Trading Nifty

Gaurav Kumar · #51 31st July 2007, 06:25 AM

Quote:

Originally Posted by kris905

Gaurav,
You should keep posting your progress, as someone said it could be a learning.
But you cant and should not make a statement claim that Stop Loss is weak strategy.
I think that is the basic in investing and people who are new to investing should not be advised on avoiding stop losses.
Thanks
Kris

Dear Kris,

My statement on stop losses is my opinion. Anybody is free to take it or leave it.

There is no one way of making money. Therefore i am not claiming to have the best strategy.

Ultimately, whosoever makes money consistently is the king. I have another belief that most people dont make money. Most people i have come across talk only about their gains and not about losses, thus presenting a misleading picture.

I have advised that people should do mock trades on paper till they are comfortable with my strategies.

With best wishes,

Gaurav Kumar

Gaurav Kumar · #52 31st July 2007, 06:36 AM

Dear Friends,

The market lost ground after having gained a fair bit. I had anticipated the gains as is obvious from my previous posts, but had not thought of the market losing ground towards the end (that can be considered as an error as i forgot about the credit policy meeting).

However, there is little to worry about. We will see 4550 and till the market remains above 4350, need not hedge either..

Let us review what we have.

We purchased one nifty at 4530 and yesterday added to it at 4410 (i had advised taking a nifty when the market crosses the previous days close and i am taking the value of 4410 instead of 4402 to make things worse of for me). Nifty future closed at 4400.

Our net Mark to Margin loss is Rs. 7000/-.

We will hold on and wait for the recovery. Remember to sell the nifty purchased at 4410 to the level of 4500. That way the cost of nifty purchased at 4530 would effectively fall and we can hold on.

With best wishes,

Gaurav Kumar

Gaurav Kumar · #53 31st July 2007, 06:48 AM

Quote:

Originally Posted by ccmb420

Sir, I am a Mr.Nobody, and my opinions may not carry weight as I am quiet new to Stocks and know just the ABC of TA.
Sir it would be a lesson for you also if you visit another thread on Nifty in this forum.
As about me, just look at my trades : I went long at 4583.10 but due to gap down opening I exited at 4509 but here I went short at 4504 and covered at 4511. I went long today at 4501 and exited at 4549.
Just realise that instead of holding on to your loosing positions it is better to book losses and change yourself with the trend.
You may give N reasons for your continuation to remain long and you may write that you are COOL, but thats not the reality, and nobody knows it better than you. I may be very junior to you but I do know that your confidence is misplaced. I just stumbled on to the thread as I trade only Nifty and other indices hence your subject caught my attention. You need not respond to my post as in all probablities I may not visit this thread again.
And sir, one more thing i wish to add: Do keep on posting, not for the sake of others but for yourself. Read various comments from diff. people and try to improve yourself. It does not matter, should not matter if the posts are 'useless' to others. But would be a good lesson to yourself. It is always better to get critisized it help one reanalyse his concepts , views and believes.
Thanks
-Shravan
BTW : Nifty future is 4394 at present.
The thread I was referring to is Nifty Calls by Metal Man

Dear Shravan,

If you are still reading this post, i had already said i was open to questions and thus do not mind criticism.

What i find a bit revolting, is the ridicule that people throw in their language. I do not want to comment on why people should ridicule. If someone is really so good as they claim, they would read my thread and post questions rather than stoop down to ridicule.

Yes i do read other threads also. I believer that there is no end to knowledge and life is a learning process.

Since my strategy does not involve reacting to every small move that the market makes, it is very different and i do expect that most would not find it comfortable in the beginnning as it runs counter to their long held beliefs about the market.

If you have the patience continue reading my posts, else day trading strategies abound.. you could always follow them..

An question to all who criticise me.. Please someone tell the readers how much money they have made in the last year (in percentage terms). Please do not justify your strategies by showing some gains you made on a particular day without disclosing what you lost the next....

With best wishes,

Gaurav Kumar

loosingstreak · #54 31st July 2007, 09:51 AM

What time frame do you trade/refer? I hope you do not mind my asking.

Saint · #55 31st July 2007, 09:52 AM

Hi Gaurav,

Whether you call it hedge,or stop.......you seem to have a point where you call it a day.I have not read through this thread but am going to do so today after markets.

You sort of scale into positions and capitalise from a huge move(from what little I read)......oh,well,could be wrong.....Better to talk after a analysis.

Guys,give Gaurav a break!If after every post,there is criticism ......can be demoralising.If you are hitting a few guys who have nothing to offer but just exclaiming and proclaiming some nonsense,I understand.Gaurav's strategy may or may not give him huge returns............but let the poor guy speak without getting bashed.

No offence meant to anyone.........everyone here are friends and people I respect.

Saint

ranj_2k · #56 31st July 2007, 11:11 AM

Dear Gaurav,

As I understand you are anticipating that nifty will touch 4700 before August expiry. I have future position at 4425 and 4490. It is not better to book profit with 50 plus point and re-enter as and when get opportunities. One can enter whenever nifty goes down. By this practice, in my opinion one can earn more than holding the position to the level of 4700. Secondally what is your strategy to hedge the position, say if market will fall by 300 nifty points due to any reason may be credit policy or another fall in US market.
Your valuable inputs are solicited.

yoogi · #57 31st July 2007, 12:16 PM

Dear Gaurav Kumar,

I also dont like stop losses mainly becasue most of the time you see the stock/index bounce back just after stop loss. But I understood that it is an important MoneyManagement strategy.

Say if I want to use 2 lack rs for trading one particular tip/strategy. Then I must make full use all the 2 lack rs to gain maximum profit on that tip. So If you say Buy one lot Nifty now, I need to find out how many nifty I can afford to purchase.

If there is a stop loss, say
Buy Nifty @ 4500, ST 4350, Target 4700,

I, allowing slippage and opening gaps, would need MTM money for 200 points below purchase price in case if I make a stop loss of 150 points below purchase is recommended. So I will decide to buy about 20 lots, nifty. I risk all my 2 lack, to gain 2 lack rs

But if you are going to say hedge by buying/selling an option or selling physical shares instead of using a stop loss, how can I manage my money. So that is the reason why people recommend with a stop loss. It is a simple tool with which one can manage money effectively.

So if you think your strategy works best, calculate your liquid cash reserve needed (for MTM margins, brokerage / purchase costs for options..), margin cash (from stocks held) needed for your strategy before the start of trade.

So dont avoid explaining your hedging strategies. Because we need to know how much money we need to deploy and then we'll decide what is the actual return.

You could be cool, if you have 10 lack in your trading account and play with one Nifty contract, you can afford to loose 50% on nifty and still exit with 200 point profit when it bounces back.

Gaurav Kumar · #58 31st July 2007, 01:27 PM

Dear Friends,
In view of the CRR hike, a revision in position. We are booking profit on the nifty taken at 4410. Presently nifty future is at 4460. Next post after some time.
With best wishes,
Gaurav Kumar

Gaurav Kumar · #59 31st July 2007, 01:30 PM

Dear Friends,
Further action we are shorting September Nifty Future at 4440 to hedge against our outst.anding nifty position.
More after some time.
With best wishes,
Gaurav Kumar

Gaurav Kumar · #60 31st July 2007, 01:50 PM

Dear Friends,
If Nifty future comes back to 4440-4445 today in August Series , we will exit the short position in nifty future (september series) as the market would rise tomorrow. If the market on the other hand does not correct we do not take any further action.
More after some time.
With best wishes,
Gaurav Kumar

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