Important Posts by Smart Trade_ Part1

[Gaur_Krishna]

Originally Posted by anup View Post
If the IV is so low then options are cheap why not buy instead of sell??

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Yes you are right but everyone is thinking on those lines so market will not move much from this level unless the market frustrates options buyers and that will give me ATM options decay . That is why I have taken this trade.

ST

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I get 20-25 points decay by next week, I will close all positions. If market remains steady and I get 6600 call and 6000 put for combined premium of 40.41 points, then I will have 115 points as a max risk in this trade and 185-187 as max reward.In that case I may run the trade for some more time or till the expiry so that ATM options decay I can pocket. So the choice depends on Reward/Risk and also as I may keep it till the end of the month in which case the Jan nifty premium also will reduce to zero.All this without any adjustment.

ST

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I am booking profits in my Dec options and initiating Jan series options....when no movement in futures, sell options....

Did following trade for Jan Nifty options:

Sold 6300 call Jan at 137.5 ,sold 6300 put at 91.4 giving total premium of 228.9....will be adjusting the trade as per how nifty moves.I am looking at buying 6000 put and 6600 call but if no movement, will defer buying till next week.

ST

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[Gaur_Krishna]

Originally Posted by TradeJoker View Post
ST sir ek Institute kholo, we have enough instructors here TP TR etc.

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Where are students ? Yahan to sab gyani hain...

ST

 

[Gaur_Krishna]

Originally Posted by DanPickUp View Post
@ST

First of all: Happy Christmas to you and to your family.

Second: Promise that we can talk with you again in three months about the above comments and then you will tell how fare you have come with your resolutions. I guess that this post then even will give encouragement to the last one to start doing some thing the way you plan. At the moment they see your success in it, that surely will be a motivation.

Take care and only the best to you / DanPickUp

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Thanks Dan, Happy Christmas to you and your family too...

I have already started on the lines on which I am thinking...want to give more time for my hobbies, health, meditation...let us see how far I succeed in the new year.

Take care and Best Wishes,

Smart_trade

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Originally Posted by TraderRavi View Post
ST how many years you have done daytrading ? its a stressful job no doubt.

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About 15 yrs...I still dont feel the stress and enjoy it...but now can take a little easy ...

ST

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Originally Posted by TraderRavi View Post
reduce trading means wat exactly you plan to do ?

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Reduce the number of positions, futures, options, position size, reduce hectic trading and move on to higher timeframe swing trading. Day trading only on some strong days and for fun...

Smart_trade

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End of the calender year and time for new year resolutions.....
My new year resolution is reduce trading and spend more time on health and take some well deserved rest.

Smart_trade

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[Gaur_Krishna]

Originally Posted by AFORASTRO View Post
i think for day trading ATM CALL or PUT trading will give same result as future but with less capital.

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No ,ATM call/put will have a delta of 0.5 where as Futures have a delta of 1...so a 5 points move in futures will give 2.5 points in ATM options. So you have to go for double quantity ...so double margin...

Smart_trade

 

[Gaur_Krishna]

Selling options to be used if you are going to profit from the time decay and/or change in volatility. TP is doing a quick scalp of 1-1.5 points, so why sell options ? So if he feels market is bullish, instead of selling puts, buy in the money calls..it will give him the same movement plus his risk is never unlimited and money needed for buying the calls will be less than selling puts.Just my thoughts....

ST

 

[Gaur_Krishna]

Originally Posted by TraderRavi View Post
worst losing month of the year after april

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Think positively...you will have some loosing months in your trading career so with this gone, one less to face means more winning months...

ST

 

[Gaur_Krishna]

Originally Posted by XUV-500 View Post
Dear Da
Highly appreciate if u can share inputs.
Like which scrips ? index or stock ?
ITM/ATM/OTM?
Long or Write ?
Purely intraday or u tend to make them (Spreads/ Covered) at closing if u tend to catch a good move during a session which is expected to be continue next day. What was ur risk and rewards in POINTS ? Please share to remove Options syndrome

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I traded Nifty options that time. In the money options because they move fast . Always bought options( long) .Purely intraday...no spread,butterfly etc...plain vanilla call/put buying. I was getting RR of 1.5 to 3...no overnight positions.

Smart_trade

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The reason for success according to me was I used to select places where I will take options trade. Never used to buy and hang around the whole day expecting a move. Used to trade at a place when the trend is likely to accelerate.So 2-3 places during the day maximum but aggressively at those places....

Smart_trade

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It is a wrong notion that options are responsible for losses. Options are to be traded differently.Options trading can be very profitable.The first Zerodha challenge which I won I traded only options in that account and only daytrading.

Smart_trade

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[Gaur_Krishna]

I have been fortunate to have worked with some brilliant and successful trades and also with many failure traders. Failure traders fail not because of lack of intelligence, hard work, discipline.....etc even they have all these...they also have strong will to succeed . Then why do they fail ??

I find that if I have to list down 2-3 important points which separate successful traders from the traders who could not succeed, I will list them as :

1) Successful traders have inherent sense of Reward/risk so they wait patiently for a trading set up which gives them a good R/R trade. There is no point taking a trade with 10 points risk unless the set up is such that you are reasonably sure of making 15,20 or 30 points profits...if you feel that the trade does not have that potential, they pass the trade...

2) All successful traders have what is called " controlled aggression" Some traders are aggressive everyday in all situations and some are controlled ( meaning scared) in all situations. But successful ones become very aggressive when they see opportunity...else they are controlled.

3) All successful traders can sense when the trade is not going as per the plan and they get out not waiting for stops to hit. They are always in control of the trade and not the other way round.

Thought of listing them down as we are going to start a new year soon so that it can help some new traders to cut on learning path.

Smart_trade

 

[Gaur_Krishna]

Originally Posted by TradeJoker View Post
we will make 2014 profitable

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How ? Have you drawn any definite plans ? Else 2014 will be similar to 2013 and 2012...and so on...and in 2014 Dec we will say we will be profitable in 2015.

Not discouraging at all but one needs to work on it with definite plan...

Smart_trade

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Put down your trading plan on paper. List down what inputs are required...do you have them ?...if no how do you plan to get them....have a target which is difficult to achieve but not too difficult and not achievable.....method, timeframe, capital, mm,discipline, trade setups....all to be in full harmony ..

Smart_trade

 

[Gaur_Krishna]

Originally Posted by sudoku1 View Post
ST..pls let us kno if d word CHALU is widin d posting rites :-D

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Depends on which context it is used...otherwise it is a harmless word.

ST