General Trading Chat

[anuragmunjal]

What different between one who trading with large capital and one trading for point... Underlay is same which is %... multiplier....

Just for clarification....

hi Kainiteh,

ST here is speaking of speculation/trading in futures. while trading futures, one gets leverage. now take the example of commodities, exchange defined margin is around 5% normally. this implies one can put a position 20 times of one's capital. now on a margin of 20 lacks, one can put up a position of 4 crores. now you increase the margin to 1 crore, you have a position of 20 crores. after a point it becomes psychologically very difficult to keep on scaling up... this is a very practiclal aspect which many successful traders face after a point . hence the 'diversification' which ST has spoken of into other asset classes or 'lower risk' ways of trading. hope this clarifies your query.

regards

 

[lemondew]

I have a problem with the image. I have high regards for the poster .

1. The fall from high is not consistent. Range from -14% to 41.5%.

a)So if am going to profit after it falls 41% and I wait for 41% it never happens on any of the times except october 2008.
b) If I assume a take off everytime it goes to 14%. I ll fail on all occasions other than the last 2.

2. Does it take into account all major falls? If these are the only major falls we have had a fall every year from 2001 to 2006. and 2008 we have had 2 falls in one year. Now its been a fall in 2 years post 2008.

Source :Internet

 

[lemondew]

VWAP:- Price which gives more weightage when volume is high. Less weightage when volume is low. So prices when more stock changes hands is important as per this.

Some person here said if the prices are much higher than vwap levels in nifty at around later than 2:30. Then the sellers at high volume places will be at pressure to close around EOD and they will buy back at higher levels moving price higher. Does this happen most of time?

Again cant this be further simplified. It can be said if nifty is higher than levels where volumes is highest then sellers will again square off at EOD and nifty will go much higher. Rather than vwap. Cant volume bars indicate that???

 

[jagankris]

VWAP:- Price which gives more weightage when volume is high. Less weightage when volume is low. So prices when more stock changes hands is important as per this.

VWAP - Volume weighted average price or ATP.
There is no less weightage or more weightage depending whether volume is less or more.


Some person here said if the prices are much higher than vwap levels in nifty at around later than 2:30. Then the sellers at high volume places will be at pressure to close around EOD and they will buy back at higher levels moving price higher.


It is not some person it is ST DA.
Prices tend to reverse to mean(VWAP) in sideways and in strong trending markets move in the direction of the trend.
Bellow VWAP sellers are in control and above VWAP buyers are in control.
When price difference between VWAP and price is above certain points the markets are likely to strongly trend in the same direction.
And doesn't mean that markets cannot/should not reverse back sharply.


Again cant this be further simplified.
These are time tested market behaviors and observed with experience.
This is not a standalone system.One can simplify according to his own
rules.


Does this happen most of time?
Observe the charts and have the statistics for yourself and decide.


It can be said if nifty is higher than levels where volumes is highest then sellers will again square off at EOD and nifty will go much higher. Rather than vwap. Cant volume bars indicate that???

If the above said by you is working well for you/simple - pls go ahead.

Find the answers above.

 

[talyan]

His cost of capital is 9-12 % pa. and he tries to make 15-17 pa % on his capital...but on 25-30 Cr...that is huge.

He told me once that he does not do something extraordinary in trading but he trades simple things with extraordinary efficiency...meaning all his depositors are paid on exact date....not even 1 day late.Simple set up he trades.

Smart_trade

Those people are very kind hearted who are giving money to him for trading at 9-12%.Otherwise they can earn this interest in compounded FD investment.That money may no 2 money that may be the reason they are giving him to trade.Otherwise 25 to 35 cr itself can give handsome return on FD.If I have such a big amount,I will travel whole world enjoy and make health....

 

[lemondew]

Thanks for the answers. I ll wait for STs reply as well.
I just randomly read posts here and there and put out for discussion anything that interests me. . Theres no intention of backtesting it. Theres so many things out here and so many coming in everyday I doubt if someone can trade or backtest everything said.

Find the answers above.

 

[kaalchakrasamay]

This rise and rise and rise by 200 points of crude may puncture nifty on monday.

Yes very likely

 

[kaalchakrasamay]

My anticipation is, that if nifty fut falls below 7900 then may touch around recent low

Posting from Madurai

 

[XRAY27]

Thanks for the answers. I ll wait for STs reply as well.
I just randomly read posts here and there and put out for discussion anything that interests me. . Theres no intention of backtesting it. Theres so many things out here and so many coming in everyday I doubt if someone can trade or backtest everything said.

Lemondew bhai!!!

I have seen many system/s or structure in the forum...

ST da..

VWAP and Stochastics..both are based on his observation...so over the time does they work ?? it depends on market dynamics

Pratap sir,

VWAP along with SD and EMA's... in his words

I have said many times this is a framework ... not a trading system. You can combine this with whatever you are trading incorporating the bias given by this to adjust qty etc.

vwap day gives buy, sell, neutral bias zones
vwap2day gives strong positional trend zones

The timframe ema bands gives another EMA view of the trend with multiple TF bands seen on single chart

Using this framework you can create your own system, check for success rate, etc and execute. There is no single way that is right or wrong[

Even you talk Saint sir:

Note: These rules have been framed to help a beginner identify pivots. They do not cover all scenarios and there are exceptions. While marking pivots, ask yourself “Has price turned substantially?”

What all these post/s mean ??

we have to use it in your trading system the very logic if you like it and working on charts...so testing is must...for each structure or method...main focus should be on "TWEAKING FOR YOUR NEEDS"

coming to my case : i don't use any of the methods..as it is...used pratap EMA bands for profit booking..left it after finding another way ,which is better then that...
ST da !!! one bar entry works well in case of stong trend move.. and still i follow

i define pivot in my own way.. not as Saint sir say...why in his words “Has price turned substantially?”..we have redefine that..

Adding the logic behind a setup is more important then following it in blind way..btw my system is same 30/5/1

 

[Smart_trade]

Those people are very kind hearted who are giving money to him for trading at 9-12%.Otherwise they can earn this interest in compounded FD investment.That money may no 2 money that may be the reason they are giving him to trade.Otherwise 25 to 35 cr itself can give handsome return on FD.If I have such a big amount,I will travel whole world enjoy and make health....

Days of 12 % pa on FD are over my dear....these days the rate is 7.5 to 8.5 in good and safe Nationalosed banks. Nothing of being kind hearted..These people are retail guys making deposit of 10000-15000 and when you have 5000 such depositors you have big money which you can deploy at higher returns in arbitrage...which is not available to 10,000 guys...and how he takes so much of deposits etc the person making 1.25 Cr has worked out everything...

These are all financial decisions....no kind hearted stuff...when interest rates were 16-18 % he used to pay 20-22 %. No No 2 money...all cheque transactions and depositors dont give him money to trade...they give deposits and he does arbitrage where the risk is zero as there is no directional trading.With 40 Cr one cannot deal in No 2 money as Income Tax will be breathing down his neck.

The bold portion is the difference between us and him...he is doing that as business...we are thinking of travelling the world and using up depositors money.....he says he is trustee of depositors money and he can spend only profit made not the deposits.And but he is a very lavish spender.But most TJ members will find it difficult to believe that such large traders are there in the markets.

Smart_trade