Wednesday, 22 February 2017

Nifty Future 22022017


Markets have been super bullish for quite some time now and today was no different in the morning.  Once the prices got accepted above initial range high, there was a long setup which moved well. In the afternoon it made multiple attempts to break BRN but all failed and it remained range bound.

Tuesday, 21 February 2017

Nifty Future 21022017


It traded around PDC/PDH in the morning.  Attempted a short when initial range broke out.  It did not work and ended as a scratch.  After trading in a narrow range, it gave a BOF of range low which moved well.

Friday, 17 February 2017

Trade like a Champion

As you all know, I have made a video tutorial on day trading called Champion Day Trader after years of experience and lot of efforts.  I have done this with only one objective and that is to help you learn the trading the best possible way, to help you shorten your learning curve and expedite the process of making a living out of it as early as possible.  However, to my disappointment, very few blog readers have benefited from it.  Most of the readers either look for shortcuts like tips or ready-made recommendations or look for discounts and other free stuff.  Most of the readers even fail to follow the system longer than 6 months.  And the ultimate result is a sheer failure for them as a trader.

Lets assume you subscribed to a Champion Day Trader video tutorial, understood the concepts properly by watching the videos again and again, got answered your doubts, followed this blog,  and practiced a lot by simulating at least past 1 year of charts, you could have traded like I traded today or even better than that.  Yes, it is possible.  More than half a dozen of traders, who initiated this learning process through mentoring or video tutorial some time back and continued to put their efforts in the right direction without giving up, are now reaping the benefits of it and making more than 20-25K every day.

I traded not only Nifty today, but Bank Nifty, Infosys, ICICI Bank, HDFC Bank.  Except HDFC Bank, in all other 4, there was a reversal trade setup with the flavor of Pressure play.  I have made 2 videos on the reversal especially and in other videos discussed the same too as well as a lengthy video on discussing Pressure play.  Now if you understand this reversal concept well, you can trade them and benefit from it, not only today but rest of your life.  Have a look at them,






For HDFC Bank trade, the reason was different.  I tried to trade it with the news flow that came during the market hours.  Now to learn how to use the news flow for your benefit, you must need to watch the video on the news flow.


So today if you traded in these stocks, these setups with the available set of knowledge, you would have made more than 10K by trading only 1 lot and booking at the smallest easy target, more than one time cost of Champion Day Trader video tutorial.

If it is possible then why to go for tips or short cuts like this and spend thousands of rupees on it every month and be dependent on someone else?
Even after spending so much what you ultimately get is like this or much worse.








Hope you will take this post in a positive way and start putting your genuine efforts in learning the concepts and the real reason behind them rather than relying on patterns or setups in isolation or tips  and shortcuts,

Thursday, 16 February 2017

Nifty and Bank Nifty Future 16022017


It opened within previous day's range.  Without testing the PDL it went up and gave a BPB long setup of DO/HOD/Range High.  It moved well and after that it consolidated.  Range High acted as a strong flip and gave another long setup.


It also opened within previous day's range but tested the PDL and failed to break it.  In that process, pressure play for a long trade setup formed and moved well.  Towards the fag end there was also BOF of Range High which failed.

Wednesday, 15 February 2017

15022017

Yesterday there was not a good trade setup but today it was flooded with opportunities and all trades yielded profit.  I am posting here Nifty, Bank Nifty and ICICI Bank charts.

1) Nifty Future

Today again it got rejected from the same area at open and broke below PDC BRN.  Entered short on BPB setup.  It tested the patience but finally moved.  Then it traded in a range and when it failed to break out of range high, attempted short trade which yielded some.

2) Bank Nifty:

Here attempted a BOF of PDH and shorted below 20300.  It also moved well.  Attempted BOF of range high in afternoon which ended as a scratch.

3) ICICI Bank:

Here it was the same kind of setup as Bank Nifty and it moved very well.

Day trading is like owning a shop.  Sometimes there are lot of customers to handle and sometimes not a single customer visits the shop.  We will never know when these customers will come, what will be asked for, what business they will generate, but we have to open the shop daily, maintain it with the enough stocks and be ready always to do the business. 

