Stock FUTURES To Keep A Close Eye On

[SavantGarde]

Aarav,

A clarification needed from your end...since you mentioned trading only when you have time to spare.....!!!

Fine you enter Long or Short on crossovers of 4 & 9 MAs....but you haven't mentioned anything about S/Ls......!!!

SG

Hi Savant,

I trade in Futures (index as well as stocks).
Trading capital is 75K.
Strategy- Well i have changed many strategy. Strategy which i am currently following is MA(MA(C,9),9) and MA(MA(C,4),4) crossover. as soon as i get a close above the crossover i enter the long trade and vice versa for short.

The main thing is i do not trade all the time. when ever i get time i see to take trade in any stock or index which is giving signal at that time.

Thanks

 

[SavantGarde]

Aarav,

Anyways whatever your answer would be to my earlier post......!!!

You are exhibiting classic fear psychosis of a Trader who has lost lots of money in the past.....it is quite common to come across this sort of behavioural pattern among traders.....!!!

You are under capitalised to trade any stock futures....even 75k isn't good money management for taking 1 Lot of NF on EOD basis....!!!

Considering you trade only when you have some time to spare....This is what I would suggest....to get you over your trading fears.......this exercise will be for maximum of 1-3 months & will need you to spare only 3 minutes...in the morning when the market opens.....!!!

If you are agreeable then I shall further outline the details....!!!

SG

Hi Savant,

Waiting to get your valuable inputs.

Thanks

 

[mravi]

SavantGarde Sir

Sorry for jumping in. Can you please share the details in general. I am also in silar situation as Aarav.

Regards
mravi

 

[SavantGarde]

Hi Ravi,

What I have in mind for Aarav, perhaps may not be suitable for you...therefore if you too can please give details of your trading activity and Available balance and time you can spare for Trading will be helpful......!!!

Let me make this very clear at the outset.... during the exercise there will be no deviation from whatever instructions you are supposed to follow....!!!

SG

SavantGarde Sir

Sorry for jumping in. Can you please share the details in general. I am also in silar situation as Aarav.

Regards
mravi

 

[TheDreamer]

I guess you will be following it up on a daily basis ?

Will try to if it's BTST/STBT/Intraday (& if the person shows enough zeal to follow his tips)... But not for swing/positional trades... I have thousands of .xls and .afl to generate them for me...

 

[mravi]

Hi SG Sir

Thanks for the reply.

My initial capital is 1 lac. During last one month adventure I lost 34K and gained 15K and now holding position in TATAPOWER FUTURE @ 103 (8K loss).

When I trade in stocks(MACD cross-over in daily charts - 12,26,9), I normally make 5% to 10% every month. Normally once I take the position I used to hold for a 2 to 4 weeks. But I got attracted to futures as it provides more opportunity to trade in both LONG and SHORT. I tried to apply the same logic in futures trading also.

I cannot watch the market continuously as my work won't let me do so(software engineer). I can squeeze-in time when market opens for 15 to 20 mins, and continue follow the market once in a while during the day, but not in regular intervals.

My main weakness has been - I enter into positions in a hurry both LONG or SHORT. Once I am out of a position, I will start searching for another position where I can put the money in and start chasing the stock. With stocks the loss was bearable - with FUTURES the loss is 4 times and difficult to handle.


When I end-up loosing money, the panic levels increase when the stock starts nearing the stop-loss. I convinced myself that loosing 4K in a future trade is acceptable. But I normally get panic when I reach the stop-loss. Sometimes I do exit, and the times when I don't I tend to loose more money and time.


This is where I am right now.

Regards
ravim

 

[SavantGarde]

Hi Ravi,

First things first.... you will need to get rid of 'Sir' when addressing me...simply SG will suffice....!!!

From the details provided by you...problem with you is a little different from that of Aarav's

Go through the first few pages of this thread when I used to post triggers for stock futures....what I want you to see in those posts...is not the triggers... but the amount one is required to have to trade Stock Futures....!!!

Classic error committed for most Traders dabbling in Stock Futures...they have enough money required for the Margin...they just dive into it...without realising daily close from the previous close affects the Ledger positively/negatively on a daily basis.....!!!

