Thoughts on Day/Swing Trading

[Smart_trade]

St sir.
that was something....but unfortunately could not grab all as i fail to understand the weighted nifty (@ 5035-45 ) gap with nifty 5085 which gave you confidence how...i lost yesterday heay and trapped.
i want to understand though i am learning but something happens.. and i loose confidence completely.
Regards

Hi ST,
The same scenario for me. I couldn't get what weighted average and how to apply this? Could you please help us on this? Is there any material that we want go through?

Thanks
Bala

Bikashkumar /Balasoft,

You get this average price on your trading terminal....in some front end softwares it is called Weighted Average, or Day's Average or Average Price it keeps changing throughout the day.....this is one very important figure for a daytrader to understand which side is strong and which side is trapped. This figure is summary of all trades happened till that time on that day because it takes volume and price traded of all transactions actually traded.......

Dont try to take positions when the average and current price difference is small 10-15 points....that gets reversed anytime and no one feels the heat....but when we have sudden reversal in the day and towards the end the gap is 35-40 points or more, this is sure shot trade based on psychology of maeket players......I normally book 50 % of my position in the end when there is visible panic and keep 50 % for gap open the next day ( I had kept some position for todays gap open )and this strategy gives me 30-35 points by EOD and another 20-25 points in the next day gap open.......

I have shared one of my best techniques...hope all will find it useful or atleast avoid getting trapped in the loosing side.......

Smart_trade

 

[traderBond007]

Hello Sir,

I have bought 8 lots of 4800 Put Option @ 32 and 4 lots of 5200 Call Option to hedge for any losses. Since, I'm new to options trading, it would be great help to me, if you can guide me the exit strategies in this particular trade of mine.

Also, I bought 2 lots of Renuka Sugars Option Call 60 @ 1.15, what should be the strategy for this.

Many Thanks.

 

[Smart_trade]

Hello Sir,

I have bought 8 lots of 4800 Put Option @ 32 and 4 lots of 5200 Call Option to hedge for any losses. Since, I'm new to options trading, it would be great help to me, if you can guide me the exit strategies in this particular trade of mine.

Also, I bought 2 lots of Renuka Sugars Option Call 60 @ 1.15, what should be the strategy for this.

Many Thanks.

You will make money if the market makes a large move and goes above 5200 or below 4800.....but both these contracts are out of money as on date.If the desired move does not come, then liquidate the position before 8-10 days before expiry date as in the last week the premiums will decay very fast.

Renuka Sugar also has to make the upmove quickly otherwise what is written above applies to that call too....

Good Luck and Best wishes for your position.

Smart_trade

 

[balasoft80]

Thank you so much for detailed explanation ST. But this has to be considered only to hold the position for the next day or for day trading too? Thanks

 

[Smart_trade]

Thank you so much for detailed explanation ST. But this has to be considered only to hold the position for the next day or for day trading too? Thanks

If you daytrade and do not want to carry over any position overnight, then book profits on all your positions.....as it gives you quick 35-40 points in last 1-1.5 hours. You can book 50 % and keep 50 % for next day's gap open where you will generally get 15-25 points more but then overnight risk is there .....the choice is yours.

ST

 

[msa5678]

Bikashkumar /Balasoft,

You get this average price on your trading ............

I have shared one of my best techniques...hope all will find it useful or atleast avoid getting trapped in the loosing side.......

Smart_trade

Hi ST,

Can we get Historical VWAP from somewhere.

Regards

 

[krishere]

Is it same as linear-weighted???? and what is the period?????

if its not linear-weighted.... I cant find any other weighted avg on xtb-trader, MT4 platform....

SQUEEZE THE LAST DROP OF THE JUICE ........GO FOR THE KILL

This is one trading technique which I use very regularly and I wanted to share the same with all. At 2:40 -45 I was long in Nifty Futures and the market was looking strong. I had to take a decision whether to book some profits there or wait till the end.

We play on simple technique that find out which is a side which is trapped and how much are they under water. At 2:45 the weighted average of Nifty future was showing 5035-40 whereas NF was quoting at 5085....a clear gap of 40-45 points. This means that the market is heavy at the bottom or lots of trades have happened below 5035 ......and the longs are comfortable but shorts are now feeling the heat. They will come for covering their short positions......also at 3:10 the brokerages will square off all loosing positions which are not covered by margins. So here instead of booking profits add on every dip ......the bears are dieing to cover their short positions.

After 3:10-3:15 there is panic in bear camp.......the die-hard bears come to cover after 3:20 and it is adding fuel to the fire. We just have to watch market going up like a rocket.....last 20 min give us a very quick move up.......and we get best price when the bears say " damn.....cover at any price...." and that is where we liquidate our long position built up anticipating this to happen.........it is a fun to trade this move.......

Smart_trade

 

[krishere]

Thankyou timepass.....

I think ST is talking about this..

ST, was the situation same for the longs today ? Weighted avg was about 5103 when the CMP was around 5070 near the end.

.

 

[Smart_trade]

Hi ST,

Can we get Historical VWAP from somewhere.

Regards

No we dont get this data from anywhere.

ST

 

[Smart_trade]

Is it same as linear-weighted???? and what is the period?????

if its not linear-weighted.... I cant find any other weighted avg on xtb-trader, MT4 platform....

Timepass has posted the screen shot. This is an average of all trades traded since morning.....it continuously changes. I guess it is volume weighted average price......dont know how it is calculated....only know how it is used in trading.

ST