Trading Nifty by Levels

[khushi00]

Covered 1 lot@ 4746

Trgt for next 4742
SL 4756
Thinking may nifty attract towards level of 4735

 

[asnavale]

How can you create a short if your long is still alive? Maybe you meant I Isold my longs, waiting for a change in direction? Either that, or all my years of screen experience was futile, a I have still not learnt how to keep a long and a short both at the same time, in the same series, and in futures.

I have two different accounts. So I can do it.

-Anant

 

[khushi00]

Covered 2nd lot @ 4753

 

[trader.trends]

In this type of cases I do not go by trailing Stoploss alone. I initiate a counter trade near the target. In the present case the long was @ 4744 with a target of 4780. As it reached 4775, I initiated a counbter trade by shorting @ 4775, keeping the long alive. Once the price fell below 4770, I liquidated the long and persisted with the short for a target of 4735-35. At 4740 I initiated a long and waiting to liquidate the short @ 4755 and retaining the long.

-Anant

Anant, that is really an interesting way to trade. At 4775 you shorted and the trade went in fav of the shorts so you exit the longs at 4770 thus balancing the loss of 5 pt on the longs with 5 pt gain on shorts. But in case the mkt continues to move up beyond 4775 then how would you react? Because the gains will stand frozen > 4775?

 

[sumosanammain]

I have two different accounts. So I can do it.

-Anant

My friend, I have 5 accounts, all in my family's name, but that still makes my net position flat if I am long in 1 account and short in 1 account. Though you may like to feel that you are both long and short, I feel its wierd, and you are not facing reality that you are flat, you want the feeling that you have 2 positions, whereas you have none.

 

[asnavale]

Anant, that is really an interesting way to trade. At 4775 you shorted and the trade went in fav of the shorts so you exit the longs at 4770 thus balancing the loss of 5 pt on the longs with 5 pt gain on shorts. But in case the mkt continues to move up beyond 4775 then how would you react? Because the gains will stand frozen > 4775?

This strategy is not applied always. As you mentioned, there is a probability of market going the other way against you. So, the counter trade also will have a stoploss. In addition I apply this strategy, when the trading is near Support/Resistance levels. As Khushi had mentioned in the morning itself that there will be resistance around 4775 levels, I took this step. Near the Support/resistance you have to watch the speed with which the prices change. (The candle heights).

-Anant

 

[khushi00]

Again shorted @ 4756 with SL 4760
Trgt @ 4749

 

[khushi00]

Time till spot running below 4752 there is no fear in short

 

[khushi00]

Again shorted @ 4756 with SL 4760
Trgt @ 4749

Covered 1 lot @ 4748 nxt trgt 4742

 

[asnavale]

My friend, I have 5 accounts, all in my family's name, but that still makes my net position flat if I am long in 1 account and short in 1 account. Though you may like to feel that you are both long and short, I feel its wierd, and you are not facing reality that you are flat, you want the feeling that you have 2 positions, whereas you have none.

Yes it will be a flat position if long & short are initiated all the time. But you can do such things occasionally when you are already having a good profit, and nearing a resistance/support zone, you can have both positions and liquidate the appropriate positions with a risk of about 10 points only.

-Anant