Sooner than later one is left with only decimals in their ledger....while trading in equity...you purchase some equity pay for it.... and that's that... it doesn't affect your ledger in anyway except if it is below your entry price then you are sitting only on a quotational loss....!!!

Normally anybody wanting to trade Stock Futures with less than 2.5 L would be shown the door without any explanation....!!!

Since you are bitten by the Futures bug....the best you can do is trade mulitple lots of MINIFTY......lot size being 20.....once you get to 1.5L and feel confident about your ability to Trade Futures ....you can move up to NIFTY Futures.....!!!

You still have open positions...let me know when you have closed them all....incidentally went through your Trading diary.....!!!

Let me know your willingness to go through the exercise which may last upto a couple of months in your case....!!!

SG

Hi SG Sir

Thanks for the reply.

My initial capital is 1 lac. During last one month adventure I lost 34K and gained 15K and now holding position in TATAPOWER FUTURE @ 103 (8K loss).

When I trade in stocks(MACD cross-over in daily charts - 12,26,9), I normally make 5% to 10% every month. Normally once I take the position I used to hold for a 2 to 4 weeks. But I got attracted to futures as it provides more opportunity to trade in both LONG and SHORT. I tried to apply the same logic in futures trading also.

I cannot watch the market continuously as my work won't let me do so(software engineer). I can squeeze-in time when market opens for 15 to 20 mins, and continue follow the market once in a while during the day, but not in regular intervals.

My main weakness has been - I enter into positions in a hurry both LONG or SHORT. Once I am out of a position, I will start searching for another position where I can put the money in and start chasing the stock. With stocks the loss was bearable - with FUTURES the loss is 4 times and difficult to handle.


When I end-up loosing money, the panic levels increase when the stock starts nearing the stop-loss. I convinced myself that loosing 4K in a future trade is acceptable. But I normally get panic when I reach the stop-loss. Sometimes I do exit, and the times when I don't I tend to loose more money and time.


This is where I am right now.

Regards
ravim

 

[Prashant Patel]

So...can you explain the perspective....!!!

Hi SG!!!

Need some assistance... which was asked for earlier also...

 

[Prashant Patel]

Hi SG,
Reason for assistance asked...

Time & Date 5 Contract Name Action Quantity Price
09/04/2012 09:35 FUTSTK-IFCI-26 APR, 2012 SELL 8000 43
Saw the opportunity as market was felling, hence shorted

09/04/2012 09:53 FUTSTK-IFCI-26 APR, 2012 BUY 8000 42.4
As soon as downtrend started, I FEARED that my winning position would get into loosing, hence covered the short.

09/04/2012 10:01 FUTSTK-IFCI-26 APR, 2012 BUY 8000 42.35
After much of support @ 42.25 - 42.35 made a long entry, ignoring negative market.

09/04/2012 10:24 FUTSTK-IFCI-26 APR, 2012 SELL 8000 42.2
Kept Stop Loss which triggered, again FEAR grapsed of being IF.

09/04/2012 10:33 FUTSTK-IFCI-26 APR, 2012 BUY 8000 42.25
Again went long without any reason..

09/04/2012 11:04 FUTSTK-IFCI-26 APR, 2012 SELL 8000 42.05
Kept Stop Loss which triggered, again FEAR grapsed of being IF.

09/04/2012 11:09 FUTSTK-IFCI-26 APR, 2012 SELL 8000 42.15
Again shorted & left position open without any SL, but kept a target BUY order looking at day's low.

09/04/2012 11:40 FUTSTK-IFCI-26 APR, 2012 BUY 8000 41.75
Got Covered as target already kept.

09/04/2012 15:01 FUTSTK-IFCI-26 APR, 2012 BUY 8000 41.8
Again went long without any reason.. In negative market

Regards,
Prashant

 

[SexyTrader]

Ranbaxy(Fut) is going to make a lot of money.....its going damn well.....my INSTINCTS tell me this is a rocker! :thumb:

Happy Trading all the time!