Nifty gaped up above PDH and BRN. Entered long on BPB of BRN. Trade did not move. Stopped out. Another short on BPB of PDH. This one also stopped out. Rest of the day Nifty was in a Barbed Wire around PDH. No other trades
hi NPA trader. im thinking to trade options , help me to decide how is brokerage in options? options move well? what r the advantages and disadvantages of options over NF?
IMO, Challenges in options are - we can't enter with SL orders !! So, options tend to go away few points & if a move is not fast, they tend to loose those points very easily. I find my self manytimes surrounded with such situations. So instead of Ranging days, High Volatility days are good to trade options comfortably as Trailing SL is few points only.
Chandra Mouli, For 1 lot of option it will be 75% lesser brokerage than nifty futures 1 lot. More or less all brokerages charging like the same. Options move well with futures when you buy At the money or In the money options. Advantages and Disadvantages are, 1.your risk is fixed even if you loose your entire premium(at expiry) when you buy options. 2.More risk when you write(short) options. risk of unlimited loss. you need full margin like nifty futures for writing. 3.Your risk is less if you trade out of the money options when compared to futures. 4.You will loose your premium when there is no movement, range bound days.
Hi Sir, A new reader of your blog, find it very interesting. May I pls know the reason of avoiding the BOF of LOD and when the BRN was tested for the third time I took the trade inspite of LOL. Was this approach correct.
Also I might bug you with question on trades on prev days, Pls bear. Your service to people is highly appreciated.
Avoided it as it was counter trend and PDL and BRN above Nothing wrong with the trade. Trade went where it was supposed to go, the other extreme of the range. My trades are not ideal trades.I do miss a lot and mismanage many trades.Everybody will. But as we gain experience, we will start making more good decisions than the bad decisions. Discretionary trading is all about our decisions.
Pardon me for my wrong username "Micheal Richard". It was made to serve a different purpose (poker). Have corrected it now. Waiting for your clarification on my query.
Thanks for the reply sir. For the third test of BRN later in the day. What should be our thinking like? Should we look for a trend move as the short term trend was down or should we try to trade the BO as the critical mass was short. Today the BO trade was also triggered.
Buying the low and selling the highs are always the preferred trade http://niftynirvana.blogspot.in/2012/05/buy-low-sell-high.html Other trades are always low probability ones and involve higher risk Here buying the BOF of LOD is a better trade than buying a BO of BRN
Hi Chandra Mouli, Read your comments. Hope I do not offend by sharing what I feel trading options. I am great fan of options. Esplly Nifty options. Great liquidity and great bang for the buck.
Few pointers: 1) Dont trade options looking at NF. In this case you cant enter Limit orders on option trades. 2) Be very swift if you want to scratch your position. With the swiftness of options one may not find a chance to do it. I would suggest, just look at the price movement for a week or so. How much options move vis a vis NF.
All said and then ,you will enjoy the options trading journey
regarding option , if you are new to option trading then please avoid it , simply there is standard rule , if future price increases then CE Will also increase and PE will decrease , BUT 30-40% OF time there is mis-pricing even in Nifty/Banknifty ATM / ITM Option , mostly rangebound market and month start and ...end of the month they will behave like MAD , they have own personality of option . Sir , you have knowledge about option intrinsic value , option time value ...etc . then its good ,but it is not sufficient plss try to grasp on screen /practical knowledge . there is TIME decay is more effective in this instrument , cause of it has limited life (one ...two...three month) , end of the month it will expire.
Hi ST, I am totally lost now :D what do we need to happen for entry. Looks like price is in channel and no DPs nearby. Please could you share your thoughts? Thanks a lot.
Hi ST, I thought there was a spike and channel today (22nd) as price moved toward 7750 http://imagizer.imageshack.com/img673/9765/cc8618.png prior to 1:30 Am I seeing this wrong?
You are searching for patterns on charts.Then you will see many Once we get stopped out at a DP suspect a channel and stand out. That is all I can show you many more channels http://screencast.com/t/elqnZTR8OX7j
Hi ST
ReplyDeleteDid not find space to take any trade.
Thanks
TBP
I have traded with nifty options chart for few reasons. please see my trade here.
ReplyDeletehttp://nsemcxpriceaction.blogspot.in/
Option trades, IMHO is very effective while trading the extremes
DeleteBut so far I have not traded the method through options
ST
hi NPA trader. im thinking to trade options , help me to decide
Deletehow is brokerage in options? options move well? what r the advantages and disadvantages of options over NF?
Hi,
DeleteIMO, Challenges in options are - we can't enter with SL orders !! So, options tend to go away few points & if a move is not fast, they tend to loose those points very easily. I find my self manytimes surrounded with such situations. So instead of Ranging days, High Volatility days are good to trade options comfortably as Trailing SL is few points only.
Thanks,
Deven Malhotra
Chandra Mouli,
DeleteFor 1 lot of option it will be 75% lesser brokerage than nifty futures 1 lot. More or less all brokerages charging like the same. Options move well with futures when you buy At the money or In the money options.
Advantages and Disadvantages are,
1.your risk is fixed even if you loose your entire premium(at expiry) when you buy options.
