Regular Income From Markets. Risk Free. Takes no Time

[gurmy.]

It has been my unshakable intention to keep it simple. Each time the process became complicated I went back to revising the concept.

The following is the new rehashed versions, which I am sure like minded traders will benefit from.... simply.

Longs

Concept: TGIF

Action: Buy Pair On Friday morning and hold till EOD... profit or loss.

Pros:

1. Most Fridays are trending days. Hence, Strike Rate is awesome.
2. Even if some are not, I will lose only one day to time-decay. Worst case 10% loss.
3. Best mental clarity, since no additional parameters to monitor. This will improve performance.

Cons

1. Only one trade a week.

Comments:

• The concept of base is now nullified. No need to monitor each days cost. I totally hated it.
  
  
• SR is already very good and I feel the RR will also be very nice. Only one day of time-decay. Lets play it out and see what more Marketji has to teach us.
  
  
• Four trades a month. Even if I end up with Nett. one profitable a month then too I make around 10%... that is doubling money in 10 trades! Not bad.
  
  
• More than anything else, I am happy because execution is super simple. Just the way I like it. I have already put in my hard work, time and intel in developing the concept.
  

Shorts

Concept: Two big days do not come back to back.

Action: Short a pair on Morning after a big moving day (next day is often a gap).

Risk Reward: Set RR as 1:1 ;

Pros

1. After a big move the premiums are often inflated which is when we short and get additional benefit from the fizz out.

Cons

1. Uncovered Shorts are inherently dangerous. Like naked live high voltage wires. And since I am risk (and also stress and work) averse, it will affect me more.

Comments

1. SR is very good. SR is almost 95% after 2nd back to back big day. Happens less often, but whenever is does... be sure to rake in free money by increasing position size.

2. Intend to hold trade for max two days.

3. Tentative exit and SL is 15% of cost.

4. Another personal benefit I have is that, I already trade an intraday method which counts heavily on days being big (trending). So, if this works out, then I make money either way. (Is there another definition of Heaven?

nice thinking again and in the right direction also


keep it up jamit :clapping::clapping::clapping:

 

[divnain]

Divnain,

The excel sheet looks worrisome on several counts. But primarily, your profits are way smaller than losses. Pls be careful with money. A trader must lose to learn, but only in small proportions. This money is his lifeline and is limited.

Pls do not take any further independent trades. Follow this thread and I promise you that you will not only revive your cash balance, but also learn important secrets/rules to trading successfully.

You WILL double your money in 10 trades and that is assured.

Thanks Jamit (-:

But I still have open positions left (300 4800 PE) and to cover that,I think

1. i have to purchase at least (100 5200 CE) ..
or
2. should i again book loss in at least half of my open positions.
or
3. Another way, may be I should purchase more 300 4800 PE to average my positions, as nifty is finding resistance @ 5120 and has already seen so many Up days so a correction may be around the corner (-:
or
4. Don't do anything and wait for a correction to sell these open positions ( as I still have time till 28 June )

What's your view on this.

Regards
Divnain

 

[jamit_05]

Thanks Jamit (-:

But I still have open positions left (300 4800 PE) and to cover that,I think
i have to purchase at least (100 5200 CE) .. or should i again book loss in at least half of my open positions. What's your view on this.
Regards
Divnain

Divnain,

Why are you still holding 4800 PEs ? Did you have a stop loss... a worst case exit planned... what was the RR...

I know it is intellectually stimulating to play options like chess.... but is it profitable.

Sir, this road has led several to serious loss in capital and confidence... do not initiate trades without a plan...

As for now... I have no clue about the direction or intensity of nifty. So, I am ill-equipped to comment.

However, if you want to recover your money... then I could draft you a plan...

 

[jamit_05]

nice thinking again and in the right direction also


keep it up jamit :clapping::clapping::clapping:

I think I will be glad that you did not let me drop the Shorting concept

Thanks

 

[jamit_05]

Support.

Thanks Jamit (-:

But I still have open positions left (300 4800 PE) and to cover that,I think

1. i have to purchase at least (100 5200 CE) ..
or
2. should i again book loss in at least half of my open positions.
or
3. Another way, may be I should purchase more 300 4800 PE to average my positions, as nifty is finding resistance @ 5120 and has already seen so many Up days so a correction may be around the corner (-:
or
4. Don't do anything and wait for a correction to sell these open positions ( as I still have time till 28 June )

What's your view on this.

Regards
Divnain

* Going long at this time seems shady. Market likely to correct atleast 40 to 50 points.
* Averaging is always a terrible idea in trading. Instead, try scaling in.
* If you do not have a SL or a plan, then simply counting on a resistance to hold up too is a terrible idea.
* Holding a losing position is also a terrible idea.

I am clueless. I would be pretty stumped if i were you.

If I were you, I would simply square off all my positions... book any loss or profit... and swear to not take any unplanned trade. Cuz I have learned that to earn money one should have a plan... and experience.

Amit.

 

[divnain]

My stop loss was 50% of risk which is just going to trigger..

I was holding because to my view the nifty has already this rally from 4800 to 5100 in just 5 days so i was waiting for a correction to happen.

Stop loss is 50 % because i am not a full time trader.

Regards
Divnain

 

[jamit_05]

My stop loss was 50% of risk which is just going to trigger..

I was holding because to my view the nifty has already this rally from 4800 to 5100 in just 5 days so i was waiting for a correction to happen.

Stop loss is 50 % because i am not a full time trader.

Regards
Divnain

That is very nice to hear. Sorry, for being presumptuous.

Well, since you have a plan... stick to it... cuz that is what will save you. That is your God now.

 

[jamit_05]

Perspective on this week.

This week is full of major news. This will probably make us lose on our shorting trades.
Still, I wish to take them so that we can gain experience. Will trade small to start with and will increase position size with confidence.

Trade initiated.

Sold

5200 CE 53.20
5100 PE 58.00

Total 111.20 - 2 = 109.20

Target 99.20
SL 119.20 <10 points either ways>

Just an observation: Cost was 116 on Friday... lost Rs.5 over the weekend.... i.e. 5%

 

[jamit_05]

July month 50/52 Option pair cost is 213
June month is 111;

If the time-decay is equally fast on both months then it is better to take forward month. Half the quantity, half the brokerage... 10% more profit... no harm in that.

 

[jamit_05]

In spite of the super dull sideways action the premiums are holding up.... nice... very nice. It is logical.

Next time around, will look for some more advantage before shorting.... will discuss it once the opportunity arises.