need advice in trading in F&O

[Agilent]

dear sac d...please dont take any offence...but since ur knowledge is so limited, do not try trading fno with ur capital. u might as well put it in an fd or if u want to gamble, "invest" in playlotto. first learn about the mechanics, and what moves options. else in all probabilities, u may lose all ur 10000 and never come back to options again, thinking its too risky. u wont be able to take advantage of this unique instrument again.

I agree with most of this.

Sac, I'm not sure how much 'cash' trading or investing you have done, but pl dont venture into FnO unless u have been a successful cash trader

Its v easy to lose your entire capital in FnO unless u are an expert in identifying stock trends amd exploiting them

If you havnt done any 'cash' trading so far, do some mock trades (i.e. on paper) and get comfortable for a few weeks at least before putting your own money.

Good luck

AGILENT

 

[sac_d]

Dear Agilent,
I have done Cash trading but was not sucessful but my investment in MF are standing good at this point. Now I have the liquidity of 10K which i want to use to recover my losses in equity.
Well i heared that one can earn high returns in FNO with min. investment and that had brought me here.I am aware it is very risky and thats why i want the help from you all guys.
regards,
Sachin

 

[Agilent]

Dear Agilent,
I have done Cash trading but was not sucessful but my investment in MF are standing good at this point. Now I have the liquidity of 10K which i want to use to recover my losses in equity.
Well i heared that one can earn high returns in FNO with min. investment and that had brought me here.I am aware it is very risky and thats why i want the help from you all guys.
regards,
Sachin

Sachin

There you go !

Listen friend .. if u have been unsuccessful in cash trading ( and I presume you may have done over a dozen trades ... just a guess), how can u even think of FnO ?

FnO is, in a way, like PhD. You have to pass Bsc and Msc before u can do PhD.
(And believe me, this PhD is not as easy as most others !)

Makes sense?

AGILENT

 

[kkseal]

Well said Agilent.

To Sachin i would say first bolster your knowledge about the trading methodologies before venturing into ANY kind of trading - Cash or F&O. You'll find some wonderful material in this forum itself.

And jumping into F&O directly would be like attempting to cook biriyani without knowing how to make an omlette!

Cheers,
Kalyan.

 

[beginner_av]

dear sac,

u are at the right place with the wrong mindset. sorry pal, never take revenge on the market to get ur losses back quickly...u will be butchered. u may not value free advice, but here's some. take a notebook and write what all trades u made...why did u enter them, why did u exit them...and then go to this forum and look at great threads by CreditViolet, traderji, Ajay, agilent and others. u will learn a lot.

 

[beginner_av]

if u r really interested in options go to www.888options.com and see if that kind of material excites u...not the trades and profits that u can make...but the things that are written...do u want to more about them? do u want to digest them? delve deeper? u still want to trade options? u'll know the answer urself. dont try to build a castle in 5 days, u can build only in air...mkt is a long term thing...like a business/profession...build a solid house...brick by brick, rupee by rupee...it may not be built before 5 to 10 yrs...but it will be solid. i am not a great trader/ champion or anything....but these r not mere "gyans" and lectures. these r things that everybody including me have learnt the hard way, with experience

 

[CreditViolet]

Dear Beginer
I know it is not simple and that is why i have asked for the advice.What is play lotto? I dont know anything about that. I havent invested anything in FNO as I am still learning the basics.
thanks for ur advice once again.
regards,
Sachin

http://www.myplaywin.com/


CV

 

[milind857]

Dear All,
I am a small investor. I have Rs 10000 for trading.
Is this amount sufficient for trading in F&O.
Can you plz guide me with some example. I have ICICI account.

thanks,
sachin

"If you want to fly an aeroplane first learn it"
So invest 5000 to 6000 Rs. in learning technical analysis so u can use rest of the money in investing. So your risk will be calculated.
All the very best.

Milind

 

[jimmy_valantine]

hi,
u need atleast 30k to trade on the futures. Options u can enter but it is risky if u dont understand it properly . So buy some good book on options .
there is a book on trading derivatives from ashwini gujral the guy who makes those predictions in cnbc. Or just google it there are plenty of free tutorials available onle

 

[tanewbie]

Dear All,
I am a small investor. I have Rs 10000 for trading.
Is this amount sufficient for trading in F&O.
Can you plz guide me with some example. I have ICICI account.

thanks,
sachin

Hi Sachin

10000 is small amount so futures is out of question. Only options that too no shorting. What i wud advise is that u learn basic TA. that means:
Price charts (bar charts enuf)+RSI+macd.
The next step will be to learn what is negative and positive divergences between PRice on one hand and RSI and MACD on the other.
This should take you a few days to learn the theory assuming you spend couple of hours a day.

Now yo u should check the past data for such divergences and walk through it as if its happening now. your capital may be limited but your resolve should be unlimited. this will overcome all other limitations. Of course you cant make a crore out 10k in one trade but with your resolve and determination you wud hv learnt atleast one trade setup.

once you grasped the divergences part look for such setups and do paper trading. these days there are plenty of negative divergences. All such deivergences do not lead to crash. once you have done a few paper trades you wud hv got a feel of the setup.

next is to wait for a euphoric situation. This is the most important.
Euphoria is there when maximum participants are bullish . The higher this number the greater the euphoria.
At this point your divergences willl come to play with a great force where a simple put option can give 100 to 300% returns.


Panic is but a step away from euphoria in a market that has run amok. History has demonstrated time and again that manic speculation produces violent reactions.

Now see ou r markets . Though indices are at a lifetime high, it has not run amok. Nor are all the participants fully bullish. In fact there is more fear of correction than a big rally in our Dalal street!

Since you have limited capital. Keep watching the market. Buy puts only in case of extreme euphoric state. the time for euphoria is still few months away and start preparing for it with adequate knowledge of options, divergences and wait patiently to strike at the right time!
All the very best to you