Earn 15 lacs in 21 months with 1 lot of Minifty??

[leo_3455]

Hi

Can anyone tell me.
I am newbie in Futures But I undersatnds Charts like Candles,Bollinger bands etc.

I would like to know when we buy Nifty futures there is a premium on it .
Sometimes Negative, Some time positive
What is that and how it affect trade.

Also, I have a/c with icicidirect if I do short trades with them collecting 10 points and close trade... How much is the profit, i guess there brokerage is quite high. I can't change broker @ this time as I am not in INDIA

So If anyone can give me a simple example of buy sell example with profit/loss ratio
Profit--10 points
Stop loss on --20 points

Thanks
kaps

When nifty fut is in premium, it generally means long positions are more. When nifty fut is in discount, short positions are more. This premium/discount can be a bit deceptive as market can go down when nifty fut in premium and vice versa.

ICICI Direct brokerage is high compared to RK Global. Since you don't have a choice, you are stuck with it. You can call/mail your RM for the exact brokerage details. I guess it will be around 2 to 3 points. If you close a trade in 10 points profit, reduce 2-3 points for brokerage and other charges. So actually you will have 7 points profit.

All the best :thumb:

 

[cool_kk]

When nifty fut is in premium, it generally means long positions are more. When nifty fut is in discount, short positions are more. This premium/discount can be a bit deceptive as market can go down when nifty fut in premium and vice versa.

ICICI Direct brokerage is high compared to RK Global. Since you don't have a choice, you are stuck with it. You can call/mail your RM for the exact brokerage details. I guess it will be around 2 to 3 points. If you close a trade in 10 points profit, reduce 2-3 points for brokerage and other charges. So actually you will have 7 points profit.

All the best :thumb:

Thanks Leo for response.

Suppose I open a trade with August expiry with premium of 4 points.

So I can assume I already down 7 points (4 points premium + 3 points brokerage)
to make profit of 10 points, I need to make 17 points in one trade.

Also how to calculate loss/profit...
How much 10 point loss/profit eqivalent to .

Also what does mean by July/Aug/Expiry . I trade options, Is it similar
All become zero at expiry ?

Thanks Again in Advance.

 

[leo_3455]

Thanks Leo for response.

Suppose I open a trade with August expiry with premium of 4 points.

So I can assume I already down 7 points (4 points premium + 3 points brokerage)
to make profit of 10 points, I need to make 17 points in one trade.
No, the price that you open a trade is the one that counts. It doesn't make a difference if it is in a premium or discount. Of course, the brokerage is there, so we are down 3 points when we open a trade

Also how to calculate loss/profit...
How much 10 point loss/profit eqivalent to .
Lot size in nifty is 50, so 10 point profit equals 10 x 50 = Rs. 500

Also what does mean by July/Aug/Expiry . I trade options, Is it similar
All become zero at expiry ?
]Futures/options are contracts. Each contract has an expiry date, the last Thursday of the month. July contract expires on July 29th.
In options, not all the premiums become zero at expiry. At the money options have value. It is a vast topic, do some reading on options for full understanding.

Thanks Again in Advance.

Please trade with the minimum quantity possible until you are get yourselves familiarized with the terms and operations. :thumb:

 

[cool_kk]

Please trade with the minimum quantity possible until you are get yourselves familiarized with the terms and operations. :thumb:

Great

My Bad.. as I sell OTM puts and Calls; Normally they become zero at expiry.
OR
In worst cases it hit my stop loss to save my a**

So; In future we can also carry position to next day.
Normally what traders do, they carry the position with stoploss or carry the position for tomorrow.

I am planning to do one with one MINI LOT.
Thanks

 

[columbus]

munde_77:

I just asked a question. Did I make a claim anywhere that I am going to make millions?

Having said that, I believe the target is very much possible. I am still learning the trade and it may take time for me to achieve not 15 lakhs but 15 crores :lol:

I know it is possible and have seen many members in this same forum making much more than this.

Do you think it is possible to make 300 points nifty/minifty per month?

Just because you can't do it, doesn't mean it can't be done (a general statement not specific to you) :rofl:

One has to struggle a lot for making the first million,may not struggle
a lot for making the NEXT.

 

[leo_3455]

Great

My Bad.. as I sell OTM puts and Calls; Normally they become zero at expiry.
OR
In worst cases it hit my stop loss to save my a**

So; In future we can also carry position to next day.
Normally what traders do, they carry the position with stoploss or carry the position for tomorrow.

I am planning to do one with one MINI LOT.
Thanks

Hi Kaps:

If you are selling OTM and they become zero at expiry, wont you be at profit?

 

[cool_kk]

Hi Kaps:

If you are selling OTM and they become zero at expiry, wont you be at profit?

Yes, Indeed they ended in profit if prediction is right

I said in context to future trade as I am not very much aware how they behave differently then options.

Is it wise to carry the future trade to next day as a newbie becaus if market open up with a gap anyside. you can loose/gain alot.

Any advise. Do you hedge your future positions by options or any other way ?

Thanks

 

[leo_3455]

Yes, Indeed they ended in profit if prediction is right

I said in context to future trade as I am not very much aware how they behave differently then options.

Is it wise to carry the future trade to next day as a newbie becaus if market open up with a gap anyside. you can loose/gain alot.

Any advise. Do you hedge your future positions by options or any other way ?

Thanks

I prefer day trading, so my opinion will be biased.

Basically you can do anything as long as you are aware of the risks and you are confident of your trading system.

 

[s011y]

Hi All,

I am new to this Forum actively but a mute spectator from last 2 months.
Already lost 15 thousand in the market some 5 months back so taken a break learned the basics and now will again jump into it.

Any thing which i need to take care of.

I will be basically trading (positional) in futures (Stocks and nifty).

Any suggestions or word of cautions are welcome.

Thanks
--S011y

 

[leo_3455]

Hi S011y:

All the best for your future. Some points (which you know already):

1. Trade only with the money that you can afford to lose.
2. Keep in mind the risk-reward ratio. Anything less than 1:1.5 is not worth trading.
3. Expectancy - win-loss ratio - risk-reward ratio + a simple trading system that you understand gives you the edge.
4. Plan your trade - trade your plan - discipline.
5. Set your mind to book small losses and stick to your stop losses.
6. Use trailing stop losses to book profit.
7. Start small - grow big. We don't need a huge capital to start with. Any profit that is consistent is important than anything else.

There are so many interesting threads/messages posted by our members on almost anything. When you find some time, please go through them. :thumb: