Trading Strategies Using Technical Analysis

[jagankris]

Raunak Bhai,

At 3.20 Pm Took a lot of Syndi Bank @140.95 for a quick scalp.
Sudden drop in net connection :annoyed:
Hence couldn't cover my position on time and it is with me.

Please tell me the stop for Syndi and your view on monday opening.

Thanks and Regards,
JK

 

[alroyraj]

Dear Siddarth,

Please explain why it is better to trade futures than options strictly from intraday trading perspective.

IMO intraday options trading is the best
Better return on investment and excellent liquidity.
Instead of one lot NF in future once can go three times that in Options.
Very cheap in terms of STT,Stamp Duty compared to that of futures.
Also the risk is limited.

Raunak Bhai is very strong in technicals and hence his right front is to play with options intraday which is heavily competed with professionals and FII's.

Also personally i will be benefited a lot because of this Lol

Thanks,
JK

Hi Jagan, am keen on seeking your views on these aspects regarding options.

Do you keep any Stop loss...Any views on this
What is your time in the trade?
Do you add as it becomes profitable or in one shot?
Which time frame you monitor.
Assuming you go intraday in nifty options.
Do enter both puts and calls in a day ,say after a move either way?

 

[gangadharan]

Raunak Bhai is very strong in technicals and hence his right front is to play with options intraday which is heavily competed with professionals and FII's.

Also personally i will be benefited a lot because of this Lol

Thanks,
JK

Hello Friend,

There is nothing big this professionals and FIIs doing, If we altogether make a fund of around Rs. 200 corers and hand over it to Raunak Sir and then you see. 200 crores can become 2000 crores in 6 months time,

There are more than 100s of scripts which trade a volume of less than Rs. 1 crore a day. We can also play with such types of scripts........... but......... money speaks..

Regards,
Gangadharan..

 

[sidsup]

Dear Siddarth,

Please explain why it is better to trade futures than options strictly from intraday trading perspective.

IMO intraday options trading is the best
Better return on investment and excellent liquidity.
Instead of one lot NF in future once can go three times that in Options.
Very cheap in terms of STT,Stamp Duty compared to that of futures.
Also the risk is limited.

Raunak Bhai is very strong in technicals and hence his right front is to play with options intraday which is heavily competed with professionals and FII's.

Also personally i will be benefited a lot because of this Lol

Thanks,
JK

The following can be considered as some of my reasons for suggesting futures/stock over options intra day -

1. Intraday trading is speculation on direction. So for traders who are really good at getting their direction right future or stock will give them maximum profits when they do get it right and also there is no shortage of liquidity or volume on futures. Regarding Brokerage, STT etc. If the targets based on a very small rise ( 0.4 percent ) then i guess futures may not be the best thing.

2. Options pricing can change as per market view. if the nifty rises fast towards 6000 you notice the 6000 call is going at say 53 rs on monday. you ll be tempted to buy it hoping the nifty gains another 50 odd points. now here s what can wrong with options in such a scenario .

- if nifty halts its rise but still doesn't drop, you will notice that what you bought for 53 is suddenly only 50. the pricing of options is not as straight forward.

- if the nifty does rise it depends on how fast it rises and also on how much it rises. you could potentially see another 20 point rise but get only a 5 rs gain in your option.

- if the nifty does just take a small correction and goes to 5980 and if your
trading a stop loss. you ll be stopped out even if the nifty rebounds. Also when it does rebound back to its original level. the price of the option will most likely not be 53 but say 52.

Options are best suited for month end position strategies, their strength is their flexibility not so much the leverage because an option will not gain as much as a future. An In the money call option not gain as much a future ( it usually gains something like 70 percent of the future ), similarily it wont lose as much as well.

So decisions on futures depends on only a few things :

1. Bullish or bearish
2. Stop loss and target

On an option decisions should be based on

1. bullish or bearish or neutral
2. time frame for target
3. appropriate hedge or counter solutions.
4. strike price.
5. if simply bullish - Short a put or long a call ( big difference in terms of risk n reward and margins required ) and if bearish vice versa.

