Ghosh Sir,
Earllier I used to trd in F&O aimlessly & incurred heavy losses. Since going through ur Thr1 I got a clear idea about which points to enter & I booked small profits last week. But small doubts I am putting with ur due permission for Ur clarification:
a) OHLC= Is it of Nifty or NF? I find differences from PIB data.
b) If hedge NF with CA/PA at the same point, any direction Gain/Loss both occurs with minor Profit/Loss. I wish to add Sir, that if I enter asper trend and trd goes in my direction then why not to hedge at the point when direction changes.This will be hedged with no possibility of any LOSS. Pardon me if I am wrong.
c) Suppose N is 3650, Pl tell me hedged ATM Buy CA 3600 OR 3700 & for PA 3600 OR 3700 (If not 3650).
d) SL=2000. Is it for only NF when Dn & for CA when Up OR Total?
Pl clarify the above at ur convenience. I wish to convey my whole hearted thanks 2 U for thr1 which I read thrice & being aged person (58+) comprehension and retention both r not at my side. Hence I shall bother U time 2 time with queries. Pl bear with me. I also express my sincere thanks to Linkon7 (son's friend) for introducing me to this wonderful FORUM. I want to LEARN LEARN & Learn......to become a good trader & this is only possible when I can get assistantns from Seniors/Moderators/Contributors and my FRIENDS of this useful FORUM.
Thanks &Rgds.
SM
Dear SM,
Below are answers to your queries:
a) OHLC= Is it of Nifty or NF? I find differences from PIB data.
Ans: OHLC that I post is for Nifty Futures only. Source of data nseindia . com
b) If hedge NF with CA/PA at the same point, any direction Gain/Loss both occurs with minor Profit/Loss. I wish to add Sir, that if I enter asper trend and trd goes in my direction then why not to hedge at the point when direction changes.This will be hedged with no possibility of any LOSS. Pardon me if I am wrong.
Ans: This is common doubt that many traders have. See one can never be sure of market direction and its sudden reversal. This reversal speed could be small and slow or could be very big or fast and sometimes we traders get carried away. We keep thinking that we are smart and we will act smartly. But truely speaking this is not always possible and one days huge loss eats our months profits. Hence suggested a safer way to hedge when you take position in NF.
c) Suppose N is 3650, Pl tell me hedged ATM Buy CA 3600 OR 3700 & for PA 3600 OR 3700 (If not 3650).
Ans: Hedge with nearest 100th strike price. If NF is 3650 and trend is up then, you go long in NF and either buy 3600 or 3700 put. I prefer buying 3700 put. If NF is greater than 3650 say 3655 then, will hedge with strike price 3700.
d) SL=2000. Is it for only NF when Dn & for CA when Up OR Total?
Ans: This is for total i.e. NF + (CA or PA).
And Always remember to square off your position on daily basis specially before any event.
Regards
