Trading as a business

[suktam]

Arcus,sorry to disagree with you,regarding calender spread.I am a professional Portfolio Manager and have been using it since last eight years with one hundred percent success .But one should know how to exit each month position.You should have seperate levels for different months.Only calender spread strategy has been saving me from all types of unexpected market variations.Ofcourse,I deal only in stock specific futures and NEVER in Nifty.

hi...i am agree with u but i am always trade in nifty and bank nifty...

 

[v'nod47]

Hi, toingpoing,
All your points must be followed by trader to win trade. Btw, r. u. trading in f&o or in cash segment? Would you give me some hedging example. IF u. r. a f&o player, do u. use delta hedging and gamma hedging? Best compliments for your business.

okay,
v'nod47

 

[toingpoing]

Hi, toingpoing,
All your points must be followed by trader to win trade. Btw, r. u. trading in f&o or in cash segment? Would you give me some hedging example. IF u. r. a f&o player, do u. use delta hedging and gamma hedging? Best compliments for your business.

okay,
v'nod47

Thanks a lot for your compliments and wishes.Many will not appreciate the style of my trading.I never trade in Cash segment and in derivatives I stay away from Nifty as well as bank nifty! I deal in five stock specific futures at any given time distributed in different sectors.For hedging I follow calender spread.:thumb:

 

[toingpoing]

hi...i am agree with u but i am always trade in nifty and bank nifty...

Suktam,as long as you are comfortable,you can trade in anything.Personally,I never trade Nifty as well as Bank nifty.I also stay away from high beta stocks.

 

[toingpoing]

I looked at Ranbaxy's chart the day before it went to the dogs... I only do intraday in stocks (because I do not understand derivatives) so didint carry any shorts but I did make a killing on Friday and a decent trade today as well. Ranbaxy looked like a ripe apple ready to fall off the tree on Thursday.

Congratulations for your trade in Ranbaxy. When you are trading in Cash market,that too intraday,you have to be very careful.:thumb:

 

[toingpoing]

Is that 8% per month of your trading capital? I unfortunately do not have any experience to speak of but ever since I stopped loosing I have been doing more then 3% every single day with an odd 15%+ I did on Friday but there has not been a day with less then 3% gains.

I am not here to boast but to get a word from seniors here to see if expecting this on a consistent basis would be foolish of me or am I doing something right here and can see myself repeating this performance day after day?

I must add that I only started making profits since last Monday and its only been 6 trading sessions that I am talking about. I have noticed that only about 70% of my trades end up in gains and rest 30% run into losses. Is this out of sheer luck or is this what everyone else gets as well?

I am not trying to hijack your thread... Just need your word on this as I believe you are a very realistic trader and I could use your advise. Please be as blunt as you can be, I would appreciate it. I am trying to a reality check.

The return you are generating is really very good and congrats to you.Once you have tested a particular system of trading and start making profits consistently,stick to it.But my only suggestion is , not go for trading limits,over leveraging the capital.Keep very cool when you make profit,I mean don't get excited and risk too much.Take out the profits and let only the original capital remain invested.In my case,in each trade I know very well that I could have made better profits but I make quick exit when my target is achieved.Exit is more difficult than entry and requires lot of psychological self control!!:thumb:

 

[Brill]

Sir, need more info on Hedging? how to select the options and from where profit will come? if we are taking both put and call of one stock?
Thanks

 

[toingpoing]

Sir, need more info on Hedging? how to select the options and from where profit will come? if we are taking both put and call of one stock?
Thanks

Brill,its majority of option writers ,who actually make profit,since time decay is on your side.You can write four months far Nifty options at very good premium.Strike price near to current Nifty .You can also hedge if feeling uncomfortable with the risk.:thumb: