Technicals for SHARE TRADING.

#13
Re: Arbitrage Trading

Arbitrage Trading

Arbitrage trading is simply the trading of securities when the opportunity exists during the trading day to take advantage of differences in value between the markets the trades are made within. Arbitrage trading takes place all day long on most days that the markets are active.

Arbitrage traders will buy and sell the same or closely related securities at the same time. They take advantage of the price or value differences in two separate markets such as the NYSE and the CME futures. In perfect securities markets there would never be any arbitrage traders or trades. Since the securities markets are not perfect when news or other information moves a security or index they can and often do become unequal in price temporally. If the markets were perfect all identical securities would trade at the same value or price on each market they were traded on.

One of the most popular Arbitrage trading opportunities is played with the S&P futures and the S&P 500 stocks. During most trading days these two will develop disparity in the pricing between the two of them. This happens when the price of the stocks which are mostly traded on the NYSE and NASDAQ markets either get ahead or behind the S&P Futures which are traded in the CME market.

Lets say the stocks get ahead of the futures in price. Arbitrage traders will sell the stock and buy the futures. They end up with the same or or closely related investment but have just made money by taking the difference in the prices from the two separate markets.

Another example of arbitrage trading. Lets say there is a Company that releases good news in a press release. The stock starts to trade higher on the NASDAQ, and there are call options available for the stock on the AMEX which have not had any or little action or volume. If you jump on the options before they catch up with the climbing stocks price you can often make money by selling the stock and buying the options at the same time. Remember the price disparities that offer the opportunities will not last long, seconds is the norm.
 
#14
Pls explain about Arbitrage Trading. Arbitrage between equties and Futures of NSE.
I am trader of NSE India. I planned to trade in the following style: IS IT PROFITABLE?

1. Wait till 9.30 am, afterwards Buy the stocks with open = low, Keep the SL below Low. After 10 am, if trading above the ATP, trail the SL below ATP and move the SL with ATP.

2. If Open = High, after 9.30 am, Buy the stocks above day's High, put SL in day's Low.After 10 am, if trading above the ATP, trail the SL below ATP and move the SL with ATP.

and

If Open = High, I sell the stocks at CMP and keep the sl above the days HIGH, After 10 am, if trading below the ATP, trail the SL above ATP and move the SL with ATP.


3. If, 9.30 AM Open # LOW # HIGH, If trade above ATP, buy the stock and keep sl below day's low. After 10 am, if trading above the ATP, trail the SL below ATP and move the SL with ATP.

SENIORS PLS ADVICE.
 
#15
I am trader of NSE India. I planned to trade in the following style: IS IT PROFITABLE?

1. Wait till 9.30 am, afterwards Buy the stocks with open = low, Keep the SL below Low. After 10 am, if trading above the ATP, trail the SL below ATP and move the SL with ATP.

2. If Open = High, after 9.30 am, Buy the stocks above day's High, put SL in day's Low.After 10 am, if trading above the ATP, trail the SL below ATP and move the SL with ATP.

and

If Open = High, I sell the stocks at CMP and keep the sl above the days HIGH, After 10 am, if trading below the ATP, trail the SL above ATP and move the SL with ATP.


3. If, 9.30 AM Open # LOW # HIGH, If trade above ATP, buy the stock and keep sl below day's low. After 10 am, if trading above the ATP, trail the SL below ATP and move the SL with ATP.

SENIORS PLS ADVICE.
I appreciate your persistence. Sad that no one responded. I will advice you one thing. Do you have amibroker? If not download and get the data for nifty spot or futures (search in traderji, you will get it). You yourself back test your style of trading for atleast one year(more years will be better). And write down the rules and the trades on the paper strictly. You will only know if its profitable or not.

Good luck :)
 

columbus

Well-Known Member
#16
Re: Pyramid trading

What is Pyramid Trading? How to do it? Seniors pls explain

Pyramiding involves adding to profitable positions to take advantage of an instrument that is performing well. It allows for large profits to be made as the position grows.

More in investopedia.
 

anuragmunjal

Well-Known Member
#17
I am trader of NSE India. I planned to trade in the following style: IS IT PROFITABLE?

1. Wait till 9.30 am, afterwards Buy the stocks with open = low, Keep the SL below Low. After 10 am, if trading above the ATP, trail the SL below ATP and move the SL with ATP.

2. If Open = High, after 9.30 am, Buy the stocks above day's High, put SL in day's Low.After 10 am, if trading above the ATP, trail the SL below ATP and move the SL with ATP.

and

If Open = High, I sell the stocks at CMP and keep the sl above the days HIGH, After 10 am, if trading below the ATP, trail the SL above ATP and move the SL with ATP.


3. If, 9.30 AM Open # LOW # HIGH, If trade above ATP, buy the stock and keep sl below day's low. After 10 am, if trading above the ATP, trail the SL below ATP and move the SL with ATP.

SENIORS PLS ADVICE.


hello Mr.Kumar,

Good to see you using your limited knowledge to make profit in the market. Let me explain something about your system:

1) You Ignored Volume & Open Interest.
2) Ignored overall Market Sentiment.
3) Ignored the overall trand of the stock.
4) Ignored the crucial levels of the stock viz. 52 wk High/Low, Swing High/Low, Fib Levels etc.
5) Ignored the Momentum/Volatility/beta of the stock.

Apart from these you lack a lot of things. Understand one fact, previous day's High/Low is not at all a support/resistance for the stock. Its a wrong concept among traders. So no question arises about trading on the breakout of the High/Low of the previous day.

One more thing, when you trade Intraday, the risk level is fairly high. So your strategy should be equally strong. The more Technicals you incorporate in your analysis, the more you reduce your risk. There are millions of traders like you out there trading on such Bogus strategies (self discovered/told by some friends) & end losing huge sums of money & weeping for the loss.

So the bottom line is Strategise, Plan, Execute.

Regards,
Trade_Master


between the two, the first one still makes some sense...
 
#20
New Technical for intra trading

I planning to trade intraday trading as follows:

Starting the trade in @ 9.20 am using 5 min chart using bar chart. Wait for 5 min only. Buy Nifty fut above the high of the 5 min bar and keep the stop loss below low. After 5 min, i move the sl to low of the next bar. If sl triggered, sell 2 lots and keep sl loss above the high of the previous bar.

Seniors pls advice,
 
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