Trading Nifty

[Gaurav Kumar]

Sir Gaurav ji, But this reduction shall not be to your account in my paper trade. If Nifty trades above 4500, I'll reduce the cost of my holding by 50(half of 100 as 50% quantity was added). I'll add 50% more at 4350. Should I ???

Dear RKKarnani,

As you wish about my account or not. All i am saying is have purchased at 4395 and am holding.. At 4350 (if nifty does fall to that level), i would NOT add to nifty. I do not believe in averaging, nor do i speculate that the market is to rise just because it has fallen so much. The reason the market rose today, was fairly apparent to me on Friday itself, but i wanted to be sure after seeoing results on the weekend.

Once market breaks 4350, its movement changes, so no point in buying, that would be the point to hedge

With best wishes,

Gaurav Kumar

 

[Gaurav Kumar]

Sir, Can you kindly elaborate how you intend to Hedge your Long position in Nifty????
Regards.

Dear RRKarnani,

there are a number of ways to hedge. Each method depends upon situation, so i will elaborate when the need arises. but at the moment we do not seem to require it as nifty is up at 4441 (future).

A request to some members who think that i am not talking sense: please do not read my posts if it does not help you.. I have no wish to say that i know more than you. There are hundreds who know more than i do. But please allow those who wish to read to read in peace without comments such as "you are wasting your time".

If you feel my posts are useless, i will discontinue.. The puspose is to share knowledge.. not fight with each other..

With best wishes

Gaurav Kumar

 

[ratan jain]

Been trying to scale down photo size for 3 days......

Just managed it.

Please see attached photo

 

[kris905]

Gaurav,
You should keep posting your progress, as someone said it could be a learning.
But you cant and should not make a statement claim that Stop Loss is weak strategy.
I think that is the basic in investing and people who are new to investing should not be advised on avoiding stop losses.
Thanks
Kris

 

[ranj_2k]

I have bought nifty august future at 4490 and 4425 one lot each. I also bought call 4500 strike @ 95. Please suggest what I should do. Shall I square up with small profits or wait for nifty atleast by 100 points.

Ranjeet 30/07/07 1810 hrs

 

[alokdaga]

Been trying to scale down photo size for 3 days......

Just managed it.

Please see attached photo

Toooooooo Good !!

A picture is equal to 1000 words !!

 

[Gaurav Kumar]

I have bought nifty august future at 4490 and 4425 one lot each. I also bought call 4500 strike @ 95. Please suggest what I should do. Shall I square up with small profits or wait for nifty atleast by 100 points.

Ranjeet 30/07/07 1810 hrs

Dear Ranjeet,

You can hold on. you will get profit when nifty reaches 4550.

with best wishes.

Gaurav Kumar

 

[Gaurav Kumar]

I have bought nifty august future at 4490 and 4425 one lot each. I also bought call 4500 strike @ 95. Please suggest what I should do. Shall I square up with small profits or wait for nifty atleast by 100 points.

Ranjeet 30/07/07 1810 hrs

Dear Ranjeet,

To add to it, buying a call option is not a good strategy. If the market consolidates for a few days before moving up, you would loose money due to time decay. So i never buy calls. Futures are safe. You need to worry only if the market goes below 4350. then of course you would need to hedge. Till then its ok.

With best wishes

 

[Gaurav Kumar]

Gaurav,
You should keep posting your progress, as someone said it could be a learning.
But you cant and should not make a statement claim that Stop Loss is weak strategy.
I think that is the basic in investing and people who are new to investing should not be advised on avoiding stop losses.
Thanks
Kris

Dear Kris,

My statement on stop losses is my opinion. Anybody is free to take it or leave it.

There is no one way of making money. Therefore i am not claiming to have the best strategy.

Ultimately, whosoever makes money consistently is the king. I have another belief that most people dont make money. Most people i have come across talk only about their gains and not about losses, thus presenting a misleading picture.


I have advised that people should do mock trades on paper till they are comfortable with my strategies.

With best wishes,

Gaurav Kumar

 

[Gaurav Kumar]

Trading Nifty on 31st July

Dear Friends,

The market lost ground after having gained a fair bit. I had anticipated the gains as is obvious from my previous posts, but had not thought of the market losing ground towards the end (that can be considered as an error as i forgot about the credit policy meeting).

However, there is little to worry about. We will see 4550 and till the market remains above 4350, need not hedge either..

Let us review what we have.

We purchased one nifty at 4530 and yesterday added to it at 4410 (i had advised taking a nifty when the market crosses the previous days close and i am taking the value of 4410 instead of 4402 to make things worse of for me). Nifty future closed at 4400.

Our net Mark to Margin loss is Rs. 7000/-.

We will hold on and wait for the recovery. Remember to sell the nifty purchased at 4410 to the level of 4500. That way the cost of nifty purchased at 4530 would effectively fall and we can hold on.

With best wishes,

Gaurav Kumar