Swing Calls
- Thread starter winstonn
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Hi milind,
The main problem people will lose money in trading is not because they dont know technical analysis as profs do know , but they view this activity as Gambling and not Business.
For any Business to accumulate , it has to make expenditure.
In trading world , the expenditure is loss. However, loss or expenditure should not exceed income!!!!
That is where money management comes in, it limits your expenditure or loss and maximises your profits.
While undertaking any trade , you must know wht you will lose if market proves you wrong. For that you need to find the stop loss order which may be below the most recent swing low for long position or most recent swing high for short position. Then you should convert your stop into 2% rule.
Eg. If the stop is Rs 10/- and the buying price is 200 , and you have 1,00,000/- as trading capital,
Then it goes like this:
2% of 1,00,000/- is 2,000/-
your stop is Rs 10/-
So you will buy 2000 divided by 10 = 200 shares only
By this method , you limit your risk , you get proper position size and when u profit it is good.
Thanxs
Winston
The main problem people will lose money in trading is not because they dont know technical analysis as profs do know , but they view this activity as Gambling and not Business.
For any Business to accumulate , it has to make expenditure.
In trading world , the expenditure is loss. However, loss or expenditure should not exceed income!!!!
That is where money management comes in, it limits your expenditure or loss and maximises your profits.
While undertaking any trade , you must know wht you will lose if market proves you wrong. For that you need to find the stop loss order which may be below the most recent swing low for long position or most recent swing high for short position. Then you should convert your stop into 2% rule.
Eg. If the stop is Rs 10/- and the buying price is 200 , and you have 1,00,000/- as trading capital,
Then it goes like this:
2% of 1,00,000/- is 2,000/-
your stop is Rs 10/-
So you will buy 2000 divided by 10 = 200 shares only
By this method , you limit your risk , you get proper position size and when u profit it is good.
Thanxs
Winston
hey wat abt tomorrow ......
i do mainly future trading .... recommend a stock with intraday future trading or 3-4 days with strict sl
thanx
bharti target seems 2 b taking lot of time n delivery call , nt futures . i dont think future can b keep for that much time and big target . if u so sure abt it , shld i go for it
ps- i know its 2 much 2 ask from u bt m jus beginner n promise u i m gonna study enough 2 know every tity -bity of technical .. let my exams b finished
i do mainly future trading .... recommend a stock with intraday future trading or 3-4 days with strict sl
thanx
bharti target seems 2 b taking lot of time n delivery call , nt futures . i dont think future can b keep for that much time and big target . if u so sure abt it , shld i go for it
ps- i know its 2 much 2 ask from u bt m jus beginner n promise u i m gonna study enough 2 know every tity -bity of technical .. let my exams b finished
Hi Neerav,
You can sell the nifty puts tommorow.
Now nifty support line is near strike price with 4020 , most unlikely that nifty will come down from there.
You can get premium of 80 to 100/- Rs * 100 = 8,000/- to 10,000/- premium credited per lot. Now This is Mid jan , So as a option seller you can beneift from time value.
Your Risk= if nifty calls below 4020 - premium= B , then from B you will get a loss of 100 * points on nifty.
But if nifty falls below support and comes till 4020 - premium ( you received )
, you can Buy back the option . This way you can get out of losing position without loss, on the contrary , the premium at the time of ur buy back will be less because of time and volatility value being gone.
Nifty options are not exercised untill expiry, they are exchange settled.
Thanxs
winston
You can sell the nifty puts tommorow.
Now nifty support line is near strike price with 4020 , most unlikely that nifty will come down from there.
You can get premium of 80 to 100/- Rs * 100 = 8,000/- to 10,000/- premium credited per lot. Now This is Mid jan , So as a option seller you can beneift from time value.
Your Risk= if nifty calls below 4020 - premium= B , then from B you will get a loss of 100 * points on nifty.
But if nifty falls below support and comes till 4020 - premium ( you received )
, you can Buy back the option . This way you can get out of losing position without loss, on the contrary , the premium at the time of ur buy back will be less because of time and volatility value being gone.
Nifty options are not exercised untill expiry, they are exchange settled.
Thanxs
winston
thx for prompt reply .... but i was lukin for trade in stock or nifty lots
call and short options , i cant understand how they work but hv an idea .
can i get something to trade in future derivative (direct in stock itself, not calll and put) (eg- buy bharti lot or buy nifty lot or sell bharti , that way ]
call and short options , i cant understand how they work but hv an idea .
can i get something to trade in future derivative (direct in stock itself, not calll and put) (eg- buy bharti lot or buy nifty lot or sell bharti , that way
]
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