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

Thursday, March 27, 2014

27032014



Another expiry day.These days have become less choppy after the introduction of xx50 strikes, it seems . Could take two nice trades. Nifty opened near PDC and attempted to go down. First candle was a MC and acted as IR. Went long above IRH and covered the trade at PDH. For a long time Nifty made a  Barbed Wire around PDH. Long on break of  PDH  on BOF of Range Low.Covered at 20 point profit. No more trades.
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26 comments:

  1. UnknownMarch 27, 2014 at 3:43 PM

    Hi ST,

    Could have been the second trade taken(long trade)above RN 6650??

    Thanks

    TBP

    ReplyDelete
  2. SMART TraderMarch 27, 2014 at 3:52 PM

    TBP

    You can do it.
    Pay attention to other factors also. Being expiry day the intention of bulls may not be to take Nifty to greater heights but to keep it above 6650.I decided to enter early and take maximum from the move. Finally Bulls were not able to do it

    ST

    ReplyDelete
  3. UnknownMarch 27, 2014 at 3:58 PM

    Thanks ST for the reply

    ReplyDelete
  4. xrtrader1March 27, 2014 at 4:08 PM

    Long time didn't say Thank you...:)..
    So thanks ST.

    ReplyDelete
  5. goodidea.vishalMarch 27, 2014 at 5:17 PM

    thank you for great work.....i am silent reader here....i visit regular . this is first comment here ....say to THANK YOU :)

    ReplyDelete
  6. AnonymousMarch 27, 2014 at 5:36 PM

    Dear ST,

    Can you please explain your statement "Being expiry day the intention of bulls may not be to take Nifty to greater heights". Why would bulls not want to take nifty further up and gobble up whatever they can?

    ReplyDelete
  7. AnonymousMarch 27, 2014 at 5:40 PM

    Hi ST,

    I took the shorts below 1.57 as we were resisted 4 times near RN6650 And the break of barbed wire below yesterdays high.. was that a wrong trade...?


    Thanks

    Bharat

    ReplyDelete
  8. SMART TraderMarch 27, 2014 at 6:46 PM

    Vishal

    Thanks for the visit and comment

    ST

    ReplyDelete
  9. SMART TraderMarch 27, 2014 at 7:07 PM

    Bharath

    Hope you have exited the trade on failure without hoping.If a BO is not working and falls back into the range exit immediately and look for the possibility of a reversal trade.

    Most of the traders are losing money trying to trade trends and breakouts.This breakout was a clear bear trap to take prices above 6650. Context is very important in trading Breakouts. I rarely trade it

    http://niftynirvana.blogspot.in/2013/10/breakout-blues.html

    ST

    ReplyDelete
  10. vinMarch 27, 2014 at 7:09 PM

    Good trades

    ReplyDelete
  11. vinMarch 27, 2014 at 7:15 PM

    How to escape from barbed wire range?

    ReplyDelete
  12. SMART TraderMarch 27, 2014 at 7:19 PM

    Anon

    On expiry, fight is not on Nifty Futures. It is on option positions.Option sellers are defending their positions to eat premium.Today the question was whether Nifty is going to expire above or below 6650 strike. They are least bothered about how far it can move away from 6650

    ST

    ReplyDelete
  13. SMART TraderMarch 27, 2014 at 7:23 PM

    Vin
    Better to stay out.
    You can fade the extremes like any other range.
    http://niftynirvana.blogspot.in/2012/06/barbed-wire.html

    ST

    ReplyDelete
  14. AnonymousMarch 27, 2014 at 7:48 PM

    Hi ST
    My trades...

    http://tinypic.com/r/2njxe6f/8

    Please comment ...Especially on the second trade ...Price failed to cross RN many times.So took the trade ..But seeing the trap reversed

    Ended the series with 120 points ...

    thanks n rgds
    Kishore

    ReplyDelete
  15. amberMarch 27, 2014 at 7:48 PM

    Sir good evening and thnx

    ReplyDelete
  16. SMART TraderMarch 27, 2014 at 8:03 PM

    Kishore

    Nice trades.
    Great that you could reverse the trade. Most of the people will panic or will hang on hoping.But must be very careful reversing. All failures will not lead to reversal.
    Good that you are net positive in the series. Once you gain experience you will be able to perform it as a routine

    ST

    ReplyDelete
  17. AnonymousMarch 27, 2014 at 9:13 PM

    Hi ST,

    How much nifty point you have captured this serious again just curiousity thats why?

    ReplyDelete
  18. SMART TraderMarch 27, 2014 at 10:07 PM

    Anon
    I track it on calender month basis
    Two more days left. Around 315 points so far in this month.

    ST

    ReplyDelete
  19. AnonymousMarch 28, 2014 at 3:42 AM

    Hi ST,

    How many lot u going to use in future at maximum and when u going to increase the lot size? U have fix some time period know.

    Thanks
    Suresh

    ReplyDelete
  20. SMART TraderMarch 28, 2014 at 8:56 AM

    Suresh

    Trading multiple lots requires change in tactics. There is no maximum limit. It depend on the available capital
    May need lower risk wholesale entries which requires change in entry methods and trade management. Working on it

    ST

    ReplyDelete
  21. AnonymousMarch 28, 2014 at 9:33 AM

    Hi ST,
    Will there be much change for handling multiple lots ?


    rgds
    Kishore

    ReplyDelete
  22. AnonymousMarch 28, 2014 at 9:38 AM

    ST,
    Are you using the continuous chart ...ie MArch F1 + April F1
    or you are using April F1 chart (today)?

    rgds
    Kishore

    ReplyDelete
  23. SMART TraderMarch 28, 2014 at 10:48 AM

    Kishore

    Using April F1
    BOF of PDH at 6716
    Not traded IRL, BRN,PDC close below.

    With Big positions we cannot wait for confirmation. For example after a BOF we wait for a formation and enter on break of a formation . These are retail entries. It is not possible to get proper fill on such entries if trading say 20-30 lots

    ST

    ReplyDelete
  24. AnonymousMarch 28, 2014 at 1:34 PM

    thanks ST

    rgds
    Kishore

    ReplyDelete
  25. TrekkieMay 17, 2014 at 12:33 PM

    Hi ST,
    I have tried to combine your charts of 26th March and 27th March. Around 6620 we have a range low and price consolidation before breakdown on 26th March. When we take the IRH BO trade on 27th, you have ignored that, would you always ignore this completely or are there exceptions http://i.imgur.com/JCilr1d.png Thanks again a LOT for your help.

    ReplyDelete
    Replies
    1. SMART TraderMay 17, 2014 at 5:30 PM

      S Roy
      You cannot ignore these always.Such flip zones will always have some opposing order flow
      You may need to take a decision depending on the situation.
      It was a BOF before previous day close. Price was not getting accepted below 6600
      Price opened near PDC and tried to move down. But failed to reach 6600
      Bounced back and consolidated near IRH.
      Now price is above PDC and DO. I entered on break of IRH and expected some stop triggering
      If price need to go down it has to break IRH,DO,PDC,NSBRN,IRL,BRN and PDL
      Thinking is that the price will take the path of least resistance
      ST

      Delete

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