When I choose future call it always falls few point for some hour or for few days can any one explain why it happens

F&O
1

When I choose future call it always falls few point for some hour or for few days can any one explain why it happens

2

  1. Becoz you buy it when its gone up already, means you confirm the uptrend and then buy. Some retailers even chase rallies, their margin calls hit faster than the trading session ends

  2. All stocks are in downtrend by default. Means if there is no push to the stock, by default, every stock is falling tick by tick. So even if you buy a stock at lows, there is good chance it will continue falling, coz that’s what its direction. Until some HNI or DII gives it a push by buying it.

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3

What you’re talking about is known as theta decay . Read more about it here: https://zerodha.com/varsity/chapter/theta/

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4

So does it means I am going right or should I choose strategy however at last I made profits

5

I think he means even futures trade, not options

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6

It just means spotting bottom is very difficult, nothing you can do about it

Or keep your stop loss as support or resistance (for shorts), not 5 rs, 10 rs stop loss

Big money people keep stop loss only at support or resistance (i think)

7

I am also taking about future currently holding yes bank bought at 165 should I hold it further

8

There buying is not the problem, you were in profit at 195, and you were brave enough to hold at a big event

What if they canceled the meeting and it went down 20% in 5 minutes to 140, then what you would have done?

Think about all this also.

Either you should have booked at highs, or kept a strict stop loss.

You have to hold or not, no one can guess. This stock will keep on moving based on news for some time now. And news is always random.

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