimes a Breakout Failure is so strong that it consumes everything in its path... and goes below the recent Range as well; A breakout failure has also led to a Range Breakdown. At such times hold your positions and pray to God that your fingers keep to themselves.... and not muddle the best day of the entire month

According to today's PIVOT, Resistance and Support,

Pivot was at 5303, Resistance 1 at 5335, Support 1 at 5273.
In the morning the market opened below 5335 and was trading between Pivot and R1. After Europe opening the market, there was a BREAKDOWN ofthe Pivot by 15 points. So to go past Pivot there need to be BREAKOUT with volume. Since the overall trend is Bullish normally the market would trade above Pivot.

Otherwise it was a normal RangeBound day. So on a Rangebound try trading the Full range with Stoploss as either Pivot, Resistance or Support levels depending on the trade. Also always take positions near the Pivot, Resistance and Support levels and not in between.

In a trending market need not worry about all these and we just need to look out EMA crossover and take positions

 

[jamit_05]

Tried to buy at 92 - was unsuccessful. I was placing a 2L order, and did not notice that one of the legs was Sell, instead of Buy. Not a problem, will try to enter if it opens lower, closer to 5300 tomorrow.

I have been watching options for the last 2 days, and have one observation to share. There seems to be a small sell-off in options in the last 5 minutes. So if you wait till the last minute, you may get your pair at a lower cost. Also, at market open, the options seem to be cheaper, and after the first 5 minutes gain some premium.

Just an observation in the last couple of days... Not sure if the observation holds true on days of increased volatility

Yes, buying at or below 92 will prove to be profitable. Go right ahead, it is a risk worth taking.

 

[jamit_05]

So today also the market was rangebound. Made 77 points profit.
The advantage of assuming the market as Rangebound is that we will trade the full range. In a trending market normally we don't trade the full range because the signals are generated later. Please see my thread for today's chart.

Hopefully I think Friday would be a Trending day. So options traders can take positions for tomorrow to play the strangle strategy. Hopefully the market will also open slightly negative or gap down tomorrow. So it would be a wonderful opportunity to take positions. My assumption is that the market outlook for July is BULLISH.

I am glad that you made a phenomenal 77 points in a day!