Stock FUTURES To Keep A Close Eye On

[anayash]

Bias gaya bhaad mein...just purely trade the charts!

In my early days....this BIAS only made me hold on to my losing positions for longer than I can afford!:annoyed:

Just want to quote an example that I remember clearly from my early days!

I had some 25-30k in my account! On the day of the current month expiry...I took a position in the next month NIFTY PE(usually the worst time to buy options)...being totally confident that the market was headed down!

PE buy price - Rs.82(strike price was some 150 points away)

Position size - 6-7 lots....Entire capital

Next day gap up...could have exited at arnd 8-10 bucks loss on the PE...but due to BIAS...held on to it! Market closed much higher that day...with my PE closing in the 50s!

Next day again a small gap up...but market came down a bit during the day...my PE came into the 60s...again should have exited there...but BIAS made me hold on to it till I have a nice profit...the day ended in the green with my PE in the early 40s!

Next day...big gap up...PE made a low of 17-18 before closing in the early 20s...i was thinking..."itne low price pe to exit karne ka sawaal hi paida nahi hota"...so held on!

Next day...first red day after I took the position! But my PE didn't gain much...closed in the late 20s! Held on!

Market was totally flat for the next 2-3 sessions...PE was playing in the 20s!

Then market headed a bit lower...was showing signs of topping out...but i didn't see them! In total frustration....Exited the PE at 32...all lots!

Next day...some very bad news...big breakdown in the market...200 Nifty points...my PE made a high of 150 that day...& closed in the 70s!!:rofl:

Imagine my frustration!! Aur ye sab sirf BIAS ki vajah se hua!:lol:

P.S. So bias se jara bachke rehna re baba!

 

[anayash]

If Position sizing & MM is not proper.... even Chart can't save a Trader...from Risk Of Ruin....!!!

SG

Absolutely true! In the experience I quoted above...all these were totally absent!

But the point I wanted to make was...even with strict MM...sometimes even experienced traders are blinded by BIAS & hence they fail to act even when the charts are suggesting that the market will go against them!

So that particular trade ends in a bigger loss than what would have been if the trader had acted prudently!

 

[SavantGarde]

Hmmmm.... Anayash..... what a seesaw.......

Options is entirely a different beast to tame...and moreover our Options segment here is not fair to the the small Traders.... it is a miracle for a small Trader to even be making any money.......!!!

It is for the same reason if I ever take a trade in options... it is usually to eat the premiums.... otherwise some tinkering to iron the futures position...many times that tinkering backfires badly....!!!

But I did have fun in it, many years ago..... it was IFCI... option... there was the news of Stake sale...& I had collected almost 47 Lots of IFCI CEs with an average price between 2.10 - 2.55 ...it was a humongous Lot size....then on the day I saw the price at 25 I decided to exit the total position.... went on selling with the last few lots around 32... and guess what My phone lines went dead.....and was just curious to see where the price was headed to...guess what moment I reached my friend's office ...the price had just touched +50 .....

But I did make about 2.5-2.8 L on each lot...after that never touched Options for many years...

SG

 

[vssoma]

There’s an old joke about the investor who never used any stop losses. His friend knew his big positions were getting crushed.

Out of concern, the friend asked, “How are you sleeping?”

“Like a baby” he answered.

“Really? You aren’t nervous or upset?”

“I sleep like a baby” he repeated.

“That’s amazing. I’d never be able to sleep through the night with those types of losses.”

“Who said anything about sleeping through the night? I said I slept like a baby: I wake up every two hours, wet myself and cry for 30 minutes before falling back to sleep.”

That’s why risk management is so critical: to save you from sleeping like a baby, and in the long run to save you a lot of money.

 

[luvmalik]

will look to enter some of the stocks posted by savant sir

 

[vssoma]

dear,
can you pls. explain....how can we use this pre-open data in our normal market....
today it's open nifty @+70 then wen to +170, and finally it settled @ +20 ( 9:08 AM)

 

[SavantGarde]

dear,
can you pls. explain....how can we use this pre-open data in our normal market....
today it's open nifty @+70 then wen to +170, and finally it settled @ +20 ( 9:08 AM)

Swamy,

This Pre-open is the biggest scam I have ever seen... justification provided for starting Pre-open was that market would be more stable....!!!

Pre-open is conducted as a blind auction... Basically it is to benefit the Big players to position themselves in cash..... so that they can do whatever their plan for the day in the process reducing some cost....!!!

If it is meant to be a fair play then there shouldn't be any secrecy as to what is being traded....!!!

Scam..Scam...Scam... !!!

SG

 

[SavantGarde]

Hi Aarav,

Keep 1 Lot MINIFTY May Series @ 5332.15 To Buy......!!!

SG

 

[dineshN]

Good Morning all

SG

Any exit plans on LIC & JP

 

[Aarav11]

Hi Aarav,

Keep 1 Lot MINIFTY May Series @ 5332.15 To Buy......!!!

SG

Done @5332.15 May series