There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits
Friday, December 6, 2013
06122013
Nifty opened near PDC. IR formed. Long on TST of PDL (BOF of PDC)on break of IRH. TP at BRN. Did not attempt the BOF of BRN short and TST of PDC long due to IRH. This level was 6250 NS. Finally short on BOF of BRN and TST of HOD. Scratched
When you took the first trade@ 6180, it was just 10 points away from 6150 Spot. We need not pay equal importance as BRN to Spot and Future numbers ending with 50 as those ending with 100?
I entered at BOF of BRN - your second trade. I too made a scratching exit.
KS xx50 levels are a recent development after the introduction of new option strikes. DPs are not brick walls. I had written earlier this example. Imagine a cricket ball hitting your window pane. Whether it will break. This depend upon the strength of glass and force of hit. Like wise we have to take a decision considering our analysis about the strength of DP and strength of move
Sir,
ReplyDeleteWhen you took the first trade@ 6180, it was just 10 points away from 6150 Spot. We need not pay equal importance as BRN to Spot and Future numbers ending with 50 as those ending with 100?
I entered at BOF of BRN - your second trade. I too made a scratching exit.
Karthikeyan
As always Thanks for chart ST.
ReplyDeleteSkimmed through book, liked it. Will read it over weekend for sure..
Hi ST,
ReplyDeleteCould we have shorted when prices formed HOD initially and drifted down towards IRH?? They may have cracked IRH too which eventually it did??
Thanks,
TBP
KS
ReplyDeletexx50 levels are a recent development after the introduction of new option strikes.
DPs are not brick walls. I had written earlier this example.
Imagine a cricket ball hitting your window pane. Whether it will break. This depend upon the strength of glass and force of hit.
Like wise we have to take a decision considering our analysis about the strength of DP and strength of move
ST
TBP
ReplyDeleteIt is a low probability trade.
It may work and this time worked as the day was not a trend day. On a trend day you will get repeatedly stopped out
Range 1 the IR
Range 2 HOD>IRH
Price is in range 2
ie above range 1. Bias bullish
Buy low and sell high of the range
ST
Thanks ST for the clarification...
ReplyDeleteSir, Thanks for the reply. Enjoying your Book. Hope to read atleast twice, this weekend.
ReplyDeleteKarthikeyan
Open the acc.with Zerodha. Brkg
ReplyDeletefor single lot comes to 3 nifty
point due to state( punjab) stamp
duty, but still 1 nifty point
lower than the previous brkg
house. Tnxs. This is for
information only.