Stock FUTURES To Keep A Close Eye On
- Thread starter SavantGarde
- Start date
- Tags buy derivatives futures nse sell stock stock futures
What charts, sir? Never mentioned 'charts' in my post. Nor I am expert on decoding the charts - not yet. I just quoted an American TV series' character.
But, sir, if may suggest, you follow the real divers of Deep Waters of the Market. People like Mr. SavantGarde, Saint, Option Man, Rajputz, Stocks.Murtza... I am just a new trader who's still splashing in the shallow waters, learning to swim, while the Deep Ends of the Market are still unknown to me.
Best Regards
But, sir, if may suggest, you follow the real divers of Deep Waters of the Market. People like Mr. SavantGarde, Saint, Option Man, Rajputz, Stocks.Murtza... I am just a new trader who's still splashing in the shallow waters, learning to swim, while the Deep Ends of the Market are still unknown to me.
Best Regards
Savant Sir,
I accept all healthy criticism which I believe is the must for a person to learn and grow in any field.. (gone are the days when I used to fight even with my project manager over remarks against me
) am highly grateful to your timely advise for my FSL trade..
due to my on job commitments, I may not be able to monitor stock movement for entire day.. (even the stock monitoring/selling/buying, i have to do when my managers/leads are not around
) I know that am highly unfit for derivatives trading.. that was and will be my last futures trade.. I need to learn the basics of fundamental and technical analysis before even thinking of investing a serious amount.. Am sure this site is the right place for it.
sorry for posting in the wrong thread..
I was just suggesting something that could help most of the newbie traders like me. Please note that it was an idea and not a request . Moreover I wont post anything on any thread now on. will make myself a read only member..
Thanks and regards
Prashanth
Hi Prashanth,
My posts in your FSL thread was not high on substance.... because at that point of time.... Solution is what was required.... instead of Dos & Donts....
You were not the first who had a problem position and I tried my best to solve...it
There were others before you with problem positions with big drawdowns...who I did offer solution...but they didn't take up on it... but just because others didn't follow up on the solution offered didn't mean that I stop .... I am a perennial optimist... & will continue to be one & will try my best to do whatever I can do....to all problem queries....posted.
By the way... Read your first & the last statement together....& see if you find any contradiction.....& most importantly....be thankful I am not your Project Manager....
Happy & Safer Trading
SavantGarde
My posts in your FSL thread was not high on substance.... because at that point of time.... Solution is what was required.... instead of Dos & Donts....
You were not the first who had a problem position and I tried my best to solve...it
There were others before you with problem positions with big drawdowns...who I did offer solution...but they didn't take up on it... but just because others didn't follow up on the solution offered didn't mean that I stop .... I am a perennial optimist... & will continue to be one & will try my best to do whatever I can do....to all problem queries....posted.
By the way... Read your first & the last statement together....& see if you find any contradiction.....& most importantly....be thankful I am not your Project Manager....
Happy & Safer Trading
SavantGarde
Savant Sir,
I accept all healthy criticism which I believe is the must for a person to learn and grow in any field.. (gone are the days when I used to fight even with my project manager over remarks against me )
am highly grateful to your timely advise for my FSL trade..
due to my on job commitments, I may not be able to monitor stock movement for entire day.. (even the stock monitoring/selling/buying, i have to do when my managers/leads are not around )
I know that am highly unfit for derivatives trading.. that was and will be my last futures trade.. I need to learn the basics of fundamental and technical analysis before even thinking of investing a serious amount.. Am sure this site is the right place for it.
sorry for posting in the wrong thread..
I was just suggesting something that could help most of the newbie traders like me. Please note that it was an idea and not a request . Moreover I wont post anything on any thread now on. will make myself a read only member..
Thanks and regards
Prashanth
I accept all healthy criticism which I believe is the must for a person to learn and grow in any field.. (gone are the days when I used to fight even with my project manager over remarks against me
) am highly grateful to your timely advise for my FSL trade..
due to my on job commitments, I may not be able to monitor stock movement for entire day.. (even the stock monitoring/selling/buying, i have to do when my managers/leads are not around
) I know that am highly unfit for derivatives trading.. that was and will be my last futures trade.. I need to learn the basics of fundamental and technical analysis before even thinking of investing a serious amount.. Am sure this site is the right place for it.
sorry for posting in the wrong thread..
I was just suggesting something that could help most of the newbie traders like me. Please note that it was an idea and not a request . Moreover I wont post anything on any thread now on. will make myself a read only member..
Thanks and regards
Prashanth
I request mod to rename the thread as " General Chit chat" or else move the same to General chit chat category.
Relax. By tomorrow - perhaps from this evening onwards - you will have all the Traderji threads buzzing with Stock Talk.
Futures & Equity
a) Equity you buy at a particular price and pay for the purchase and just wait for it to move up from your entry price to book your profit.
b) While you are holding equity portfolio, day to day price movement only is reflected in your portfolio & NOT the Ledger
c) Equity one can Buy as low as 1 of a Scrip whereas in Futures one has to take the position in the prescribed Lot size.... to illustrate the point with a few examples: TATAMOTORS one can buy 1 Share in Equity whereas in Future Lot size comprises of 250, similarly VIJAYABANK one can buy 1 Share in Equity whereas Future Lot size is 4000... and taking position in Future is minimum of 1 Lot
d) Day to day workings & its effect on the ledger is illustrated below with an example of TATAMOTORS 1 lot
You BUY 1 Lot (lot size being 250) of TATAMOTORS future @ 1250, Margin required to take the position is 44000 (rounded of to the nearest 1000 for purpose of illustration)
If one were to BUY 250 shares of TM it would have been 250 x 1250 = 312500=00 & in comparison for 44k Margin you get into 250 shares of the underlying....
