One More Dream Thread :thumb:

[AW10]

Linkon, that was major challenge that I faced cause when we analyse big picture (after mkt close), it is obvious that we will be biased towards market during trading hours.

Following action helped me to overcome this obstacle (if not fully then atleast to a great extent)...
- re-read my rules
- my game plan
- forget about big picture as soon as mkt opens and
- reinforcing the msg to myself - Trade what I see..
- keep asking the question to myself during trading hrs - "What do I see at this moment?"

Hope this helps.

Happy Trading

 

[Trader4242]

Hello Guys

Thanks for such wonderful participation on this thread :thumb:

And for a while me thinking I am just talking to myself :lol:

Thanks & Keep posting

 

[linkon7]

Linkon, that was major challenge that I faced cause when we analyse big picture (after mkt close), it is obvious that we will be biased towards market during trading hours.

Following action helped me to overcome this obstacle (if not fully then atleast to a great extent)...
- re-read my rules
- my game plan
- forget about big picture as soon as mkt opens and
- reinforcing the msg to myself - Trade what I see..
- keep asking the question to myself during trading hrs - "What do I see at this moment?"

Hope this helps.

Happy Trading

I missed the whole fall today, simply because i kept looking for long trades that were not there... Played around with options instead.

Today, market was trying to give me hundred points in a single trade and i was busy convincing myself that a pull back will come and eat my SL...
:annoyed:


Need to seriously :
- re-read my rules
- my game plan
- forget about big picture as soon as mkt opens and
- reinforcing the msg to myself - Trade what I see..
- keep asking the question to myself during trading hrs - "What do I see at this moment?"

Thanks a lot...!

 

[Trader4242]

Hello Linkon & Raunak

The preference of reducing the size over using hedging is not just my opinion but its a choice I have made out of my own experience. I have used options previously for hedging my open position but after experiencing various scenarios I now prefer the option of reducing the size at eod.

Taking today’s example, the gap was in favor of my short trade, had I used call options to the reduced risk(with equivalent delta), I would have lost aprox 20% more besides the bearing transaction cost / slippage.

Moreover I also would have needed to get in calculations to match the beta for Bank Nifty against Nifty (making it still bigger options position) as you are aware out here we have no choice other than using options on Nifty.

So to me recreating the position next day is a better choice, but then that’s what the market is about people thinking differently and having a difference in preceptive

Using options for hedging (as against reduced size) will be beneficial only in the case of black swan events, where say nifty gaps in favor of our position by more than 200 points.

I am quite open to understand if there would be any advantages that I have overlooked, maybe this interaction is begining of that process

Thanks once again

 

[Trader4242]

Following action helped me to overcome this obstacle (if not fully then atleast to a great extent)...
- re-read my rules
- my game plan
- forget about big picture as soon as mkt opens and
- reinforcing the msg to myself - Trade what I see..
- keep asking the question to myself during trading hrs - "What do I see at this moment?"

Hope this helps.

Happy Trading

Hi

Its better to always be aware of the timeframe we are trading (because what you see depends upon what timeframe you are looking at).

The rules of the game are simple & easy and There is No One who does Not Know these Rules :lol:

• size it to have appropriate risk
• follow the trend
• cut losses (this should be predefined, before the entry)
• let the profits run
• add position on winning trade

Besides the above evergreen rules (rather than rules lets call them principals) one needs to have consistancy in executing all the trades your system throws up.

But in the first place to know the current trend we need to focus on the timeframe we are trading as the trend is relative to the timeframe you trade.

So the first thing (even before you frame the rules) one needs to do is find out the timeframe you are comfortable with. Once its done rest of things do fall in place.


hush . . . turned out quite a long one . . . so rest for some other time

Thanks for your time



PS:
Having said all, this is but just one way or approach to it, there are many different ones like "reversion to mean" ,
"delta neutral trading" , "seeking alpha" and you name it, what you have :rofl:

 

[Trader4242]

Hi

Wow what a move :thumb:

Carrying the short trade on both Nifty & Bank Nifty paid off

Sitting on nice M2M gains about 250+ on nifty & 500+ points on banknifty adding that to the points made with scale in/out makes it to almost 100% of the monthly target into just this 1 trade

The rule book says let the profits run, but I am not sure I have the mental fortitude not to book these gains here

So looking for the captulation move to book the position, meanwhile will be using very aggressive stops, almost as if praying for them to be taken out and release me from this anxiety

 

[trader.trends]

Hi



The rule book says let the profits run, but I am not sure I have the mental fortitude not to book these gains here

So looking for the captulation move to book the position, meanwhile will be using very aggressive stops, almost as if praying for them to be taken out and release me from this anxiety

After a move of nearly 5% in your favour, consider closing futures and moving to options in the same direction of your futures trade. This will satisfy the need to book profits but also stay in the trend. Fix a suitable stops for the options trade.

 

[Trader4242]

After a move of nearly 5% in your favour, consider closing futures and moving to options in the same direction of your futures trade. This will satisfy the need to book profits but also stay in the trend. Fix a suitable stops for the options trade.

Thanks TT

I usually get on to the lower timeframe and look for signs of capatulation, usually comes in the form of a big bar with high volume (in the same direction) followed by a bar with similar height in opposite direction or more simply a Pin bar with a big wick and high on volume.

It does not work always, nothing does, but worked this time :thumb:

Check the 5 minutes chart and you will know where I covered

But seriously I never expect to catch the tops or bottoms and once I book the position I am done. The markets will keep doing what it does.

You guys here seem to be very strong on options, i need to learn the ropes from you.

I know the theory and am familiar with the greeks but maybe my initial experiance has instilled some baises against using options...

Hope following the option trades here will help to clear that fog

Thanks

 

[Trader4242]

Hi

It was a good trade and documenting it here helped me.

Usually this is the kind of trade that puts bread on the table, rest all of the small winners even out with the losers and the cost of operation.

With swing trading a trader has to be prepared to take a win/loss ratio of just about 40%, be prepared to getting whipsawed on majority of the trades Its very important to fully participate in this kind of a move and not book early.


I will take the rest of the day off. Tuesday being a Holiday I will start with trading the Feb series from Wed 27 Jan.

Will be around on Monday to get the neccessary screen time, but not sure will be taking any trades.

Thanks for your Time

 

[tradeguruji]

your advise came very late. Holding no of nifty at 5270 long.Will be out of limit and out of business if Monday is not a gap up. What is the probability?
what can be done? iam confused