My intraday trades in nifty options

[boarders]

when I start the day i dont even know whether i will earn or lose. also I dont allow myself to be prejudiced about trend or market direction, like even if pre market nifty or sgx showing gap up by 100 points etc, i will not consider to go long, etc. I try to strictly follow the data what my trading terminal odin gives me and analyse that and wait for a breakout/breakdown. sometimes I lose control and then the losses are also in thousands especially flat days are always losers, which can be identified only after the market is open for some time, in which case I try to reduce number of trades and take one or two extra scalp trades to end either in reduced loss or minor profit. I started the thread to get control of my emotional rollorcoaster which I am now able to a great extent.
and the earning in thousands just happens without planning just by trailing the stops which sometimes are detrimental also if the day at any time turns into flat. yesterday and the day before were good due to plenty "V" shapes.

 

[boarders]

today 6100 ce and 6200 pe

 

[boarders]

15 lots gross 1903 + cost 495 = net 2398 loss

 

[timepass]

15 lots gross 1903 + cost 495 = net 2398 loss

That's a lot of trades for you.. What happened ? Whipsawed or losses leading to overtrading ?

 

[boarders]

That's a lot of trades for you.. What happened ? Whipsawed or losses leading to overtrading ?

whipsawed allover and then didnt take the good long due to my belief of going only short, my system had told me not to take trades at all except the good buy with fixed 10 point profit, but being a knowall, i didnt listen to it, in short didnt trade with discipline. here is my chart of the day.

 

[timepass]

whipsawed allover and then didnt take the good long due to my belief of going only short, my system had told me not to take trades at all except the good buy with fixed 10 point profit, but being a knowall, i didnt listen to it, in short didnt trade with discipline. here is my chart of the day.

Only 2 good trading opportunities for buying options, but that's all post-mortem. In real time, one's previous trades affect the thinking about the current trade.

Boarders, can you try looking at the chart of the option concerned and trade according to that ?? I have been thinking that since options (though a derivative) have a life of their own with different variables affecting them, maybe one should consider it an independent scrip and trade according to the option's chart itself. What do you think ??

PS : To upload charts, load them on an external site like imgur.com or tinypic.com and paste the link here. Check my signature for instructions. Using "Manage attachments" option, you will soon run out of image space.

G'luck :thumb:

 

[kiran_thiru]

Only 2 good trading opportunities for buying options, but that's all post-mortem. In real time, one's previous trades affect the thinking about the current trade.

Boarders, can you try looking at the chart of the option concerned and trade according to that ?? I have been thinking that since options (though a derivative) have a life of their own with different variables affecting them, maybe one should consider it an independent scrip and trade according to the option's chart itself. What do you think ??

PS : To upload charts, load them on an external site like imgur.com or tinypic.com and paste the link here. Check my signature for instructions. Using "Manage attachments" option, you will soon run out of image space.

G'luck :thumb:

yes, TP bhai. but when both future and options charts you compare, first signal comes in future and later options. this will we miss some early movement in options?
if you want i will post nifty fut, ce, pe charts.

 

[boarders]

Only 2 good trading opportunities for buying options, but that's all post-mortem. In real time, one's previous trades affect the thinking about the current trade.

Boarders, can you try looking at the chart of the option concerned and trade according to that ?? I have been thinking that since options (though a derivative) have a life of their own with different variables affecting them, maybe one should consider it an independent scrip and trade according to the option's chart itself. What do you think ??

PS : To upload charts, load them on an external site like imgur.com or tinypic.com and paste the link here. Check my signature for instructions. Using "Manage attachments" option, you will soon run out of image space.G'luck :thumb:

In my trading experience of 8 years now, I had tried all that, suffered badly and slowly and steadily I got enlightened. that is to say:

1. always look at only underlying spot chart and take trades in Futures or options, never trade watching futures chart or options chart. this is due to serious whipsaw resulting from slippage of futures or options premium/discount.
my observation is that generally in futures the premium/discount increases in bull and viceversa in bear market (which is good if it is so) although it can sometimes work the other way round also ( this will be bad). In case of options, the time decay affects in addition, making the overall setup very complicated and your stops will hit left right and center even if the spot is going steady.
therefore whatever be the whipsaw variation in individual f and o's generally and finally the spot underlying will gradually pull it to destination.

2. everybody talking about 5 min 15 mins and then compare 30 mins chart etc. My take is that time has no meaning at all in trading other than when market opens at 0915 and closes at 0330. price action may remain within a 10 point range for entire 5 hours or 5 mins or 5 seconds. what really matters is that at whatever time it gets out of that range, you enter the market and then keep your stops steady at a particular value and then change it with price action NOT TIME ACTION. so your stop may remain for 1 hours or two hours at same place and all of a sudden when let us say breakout happens in 15 seconds of 50 points, then your stops which was stagnant fo 2 hours will move 3 or 4 times within that 15 seconds.

hope you got my point

 

[boarders]

@tp
Only 2 good trading opportunities for buying options, but that's all post-mortem. In real time, one's previous trades affect the thinking about the current trade.

fully agree with you thats what happened to me. after few whipsaws (in spite of my chart telling me not to trade), I out thought my system

 

[boarders]

In my trading experience of 8 years now, I had tried all that, suffered badly and slowly and steadily I got enlightened. that is to say:

1. always look at only underlying spot chart and take trades in Futures or options, never trade watching futures chart or options chart. this is due to serious whipsaw resulting from slippage of futures or options premium/discount.
my observation is that generally in futures the premium/discount increases in bull and viceversa in bear market (which is good if it is so) although it can sometimes work the other way round also ( this will be bad). In case of options, the time decay affects in addition, making the overall setup very complicated and your stops will hit left right and center even if the spot is going steady.
therefore whatever be the whipsaw variation in individual f and o's generally and finally the spot underlying will gradually pull it to destination.

2. everybody talking about 5 min 15 mins and then compare 30 mins chart etc. My take is that time has no meaning at all in trading other than when market opens at 0915 and closes at 0330. price action may remain within a 10 point range for entire 5 hours or 5 mins or 5 seconds. what really matters is that at whatever time it gets out of that range, you enter the market and then keep your stops steady at a particular value and then change it with price action NOT TIME ACTION. so your stop may remain for 1 hours or two hours at same place and all of a sudden when let us say breakout happens in 15 seconds of 50 points, then your stops which was stagnant fo 2 hours will move 3 or 4 times within that 15 seconds.

hope you got my point

this is also why i stopped posting my trades realtime, as i had to be on my toes all the time