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

Wednesday, February 19, 2014

19022014


Nifty opened within previous day opening range and spent almost all the day there. Only signal was the BOF of range low. I was not trading the afternoon session. I had some other appointments.Just 123000 lot volume today. Volume is drying up day by day. Once it was trading around 6 Lakh contracts a day

11 comments:

  1. ST, volume drying up is it part of regular market cycle.

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  2. Xrtrader1

    Market cycles will have some effect.
    Main problem is the lack of interest from investing population.

    As far as trading is concerned, I think the problem is few traders chasing too many contracts.

    Traders shifted to commos, currency and S&P. Now some VIX contract is coming and a few will shift to that.

    End result is no liquidity in all the contracts

    ST


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  3. Hi ST
    just an offbeat question.
    Can we say that only a few traders are and will be loyal to one particular instrument??

    TBP

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  4. TBP

    I think most of the professional Day Traders stick to one instrument. Each contracts has its own personality and behave differently.If you trade nifty, many times the fast and furious moves on Bank Nifty will surprise you.
    Many people who traded nifty futures earlier, shifted to commodities and currencies.Many of them now trade options.I am afraid, the trading population is not growing to accommodate newer contracts

    ST

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  5. Interesting observation... The volumes have been declining. Volumes were higher in Aug 2013 when volatility was higher.

    But the volumes are also a function of movement, i think. whenever there is a big move, even if it's a sudden move, volumes increase since SL's are triggered. Are the declining volumes a result of declining intraday volatility or vice versa? Which is the cause and which is the effect?

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  6. Hi ST,
    Aren't marked circles BOFs ?
    http://tinypic.com/r/1zziahi/8

    thanks n rgds
    Kishore

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  7. Hi ST just a couple of questions

    1. Why aint you trading multiple lots?

    2. Why dont you trade stocks as they are more trending in nature as compared to NF?

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  8. Kishore

    Yes. If you are going very technically by definition.But I will consider this as a TST only as there is no reasonable crossing to the other side to trap breakout traders.
    Check the 30 sec chart
    http://screencast.com/t/NDAMOQsENq

    ST

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  9. thanks ST,
    lower TF gave more clarity..

    thanks n rgds
    Kishore

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  10. AuguBai

    Volatility is cyclical and let us hope the volumes will return. But after the introduction of XX50 strikes, the playground has shrunk.

    ST

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  11. Shubh11

    1.I have just begun.I will increase the size slowly.
    2.I have written a chapter in the E-BOOK about this

    ST

    ReplyDelete

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