Tuesday, 14 February 2017

Monday, 13 February 2017

Nifty Future 13022017


It opened full gap up but 8830-40 zone was acting as a very strong resistance and prices got rejected quickly.  After that it consolidated and presented a nice setup to short as direct BO.  There were multiple levels below it but reading of the price action gave enough confidence to attempt that short. It moved well.  Could not find a good setup to participate in the reversal and missed that trade.

Have a look at 8900PE, how it moved and helped me save lot of money in taxes and expenses.


Saturday, 11 February 2017

How to trade Nifty options?

If you are still trading Nifty futures, you have to give a serious thought to it.  If you want to turn profitable or increase your profitability you have to switch to option trading.  I had written a post some time back on How trading options can make you profitable illustrating a point that even if your 50 to 55% of the trades are making profits, you either will still be in a loss or in very negligible profits with trading futures because of the cost that involves in future trading.

If you want to switch to option trading, this is how you can do it.  You should continue to look for the setups on the future chart as you normally do.  Once you find a setup and decide on the level, you should look for the corresponding level on the option strike and take a position there on that option strike instead of future.

Let me give you an example to help you understand it better.  Here is last Friday's Nifty Future chart. As marked, lets suppose, we want to enter long at the Nifty future level 8805.

Now instead of entering at that level, we will open the 8700CE chart and look for the corresponding level there on the 8700CE, like this and will take the position there.

Now lets do some math.  Suppose, you are trading with 2 lots of future and in a month you take on average 40 trades (2 trades per day), you will end up paying to government and exchange Rs. 130*2*40 = Rs. 10400 per month plus brokerage plus internet cost plus charting subscription if any.

So you may not be making any money from day trading but the government and other service providers for sure are earning around Rs. 11000 from you monthly. It is a big recurring cost and you have to pay this amount as long as you continue to trade, again no matter what, whether you win or lose. There is no escape from it.

Now if you decide to trade options, you will pay only Rs. 1600 and save around Rs. 9000 per month. If you are trading with 10 lots, you will save around Rs. 50000, a mind-boggling figure which will be getting added to your overall profitability. 

Another important thing to note is that we will trade with in-the-money option strikes only and we will buy the options only.  In the past, I used to prefer selling options because of other good reasons but I have learned with my experience that buying options can be done too.  There were only few occurrences per month where selling options had an edge over buying it.  Apart from that, overall it did not make much difference. 

Also we will take position in 2 lots of options in place of 1 lot of future because options tend to move around half of what future moves most days of the month.  Only closer to expiry, options move same as future, so during those few days, we can trade with 1 lot of option instead of 1 lot of future.  In the above example, 8700CE (in-the-money) moved in favor from 137.50 to 154.5 or 17 points whereas Nifty future moved from 8805 to 8828 or 23 points. In this case, it moved more than half of what future moved and generated more profit than future.  Option generated 34 points (2 lots) whereas future made 23 points overall

Lets have a look into the margin requirement. Buying this 8700CE requires (137.5*150=Rs. 20625) which is less than the intraday margin requirement for trading 1 lot of future around Rs. 25000.  So in this front, it requires less capital too.

Now if you are still in some doubt or struggling to understand the trading system better, do not know how to trade, subscribe to Champion Day Trader video tutorial, learn how to trade options and turn profitable.

Friday, 10 February 2017

Nifty Future 10022017


It opened gap up but failed to break PDH.  After that traded in a narrow range for majority of the day. Towards the fag end it made an attempt to break the multiple DPs but failed giving a nice BOF setup to go long.

Thursday, 9 February 2017

Nifty Future 09022017

Today it gives me immense pleasure to share with all of you the success of a Champion Day Trader video tutorial subscriber, Chirag.  In the morning he sent me a mail and attached the chart marking the trade that he took.  It is the trade that only a champion trader can spot and trade.




He subscribed to the video tutorial in the month of January, here is the email conversation for that,


After watching completely the whole set almost two to three times he started discussing his thoughts and trade setups through email whenever he felt necessary.  He took his own time to understand everything and now it seems after putting his efforts in right direction he has got the grip on the subject.  It is a great achievement Chirag.  Keep it up.

Here is his feedback about Champion Day Trader video tutorial.  Hope it will help you take right decision.


 


Wednesday, 8 February 2017

Nifty Future 08022017


RBI announcement day.  Once the reaction to it was over, it gave a nice setup to go long as marked. It was the same setup as on the budget day on Feb 1st.