Effects on the Ledger If it moves up or down...
If it moves up 10 bucks to 1260 and one is still holding the position you have gained Mark To Market (MTM) Profit for the day 10 x 250 = 2500 and the same will be credited to your ledger on the same day.
If it Moves down by 10 bucks to 1240... it would mean a MTM loss of 2500... and considering Margin is 44k ledger must have enough buffer to support & take care of the downside.... & in this case on the particualr day ledger Must have the required 44 k for margin and 2.5k for the MTM loss for the day...
As long as one holds the Position, Ledger will reflect the MTM from previous trading days close till the position is squared off.
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
Therefore for somebody to trade in the Futures segment......It is necessary to develop an ability to predict correctly...atleast 80% of the time.... and to trade the same on Intraday ONLY requires even finer precision of judgement...
because it reflects in ones ledger immediately... earlier, that is why I had maintained that one must have atleast 3.5 Lacs in F&O Ledger to trade this segment... although from this month many Stock future Lot sizes have had a downward revision...so for those with bigger risk appetite...& fairly good call on the market should atleast have 2.5 lacs for Positional Trading.
Happy & Safer Trading
SavantGarde
a) Equity you buy at a particular price and pay for the purchase and just wait for it to move up from your entry price to book your profit.
b) While you are holding equity portfolio, day to day price movement only is reflected in your portfolio & NOT the Ledger
c) Equity one can Buy as low as 1 of a Scrip whereas in Futures one has to take the position in the prescribed Lot size.... to illustrate the point with a few examples: TATAMOTORS one can buy 1 Share in Equity whereas in Future Lot size comprises of 250, similarly VIJAYABANK one can buy 1 Share in Equity whereas Future Lot size is 4000... and taking position in Future is minimum of 1 Lot
d) Day to day workings & its effect on the ledger is illustrated below with an example of TATAMOTORS 1 lot
You BUY 1 Lot (lot size being 250) of TATAMOTORS future @ 1250, Margin required to take the position is 44000 (rounded of to the nearest 1000 for purpose of illustration)
If one were to BUY 250 shares of TM it would have been 250 x 1250 = 312500=00 & in comparison for 44k Margin you get into 250 shares of the underlying....
Effects on the Ledger If it moves up or down...
If it moves up 10 bucks to 1260 and one is still holding the position you have gained Mark To Market (MTM) Profit for the day 10 x 250 = 2500 and the same will be credited to your ledger on the same day.
If it Moves down by 10 bucks to 1240... it would mean a MTM loss of 2500... and considering Margin is 44k ledger must have enough buffer to support & take care of the downside.... & in this case on the particualr day ledger Must have the required 44 k for margin and 2.5k for the MTM loss for the day...
As long as one holds the Position, Ledger will reflect the MTM from previous trading days close till the position is squared off.
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
Therefore for somebody to trade in the Futures segment......It is necessary to develop an ability to predict correctly...atleast 80% of the time.... and to trade the same on Intraday ONLY requires even finer precision of judgement...
because it reflects in ones ledger immediately... earlier, that is why I had maintained that one must have atleast 3.5 Lacs in F&O Ledger to trade this segment... although from this month many Stock future Lot sizes have had a downward revision...so for those with bigger risk appetite...& fairly good call on the market should atleast have 2.5 lacs for Positional Trading.
Happy & Safer Trading
SavantGarde
Gentle Advice
1) Futures and Options is Very Risky and it should not be done if one does not have exhaustive and good long experience of Stock Market.
2) In the begining we should not Trade as most of the people more than 95% loose money in Trading. We should invest instead of trading. I have friends who do not know anything about stock market and still make 25-30% anually by investing for long term in good scripts.
3) Futures and Options trading should be done once you are really comfortable otherwise you can loose all your portfolio in less than a month. (It has happened to many many people)
4) Futures and Options is mainly suited for Professional Traders or for people who breathe stock market 24X7 for years and We should be really careful in putting our hand into this.
It is like saying "buying on breakout" should be done by professional or seasoned traders and not by novices. Novices should stick to buying on dips.
My intention here is not to stop anybody from Futures and Options but I don't want anybody to loose their hard earned money for Greed.
1) Futures and Options is Very Risky and it should not be done if one does not have exhaustive and good long experience of Stock Market.
2) In the begining we should not Trade as most of the people more than 95% loose money in Trading. We should invest instead of trading. I have friends who do not know anything about stock market and still make 25-30% anually by investing for long term in good scripts.
3) Futures and Options trading should be done once you are really comfortable otherwise you can loose all your portfolio in less than a month. (It has happened to many many people)
4) Futures and Options is mainly suited for Professional Traders or for people who breathe stock market 24X7 for years and We should be really careful in putting our hand into this.
It is like saying "buying on breakout" should be done by professional or seasoned traders and not by novices. Novices should stick to buying on dips.
My intention here is not to stop anybody from Futures and Options but I don't want anybody to loose their hard earned money for Greed.
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