overnight positions or no overnight positions, that's the question.

[onlinegtrash]

I was looking through my past trades and found my occasional overnight FNO positions have always landed me in trouble next day.

But I don't have lot of overnight exposures like positional traders to come to a conclusion.
Now a days Nifty has increasingly more volatile jumping 100 points up and 100 points down back to back.

So am not sure should I completely ditch overnight exposures or have a small amount so that I can get big trends without getting in and out multiple times (and leak lot of points).

How do you guys handle 'overnight exposures'

 

[columbus]

I was looking through my past trades and found my occasional overnight FNO positions have always landed me in trouble next day.

But I don't have lot of overnight exposures like positional traders to come to a conclusion.
Now a days Nifty has increasingly more volatile jumping 100 points up and 100 points down back to back.

So am not sure should I completely ditch overnight exposures or have a small amount so that I can get big trends without getting in and out multiple times (and leak lot of points).

How do you guys handle 'overnight exposures'

The best way to handle 'overnight exposures' is to have no overnight
exposure.Even though CARRY FORWARD trades often gives the BEST results
but it is not TRUE indicator.More over, just an example, 60% such trades
results in WINS and 40% results in LOSSES and Money LOST in such
trades is 60% versus money gained in them 40%. That is why ,some
fascination for such CF trades.

There are some exceptions.For example ,Market has lost 8~9 sessions ,in
a row.There is nothing wrong by taking a LONG call ,in small lots.

 

[anuragmunjal]

depends largely upon your trading style.. the way I trade, I carry all positions overnight..
over a period of time, most things even out. if there is a risk of gap against my position, there is also the chance of gap in favor of my position.as a matter of fact, I may have a slight edge here since generally my position is aligned towards the trend.
of course MM is essential and one has to work out the 'worst case scenario'..
take a case where your qty is so insignificant that gap up/down does not effect you. if in such a case, it seems natural to you/ you believe the 'right way' is to take the position overnight, then you should take even larger positions overnight, otherwise not.

regards

 

[DSM]

Online,

If you are not trying to catch the bottom or the top, (where there will be more volatility and negative drawdown) it means you are trading or carrying position in the direction of the trend. So even if there is a drawdown, it will be only from the profits you have accumulated, but with a expectancy that the trade will work out, as your trade is with the trend. In such cases, it makes sense to hold overnight positions, and it will always pay off in the long run, even if a trade or two goes against (but you will note it to revert in your direction) of/your position.

I was looking through my past trades and found my occasional overnight FNO positions have always landed me in trouble next day.

But I don't have lot of overnight exposures like positional traders to come to a conclusion.
Now a days Nifty has increasingly more volatile jumping 100 points up and 100 points down back to back.

So am not sure should I completely ditch overnight exposures or have a small amount so that I can get big trends without getting in and out multiple times (and leak lot of points).

How do you guys handle 'overnight exposures'

 

[onlinegtrash]

Thanks guys for the thoughts...

In future am planning to have a small overnight trades portfolio.
This otp will be minimum and overnight positions will be held if the trade is leading with profits.
Previously I would have huge positions violating MM and feel awful when all my profits vanish next day or still worse profits have turned into loss.

and the rest of capital will be mostly intraday futures and occasionally options (esp. neary expiry to capture big R trades).