Underlying - NIFTY;
To trade - ATM Option Straddle ;
Why -- Refer Delta . Underlying to ATM Option Move around 50 %;
Aim -- Less Profit. No Loss ie Loss management ;
SL - 10 point ( approximately 20 point movement either side);
Risk - Negligible;
Tools -- Google Finance 5 mins Chart. 3/13/20 EMA;
Action - Buy when 3 crosses 13 and 13 crosses 20; Either side. Buy both Call and Put;
Liquidate -- When the 3 EMA direction changes slightly.
In case any of you had been following the thread, can now try only one trade instead of a Straddle. Eery other thing remaining the same. One might have to take multiple trades in a day. So act accordingly. When you see the trend down buy PE and reverse it in time. Practice a bit. Not very tough. but have to be on terminal and Google Finance, I will post my trade for info only.
Will it be this week it self ?
From : Pradip Ray at 01:18 PM - Nov 14, 2017 ( about 21 hours ago)
We are entering Bear Market. 10K looms large. Take guard.
I forgot to write it in this column. Pls excuse me.
How to play Gap . Trade in the direction of the Gap . Simple. I told it else where. But should have mentioned here. SL and rest others remain the same.
So 10 K is close. Scroll up to check the caution. GM To day is 5.12.17
A new experience. 9-54 AM and 1-54 PM are the times for taking quick trade. Watch that. I got it from Net and found it effective. Also most active Call and Put buy is another decision to make a quick buck. 8 point SL .
For four months, consistently, I showed you how to trade nifty option with a very small capital of 15-20 K.
I did not intentionally allow any unnecessary pat at the back or abusie language, I dont need either.
Suffice it to say that Option trading I was told, when i first started trading in terminal, to be RISKIEST. My experience proved it WRONG.
I was also told that when you are aged Inestment , and not TRADING, is THE thing. Again I found that to be WRONG.
There is also a school of thought which suggests that Chart is Bull Shit. I proved them WRONG as well.
This far was my On the job Training and proving my belief. Trust I could help some of you. BOL
Last two days trade was keeping Expiry in mind. Risky.
An important rejoinder.
Please note that of late I have not been putting a SL in the system as I can afford to be in front of the Option and Index Chart. Market VIX is tending to hit SLes. EOD SL may be a better option. It is just the beginning of the Expiry month. To that extent the trade has to be modified.