Trading Nifty

ppvsin · #**181** 8th August 2007, 12:15 PM

Dear frinds

Yesterday my system signal exit nifty.(at closing). Today huge gap up open. My system says buy nifty.What to do? Should I buy nifty at market closing?

Regards
ppvsin

Sriks · #**182** 8th August 2007, 01:07 PM

Very pertinent pointer - no stop loss yet book small loss.

Coming to investment styles, I disagree that it is fear that drives stop loss. working without stop losses is for people who consider themselves long term INVESTORS - basically those who either have the capacity or are willing to digest short term volatilities. However as TRADERS, the idea of working without stop losses does not appeal simply because trading is a probability game with positive expectancy. We need to have out Math right in terms of indicators we follow as also money management techniques. As such, it would only but be prudent to stop your losses and let your profits run.

While "investors" tend to go by the performance of the concerned businesses, "traders" differentiate the corporate performances from that of the respective stock performances. The reasons, I daresay, are obvious.

Gaurav Kumar · #**183** 8th August 2007, 02:23 PM

Quote:

Originally Posted by Sriks

Very pertinent pointer - no stop loss yet book small loss.

Coming to investment styles, I disagree that it is fear that drives stop loss. working without stop losses is for people who consider themselves long term INVESTORS - basically those who either have the capacity or are willing to digest short term volatilities. However as TRADERS, the idea of working without stop losses does not appeal simply because trading is a probability game with positive expectancy. We need to have out Math right in terms of indicators we follow as also money management techniques. As such, it would only but be prudent to stop your losses and let your profits run.

While "investors" tend to go by the performance of the concerned businesses, "traders" differentiate the corporate performances from that of the respective stock performances. The reasons, I daresay, are obvious.

Sriks and others,

Please note i have only 75000/- for the purpose of the thread, so cant come in the catagory of a long term investor with huge capacity.

Whether to go for SL or go for my strategy is a mindset as well as depends on what you know about the market.

With best wishes,
Gaurav Kumar

Gaurav Kumar · #**184** 8th August 2007, 02:27 PM

Quote:

Originally Posted by kavidhev

HI Gaurav Kumar,

Your calls rocking. Made a good profit from your call. Thank you so much.

Please advice us how we can proceed further.

thanks,
Kavidhev

Dear Kavidhev,

Welcome. Hope you continue making money. At present we will wait for the close. We intend to nothing more today and will wait for a correction to enter tomorrow.

With best wishes,

Gaurav Kumar

Gaurav Kumar · #**185** 8th August 2007, 03:36 PM

Dear Friends,

Nifty Future closed at 4430. That brings us into very good profit.

Our booked profit are Rs. 12000/- and M to M loss on one future is Rs. 5000/- . Net we are at present in profit of Rs. 7000/-. Having started with Rs. 75000/- , the gains in my view are good.

More than that we were not stressed. In addition, we were always in control of the situation, with onlly two days in when we had stretched our finances just a little out of the comfort zone.

Hope you enjoyed the thread so far.

With best wishes,

Gaurav Kumar

Sriks · #**186** 8th August 2007, 03:49 PM

At the outset, Gaurav, my congratulations!! You seem to be helping out a lot of guys to their satisfaction.

There are just a couple of things I would like to express:
1. being an investor as opposed to a trader, I reckon is a mindset and not a "capital invested" issue
2. even an investor is nonetheless a trader; it is just the timeframe that differentiates. While most traders I have come across have a clear understanding of timeframes, the so called investors that I have met have no clue of how this affects/effects their capital. Mainly because they tend to analyse the business and not the stock price.

For the present I agree to diagree with you on stop losses; nevertheless, would continue to look at your views with interest.

Gaurav Kumar · #**187** 8th August 2007, 05:58 PM

Quote:

Originally Posted by Sriks

At the outset, Gaurav, my congratulations!! You seem to be helping out a lot of guys to their satisfaction.

There are just a couple of things I would like to express:
1. being an investor as opposed to a trader, I reckon is a mindset and not a "capital invested" issue
2. even an investor is nonetheless a trader; it is just the timeframe that differentiates. While most traders I have come across have a clear understanding of timeframes, the so called investors that I have met have no clue of how this affects/effects their capital. Mainly because they tend to analyse the business and not the stock price.

For the present I agree to diagree with you on stop losses; nevertheless, would continue to look at your views with interest.

Thanks Sriks,

The difference between an Investor and Trader is about what you have described. I agree with you on that.

What would you classify me as? The so called traders seem to believe that the only way out is frequent trade based on momentum indicators. I beg to differ. I am also effectively a trader, but my span of interest is not all that short.

What i have done is to take the best of both the worlds. Call me an investor if you like.. Call me a trader if you like....

As far as SL is concerned...no arguements from my side...i have written enough on that... it is my viewpoint and i intend to change a few to my viewpoint. That does not mean that others are wrong. That is their investment/trading style... to which i do not subscribe

With best wishes,

Gaurav Kumar

Gaurav Kumar · #**188** 8th August 2007, 06:01 PM

Quote:

Originally Posted by ppvsin

Dear frinds

Yesterday my system signal exit nifty.(at closing). Today huge gap up open. My system says buy nifty.What to do? Should I buy nifty at market closing?

Regards
ppvsin

Dear PPVsin,

Sorry did not read your post earlier..

I hope you did not buy nifty at the close, as we hope to get it at a lower rate tomorrow or the day after.

With best wishes,

Gaurav Kumar

PS- of course you could think of making a profit in the morning as we may see nifty open up a bit and then you can again buy a bit lower.. OF course if you can handle the way i have described in the thread then a buy at this level is also not a thing to worry at all.

rajesh.sadhanala · #**189** 8th August 2007, 06:52 PM

Quote:

Originally Posted by Sriks

For the present I agree to diagree with you on stop losses; nevertheless, would continue to look at your views with interest.

If you read through the entire thread then you might have observed that Gaurav wants to hedge whenever the trend is in question just to make sure that he is in trade whichever side the move is in. So in this strategy a predefined hedge is planned whenever the pattern is changed or in your uncomfortable position to limit your earlier loss and continue with the trend open to both sides.

It is really not to easy to implement unless you are really conversant with it. The people who trades with SL will rely more on tight MM policy and r/r ratio to minimize the losses and maximizes the profits.

I believe they are different ways to trade the market, there is no hard and fast rules. Its just come with the experience and their style of trading. The way gaurav trades may not be suitable to u and me and gaurav cannot trade according to our style. So we try to learn from each other.

Regards
Raj

Rafi · #**190** 8th August 2007, 07:05 PM

Hi, A Clarification on Odd Ratios.
Say for Example, TCS issues bonus shares in the ratio of 1:8 (1 bonus share for every 8 shares held). And I am holding 100 TCS shares, for 96 shares I will get 12 bonus shares. What will happen to my remaining 4 shares? Will I get any amount in cash in proportion to the remaining 4 shares. If not then what? Kindly update me with the links where I can find info. relevant to it.

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