Nifty Trading Strategy: Daily

Originally Posted by pchadha74

19 FEB 2008

We currently hold NO positions in the markets. A clear buying signal has still not emerged, so will have to keep it suspended for tomorrow as well. The Buy call will be reactivated after watching tomorrow’s price movement.

Puneet Chadha

Originally Posted by pchadha74

Hi Ravalsb,
Let me tell you a bit about myself- I am an MBA (Finance) from MDI, Gurgaon. I have served in the IAF which I left a few years back after an air incident. I was working with a multinational company till recently, but have quit now. I am a full time trader now, though I have been trading for the last 4-5 years.

Yes, you are right, I dont trade too often. In fact, I had only 30 odd Nifty Futures trades during the full year 2007 (had about 20 odd Options trades also). See, there is always an opportune time to trade Futures or Options, and depending on what the opportunity is, I take the trade. I also trade in shares as such, so thankfully the number of jobless days are reduced somewhat. And I believe there is no correlation between activity and profits in the stock markets. I personally feel that the majority of profits in a trading year come in 2-3 good trades, rest of the trades are just a cost to find those good trades. Core of my strategy is to be in a trend once it is confirmed, and not try to catch every up and down points.

Now, I would also like to highlight 2 more points:
1. The system I have designed is a 'conservative' system, which is more suited to my own psychological make-up. I trade only the breakouts and supports/resistances and the trend reversal points, which as such occur infrequently.
2. As we move from one day to another, our Buy target comes down and Sell target goes up (refer to sell targets for 19th and 20th Feb.) So when we actually get into a trade, we are not that late in entry as anyone may perceive. In the current context, target prices are too far, but the daily volatility is also very high. Just observe the prices where we actually get a Buy/Sell entry signal.

Thanks for your concern though. I am expecting everyone to just monitor my call and not trade it. As you said, my strategy won’t appeal to a lot of traders, and to the ones it does, it will take a quarter/6months to get into the flow.

In a few days, I would post my detailed trading action for the year 2002/2007 so that one can compare it with any active trading approach that he may be using and then make his own conclusions.

Thanks

Puneet Chadha

Originally Posted by ravalsb

Hi Puneet,

Its not that i am having anything against your strategy .... i was feeling that if one trades like this....he would be practically jobless for most days ....