There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits

Friday, November 2, 2012


Nifty gaped up above PDL.IR formed. Long on the break of IR high. Scratched the trade later.


  1. Manjunath

    Scratching means getting out of a trade at a small profit/breakeven/small loss as you feel the trade is not moving as you expected.
    You are avoiding a stop out.A scratch trade is often a winning trade because it will get you out of the market before the price turns against you


  2. ST,

    1. When do you decide that a trade needs to be scratched? How much room do you give a trade to play?

    2. If a trade goes against you immediately after entry, what do you do? Do you ever consider reentering a scratched trade?

  3. Augu Bhai

    1.If price fails to break FTA I will consider scratching the trade.Depends on
    a)how strong the rejection from FTA is.
    b) Origin of the move. I will not hurry to scratch in case of a BOF.For TST and FTC I will act fast.
    2.Price reversals rarely happens without testing a trouble area
    I rarely risk more than 10 points.
    Yes, I will enter beyond the latest swing point if RR is still favourable


  4. ST,

    Thanks for the clarifications.


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