Trading Strategies Using Technical Analysis

[gangadharan]

Gangadharan,


Gangadharan, markets are what you want it to be. Markets will give you what you want from it. Hence, what methods you practice are suited to what you want from the markets. From the look of it, through your excel sheet, I could see that you are doing well. Hence, I will ask you to continue doing what you are doing. Do not alter what you do based on what I or some other user suggests. Markets don't know me and hence what I suggest may mess with your mental make up.

Now, after writing this, I dare say that I am the best person here to give you advise on this. The reason I say so is because,

a) I am asking you to explore what your mental setup has directed you to ..
and
b) I am asking you to follow only your method as there is no right or wrong method of doing anything. There is only one method, and that is the method which "works". Hence, if your method is working and generating returns, just follow it. One thing I'd say is that since this method deals with options, just ask Dan (Danpickup) to comment on the same for some refinements.

Tc

Raunak Sir,

Thank you very much for your advice,
One thing which I cant stop mentioning here is that, I find your words always as a confidence building tonic here.

Yes I will definitely try to come and meet you when I am coming to Pune next time. As you are from Pune and very passionate of Milk shakes and all I would suggest you a place at pune with more than 500 types of Juices and milk shakes... That is FAL AAHAR at Viman Nagar near Shree Krishna Hotel. The shop belongs to my friend.

Thanks a lot.
Gangadharan.:thumb:

 

[gangadharan]

Not really.


Not sure why have you latched onto that 5% thing. None the less, you do understand that you are paying your broker twice (minimum). And if you dont know this business , this will quickly add up.


Why SL .. considering that you are already protected by a opposite trade, why do you need a SL ?




Not sure what your hedging method is. Yes, hedging is great tool as long as you know your way around. How do you plan to hedge ... Pairs , options, spreads ??

Note: Im a day trader and dont use any form of hedging. Have been curious though. Dan, here on this forum has some decent experience with hedging strategies. Maybe he can offer some inputs.

Sirjeee,

The Idea of 5% on hedging is that, on an Investment where you are aiming 30% or more what is wrong on taking an insurence on the investment. by hedging your investment spending an amount of not more than 5% of the amount of your investment.

I don't care about what my broker is earning from me for the reason I believe that I am trading with a lowest brokerage of option Rs.25 per lot...........0.10 delivery 0.01 intraday and future.

With regards,
Gangadharan.

 

[SwingKing]

As of 10.15, there are positions building up in 6000 CE and 5900 PE. Seems like lot of buying is happening on 5900 PE and Call writing at 6000 CE. Lets see how options data changes through out the day.

Tc

 

[SwingKing]

If someone silently is holding DLF and Tata steel shorts as me, then right now is a good point to book profits in half lots on DLF. It is giving 45,000 per lot.

Shorts in Tata steel continue to be held.

Half positions in DLF have been sold. Trailing set at 310

Tc

 

[gangadharan]

Friends,

It looks like HEAD&SHOULDERS confirmed in the case of DLF. My. SL sell order trigerd and I am still on short.

See the chart how beautifull it looks,

Raunak Sir, S.M. Sir, and all other Gurus may please correct it if I am mistaken.

With Regards,
Gangadharan.

THE LOWEST RATE OF DLF eq. today 302.80

LAGTHA HAI KI........... PAPU......... PAAAAAAAS HO GAYAAAAAAAA

Gangadharan:thumb:

 

[stumper]

Sirjeee,

The Idea of 5% on hedging is that, on an Investment where you are aiming 30% or more what is wrong on taking an insurence on the investment. by hedging your investment spending an amount of not more than 5% of the amount of your investment.

I'm not challenging your idea of Hedging. I was only wondering how did you arrive at the figure of 5% at.

On a side note, I have different view's on expectancy, i believe the only thing in your control when you enter a trade is the risk limitation. Expectancy is something you dont control.

I don't care about what my broker is earning from me for the reason I believe that I am trading with a lowest brokerage of option Rs.25 per lot...........0.10 delivery 0.01 intraday and future.

I don't do hedging. But depending on how you do it, and your R/R .. this commissions mount up (again, options based hedging is complex, for my taste atleast). But if you are sure about your method, so be it.

 

[alroyraj]

VJAY,

Apart from what SM bro has written, there is one more thing.

On Friday, prices fell from 630 to 612-615 and then in last hour of trade slipped below 610. Today, prices moved up and then tested the zone of 612-615 two to three times. When 2-3 days price action happens around the same pivotal region, that usually signifies accumulation around that region. Had the opposite happened, we would have said distribution happened around 612-615.

Hence now if i take any trade in Tata steel on the long side, the first level I will watch for is the zone between 612-615 (futures).

Tc

Rahul,

Every trader has his own way of trading. Hence, I won't comment on your way. But, again if you were to allow me to judge you, then I think you are not executing your system correctly. In high volatile scenarios, your losses on 2 lots are going to eat up profits of many trades which occurred during periods of low volatility. Almost always let your profits run.

Also, don't take my view or anyone's view on Nifty and couple it with your system. Your system on standalone basis is sufficient if it is a robust one. Hence rely only on what signals it gives. Markets essentially know no one. No matter how experienced that person is. Hence, just trust your system and your instincts.

Regarding Tata steel, yes the larger time frames were not that supportive, hence despite of good results the stock is down. However, if anyone is following this stock, he'd know that there is significant amount of Bullish pressure building up. One can just feel it. I am waiting to reverse trades in Tata Steel and Nifty. Lets see when the opportunity arises.

Tc

I had removed DLF yesterday at 322 levels as I had written that 319 level would be pivotal. Won't be going long in it today. May be on Thrusday (If things seem right)

Also, I am still short on Tata steel. Will reverse the position on Thursday.

Tc

Expecting a change in position to long in Tata Steel. Not too sure of entry so waiting for your cue.

 

[gangadharan]

I'm not challenging your idea of Hedging. I was only wondering how did you arrive at the figure of 5% at.

On a side note, I have different view's on expectancy, i believe the only thing in your control when you enter a trade is the risk limitation. Expectancy is something you dont control.



I don't do hedging. But depending on how you do it, and your R/R .. this commissions mount up (again, options based hedging is complex, for my taste atleast). But if you are sure about your method, so be it.

Sir Stumper,

The idea of 5% turned out ......... on affordable basis....... I usually calculate the profit and hence the risk. and for investment we have to depend equities na.... so it is simple....... hedge it... hedge it... hedge.it.

That's all.


Haa, Sir, I never said you challenged me, after all we are friends na.

Thank you,

Gangadharan:thumb:

 

[SwingKing]

Expecting a change in position to long in Tata Steel. Not too sure of entry so waiting for your cue.

Alroyraj,

Still waiting patiently.

I would go long if it closes above 620 today (Futures).

Else I am just sitting on the sidelines with my short position.

Tc

 

[stumper]

Sir Stumper,

The idea of 5% turned out ......... on affordable basis....... I usually calculate the profit and hence the risk. and for investment we have to depend equities na.... so it is simple....... hedge it... hedge it... hedge.it.

That's all.


Haa, Sir, I never said you challenged me, after all we are friends na.

Thank you,

Gangadharan:thumb:

Hey Mate

I get it now. Maybe we were Tangent.

What i was trying to highlight was that Hedging strategies are somewhat complex for my taste. The way i trade -- Scalping, i dont have way to hedge as my R/R is skewed. I dont know my exit point and expectancy.

But your strategy is based on expectancy. As long as your R/R is favoured by the premium you pay for this insurance , go for it.

Im no pro on this, rather after seeing some of the strategies -- i backed off. And hence pointed you to DanPickup to see if he can offer any insights.