FSL Futures

[prst]

HI,

I sold futures of FSL (First Source Solutions Limited) at 25. But now the scrip value has moved to 27. Please let me know if it has potential to move much further within the next couple of weeks. Should I hold, or should I buy another lot now to average it out. Currently am sitting on a loss of around 16000.

Thanks..

 

[SavantGarde]

Let Me Understand This First, You Have Shorted FSL Futures @25

If, The Above Is True... Then This The Dumbest Trade I Have Come Across For Reasons As Outlined Below:

A) You Forgot To See What Is The Low For last 6 Months Atleast.
B) Even If You Took The Trade For Whatever Reasons.... Why Weren't You Out With 30 Paise Loss When It Moved Against You For 8000 Lot Size
C) Grave You Have Already Dug... Is Not Big Enough To Empty Your Bank Account & You Want To Average By Shorting Another Lot

D) Do Not DELUDE Yourself...My Friend.

I Know, I Have Been Uncharachteristically Harsh On You In My Language...

I Can Still Go Back, Edit & Make Things Look Softer...Since I Haven't Clicked The Submit Button....Yet.

Guess...What There Is A Part Of Me Saying Let It Go Without Edit & Bear The Consequences That May Follow.

My Sincere Apologies To You For The Harshness...

Happy & Safer Trading

SavantGarde

HI,

I sold futures of FSL (First Source Solutions Limited) at 25. But now the scrip value has moved to 27. Please let me know if it has potential to move much further within the next couple of weeks. Should I hold, or should I buy another lot now to average it out. Currently am sitting on a loss of around 16000.

Thanks..

 

[prst]

Hi Savant,

Thanks for the reply.

It was not harsh, but an eye opener.
I had always traded based on paid tips and this trade was one of them.

I know I made a big mistake by trading in futures at early stage (I started trading barely 8 months ago ).

regarding my last trade, I could have sold it on same day, but some misplaced optimism prevented me from doing so..

Please help me as to what options lie ahead of me now.
is it poised to move even further up in coming weeks?

Thanks and Regards
Prashanth

 

[SavantGarde]

Hi Prashanth,

My Sincere Apologies Once Again... For The Use Of Harsh Language In My Earlier Post.

Before... I Can Give You Some Options To Turn This Around... Need To Know What Is F&O Balance Available In Your Ledger After Deducting The Margin Requirement For FSL Future.

Happy & Safer Trading

SavantGarde

 

[prst]

Hi Savant,

Its ok, not a problem.

In my account i have another 35k.
I had paid around 30k to buy this future.

 

[OptionsAce]

Why would anyone trade naked futures when the beautiful world of options exist? You're always protected on the losses and the gains are same as futures.

 

[SavantGarde]

Hi Prashanth,

F&O Ledger Of 70-80K Is Not Enough Or Prudent To Trade Futures & Especially, Something Like FSL With A Lot Size Of 8000

Question Of Another Lot Or Going Long 1 Lot In October Series Is Just Not Practical....Keeping The Ledger In Mind.

Ok This Is What You Need To Do First.... Between 25.65-26.00 Cover Your Short....

If Covering Happens Around 25.65-25.80 Then Go Long For About 30-35 Paise Profit On Intraday....

If Covering Happens At 26.00... Then Do No Nothing... & Wait For A Long Entry On Pullback Whether Intraday Or Another Day...

Please Post Your Update At The End Of The Day... So That... I Know What Has Happened... You Will Need Patience To Turn This Around Into Profit...By The End Of The Month....

With A Ledger Of 70-80K It Is Perhaps Just About Ok To Trade Mini Nifty...

Happy & Safer Trading

SavantGarde

Hi Savant,

Its ok, not a problem.

In my account i have another 35k.
I had paid around 30k to buy this future.

 

[prst]

Thanks savant,

As per my understanding of your post, please let me know if below points are correct.

Between 25.65-26.00 Cover Your Short....

This means i should set a buy trigger at 26.

If Covering Happens Around 25.65-25.80 Then Go Long For About 30-35 Paise Profit On Intraday....

This means if price goes below 25.65, then i should buy the existing lot and also buy a new lot . i should sell this new lot at any rise of 0.3 on the same day.

If Covering Happens At 26.00... Then Do No Nothing... & Wait For A Long Entry On Pullback Whether Intraday Or Another Day..

This means if the buy trigger is executed at 26, then i should wait till the price goes down to 25 levels again, and buy a future lot.


Please let me know if my above understandings are correct.

Thanks and Regards
Prashanth

 

[SavantGarde]

Hi Prashanth,

The Range Given Is Because I Do Not Track It Live... I Expect You To Be Sitting In Front The Terminal To Watch The Price Movement... & Take The Right Decision..... & Execute The Trades As Per Instructions Given Earlier.

Idea Is The Lower You Are Able To Cover Your Exisiting Short The Better It Will Be In Minimising The Loss... & Makes It That Much Easier To Turn It Around Into Profit...

Don't Panic At Any Kind Of Gap Up Price.... Just Watch The Price Movement Very Objectively.

All The Best, Hope Covering Of Short & Going Long Can Happen At Lowest Levels.....

Happy & Safer Trading

SavantGarde

Thanks savant,

As per my understanding of your post, please let me know if below points are correct.


This means i should set a buy trigger at 26.



This means if price goes below 25.65, then i should buy the existing lot and also buy a new lot . i should sell this new lot at any rise of 0.3 on the same day.



This means if the buy trigger is executed at 26, then i should wait till the price goes down to 25 levels again, and buy a future lot.


Please let me know if my above understandings are correct.

Thanks and Regards
Prashanth

 

[SavantGarde]

Basic Idea Being That Cover The Short With As Little Loss As Possible... & To Go Long With The Longer Trend Of The Market....
....Where You Can Cover The Loss Of The Short Position & perhaps A Bit Of Profit As Well.....
....If Everything Goes Well

Happy & Safer Trading

SavantGarde