UNITED STATES OF BANKNIFTY

Top_Massage

Well-Known Member
How to predict that sir? Is there any way or source to find that. And what is your views on that will it go up or down according to you??
That's the catch .... not to speculate at all .... Market will surely give you a strong signal once it starts moving in either direction with full tsunami like wave or force. As responsible traders, we can only focus on crucial support and resistance levels ....

You can go through my previous posts of last couple of months or so whenever you have free time (maybe during weekend) ... You will get an idea ...

Disclaimer: This forum is meant for educational purposes only.
 
I burnt my hands literally i feel like dying..i lost 14Lakh rupees in trading..i dont knw what to do. I accept my mistakes i was greedy. I dont knw fully about trading even though i experimented. Now i have 6L left in my trading account. These 20L are my saving i saved so far. These are my Hard earnings since 8 years.i am from middle class family to buy home in bangalore i choose this trading. Please help me with your suggestions sir
 

Top_Massage

Well-Known Member
I burnt my hands literally i feel like dying..i lost 14Lakh rupees in trading..i dont knw what to do. I accept my mistakes i was greedy. I dont knw fully about trading even though i experimented. Now i have 6L left in my trading account. These 20L are my saving i saved so far. These are my Hard earnings since 8 years.i am from middle class family to buy home in bangalore i choose this trading. Please help me with your suggestions sir
I can only share few points regarding my own risk and money management which I follow personally while trading daily. May be they will help you to some extent:-

-- I use only 10% of my entire capital at a time and in a single trade.

-- Usually, I focus on, track and trade in Banknifty only. It's always easier when a trader focuses on one single index or instrument. It reduces unwanted burden of calculations, tracking multiple instruments and reduces noise.

-- As a trader, we should know that Banknifty is by far the most explosive, destructive, wild and most volatile index in the world. On some days, it can reach target within seconds and on some days, it can blow away stoploss within seconds. That's how wild it can be.

-- It's not just about using only 10% of capital but it's also about taking less trades. As a trader, I have learned that over-trading is more dangerous than holding on to single loss making trade. So never over-trade. Since I hardly use 10% of my capital, I do not even care if in case it goes wrong. I simply tend to wait longer and longer for another suitable opportunity.

-- Weekly options are complex in nature. One should know how to deal with daily premium erosion, premium fluctuations, adjustments, timing of buying a trade, etc etc.

-- Setting ideal stoploss and the art of booking profits at right time is something which cannot be taught. It is something which a trader learns while trading daily. It has taken me quite a few years of observation and study (I started at the age of 24 after my MBA days) to reach till here. My daily life involves continuous tracking, waiting for long hours for an appropriate opportunity and on many days (like today), I don't even get an ideal chance to take a trade. Trading is my sole occupation. I take it religiously. It's like my religion. It's my bread and butter.

Hope you recover all your lost capital soon. Follow strict rules. Make your own sound risk and money management. Deploy only small part of your capital at one time and don't take multiple trades all at once.

May god laxmi help you. Thanks

Disclaimer: This forum is meant for educational purposes only.
 
This 6L capital includes

2.75L free cash
Equities:
Holding Graphite india- 300 share @ 705 price. Current value is 370
Holding HEG- 40 share @ 2820 price. Current value is 1656
Options:
NIFTY 16thMay 1200 CE entered @ 7.02 -23025 shares
TECHM may 900CE entered @ 6.46- 36000 shares.
 

Top_Massage

Well-Known Member
OK guys .... so today turned out to be a bit of a NO SHOW. Since, premiums were exorbitantly on higher side, they kept on melting throughout the day.

VIX kept on correcting and by 2 PM, it became obvious that it was indeed going to end around 28900 only.

Now, premiums have inflated even more. If you look at next weekly expiry options, the premiums look unimaginable. Election results day is approaching. Things are going to be complex and tricky. A lot of traders are going to find it very difficult to deal with such higher level of premiums.

Needless to say, 28900 level is still the key for next weekly expiry.

Staying above it, we go up. Staying below it, we slip further. Let's see what's in store for next weekly expiry. Thanks ... god bless

Disclaimer: This forum is meant for educational purposes only.
 

Top_Massage

Well-Known Member
Alright folks ... we are now standing at a crucial stage i.e. 28900 .... staying above it for long enough, we go up .... staying below it for long enough, we go down ....

But then again, premiums are abnormally high .... I am not sure if the movement in premiums would be appropriately aligned with the movement in spot level. Hence, be very careful while taking a trade. Good luck ...

Disclaimer: This forum is meant for educational purposes only.
 

Top_Massage

Well-Known Member
OK guys ... I waited for long enough and it was quite worth the wait. The Banknifty index kept on roaming around 28900 for many days but yesterday's last hour did the trick for bears.

I managed to make some money with PUTS once the trend was confirmed during last hour yesterday. That is why trading in second half is perhaps the best thing for option buyers these days.

-- Anyway, moving forward ... it all depends upon whether bulls can save 28500 or not.

-- On breaching and staying below 28500 for long enough, we go down ...

-- On staying above 28500 for long enough, we can climb once again ...

-- One will have to be really patient these days (at least till election results day) ... do not over-trade ... wait till the very end ... confirm the trend thoroughly before taking a trade. Be aware of excessive premiums ...

Choose very very wisely ... good luck to all ... hope you make good money


Disclaimer: This forum is meant for educational purposes only.
 

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