I m personally not so strong technically. Which is why i stick to options. For someone as strong as Mr. Raunak I would definately suggest futures for intraday. Options are great, but they need to exploited for their strength - leverage and flexibilities not their weakness - sluggish behavior.

Please do feel free to correct me if wrong.

Regards,

Siddharth

 

[SwingKing]

Sir,

So many times reverse? Now i m lot scared

what is happening?

please guide.

Adi

Adi & all Others,

What is Hard Work?

Hard Work is when one dedicates himself to the field and does whatever is required to succeed.

In art, this is depicted by the artists creation. The hard work behind the art is that of patience and creativity and letting one's mind explore in the infinite space. In sports, this is depicted by Sweat and Discipline. All the achievements in sports are made by those who shed a lot of Sweat working for their desired goal. In trading however, hard work is not depicted in the form of Sweat or Imagination. It is depicted by controlling one's emotions and being immensely disciplined. Any Trader who can exhibit these two aspects, is working hard. Systems, strategies, etc contribute around 5% of what is required. The real 'Hard Work' is identifying your strengths and your weaknesses and controlling the inner desire to free yourself from stress. Hence, remember, we are Futures traders and we need to control our desires.

Even if I have to reverse the position 10 times, I will do it. But I will not break my rules. If I have to go broke, I will go broke with my ideas, my discipline and my decisions.

Tc

 

[jagankris]

Hi Jagan, am keen on seeking your views on these aspects regarding options.

Do you keep any Stop loss...Any views on this
What is your time in the trade?
Do you add as it becomes profitable or in one shot?
Which time frame you monitor.
Assuming you go intraday in nifty options.
Do enter both puts and calls in a day ,say after a move either way?

Hi Alroyraj,

I don't keep any stop.
I Just trade the markets in it's direction.
If my entry is not profitable I just reverse my trade in the opposite direction.
1m - 5m charts depending upon the counter and it's movement on a particular day.
No I don't add positions - Trade in one shot - I need to improve here .
I guess people add their positions as trades gets confirmed in their direction in higher time frames.

Best Regards,
JK

 

[gauharjk]

Exited from all Tata steel puts at 23.50, TCS put at 68 ........ balramchini put at 5.25


Holding, equties. TCS.......SBI.........Balchini......Tatasteel and Chambalfert..

Champalfert put holding.

With regards,
Gangadharan.

Buddy, your hedging really works! Awesome...

 

[alroyraj]

Hi Alroyraj,

I don't keep any stop.
I Just trade the markets in it's direction.
If my entry is not profitable I just reverse my trade in the opposite direction.
1m - 5m charts depending upon the counter and it's movement on a particular day.
No I don't add positions - Trade in one shot - I need to improve here .
I guess people add their positions as trades gets confirmed in their direction in higher time frames.

Best Regards,
JK

I am new to options,so kindly keep this in mind.
Because of no stop you managed to profit from the market action.
Timing is quite crucial i think in entry .
To reverse your position you mean exit the call (say) and buy the put?
As far as I know options are traded in a shot,so better to sacrifice some gain to get the direction correctly.
More than multiple adds, successful traders here exit at multiple prices (say 50% at some tgt remaining trailing).

 

[SwingKing]

There is some smart money playing on Tata Steel and TCS........ I think both may see a 50% high from here before 31st march 2011.

Let us hope,........ No brokerage........ or........ premium paid for wishful hopes.

With Regards,

Gangadharan

Dear,

Smart money or Dumb money .. How can one classify it?

Quantitative trading has made the distinction between smart money and dumb money almost impossible. Going by the same notion, with the markets selling off currently, and the volumes expanding, is it smart money or dumb money? No one can say for sure. Moreover, Indian markets are so open now, almost every script in Futures has some sort of smart money operating in it.

Such things are just not in our control. Hence, I don't try and look into which script has which kind of money operating in them.

Tc

 

[SwingKing]

Raunak Bhai,

At 3.20 Pm Took a lot of Syndi Bank @140.95 for a quick scalp.
Sudden drop in net connection :annoyed:
Hence couldn't cover my position on time and it is with me.

Please tell me the stop for Syndi and your view on monday opening.

Thanks and Regards,
JK

Jagan,

I'll tell you about it.

Tc