Trade with options data

[trader15]

MR. GOYAL . i always place trigger price and it always get accepted and i hardly buy 5lots per month and this month these i lost 4 and won 1 which bad month for me and i am in learning phase of it and i admit i do not possess strong technical requeiments

No need of doing phd in technicals.. All you need to know is nifty support/resistance levels, which any broker like sharekhan or any other broker publishes on daily basis. Google search or traderji threads will give you ideas on same.

2 Steps;
1. Identify trend: up/down
2. Open position in trend direction
3. Sell at resistance, buy at support: Read Nifty support/resistance

As starter this will help you limit losses and make profits

 

[rajin90]

well i follow 315 strategy and MACD+HISTORGRAM always . i am not that much technical at all . i am using ODIN DIET(ANGEL BROKING) past 1 year i did always good but this time this month i didn't closed positions and ended up in loss

 

[anilnegi]

No need of doing phd in technicals.. All you need to know is nifty support/resistance levels, which any broker like sharekhan or any other broker publishes on daily basis. Google search or traderji threads will give you ideas on same.

2 Steps;
1. Identify trend: up/down
2. Open position in trend direction
3. Sell at resistance, buy at support: Read Nifty support/resistance

As starter this will help you limit losses and make profits

thanks for giving this information, but it is easily said than done, also there are many other things that can affect your trade, money management, trend verification, whipsaw, which can affect your trade

anil

 

[trader15]

thanks for giving this information, but it is easily said than done, also there are many other things that can affect your trade, money management, trend verification, whipsaw, which can affect your trade

anil

bhai trading aur PHD mein farak hai.... yeh sab gyan PHD ke liye chaiyee.. jo kar ke paisa nahi milta....

My funda is : stay simple, play with basics knowledge and enjoy the chillar...

Trend verification : Yes it is needed... best friend is option chain analysis

Money Management: How many lakhs are you planning to trade with depends your money management needs. Rules of Equity trading dont apply to options money management, as you make/loose 10% intraday. As a live example, i made a trade of 5500 PE in morning to scalp few points, and now i'm trapped with loss of 40% capital.

Should i exit: based on standard money management rules: Hell no: Then i end up losing 40% capital. I know i'm against the trend in major way, but even in trend, markets will move sideways and give me exit levels..

So net net: all funda's and theory : you can read: but u will not have time to remember anything except look at nifty for current levels, when your option price is swinging 10 points down wiping away 40-50% capital

 

[rajin90]

trend verification, whipsaw is main procedure to follow . if you can limit yourself to few good trades then there appear no problem of loss.
and what is OPTION CHAIN ANALYSIS.

 

[trader15]

well i follow 315 strategy and MACD+HISTORGRAM always . i am not that much technical at all . i am using ODIN DIET(ANGEL BROKING) past 1 year i did always good but this time this month i didn't closed positions and ended up in loss

One of key trading rules for option trading is: Book your profit/loss

Often the price movement looks so small: 2/3/4/5 rupees, ki aadmi sochta hai: lets wait it'll come back...... or go up more...

by the time you are done thinking, the market moves up/down and one gets stuck....

Second trading rule is to identify: whether you are investor or trader

--- Mostly folks move from equity investment to options for lure of good
return, which is good as they say "Greed is good"

---- But the investor mindset will not work for options... So if you brought say SBIN today and took delivery, and it is in loss, you wait....

and pray and hope it comes back up... and then exit... at profit or breakeven
or taking minor loss..

Options: investor mentality doesn't work: Options is not for investing, rather trading

If you are of investor mindset, trade futures, that too is leveraged. but you
have option to carry over to next expirty with small loss, as compared to
options which will be ZERO on expiry if your investor mindset made you
to hold when you are on wrong side of trade

 

[anilnegi]

http://www.nseindia.com/live_market...t=OPTIDX&date=-&segmentLink=17&segmentLink=17

data confusing now, 5600 put writing seen, but 5600 call not covering their positions, kiran help us out on this

 

[kiranjakka]

http://www.nseindia.com/live_market...t=OPTIDX&date=-&segmentLink=17&segmentLink=17

data confusing now, 5600 put writing seen, but 5600 call not covering their positions, kiran help us out on this

anil dont get confused as of now 5600puts added 16lk OI out of 20lk and calls added 13lk OI so data still favours long holders

 

[anilnegi]

HIGHEST OPEN INTEREST AS OF NOW

5600 CALL
5300 PUT

addition in OI
5400 put- 7.79 lk
5500 put- 33.03 lk
5600 put- 14.88 lk

shedding in call OI
5400 call-(-13.07 lk)
5500 call-(-11.94 lk)
5600 call-(+11 lk)

still market favouring bulls no sign for reversal seen as yet, kiran & other will recftify me

anil

 

[rajin90]

TRADER you are absolutely right. because of this mentality i many times most money.
and yeah that 2/3/4/5 rupee thing always went against me as many times i even leave 15points profit and this month 1st time i am in loss so it is enough lesson .

i more of an investor than trader by mindset. as i missed the opportunity of 5500ce at 49 rate and later that went upto 81. sometimes same words but by others work magnificently thank you.