Thoughts on Day/Swing Trading

[VaibhavPRO]

Raghav

Did you checked the volumes along with the fall of Silver's chart you showed. The volume at the doji bear red candle. And some gapups before that.

I dont have any experience with commodities, but couldn't help but notice the clues that were so easily spotted along with other things.

Rajputz

That chart is of SILVER july contract. It became liquid after May contract expired. Thus one should not look at volumes for any clue..

 

[pav]

ST sir,
can we trade two different intraday method(short and long in same scrip) in one account.
if answer is yes then please throw some light on it that how it is possible ?

Regards
Pav

 

[Smart_trade]

ST sir,
can we trade two different intraday method(short and long in same scrip) in one account.
if answer is yes then please throw some light on it that how it is possible ?

Regards
Pav

Yes why not ? In fact trading different methods in one account is advantageous for margins and as it gives more volumes you can negotiate better brokerage.

Let us take an example....suppose you have two intraday methods and they are called Method A and Method B.....it is unlikely that one method gives a buy signal and other gives a sell signal at the same price...they may trigger those at different prices. Let us take example of Nifty to explain clearly. At say 5500 system A triggers a buy....so you buy say 200 nifty Fut....at 5500. Your position with your broker is 200 long..... now say at 5550 the system B triggers a sell....so you sell say 200 Nifty futures on syst B at 5550....your system A is still long and system B is short.....so your net position with your broker is NIL...but you still have 200 long on system A and 200 short on system B......

Now as market progresses and goes up...., your system A gives a sell signal...so you sell 200 Nifty Fut.....at say 5570......so your position on system A is squared off....position on system B is short 200 continues....and now your position with your broker is 200 short. Afterwords suppose market comes down and at 5530 your system B gives a profit taking signal so you cover ( buy ) 200 nifty fut...so your position on system B is squared off and your position with your broker is also squared off ie zero.....

What would be your profit/loss ?

System A.... B 200 @ 5500 ..S 200 @ 5570 ......Profit of Rs 14,000

System B ..... S 200 @ 5550...B 200 @ 5530...... Profit of Rs 4,000

Total profit Rs 18,000=00

Calculate from the trades....it will match the same figure.

The key here is you must know at any point of time what is your position on different systems ( and your net position with your broker though that is not very important but your broker terminal will show you this net position and it will charge margins on these positions )....and also cover those positions as if they are independent positions......no problems at all....

Think about it ...it is very simple....we always know our positions at any point of time....

Smart_trade

 

[anuragmunjal]

hi Pav

another addition to what ST has said is that u can maintain an excel in which u keep the track of trades taken by both the systems separately. this may help u in keeping track of the performance of both ur systems..

regards

 

[ayush2020]

such a nice thread....thanx for ur valuable contributions...

 

[aaplana]

ST Bro,
I just hade started day trading from past 4 months after getting broadband conn and Zerodha ( Due to low brokerage as prev i was using ICICIDIRECT which sucks).
I used diff methods but was in loss, now following this thread and Raghavacc's thread so small profit is generating by trading ATM/ITM nifty option. As I day trade only between 1.15 PM to 2.30 PM ( during my office lunch time), so I use 1Min TF against what U and Raghav suggested ( 5Min TF), bcos 5Min TF dont generate enough signal during this small time period . So would u suggest to continue with it or should i change something ??

Regards
Aaplana

 

[columbus]

ST sir,
can we trade two different intraday method(short and long in same scrip) in one account.
if answer is yes then please throw some light on it that how it is possible ?

Regards
Pav

In F&O ,it is possible.

For example , you can BUY May futures and SELL June futures.
Similarly you can BUY Nifty-5600CE and SELL Nifty-5400PE. (You can even
BUY 5500CE and SELL 5500PE also).

 

[pav]

ST sir,
can we trade two different intraday method(short and long in same scrip) in one account.
if answer is yes then please throw some light on it that how it is possible ?

Regards
Pav

Yes why not ? In fact trading different methods in one account is advantageous for margins and as it gives more volumes you can negotiate better brokerage.

Let us take an example....suppose you have two intraday methods and they are called Method A and Method B.....it is unlikely that one method gives a buy signal and other gives a sell signal at the same price...they may trigger those at different prices. Let us take example of Nifty to explain clearly. At say 5500 system A triggers a buy....so you buy say 200 nifty Fut....at 5500. Your position with your broker is 200 long..... now say at 5550 the system B triggers a sell....so you sell say 200 Nifty futures on syst B at 5550....your system A is still long and system B is short.....so your net position with your broker is NIL...but you still have 200 long on system A and 200 short on system B......

Now as market progresses and goes up...., your system A gives a sell signal...so you sell 200 Nifty Fut.....at say 5570......so your position on system A is squared off....position on system B is short 200 continues....and now your position with your broker is 200 short. Afterwords suppose market comes down and at 5530 your system B gives a profit taking signal so you cover ( buy ) 200 nifty fut...so your position on system B is squared off and your position with your broker is also squared off ie zero.....

What would be your profit/loss ?

System A.... B 200 @ 5500 ..S 200 @ 5570 ......Profit of Rs 14,000

System B ..... S 200 @ 5550...B 200 @ 5530...... Profit of Rs 4,000

Total profit Rs 18,000=00

Calculate from the trades....it will match the same figure.

The key here is you must know at any point of time what is your position on different systems ( and your net position with your broker though that is not very important but your broker terminal will show you this net position and it will charge margins on these positions )....and also cover those positions as if they are independent positions......no problems at all....

Think about it ...it is very simple....we always know our positions at any point of time....

Smart_trade

hi Pav

another addition to what ST has said is that u can maintain an excel in which u keep the track of trades taken by both the systems separately. this may help u in keeping track of the performance of both ur systems..

regards

In F&O ,it is possible.

For example , you can BUY May futures and SELL June futures.
Similarly you can BUY Nifty-5600CE and SELL Nifty-5400PE. (You can even
BUY 5500CE and SELL 5500PE also).

Thank you very much ST sir for such a nice explanation.
and also thanks to anuragmujal and columbs.

Regardas
Pav

 

[Subhadip]

great thread..
i like it very much:clap:

 

[mrgo]

You are the best thats for sure...:thumb: