Trader in a PATHMAVYUH

[orderflow13]

totally agree with aw 10, hari may be particular about health thing, but this thing hari mentioned is fall under very big thing of events n the risk is the name of game.As far as whatever little i know, hedging is the only solution i come up with ( on jan fall i was in delhi for personal reasons n had big long position in auro pharma, i only got saved by my short positions in nifty, at that time i was wrongly bullish on healthcare n bearish on market, even being wrong my account been saved )or like asish da said turn to day trading.I dont believe in those auto pilot mode stuff ( trade station has it but it needs connection of ur trading window with sw ) we cant even set our stop loss in terminal when market is too volatile ( once i kept 10 point difference in trigger price still my all orders didnt get fill ) .Its hazard of trading for living, we have to deal with this.options might not work for some one but for others it may work, like i said its personal thing.
i will watch very eagerly if some other method emerge.It will be very helpful for me.it will save my hedging cost for sure.

 

[TFL]

totally agree with aw 10, hari may be particular about health thing, but this thing hari mentioned is fall under very big thing of events n the risk is the name of game.As far as whatever little i know, hedging is the only solution i come up with ( on jan fall i was in delhi for personal reasons n had big long position in auro pharma, i only got saved by my short positions in nifty, at that time i was wrongly bullish on healthcare n bearish on market, even being wrong my account been saved )or like asish da said turn to day trading.I dont believe in those auto pilot mode stuff ( trade station has it but it needs connection of ur trading window with sw ) we cant even set our stop loss in terminal when market is too volatile ( once i kept 10 point difference in trigger price still my all orders didnt get fill ) .Its hazard of trading for living, we have to deal with this.options might not work for some one but for others it may work, like i said its personal thing.
i will watch very eagerly if some other method emerge.It will be very helpful for me.it will save my hedging cost for sure.

Alex,

good writing...
Share your hedging experiences too...

Haribird.

 

[niftychance]

Hello

The solution for this specific problem would be quite simple ...

If you don't have a trading buddy, maybe your wife or father can call up the brokerage and ask to "Square Up" the position ...

But as AW said it needs to be a part of your 'contingency plan' [they should be in loop and know it before hand, that a call to your broker needs to be made ...]

Also one should put in place an arrangement for withdrawal of funds (Margin) from you brokerage account in case of emergency when your family would need them the most ...

Thanks

 

[rkkarnani]

Solution is simple :

Trade the mini flow!!!



Here also a person can have emergency in RT but he shall have his SL in place!!
But again the SL may not be hit! You may have an open position at close.

Give your RM instructions to square all positions by 3.25 if not otherwise advised!!

 

[orderflow13]

Hello

The solution for this specific problem would be quite simple ...

If you don't have a trading buddy, maybe your wife or father can call up the brokerage and ask to "Square Up" the position ...

But as AW said it needs to be a part of your 'contingency plan' [they should be in loop and know it before hand, that a call to your broker needs to be made ...]

Also one should put in place an arrangement for withdrawal of funds (Margin) from you brokerage account in case of emergency when your family would need them the most ...

Thanks

very nice point NC

 

[jnj333]

Sometime back bought one RIL future at 1800, provided only that much margin so is to hold it till 1600 , could not follow it on day to day basis , RIL eventually fell below 1600, my broker automatically squared it off at 1600. Sort of automatic stop loss.

 

[AW10]

Sometime back bought one RIL future at 1800, provided only that much margin so is to hold it till 1600 , could not follow it on day to day basis , RIL eventually fell below 1600, my broker automatically squared it off at 1600. Sort of automatic stop loss.

What if the account had enough margin limit ? In that case, brokers risk mgmt system would not have closed your position.. and you would have found RIL trading at 1000.
Maybe some of us can digest it but would you like to run a serious business with this approach ? Personally, I wouldn't be comfortable with it.

Good point coming out in this discussion where people have got excellant RM from their broker who helps in auto executing orders etc.

How foolproof is this method ? Can we rely on RM for our risk management ? What if tomorrow that RM joins another Broker and we get new RM ?

Happy Trading.

 

[jnj333]

What if the account had enough margin limit ? In that case, brokers risk mgmt system would not have closed your position.. and you would have found RIL trading at 1000.
Maybe some of us can digest it but would you like to run a serious business with this approach ? Personally, I wouldn't be comfortable with it.

