First Time First Stock

Hello friends i am new member but never posted any thing before but i was just following general trading thread .........i recently bought 2 lots of cipla @668 for long sep future....but because of the market fall it is 651.35 now what shuld i do should i wait or the market wil go down more...........please suggest me what should i do wait for it or sell on monday.....thanks in advance?

Exit if it breaches 646.40, maybe even short it !

You might have taken position some basis. Keep s/l as per your strategy and run. If s/l hit exit the trade.

i was not able to hedge the position with put and i was not aware it will go down after its news for buying US two companies on cnbc tv 18 prime hd ....now what should i do i wait for its price to come back or should i leave the futures....?

if you people think that its important to put a stop loss i was able to do it as i bought it for 668 after calculating the general condition of news ...whats the best pay back for it

As you have been able to calculating the general conditions of news, what do you want to hear now from the forum members? We are not super people who can do such calculations like you mentioned.

You may explain first how you did your so called "Calculations of news" and then others may are able to respond to your post.

I got Your point sir Somatung...sorry but after the deal is final for cipla they acquired two companies who are making 30 already selling drugs in us and 32 in back log with 4 more to come.....licences and the second company which they are acquiring will be providing medicines to different hospitals and government like military also...so i was quit bullish after listening to the news now....i was not aware that it will fall that much...sorry if i asked u something with a different view or i am triggering a loss thats totally different story

Dear Yogesh bhai
what all I understood from your posts that You bought cipla future in anticipation of its increasing price..you just took this decision listning news..now it fell & you dont know what to do?
see, nobody knows here 100%, what will cipla do?now you are asking to hold or sold?
I hope you the risk involved with future trading..its not like you bought scrips of cipla & if it fell, you can keep it...future doesnt work like that..I hope you know the all risk which involved in future trading..
if you are not following any strategy or you just trading on news..i will request you to just close your trade as early as possible..even in loss...it may go up or down in coming days..nobody knows..but if you dont have any strategy, how will you old your position

please never ever trade on news
thanks

I see. Well, that was your personal decision and we all make mistakes from time to time with the assumption we put into our decisions. As you made some loss for the moment with your trade, do not let your feelings about this loss may take over your mind.

When reading your other post, I see that you have an understanding of what a put is, what a stop loss is or even what a hedge is. :thumb:







The ranges are given in the chart. Adjust your thoughts and trade according to this ranges and act according to what you see. If you want to keep your two lots in this script, you must protect your self in case some more down side is coming. To be with the move you could buy four lots deep in the money puts.

If the script stays in the range, you create a covered call. How to do you can read in the following link:

http://www.investopedia.com/articles/optioninvestor/08/covered-call.asp

https://discoveroptions.com/mixed/content/education/articles/coveredcalls.html?useHistory=1

Hope it helps a bit to find your way and what you want to do further. Take care / Dan