General Trading Chat

[Smart_trade]

ST bro,

Consider the scenario, a trend goes in down direction since morning, was strong but now loses momentum and starts to go in channel, still making LL and LH but the distance between consecutive LL and LH are getting reduced on each new LL/LH created, now in channel we cannot treat it as a strong trend hence we can trail profits only on visible pivots and not on every candle or so else we will be taken out prematurely. Now, the channel also loses strength but still price has not taken out a PH/PL, but we can see that the recent pivots are rejecting prices, so in this case should I treat it as sideways and trade sideways system, or I have to wait for trend break out only as per your view.

Sorry if I am vague, I got confused on checking a price chart

eg: 12th May TataSteel chart after 1:30PM. Not able to paste the whole 5 min chart as single image, hence mentioned the date.

When you get time kindly suggest ST bro.

From your description it appears that the downtrend is exhausting itself and it has played out its length..in that case I will look to take profits in every reducing down candle. Wont consider it sideways...the downtrend may exhaust soon and the trend may reverse in V shape reversal or the market may go sideways forming a base before the uptrend starts...in both cases taking profits on short position in every dip is a wise play.

Smart_trade

 

[Smart_trade]

Most books on options are written from the point of view of option sellers. Talking about volatility,option greeks,payoff diagrams etc...

"Options Advisor" by Bernie Shaeffers is written entirely from the point of view of options buyers.....it talks about how to judge when the underlying is going to have accelerated price move...it is based on charts. Good read for option buyers.

Smart_trade

 

[XRAY27]

Two sideways trades, today bro for me. Both are profitable and nicely managed.

Hmm !!! not found any good set up in NF after a 6 pt loss trade
Nice to see that you got profit bro:clapping::clapping:

 

[Serious_Trader]

Central banks playing with fire: RBI’s Raghuram Rajan

http://www.livemint.com/Politics/bK...cies-risking-global-gro.html#nav=editor_picks

 

[XRAY27]

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[arsh22g]

I've been paper trading option selling for the past 2 series. selling equal qty CE and PE, same nifty strike, nearby spot value and adjusting position every 100 points.

Its not that difficult to make about 100 points. Buying works only when MKT is in a strong trend and gives spectacular returns. Selling still makes money in such Trends, albeit at a very lesser pace. but over a long time curve, the Risk reward of Option writing makes it very very tempting.Only thing needed is a large/er A/c size to see respectable money ..

For current May series, Id opened a paper trade @ 310 premium of 8250 strike.
Made about 120 points till today on it, with 8400 pair open @ 160.

last series too, was able to make about 100 points after opening a pair @ 240and taking a 30 point hit ...

Planning to go live from June series .. :thumb:

Looks like you are playing ATM straddles. Just curious, have you tried delta neutral OTM strangles?
I find OTM strangles less risky (and, of course with less reward). It's because if market moves in one direction, one of the legs becomes ATM/ITM and its delta increases. The other leg becomes more OTM and delta decreases. Eventually, the rate of change of option prices differs so much that overall position becomes profitable. But this needs to be managed carefully as well (usually get out after 3-4 trading sessions max) to avoid huge time decay.

 

[ra.shah]

NSE and MCX are opposed to the idea, naturally. But why BSE is in favour? Any thoughts?

Yes, because BSE had recently proposed a minimum/fixed brokerage rate slab to SEBI to take out discount brokers. If you recently asked support from your superior you cannot not support their new idea..however stupid it may sound.

 

[jagankris]

Yes, because BSE had recently proposed a minimum/fixed brokerage rate slab to SEBI to take out discount brokers. If you recently asked support from your superior you cannot not support their new idea..however stupid it may sound.

Why BSE should interfere in the brokerages charged by brokerage houses ?

 

[newuser_RK]

Why BSE should interfere in the brokerages charged by brokerage houses ?

Intence lobbying by its members who are full service big brokers....

Do you guys think sebi will fall for this ?

 

[LivetoTrade]

India sets up panel under ex-judge to review minimum tax claims

AP Shah Panel To Examine Levy Of MAT FIIs Prior To April 1, 2015.

Apart from Justice AP Shah, Dr Girish Ahuja,Ashok Lahiri To Be Part Of Panel.