2.More risk when you write(short) options. risk of unlimited loss. you need full margin like nifty futures for writing.
3.Your risk is less if you trade out of the money options when compared to futures.
4.You will loose your premium when there is no movement, range bound days.
ST Sir,
ReplyDeleteNarrow range session.. attempted 3 trades, ended up with 8 point loss.
Trades here
Yes. A tough session to day trade
DeleteST
Hi Sir,
ReplyDeleteA new reader of your blog, find it very interesting.
May I pls know the reason of avoiding the BOF of LOD and when the BRN was tested for the third time I took the trade inspite of LOL.
Was this approach correct.
Also I might bug you with question on trades on prev days, Pls bear.
Your service to people is highly appreciated.
Thanks
Avoided it as it was counter trend and PDL and BRN above
DeleteNothing wrong with the trade. Trade went where it was supposed to go, the other extreme of the range.
My trades are not ideal trades.I do miss a lot and mismanage many trades.Everybody will.
But as we gain experience, we will start making more good decisions than the bad decisions.
Discretionary trading is all about our decisions.
ST
Hi ST,
ReplyDeleteBumpy trades.. Choppy day.. My trades Here...
Hope we get a break out tom :)
Cheers!
GK
Yes very choppy
DeleteExpected a gap closure when it refused to go up
ST
Why my comments are not being shown.
ReplyDeleteComments are moderated
DeleteWill not appear immediately
ST
Sir good evening,sir sent a mail when time permits kindly check thnx
ReplyDeleteRight. Will do
DeleteST
how u avoided PP that is taken by rose?
ReplyDeleteMy order did not trigger
DeleteAs the earlier two BO attempts failed I kept the trigger little away @ 7705
ST
Pardon me for my wrong username "Micheal Richard". It was made to serve a different purpose (poker). Have corrected it now.
ReplyDeleteWaiting for your clarification on my query.
Thanks,
Purusharth
I have already replied to your query
DeleteST
Thanks for the reply sir.
DeleteFor the third test of BRN later in the day. What should be our thinking like?
Should we look for a trend move as the short term trend was down or should we try to trade the BO as the critical mass was short. Today the BO trade was also triggered.
Thanks
Buying the low and selling the highs are always the preferred trade
Deletehttp://niftynirvana.blogspot.in/2012/05/buy-low-sell-high.html
Other trades are always low probability ones and involve higher risk
Here buying the BOF of LOD is a better trade than buying a BO of BRN
ST
Hi Chandra Mouli,
ReplyDeleteRead your comments. Hope I do not offend by sharing what I feel trading options.
I am great fan of options. Esplly Nifty options. Great liquidity and great bang for the buck.
Few pointers:
1) Dont trade options looking at NF. In this case you cant enter Limit orders on option trades.
2) Be very swift if you want to scratch your position. With the swiftness of options one may not find a chance to do it.
I would suggest, just look at the price movement for a week or so. How much options move vis a vis NF.
All said and then ,you will enjoy the options trading journey
TBP
@ chandra mouli
ReplyDeleteregarding option , if you are new to option trading then please avoid it , simply
there is standard rule , if future price increases then CE Will also increase and PE will decrease , BUT 30-40% OF time there is mis-pricing even in Nifty/Banknifty ATM / ITM Option , mostly rangebound market and month start and ...end of the month they will behave like MAD , they have own personality of option .
Sir , you have knowledge about option intrinsic value , option time value ...etc . then its good ,but it is not sufficient plss try to grasp on screen /practical knowledge .
there is TIME decay is more effective in this instrument , cause of it has limited life (one ...two...three month) , end of the month it will expire.
Hi ST,
ReplyDeleteIf long, what would be the ideal place for SL now?
Look at the left side of the chart. What happened at 7750 level
DeleteSo isnt it better to exit the trade near that level and wait for the next signal
ST
Hi ST,
DeleteI am totally lost now :D what do we need to happen for entry. Looks like price is in channel and no DPs nearby. Please could you share your thoughts? Thanks a lot.
Nice spike and channel, hindsight is beautiful :)
DeleteS Roy
DeleteWhat channel?
It is all horizontal levels working well
ST
Hi ST,
DeleteI thought there was a spike and channel today (22nd) as price moved toward 7750 http://imagizer.imageshack.com/img673/9765/cc8618.png prior to 1:30 Am I seeing this wrong?
You are searching for patterns on charts.Then you will see many
DeleteOnce we get stopped out at a DP suspect a channel and stand out. That is all
I can show you many more channels
http://screencast.com/t/elqnZTR8OX7j
ST
Dear ST,
DeleteIn that one response you have taught me sooooo many things. Thank you, this is why I like to keep asking you questions. Thanks again.
my order T- 7720.20 , L 7721 not trigered. any ticks to get order fills ? and ur order xxxx.50 any specific reason for .50
ReplyDeleteVery rarely it happened to me
DeleteUsually 50 paise difference get filled
ST
Its a good technical analysis to invest in the market and good opportunity to send a best part in the trade.
ReplyDeleteFree Stock Market Tips on Mobile