Stock FUTURES To Keep A Close Eye On
- Thread starter SavantGarde
- Start date
- Tags buy derivatives futures nse sell stock stock futures
Hi Amit...you see an update for a few BUY Triggers and few updates for Scrips that got Triggered in the last few days....S/Ls are always in place....for such Triggers and update.... infact one of the S/L you will find is higher than the close....it is due to Volatility.....and people are quite perplexed and ususally think of it as a Typo on my part....!!!
Just that while in one on one discussion..with some friends here being aware of their available Capital... and the open position...S/L is a rare discussion....!!!
Infact in the 5/6 System....I have 2 S/Ls generated you will see the Triggers & Updates in Chapter-II & the Mother Thread for it's origin....!!!
Tons more to discuss... later...
SG
Just that while in one on one discussion..with some friends here being aware of their available Capital... and the open position...S/L is a rare discussion....!!!
Infact in the 5/6 System....I have 2 S/Ls generated you will see the Triggers & Updates in Chapter-II & the Mother Thread for it's origin....!!!
Tons more to discuss... later...
SG
Hello Aditya,
I've seen your posts at Uttam's thread and liked your work. However your thoughts here for averaging really surprised me. That too for a believer of position sizing is important aspect of trading.
Let me try & illustrate. For example, You are happy & confident of a stock and bought it at 100 with an expectation to go up.
At this point you may have made your decision and atleast bought 50% of qty that you wish to buy (unless you're hoping to make more than 3 add-ins to your position). And most cases for day trader, you have gone all-out at appropriate opportunity.
For day trader, once you are already committed your position... you actually do not have more equity to add at lower levels. If you do so than you're overthrowing your own safety net of "correct position to trade".
Secondly, trying to average at lower levels... is almost a guessing game (as you have once decided a level to buy and that is breached now). Consider energy and time you spend on this. Instead this can be better utilized to look for other opportunity (and there are many in market) with much less stressful than your current loss making position.
For positional trader, you may have committed 50% of your position to trade and hence have some room to add. I agree that sormetime lower cost averaging helps you to earn few extra bucks but again think of your mental makeup. I've seen guys who are so committed to a stock (and attached rumor, news, belief etc) that they keep averaging at every lower level.
IMHO once you're in this mode, it is very difficult to overcome your trading ego that you you have proven wrong with your trade. Instead you start feeling happy that you're lowering your cost and hence some day will make more money.
I'll appreciate your comments and thoughts.
Regards,
I've seen your posts at Uttam's thread and liked your work. However your thoughts here for averaging really surprised me. That too for a believer of position sizing is important aspect of trading.
Let me try & illustrate. For example, You are happy & confident of a stock and bought it at 100 with an expectation to go up.
At this point you may have made your decision and atleast bought 50% of qty that you wish to buy (unless you're hoping to make more than 3 add-ins to your position). And most cases for day trader, you have gone all-out at appropriate opportunity.
For day trader, once you are already committed your position... you actually do not have more equity to add at lower levels. If you do so than you're overthrowing your own safety net of "correct position to trade".
Secondly, trying to average at lower levels... is almost a guessing game (as you have once decided a level to buy and that is breached now). Consider energy and time you spend on this. Instead this can be better utilized to look for other opportunity (and there are many in market) with much less stressful than your current loss making position.
For positional trader, you may have committed 50% of your position to trade and hence have some room to add. I agree that sormetime lower cost averaging helps you to earn few extra bucks but again think of your mental makeup. I've seen guys who are so committed to a stock (and attached rumor, news, belief etc) that they keep averaging at every lower level.
IMHO once you're in this mode, it is very difficult to overcome your trading ego that you you have proven wrong with your trade. Instead you start feeling happy that you're lowering your cost and hence some day will make more money.
I'll appreciate your comments and thoughts.
Regards,
Last edited:
Before the day started i had only one thing in mind and that is the maximum which i will let the position go against me is to 5132 as that is the Low which was made recently (10 to 15 days earlier) and which is less that the previous lows.
Regarding 17th April trading session
as i got out of 1 lot in profit i was happy (of course the profit factor is there but more to that it is that it was the feeling that you can make money even if you keep your SL well away because earlier i used to keep tight SL due to that my Losses are less but my EOD ledger was never in profit, as when i keep small SL my mentality become such that i get out of the profit position in a hurry as soon as i see some points drop in the position which was in profit)
One thing which i still cannot understand is "You said we have still long biased on nifty" How can we decide whether the bias is of Long or short. What i normally do to decide the bias is see the 50 MA if close is below that Bias is Negative and vice verse.
I hope this is what you expected.
Regarding 17th April trading session
as i got out of 1 lot in profit i was happy (of course the profit factor is there but more to that it is that it was the feeling that you can make money even if you keep your SL well away because earlier i used to keep tight SL due to that my Losses are less but my EOD ledger was never in profit, as when i keep small SL my mentality become such that i get out of the profit position in a hurry as soon as i see some points drop in the position which was in profit)
One thing which i still cannot understand is "You said we have still long biased on nifty" How can we decide whether the bias is of Long or short. What i normally do to decide the bias is see the 50 MA if close is below that Bias is Negative and vice verse.
I hope this is what you expected.
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