Day Trading Stocks & Futures

Shiv12345

Well-Known Member
Hi,

so when to take position and what is exit point & SL
Hi ... .... Thanks for your query. As for now, I am not anticipating entry point and SL for this situation.The strategy is pretty simple for me. If wave '4' is confirmed clealry. I shall go with 9600 PE (June series). Or else, I may take 9600 CE (June series) till the time wave '3' survives.

We need to take care of 2 things:-

1. Wave '4' can be steep sometimes but it can be slow, frustrating and complex too. Steep corrective waves may end in a day or two. Otherwise, they may be slower and may frustrate PUT buyers. To be frank, making money with impulsive waves 1 or 3 or 5 is much more easier as they are easier to identify.

2. Since this is the beginning of June series, premium of index options tend to be higher than usual in the first week. We need to track premium erosion of CEs and PEs while trading them. For example, look at 9500 CE. It looks expensive.

Lets see next move.

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ap*

Well-Known Member
Hi ... .... Thanks for your query. As for now, I am not anticipating entry point and SL for this situation.The strategy is pretty simple for me. If wave '4' is confirmed clealry. I shall go with 9600 PE (June series). Or else, I may take 9600 CE (June series) till the time wave '3' survives.

We need to take care of 2 things:-

1. Wave '4' can be steep sometimes but it can be slow, frustrating and complex too. Steep corrective waves may end in a day or two. Otherwise, they may be slower and may frustrate PUT buyers. To be frank, making money with impulsive waves 1 or 3 or 5 is much more easier as they are easier to identify.

2. Since this is the beginning of June series, premium of index options tend to be higher than usual in the first week. We need to track premium erosion of CEs and PEs while trading them. For example, look at 9500 CE. It looks expensive.

Lets see next move.

Sent from my HTC Desire 728 dual sim using Tapatalk
Dont you think taking a position in futures is safer considering premiums ? Put premiums are also really high.
 

checkmate7

Well-Known Member
Problem with future is that it is costly...If any one is very sure about the trend and have predicted correctly than in less investment they can achieve more...But shortfalls are also there :)
 

stock_mani

Well-Known Member
Hi ... .... Thanks for your query. As for now, I am not anticipating entry point and SL for this situation.The strategy is pretty simple for me. If wave '4' is confirmed clealry. I shall go with 9600 PE (June series). Or else, I may take 9600 CE (June series) till the time wave '3' survives.

We need to take care of 2 things:-

1. Wave '4' can be steep sometimes but it can be slow, frustrating and complex too. Steep corrective waves may end in a day or two. Otherwise, they may be slower and may frustrate PUT buyers. To be frank, making money with impulsive waves 1 or 3 or 5 is much more easier as they are easier to identify.

2. Since this is the beginning of June series, premium of index options tend to be higher than usual in the first week. We need to track premium erosion of CEs and PEs while trading them. For example, look at 9500 CE. It looks expensive.

Lets see next move.

Sent from my HTC Desire 728 dual sim using Tapatalk
In my view it is similar to pivot method when price is intact with higher high and higher low.... as per your chart it is 3th bull wave after correction..
 

checkmate7

Well-Known Member
Futures Trading is a form of speculation which involves postulating on the price of security going up or downstairs in the future.
Everybody please add this also in your diary :)
 

Shiv12345

Well-Known Member
We got to see some real volatile moves in Nifty and Bank Nifty today in the second half.

Usually, such ferocious gyration sweeps SL of all intraday traders (long & short both). First nifty made new high, then back in negative zone.

We all knew markets would remain undecided by the end of day. I entered Bank Nifty combo around 2 PM. By then, premium erosion was almost over. Took straddle combo at strike price 23300 (both PE & CE) with total cost of 147 (71 + 76). Sold the same combo @ 172 (i.e. 40 + 132). Total profit 17%.... Done for today. Its always hard to find trades on such neutral days.

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