Good point coming out in this discussion where people have got excellant RM from their broker who helps in auto executing orders etc.

How foolproof is this method ? Can we rely on RM for our risk management ? What if tomorrow that RM joins another Broker and we get new RM ?

Happy Trading.

In case of excessive margin,yes,that would be difficult for people with multiple positions, like maybe one would be long on RIL and short on nifty , in case of downfall his profit from short nifty would be eaten up by falling RIL, only case here would be if the broker allows for automatic stop loss for each individual positions, in my case it is system generated and no risk manager (RM) is involved , if that what you meant by RM, I take very few positions like these, and only as a portfolio enhancement technique and nothing more, as I cannot sit on a trading terminal, if my stop loss is hit , the system automatically squares it off, so the worry here is minimal, As i am no trader so senior traders could find a better solution in case of unforeseen calamity like serious sickness.

 

[Blitz]

Few Suggestions :

1. Must have 2 computers (1 LAPTOP + 1 Desktop) fully loaded with ODIN, Charting Software and uptodate database.
(This helps when 1 pc is not working properly or is under repair)

2. Must have 2 internet connections (1 of these 2 conn. should be USB modem to move around with the laptop if required in case one is hospitalised)

3. Always keep either your trading partner (or your wife/father/mother/sibling, any one who you feel is responsible enough to close your trade and also get it verified online in your absence) updated about your trades.

4.Maintain a password protected 'ms word' file in both your computers with the password known only to your trusted aide (as in point no.3) This word file will contain all your ODIN/PIB etc passwords, Demat account details and any other information u deem fit required to close the trade)

5. must have a pendrive with you with the setup for ODIN/PIB , AMIBROKER , Database folder, data converting software and your must have indicators. lets say both the pc's crash, you can rush to your friends place and load it all and get going once again.

6. Keep your RM's, Dealers mobile no. saved in speed dial on your mobile.

7. Ask this person (from point no. 3) to not use his /her brain when a situation arises wherein you are unable to even pass instructions about managing the trade, lets say you meet with an accident and are unable to communicate or pass on instructions to this person about handling your trade, so in every case when you cannot communicate,, the blanket instruction should be to CLOSE THE TRADE, NO MATTER HOW GOOD THE TRADE MAY BE OR HOW PROFITABLE IT MAY SEEM to this person.

8. Always maintain a record of your open trades in the password protected word file and also a diary. (remember to keep the diary in the same place everyday and the place known to your backup guy)

Hope this helps u all.

 

[biyasc]

Few Suggestions :

1. Must have 2 computers (1 LAPTOP + 1 Desktop) fully loaded with ODIN, Charting Software and uptodate database.
(This helps when 1 pc is not working properly or is under repair)

2. Must have 2 internet connections (1 of these 2 conn. should be USB modem to move around with the laptop if required in case one is hospitalised)

3. Always keep either your trading partner (or your wife/father/mother/sibling, any one who you feel is responsible enough to close your trade and also get it verified online in your absence) updated about your trades.

4.Maintain a password protected 'ms word' file in both your computers with the password known only to your trusted aide (as in point no.3) This word file will contain all your ODIN/PIB etc passwords, Demat account details and any other information u deem fit required to close the trade)

5. must have a pendrive with you with the setup for ODIN/PIB , AMIBROKER , Database folder, data converting software and your must have indicators. lets say both the pc's crash, you can rush to your friends place and load it all and get going once again.

6. Keep your RM's, Dealers mobile no. saved in speed dial on your mobile.

7. Ask this person (from point no. 3) to not use his /her brain when a situation arises wherein you are unable to even pass instructions about managing the trade, lets say you meet with an accident and are unable to communicate or pass on instructions to this person about handling your trade, so in every case when you cannot communicate,, the blanket instruction should be to CLOSE THE TRADE, NO MATTER HOW GOOD THE TRADE MAY BE OR HOW PROFITABLE IT MAY SEEM to this person.

8. Always maintain a record of your open trades in the password protected word file and also a diary. (remember to keep the diary in the same place everyday and the place known to your backup guy)

Hope this helps u all.

great post sir. after doing all of these things, if someone is still afraid only because of uncertainity, then its better to stop trading & concentrate on another job/s.