Opto Circuits Futures. I have a short position with high losses.

[startrade]

My number 1 rule is "never average down a losing trade".

You can only average on the losing trade and would be irrational to buy at higher levels. Instead treat every purchase as a separate entity and sell one by one.
Vijay Bhaskar

This may not be relevant to the question asked in the opening post of this thread but I must say that your statement is 100% wrong, IMHO.

When market is moving against you, it is telling that you may have entered a wrong trade. Planning a trade include setting a stop loss and exiting the trade when stop is hit.

Treating every purchase a separate entity means living in denial and giving consolation to your heart when deep down inside you are aware that your overall position is in loss and you will have to book that loss sooner or later.

Successful traders do add to their winning positions. That is the only way bigger and successful traders make money. You think bigger investors like FIs and mutual funds invest in a stock only in one go?

 

[gauharjk]

Nifty closed 95 points up today, but Opto Circuits was down. People are selling it even in uptrend markets. Does this mean Opto Circuits is overbought, and now might come down?

Opto Circuits F&O
Open -- 318.15
High -- 319.90
Low -- 311.95
Close -- 315.30

US housing data might come out today, and the guess is it will be negative as the subsidy for first-time buyers expired. This means the sentiments in US markets might be bearish...

 

[gauharjk]

Today, a very strange thing happened.

Opto Circuits Cash Market closed at 315.60
but its F&O market, which is always at a discount, today closed at 317.85

What does this mean? How can Stock Futures cost more than the current market rate?

 

[alroyraj]

Usually futures trading at a premium means traders are optimistic of the future prospects but if it is usually at a discount means it may come down tomo. Book closure it from 23rd to 28th I know its too close to expiry but usually the volumes come down in the cash market. And the price support may get weaker. So still hope is there.

The dividend is deducted from the cash price so the price falls to that extent.Not sure if the futures should as well.I observed in a non Fno stock.

 

[aaplana]

Hi Prashant,

Wait for a big up day to short it next week... & on the expiry day... either write a PUT if options are actively traded or go long with futures in the last 30 minutes of expiry day....

Happy & Safer Trading

SavantGarde

Hi Savant,
Just going thru all ur posts after long time, as usual U r helping people :clapping:, THANKS 2 U!!!!!
Now on the main course: U told to go long in the last 30M of the expiry day,So how u judge it and can we take it as a opportunity for a quick gain ??

Regards
Aaplana

 

[gauharjk]

Hi Savant,
Just going thru all ur posts after long time, as usual U r helping people :clapping:, THANKS 2 U!!!!!
Now on the main course: U told to go long in the last 30M of the expiry day,So how u judge it and can we take it as a opportunity for a quick gain ??

Regards
Aaplana

Is there a fixed expiry day for Nifty F&O each month? Is it the last trading day of the month?

 

[TraderRavi]

Is there a fixed expiry day for Nifty F&O each month? Is it the last trading day of the month?

last thursday of everymonth...

 

[SavantGarde]

Hi Aaplana,

Good to see you after a long time.... anyways my apologies because Internet was down since last night...and has just started....

Now coming to your specific query...how I can judge....

It is simply matter of experience.....& knowing what the the big guys are upto

Happy & Safer Trading

SavantGarde

Hi Savant,
Just going thru all ur posts after long time, as usual U r helping people :clapping:, THANKS 2 U!!!!!
Now on the main course: U told to go long in the last 30M of the expiry day,So how u judge it and can we take it as a opportunity for a quick gain ??

Regards
Aaplana

 

[Premothi]

Hi Aaplana,

Good to see you after a long time.... anyways my apologies because Internet was down since last night...and has just started....

Now coming to your specific query...how I can judge....

It is simply matter of experience.....& knowing what the the big guys are upto

Happy & Safer Trading

SavantGarde

Dear Sir,

Am a new member and looking to learn a lot from this website. Have been into trading for the last 6 months (after quitting my job to take care of the kids) and have some modest gains. Not in a hurry to make major profits but want to study technical analysis thoroughly.

Very keen on learning....I want to start trading in Futures from tomorrow ie., 27th. Can you please let me know if the following idea I have is workable?
ICICI Nov Futures - 1 lot - Buy
OR
LIC housing Finance Nov Futures - 1 lot - Buy

Please let me know.

 

[SavantGarde]

Hi Premothi,

LICHSGFIN is a better bet than...ICICIBANK, while you may enter LIC tomorrow for ICICIBank wait till Thursday & Enter only in the last 10 minutes.

Hope your ledger is strong enough to withstand downside....because in LIC average day range is almost 30-35 points.... but if your ledger can withstand a downside of 140 points on LIC then I can atleast say confidently that you will earn good money in it.

Same goes for ICIC

All the best for tomorrow...dont buy on gapup...be patient for entry if you dont get another chance...then wait for the next day to see if there is a good entry possible.

Happy & Safer Trading

SavantGarde

Dear Sir,

Am a new member and looking to learn a lot from this website. Have been into trading for the last 6 months (after quitting my job to take care of the kids) and have some modest gains. Not in a hurry to make major profits but want to study technical analysis thoroughly.

Very keen on learning....I want to start trading in Futures from tomorrow ie., 27th. Can you please let me know if the following idea I have is workable?
ICICI Nov Futures - 1 lot - Buy
OR
LIC housing Finance Nov Futures - 1 lot - Buy

Please let me know.