Trading for regular income

[Raju]

Hi expertspeaks ,
The strategy u use ..do u deal in cash/derivative ? ..My concepts regards f & o ,derivatives ..am not very much clear ..
Kindly elaborate ..
As due to job I am not able to look into market daily ..So I try to play the swing game..But I had tied putting money in RPL ..Am holding it ..but the time to pull back money is increasing..
So wanna learn new strategy in swing trade ...ofcourse i will be using less amount as I am already stuck with few scrips..
Thanks,
Raju

 

[pasha]

What time frames are you looking at?
Some of my friends do this but I found it to be too risky.
Averaging down is a bad strategy, yes it wins 90% of the time, but when it loses, it loses big.
Over a long time period, say 10 years, it would defnitely work.

 

[harmads]

Guys..Those who trade with patience will be rewarded and they will keep on taking out money from this market in a shameless manner. Start buying now again gradually and sell on each rally. Market goes up or down does not matter, we trade for the stock movement.

Hi expertspeaks

Very interesting thread and there is a lot to learn from you ..

I would appreciate if you comment on the following points:
1. Are all your trades delivery based or Intraday or both ?
2. What do you suggest for people who are not conversant with Options or is it a necessity for your strategy ?
3.Do you do margin trading ?

Thanks & regards

 

[expertspeaks]

Hi expertspeaks

Very interesting thread and there is a lot to learn from you ..

I would appreciate if you comment on the following points:
1. Are all your trades delivery based or Intraday or both ?
2. What do you suggest for people who are not conversant with Options or is it a necessity for your strategy ?
3.Do you do margin trading ?

Thanks & regards

Both. Purpose is to spot the targeted difference. It comes with in the day, fine, if not there is always a tomorrow.

Options are very important part of this strategy, so you have to choose a stock which has active options counter. As of now I am only using puts to hedge my long investments. Puts also are being bought when the counter breaks a certain level on the lower side, otherwise if you buy puts for a range bound counter, you will not gain anything at the end of the day.

Never, nor futures. I will not advise anybody to do so. This strategy is meant to give you "headache free" returns and margin trading is the biggest headache you can ever get.

Trade small with what you have. Never take loan or borrow money for this purpose.

 

[expertspeaks]

What time frames are you looking at?
Some of my friends do this but I found it to be too risky.
Averaging down is a bad strategy, yes it wins 90% of the time, but when it loses, it loses big.
Over a long time period, say 10 years, it would defnitely work.

You will loose only if you are not hedged. Naked position is a killer.

 

[expertspeaks]

Hi expertspeaks ,
The strategy u use ..do u deal in cash/derivative ? ..My concepts regards f & o ,derivatives ..am not very much clear ..
Kindly elaborate ..
As due to job I am not able to look into market daily ..So I try to play the swing game..But I had tied putting money in RPL ..Am holding it ..but the time to pull back money is increasing..
So wanna learn new strategy in swing trade ...ofcourse i will be using less amount as I am already stuck with few scrips..
Thanks,
Raju

Only cash. No margin, futures. Only derivatives to hedge, that too after a certain level.

As you said, you are stuck with a few scrips. Only way to bail your self out is to have additional capital and you start this strategy with your stocks, or you have to wait for your stocks to reach at your buy price.

 

[Bhulokeshwar]

HI
I have 50k in my account.Can u give suggestion to earn daily income

 

[pasha]

You will loose only if you are not hedged. Naked position is a killer.

Ok, now it's starting to make real sense. The hedge is placed at what % below the stock price?
So the time frame is about 20-40 days?

 

[harmads]

Both. Purpose is to spot the targeted difference. It comes with in the day, fine, if not there is always a tomorrow.

Options are very important part of this strategy, so you have to choose a stock which has active options counter. As of now I am only using puts to hedge my long investments. Puts also are being bought when the counter breaks a certain level on the lower side, otherwise if you buy puts for a range bound counter, you will not gain anything at the end of the day.

Never, nor futures. I will not advise anybody to do so. This strategy is meant to give you "headache free" returns and margin trading is the biggest headache you can ever get.

Trade small with what you have. Never take loan or borrow money for this purpose.

Thanks for your reply.

1.Taking BOB as your favorite trading stock.. last 10 sessions it has gone down consistently.Will you please explain what has been your course of action.
2.Do you look for targets achieveable in days, weeks or months ??
3. I have account with HDFC which is Ok for delivery based trading.That means one must have T+2 DAYS in hand to take the next action.
4.Could you also throw some light on what analytic software you use to see targets, or do you read expert's tips etc..

Best regards

 

[expertspeaks]

Guys, this is unbelievable. This stock is made to churn money on daily basis. Look at it's daily movements in last 3 trading sessions.