Monday, April 14, 2008
Monday, March 24, 2008
nifty strategy
Hi all,
Welcome to nifty strategy blog, where in we share our strategies for Trading Nifty intraday and delivery. We Basically trade only Nifty Futures and Options and a few stocks mainly for short to medium term. Ofcourse, heavy weight stocks are all good for Long term so no point discussing them here.
We are neither "BULLS" nor "BEARS" we are
Here we lay down some of the assumptions on your investments or margin for trading. and how you have to use your margin on basis of our calls.
1. we expect a minimum of a lakh INR for trading options and 2 lakh for futures. Ofcourse you don't need to feel bad if you can not invest that much. This is only assumption.
2. we will trade only 50% of it. i.e., 50000INR in options. This is to average the positions when we think the adverse movement is only a trader's remorse, by buying equal number of lots. Yes, this is against the trading rule:- don't average a losing position. But this may happen only once in a blue moon. Or, when we get a double confirmation about a movement.
buy or sell calls are interpreted as follows:
* in small qty: upto 15k on options and 2 lots in futures.
* in medium qty: upto 30k on options and 3 lots in futures.
* means invest 50k in options and 5 lots in futures.
* in full: 100k in options and 8-10 lots in futues.we give you this when there is a over confirmation of a trade. this is given often.
* here means buy or sell futues. at the same time, buy calls or puts nifty
3. Market may go up or come down. Like wise we can sell or buy futures, but only buy call options or put options. We will never write options. Based on the movements, we recommend the entry and exit levels. so you have to trade at the level we recommend you or at a higher price. If you are tempted to buy at a lower than our level, see that it is not near the stoploss. We recommend only after it shows strength. +
4. After investing so much, we cannot trade on emotions only. We use a premium software for trading purposes. We also use emotions/sentiments for trading purposes. but we want our sentiment to be seconded by the software.
4. We don't catch a running bus, we will only catch a bus about to move. we will not even catch a stoped bus. Coz it may not move atall.
5. Market is here to stay. But it is our respondibility to preserve our capital. In trading, Profit and Loss are common, no one in this world can give 100% winning call. So have a tight stop loss and trade. If we think it's not our day, we don't trade. We trade big quantities and have medium profit. Let's not ask for entire pie.
6. Option premium requires small amount of margin "per lot". When we trade with huge lots, the brokerage will also be heavy. So while opening an account with a broker, ask for huge discount, especially for options. There are brokers who charge INR 50 to 70 per lot. Better still is to open an account with Reliance Money, where your brokerages is only a paise per trade. Leave alone the statutory taxes, It's our duty to pay the government for all there efforts. At the same time, you should also ask for the margin on the stocks you hold.
7. we should have a traders terminal to trade. But we keep only 5 marketwatch. viz.
daily-trends.blogspot.com
Yahoo messenger: nifty_trades
Welcome to nifty strategy blog, where in we share our strategies for Trading Nifty intraday and delivery. We Basically trade only Nifty Futures and Options and a few stocks mainly for short to medium term. Ofcourse, heavy weight stocks are all good for Long term so no point discussing them here.
We are neither "BULLS" nor "BEARS" we are
BELLS
We don't discriminate. We treat both bulls and bears open handedly. so expect both types of call from us.
Here we lay down some of the assumptions on your investments or margin for trading. and how you have to use your margin on basis of our calls.
1. we expect a minimum of a lakh INR for trading options and 2 lakh for futures. Ofcourse you don't need to feel bad if you can not invest that much. This is only assumption.
2. we will trade only 50% of it. i.e., 50000INR in options. This is to average the positions when we think the adverse movement is only a trader's remorse, by buying equal number of lots. Yes, this is against the trading rule:- don't average a losing position. But this may happen only once in a blue moon. Or, when we get a double confirmation about a movement.
buy or sell calls are interpreted as follows:
* in small qty: upto 15k on options and 2 lots in futures.
* in medium qty: upto 30k on options and 3 lots in futures.
* means invest 50k in options and 5 lots in futures.
* in full: 100k in options and 8-10 lots in futues.we give you this when there is a over confirmation of a trade. this is given often.
* here means buy or sell futues. at the same time, buy calls or puts nifty
3. Market may go up or come down. Like wise we can sell or buy futures, but only buy call options or put options. We will never write options. Based on the movements, we recommend the entry and exit levels. so you have to trade at the level we recommend you or at a higher price. If you are tempted to buy at a lower than our level, see that it is not near the stoploss. We recommend only after it shows strength. +
4. After investing so much, we cannot trade on emotions only. We use a premium software for trading purposes. We also use emotions/sentiments for trading purposes. but we want our sentiment to be seconded by the software.
4. We don't catch a running bus, we will only catch a bus about to move. we will not even catch a stoped bus. Coz it may not move atall.
5. Market is here to stay. But it is our respondibility to preserve our capital. In trading, Profit and Loss are common, no one in this world can give 100% winning call. So have a tight stop loss and trade. If we think it's not our day, we don't trade. We trade big quantities and have medium profit. Let's not ask for entire pie.
6. Option premium requires small amount of margin "per lot". When we trade with huge lots, the brokerage will also be heavy. So while opening an account with a broker, ask for huge discount, especially for options. There are brokers who charge INR 50 to 70 per lot. Better still is to open an account with Reliance Money, where your brokerages is only a paise per trade. Leave alone the statutory taxes, It's our duty to pay the government for all there efforts. At the same time, you should also ask for the margin on the stocks you hold.
7. we should have a traders terminal to trade. But we keep only 5 marketwatch. viz.
- Nifty spot
- Nifty futures
- Nifty Call of previous close's below 00'. i.e., if nifty closes at 4686, then 4600
- Nifty Call of previous close's above 00'.i.e., if nifty closes at 4686, then 4700
- Nifty put of previous close's above 00'. i.e., if nifty closes at 4686, then 4700
- Nifty put of previous close's below 00'. i.e., if nifty closes at 4686, then 4600
This strategy is recommended as these are highly liquid options traded. Just because the far option is cheap, we can't enter that, as the liquidity will be very less in those options. Ofcourse this we will trade only when there is a clear direction. but we do it very rarely.
We shall update this often, and let you know about it. If in doubt and for suggestions, feel free to contact us on:
This is basically for the first timers want to trade with our calls. we also update our daily trends on:daily-trends.blogspot.com
Yahoo messenger: nifty_trades
email: niftytrade@gmail.com
Phone:+919886259862
orkut community(newly started): http://www.orkut.com/Community.aspx?cmm=46850732
happy Trading.
Subscribe to:
Posts (Atom)
pages
 |
| Powered by web analytics company. |