General Trading Chat

St da,

First real lost swing trade. Didnt we close below support day before yesterday. Luckily I booked 50% at 8570 and the rest 50 % hit the SL

Does it often come back into range after breaking it like today. I hope this doesnt happen often. Will be taken to the cleaners if this keeps happening.

That only shows that the down move was corrective and the uptrend resumed after the correction.Once we went above yesterday's high, the negative bias is over.

Market can do anything.That is the reason why a trader has to play a great defence to protect his capital.If the level in the sand was broken and thereafter the market goes above it, it is a warning sign and that is where my early exit strategy protects me.If the trade is not working out as planned, a trader must get out and wait for more clarity.

Smart_trade

Once we opened above yesterdays high it was clear we are not going down. But I am skeptical of direction up as well. We cleared 8650 august futures last month I was long then. It took time till 8730 before we kept breaking lows . We are not even getting 100 points on break of range either sides. But we keep getting breakouts as well .

The correction was much larger this time But upmove wasnt much after last high

Market is running ahead of fundamentals but it always discounts the fundamentals 3-4 quarters earlier.The fundamentals do not warrant a steep rise atleast for next 1-2 quarters till the corporate earnings catches up,but the liquidity flowing in the market will not let it fall much.

I was reading Morgan Stanley report and they have found out that corporate performance has started looking up.So it is just a matter of time before we make a all time new high.

These are my views only, though I am no expert in economics.

Smart_trade

Yes I get that I only hope some offensive takes care of all the expenses involved in defensive tactics. And looks like these scenarios keep on playing again and again. The taxes are a great pain as well. Just thinking ways to keep capital intact when it moves this way.


One defence I ve opted is I been doing hedged options like ratio spreads instead of naked futures that reduces damage .. That will cap the profits as well..

Where was your stoploss level for swing short trade ?From your entry into short till reversal above yesterday's high is not much and the reversal to long trade today is giving much more than what was lost in stop-loss .Your trailing stoploss should have been above yesterday's high.If you used 2 bars high,then you should have got out from short position yesterday only and gone long today.

ST

To avoid gap risk around entry, ST closes position EOD if close is too near. Then look for rentry next day. Yesterday close was at/above your entry, dont hold.
Btw, tradingview is very good. Was surprised by it. investing.com also uses its framework + gives live data ( atleast for crude) instead of 10 min delay.

ST,

SL was above 8640. I gained confidence on that level when it fell from 8630 on 4 th and above 8640 I ve given it enough time to go down if it has to. I booked half when it was slowing at 8570 not able to break mornings low 8550 ( after I didnt do it last time. I lost some valuable points) otherwise too I wod ve closed 1 position at close . But I just thought to take a chance and in case it breaks the next day and kept 1 position open. But it moved the other way

Didnt get into long again this time been into positions continuosly last 2-3 weeks and taking a break now. But I think long would be good with partial booking around 8730 and hope it breaks it .
I did opposite. I was long at 8650. Saw it go to 8730 and back to 8611 and in the tamasha it was a scratch trade. When it broke 8611 I went short and again a scratch trade. But second time I booked partial at 8570. That was helpful. Brokerage and taxes are sucking.

chart for reference



Yes tracer I had sold OTM puts too which earned me some money. It caps my short futures tho...
If you guys noted the IV crashed after the GST news. my options are helping here gap ups are hedged by options. It works well if u track the IVs as well.

Handy isn't it ..

Can anybody tell me, how much internet data zerodha kite uses per session?is there order placement problem like zt ? Thanks.