Simple Nifty trading by Mr.Perfect

[Mr.Perfect]

What's the brokerage you were paying when you were trading with sharekhan and Ventura

I think 35/- for ventura.

yes Rs. 35 for ventura and around Rs.70-90 at sharekhan (after some prepayment plan, very costly :annoyed

 

[Mr.Perfect]

Thanks all for your encouragement.. I cannot trade today due to imp meeting at office.. Lets see how my first two innings went.

1. Started trading with naked stock options without even trading equity before. Stayed profitable for some months (pure luck) and lost continuously later and busted my savings. Broker - Sharekhan

2. After some gap started trading again, this time traded both options and futures (mostly options). But went in to losses as I did not learn anything from my mistakes and continued doing same mistakes and busted the account again. Broker - Sharekhan and Ventura

3.Started third innings this month (Aug 2013), did first 3 trades without much research/learning and results were mixed.

to be continued...

3rd Innings trades (August 2013)

1. Bought 200 Nifty 5700 CE at Rs. 97 and sold at 54, approx loss Rs. 8,700

Analysis: failed to use proper stop loss hoping for the trend to reverse and recovering the loss. Greedy..:annoyed:

2. Bought 150 Nifty 5600 PE at Rs. 87 and sold at 134, approx profit Rs. 4,650

Analysis: Closed CE and bought PE at the right time and made decent profit.

3. Bought JP 32.5 call at 2.50, the call was down to 2.00, Bought JP 30 PE at 2.00 expecting a big move in JP either side. Total cost of the straddle 4.50. Exited straddle at 3.70 and booked Rs. 3,200 loss.

Analysis: When the trade is in loss, I should have closed the position to minimize the loss. Tried to act smart by hedging the position with put, but no significant movement in JP.

to be continued....

 

[augubhai]

Thanks all for your encouragement.. I cannot trade today due to imp meeting at office.. Lets see how my first two innings went.

1. Started trading with naked stock options without even trading equity before. Stayed profitable for some months (pure luck) and lost continuously later and busted my savings. Broker - Sharekhan

2. After some gap started trading again, this time traded both options and futures (mostly options). But went in to losses as I did not learn anything from my mistakes and continued doing same mistakes and busted the account again. Broker - Sharekhan and Ventura

3.Started third innings this month (Aug 2013), did first 3 trades without much research/learning and results were mixed.

to be continued...

Baseball match? There are 9 innings in a baseball match.

 

[Mr.Perfect]

3rd Innings trades (August 2013)

1. Bought 200 Nifty 5700 CE at Rs. 97 and sold at 54, approx loss Rs. 8,700

Analysis: failed to use proper stop loss hoping for the trend to reverse and recovering the loss. Greedy..:annoyed:

2. Bought 150 Nifty 5600 PE at Rs. 87 and sold at 134, approx profit Rs. 4,650

Analysis: Closed CE and bought PE at the right time and made decent profit.

3. Bought JP 32.5 call at 2.50, the call was down to 2.00, Bought JP 30 PE at 2.00 expecting a big move in JP either side. Total cost of the straddle 4.50. Exited straddle at 3.70 and booked Rs. 3,200 loss.

Analysis: When the trade is in loss, I should have closed the position to minimize the loss. Tried to act smart by hedging the position with put, but no significant movement in JP.

to be continued....

After my 3rd trade above, I realized again I am doing the same mistakes I did in my first 2 innings, I spent two days reading various articles, posts online learning the golden rules and principles of trading, some of them are below.

1. 1. Cut your losses early, run your profits - one call with large profit should cover your small losses in multiple calls. So your risk reward ratio should be high, at the same time don't risk too little and always end with SL.
   2. TSL - always keep moving TSL when running your profits.
   3. Position sizing - Don't invest more than 20% of your trading capital in any single trade, within this 20% don't risk more than 15% as SL. (For ex: if your capital is 1,00,000 don't trade more than Rs. 20,000 in a single trade and don't risk more than 15% of Rs. 20,000 or Rs.3,000 as SL in your trade. with your capital of Rs. 1,00,000 you can trade 33.33 times without profit.
   4. Don't over trade - instead of entering into too many trades, concentrate on high probability quality trades. Penny saved is penny earned, so don't bother even if you cannot trade a day.
   
   to be continued ...

