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

[columbus]

Do not jump into stock futures straight away, TRADE in nifty futures to
gain confidence as well as to study the all intricacies of futures.

The movement of 2Rs in case of RIL may not be significant,but in case
some other stock it may be significant.If you deal with Nifty futures
you are at a better position to deal with such movements because you
know how to react.

 

[dr_udaya]

ideally beginners should play with mininifty futures (lot 20), a safe way of learning to understand the movement of your investment , both in long and short.... then you can look into momentous scrips of less lot size in combination of mininifty.... to relate the stock movement with nifty movement.... thus gaining confidence....

initially aim for a max. gain of rs. 1000 (net brokerage).... NEVER AIM FOR RECOMMENDED TARGETS in the beginning .... UNTILL YOU GAIN CONFIDENCE....

good luck....

uday

 

[gauharjk]

Hi all,

Thank you for all the advice I have gotten on Traderji... I appreciate it a lot...

Opto Circuits is not rising in this bullish market, but not falling either. Do the charts indicate it might consolidate around expiry date?

 

[SavantGarde]

For all those who can only sing 'Don't jump into futures' first thing is read the query of the member properly.....if at first reading you guys don't understand then read it again....before singing the same old tune.

SavantGarde

 

[rajeabc]

Hi all,

Thank you for all the advice I have gotten on Traderji... I appreciate it a lot...

Opto Circuits is not rising in this bullish market, but not falling either. Do the charts indicate it might consolidate around expiry date?

Hope you would have taken some action when it was near 302. I don't see it coming down below 302 on INtraday and around 310+ on EOD basis. It has been in up trend for quite some time and every time it corrects till MA(20) and bounce back from there. Today again it bounced back from MA(20).

If I would have been in your position , I would have closed today/try to close tomorrow at least I lot around 302-305 and wait with 1 lot and see how things come up on 30th Sept. It is a costly mistake .

I could be wrong but I am sure senior will correct me .

 

[SavantGarde]

Here Is why I gave him preference as to which Stock future between the 2 he mentioned in his post.

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.

When above paragraph is analysed this what I interpreted.... somebody who is depending solely on earnings from trading to support himself & kids....in the future....

Someone who has already been trading for last 6 months perhaps more successfully, because he uses the word 'Modest' for gains... perhaps because it is not enough to support himself & kids with trading in equities...also it shows he is aware of risks because he is not in any kind of hurry....goes to show he is aware & mature in understanding different segments of the market.....& has been keeping a close eye on derivatives.....

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

Just the fact...he had shortlisted ICICI & LIC goes to show he has done his homework well.....

With all the above.... does it still warrant to give advice that 'Don't jump into futures'



Happy & Safer Trading

SavantGarde

 

[gauharjk]

Hope you would have taken some action when it was near 302. I don't see it coming down below 302 on INtraday and around 310+ on EOD basis. It has been in up trend for quite some time and every time it corrects till MA(20) and bounce back from there. Today again it bounced back from MA(20).

If I would have been in your position , I would have closed today/try to close tomorrow at least I lot around 302-305 and wait with 1 lot and see how things come up on 30th Sept. It is a costly mistake .

I could be wrong but I am sure senior will correct me .

Thanks for the advice. I will try to square off on Wednesday.

I sold one more lot at 31.5., thus making my average sell cost at 302 + brokerage.

Today, Opto Futures made a low of 304. I was hoping for further correction, but didn't happen.

The Open Interest is -16%. There is some chance I might be able to reduce my losses. Volumes are very low. I will try to square off atleast 2 of the 3 lots tomorrow...

Thanks

Cheers!

 

[bloodmoney]

The Open Interest is -16%.

Cheers!

OI reduced due to most of them are rolled over their postion to OCT series. You could see increase in OI there by 52.5 % .

Anyway written just for FYI. Good luck to come out with min. loss.

 

[gauharjk]

OI reduced due to most of them are rolled over their postion to OCT series. You could see increase in OI there by 52.5 % .

Anyway written just for FYI. Good luck to come out with min. loss.

Thanks for the info.

I don't know anything about Rollover of Futures contract. Is it possible to roll over Sept contracts to Oct if one is facing a loss? Or would I have to square off?

 

[SavantGarde]

GauharJK,

Rollover simply means squaring off your current month series & entering next month series.

Now....you already made a mistake shorting against the trend....and now that it has consolidated....it perhaps be better to trade with the trend instead of against the trend....

Happy & Safer Trading

SavantGarde

Thanks for the info.

I don't know anything about Rollover of Futures contract. Is it possible to roll over Sept contracts to Oct if one is facing a loss? Or would I have to square off?