Day Trading Stocks & Futures

[timepass]

re: Day trading Nifty & Banknifty Futures

ye buy stop ko kyun koste ho bhai hamesha

Because I seem to be catching the tops of the price all the time. Maybe some different strategy is needed for the initial days of the series when the options in my price range (40-60Rs) don't move as quickly.

TP bhai,

which is the segment in which you loose more (i.e. your analysis fails) option or currency?

Do you know the reason of the failure?

I am secular as far as loss-making segments are concerned.

Maybe my stoploss is too close, or when the stoploss is not placed, I may be distracted. When I find the exact causes I'll let y'all know

This week has seen an upside of about Rs. 200.

 

[Aarav11]

re: Day trading Nifty & Banknifty Futures

I have one question. If a person does well in options without using any spread can do much better in futures. Is this statement true?

options has the liberty to buy CE as well as PE at the same time which is not there in futures. so if someone trading options and only buy call or put then it is better to do trading in futures right.

 

[nac]

re: Day trading Nifty & Banknifty Futures

^ Not necessarily...

A batsman who handles spin very good not necessarily be as good with pace.

 

[Price Pattern Recognition]

re: Day trading Nifty & Banknifty Futures

I have one question. If a person does well in options without using any spread can do much better in futures. Is this statement true?

if someone trading options and only buy call or put then it is better to do trading in futures right.

Answer is no, not necessarily.

Although most people loose money faster during option trading. Options Trading is less risky than Futures Trading for a number of reasons.

When you buy call options or put options, your maximum risk is limited only to the amount of money you used when buying those options. You can't loose more money even in worst case.

On the other hand, future is highly leveraged (10% to 20% Nifty-Crude Oil positional, using cover order even more), you are subjected to unlimited liability. This daily loss continues as long as the stock continues to go in the wrong direction. Many people go bankrupt with margin call in worst cases here because capital commitment is much higher here.

Also many people who knows fundamental well can trade well with options (intraday or positional) as the risk is limited.
For example, somepone can hold easily 50-100 lots options overnight before Infosys Result or RBI/FED announcement and take the risk. But if next morning Nifty give 200 pt or Infosys give a 10-15% gap up or down, he would go bankrupt with futures only.
Many one take such risk and make bigger profit with options during fundamental event but they can't do such trades with futures.

Also futures are a lot more sensitive to small moves on the underlying Stock/Index than options.

I hope, I gave enough points. There are much more...

Happy Trading.

 

[boarders]

re: Day trading Nifty & Banknifty Futures

I do only options trading due to lower capital and cost requirement per lot. my style is as follows:

important thing in options trading is to have a clear cut stop and target which is not by percentage of how much you can lose etc per trade. as an intraday trader I am not bothered about opening gaps. I take the last traded price minus day open in order to calculate the daily percentage up or down and not previous day close versus ltp.

before trading itself I fix the ce or pe strikes to trade and will trade only those for the day.

my trading is done with nifty spot chart, its supports resistances and round figures like **50 and **00 which are also considered as supports and resistances depending on where they are placed with respect to ltp. in addition horizontal lines for intraday pivots wherever market has turned in past during the day are also respected. I also have a trailing stop loss which is 2 points less than previous candle high for shorts (read long pe) and 2 points less than previous candle low for longs (read long ce).

in order to calculate the equivalent to ce value or pe value of values in nifty, I calculate the delta with respect to day high to day low of nifty spot versus day high to day low of the ce or pe, then project my nifty target or tsl or sl or target on to the traded ce or pe.

then if the trade RR is feasible on nifty spot then i take the trade.

sorry TR bhai that I post this in your thread as you do not want to trade options, but since some discussions are going on in options I am posting it here. My style of trading may not be pucca but I have been successful as of now with this method.

 

[TraderRavi]

re: Day trading Nifty & Banknifty Futures

sorry TR bhai that I post this in your thread as you do not want to trade options, but since some discussions are going on in options I am posting it here. My style of trading may not be pucca but I have been successful as of now with this method.

no no , its good to see your viewpoint/style :thumb:

 

[TraderRavi]

re: Day trading Nifty & Banknifty Futures

Today's earnings : Currency +69, FNO -118, margin available = 3256

Thumbs up for currency profit :thumb:

 

[TraderRavi]

re: Day trading Nifty & Banknifty Futures

TR , appreciate if u can answer my query- for sake of 1 lot traders, (though in this thread 1 lot traders are in minority )

Coming to point, few days back u did some calcutions and reference was u would have been able to get approx 180 points if u had booked at prefidefined tgt of 20 points.

Now if we look at today's trade, after potential profit of 48 points at 10.00 candle,twice u were on the verge of exits with mere < 10 points.
MY query is-
1. Why don't u booked at 10.00 or 12.30 area when u were comfortably getting 40/50 points ?

2. what made u cool to ride trade even there was sharp upmove @13.30 ?

PS- i know u tend to answer in one liners. Hence request to spare some time and answer this query in detail. Bcoz TR doing 1 trade in a day is someone with changed mindset.

1. it sud have been covered @ 10/12.20 candle, so it was a mistake, if I had 2 lots definitely one exited there.
2. my reading of the market was , as 5900 holding , people must be buying there with stops at 5890-95.....so it will bounce and then it will break 5900 , I have put a cover order there at 5880, but the upmove surprised me as I was expecting to return it from 5935 but it hit 5940-44, otherwise my entry was never threatened whole day.

 

[TraderRavi]

re: Day trading Nifty & Banknifty Futures

great turn ravi bhai. from morning to end only single trade manage that till the end. can you post chart with today's pivots & sl's

 

[TraderRavi]

re: Day trading Nifty & Banknifty Futures

I have to set this daily at MIS while login in "NOW", how to make it default ?