 

[Mr.Perfect]

Baseball match? There are 9 innings in a baseball match.

Don't have much idea about baseball, hoping not to make my trading career a base ball match.. :rofl:

 

[Mr.Perfect]

.... after 3 trades in my 3rd innings (no jokes on innings @ augubhai I scratched my head hard and spent some time in learning online the golden rules. Still I am a zero in TA trying hard read the charts but it always looks like making either higher lows are lower highs :rofl:

So my trading system is very simple - trade only nifty options for now, follow the nifty trend by reading options data, market noise and other news/factors which affects Nifty movement and my previous experience on Nifty's movements during certain events/conditions.

It may seem like random trades for the guys with an established trading system, however at this point I don't want to confuse myself with complex systems which the Indian market never follows..

 

[Mr.Perfect]

Trades on 12th Aug

#4. Bought 150 5600 CE at 84.75, sold at 119.25. approx profit 5,100

analysis: Initially thought of buying 5600 PE due to Nifty moving into negative but soon the trend was up and bought calls.

#5. Bought 200 5600 PE at 73.15 and sold at 74.25, profit approx 150.

analysis: Saw the momentum going down near the end of day and bought puts, kept changing TSL, put was up but down again and TSL hit, later closed around 92. very small profit but still happy about executing my plan of SL strictly.

Trades on 13th Aug

#6. Bought 200 5600 CE at 92.85 and sold at 125.40, profit approx 6,400

#7. Bought 300 5700 PE at 76.25 and sold at 78.35, profit approx 500

analysis: Went with the call in the morning as Nifty is in green and looking bullish closed after making decent profit, bought put around 3.20 as Nifty struggling around 5600-5695 to make some quick bucks with small SL. Profit went up to 1,350 but started coming down booked at 630 profit, after brokerage net profit around 500. Small profit but satisfactory.

No trades on 14th Aug, due to other imp work

 

[Mr.Perfect]

sorry for running fast, wanted to catch up and up to date, so that I can just post daily trades. I missed to post a trade of 7th Aug above (Nifty 5600 CE closed around 1,100 profit)

Net profit in 3rd innings as on 14th Aug Rs. 6,467 at a trading capital of Rs. 21,000 in the trading account (I have around 1L reserved in my bank a/c).

Currently my trading style is not based on any established system and I am still working on learning TA, so I may not be able to give trading calls, however I request the senior traders to post their views on my trades and share their thoughts. Thanks all for reading.

Happy Independence day!!!

 

[kaydee1127]

Zerodha, I actually switched to Zerodha at the end of my second innings. Thanks

Any particular reason for choosing Zerodha.
In a post you wrote
"Penny saved is penny earned"
Working on this line, I think you can save handsome amount per month, depending on your trading volume.

Let me know
How many trades you are likely to do in a day (yes, yes, on an average, just a rough idea) and I think you trade mostly in options.

 

[Mr.Perfect]

Any particular reason for choosing Zerodha.
In a post you wrote
"Penny saved is penny earned"
Working on this line, I think you can save handsome amount per month, depending on your trading volume.

Let me know
How many trades you are likely to do in a day (yes, yes, on an average, just a rough idea) and I think you trade mostly in options.

Mostly 2-3 trades on average, the reason for choosing Zerodha, it was cheapest when I joined them, providing reliable now platform, web and mobile based trading etc. Later I found some other brokers providing lesser rates, but could not see much difference as I only trade options that too not regularly. Moreover I am familiar with their trading platform now, so not risking changing the broker..