Hi Guys,
I Simply Underwrite The Bank Nifty Weekly Options (Selling Call Option And Put Options) !!! Just Predict The Unreachable Strike Price In Out The Money Options...For Safer Side Exclude 300 To 400 Points From Current Price And Just Simply Underwrite It !!! Cheers !!! This Is My Trading Method !!! Below Picture Is My Last Few Transactions !!!
My strategy
For Short term (1 to 2 months horizon)
Stock specific, sector specific
1. Sugar Sector- These stock has been hitting new highs. invest in sugar stock like trivani engineering.
2. Metal Stocks like Vedanta. High Beta, High Return, high risk.
3. Sunpharma- Buyback @ 900. 100% guaranteed riskfree return with (CMP- 763). If you want to take higher risk but with known exposure than buy Rs.800 strike price July 2016 call option.
For Long Term
1. PE Ratio, Book Value Ratio as compared to its peers & Future of Industry is seen. Like ITC is diversifying etc. Pharma ever growing like Sunpharma (After Ranbaxy merger).
Day by day answers are increasing , it's happy to read all answers.
It would be great if Star Traders from Opentrade share their overviews on trading Strategies since their trading records are available in opentrade.
Hi team Zerodha,
I am interested in Day trading as I have suffered a lot in positional trading… after having spent almost 2 years I have found that its not necessary to spend whole time (9.15 am to 3.30 pm) in trading.
My observations are as follows:
Market remains volatile from 9.15 am to 11.00 am so this is most important time if you are scalper.
Time between 11.00 am to 1.30 pm mostly every stocks consolidates so not necessary to spend your time just looking at charts.
From 1.30 pm to 3.10 pm volumes increases so We can trade at this moment.
I use Bracket Orders in futures (F&O) where I get much leverage from zerodha. ( Do learn about bracket orders it is really very useful for day traders)
See when I started I studied various indicators, but later came to know that Price action is more important that indicators because indicators depend on price. so for trading I see that recognizable candlestick pattern is formed.
For daytrading I use 2 min charts as it gives signal earlier than 5 min charts.
I search which sector is rising or falling in NSEindia site and select stocks which is top mover or loser. then check whether it is going up or down of its opening range. and take trade accordingly.
I keep Rs 17000 in my trading account which is enough to take 1 lot or any F&O stocks if you use Bracket Orders. which also secures me from losing very high amount.
Normally I earn close to Rs 1500 a day which is sufficient for me. ( I lose everytime when I try to experiment something new otherwise it is very simple and fine strategy without having any headache further We can do other activities as well.)
Thanks.
Index is weight and Stocks are weight lifter
I always try to trade in intraday and some time I use stop loss and gain less profit. Because when the market open I have money for investment and before market closing I sold my investment then next trading day I have money with profit or loss I don't depend my holding I depend in my own money. For example I BUY and SELL BPCL every day not for holding.
In Delivery trading I always BUY reputed and market leaders company stock because they always gain profit and more responsible
My trading is based on the following :
1) Trade only when odds of winning are in my favour.
2) Trade with a high reward to risk.So take a trade on small stops.
3) Trade the momentum so that the trade goes in profit quickly.
4) Trade with multiple timeframe concept. Here the trade is identified on higher timeframe but actual entry,stops and profit taking is done on smaller timeframe giving a higher reward to risk.
I track about 20 stocks mostly on hourly timeframes and look for best 2-3 stocks which satisfy the above critaria.This is done mostly at end of the day for trading on the next trading day.
Set Up on Higher Timeframe:
60 min chart .I look for an uptrend.A higher bottom and then some sideways consolidation .I am posting 60 min chart of Yes Bank June futures with the breakouts marked on the chart.
Trading Timeframe
My trading timeframe is 5 min. Once a setup is identified on higher timeframe, then trades are taken on 5 min swings above the breakout levels with stoploss at 5 min swing below the breakout level. Following 2 charts will show the entry and stop loss.Profit taking is 50% at 2 times the risk taken ,and 50% on 3 times the risk.
Another example :
Position Size : The position size depends on how far my stop is from my trade entry point.If I am tracking 3-4 stocks for trading on that day, then on each trade I will risk 0.5 % of the capital.If I cannot take trade in futures because of higher lot size,then trade in cash market intraday as we can trade smaller number of shares in cash market.
The above charts show the long trades. Mirror image for short trades.
My Strategy address my nature of Trading, i will be checking liquidity with volume & Open Interest and wait for correct opportunity. If market rises on low volume & Open interest, then the market is incorrect, and a short order would be the best way to enter a trade. If the market rises on large volume & Open interest,then the market is correct, and a long trade would be the best. This pattern would be reversed on a market that goes down.
I control my positions and hold them once they prove to be correct. If my taken position is proven wrong i will exit. I Keep my losses quick and small. I Use Stop Loss and Trailing Stop Loss
I will add larger position when am correct. I always want a larger position when we get a great move or trending market than when position isn't correct.I have a plan of adding position once a trend has established itself.
I do use Technical Analysis just to catch analyse the trend (Any of Trend based Indicator can give trend signal) and based on price action.
On existing positions when extreme liquidity takes place on trend. I book profit for half of my positions,
I keep Profit targets using probabilities based on research of particular stock
I believe in markets Money can be make only with Trading Skills and Skills will be improved with hours and hours of Disciplined Practice.
Hi,
To make best trade. I created my own trading strategy at my level best for Intraday.
1, First, i looked how to manage loss. So, i followed hedge method.
2, Hedge method is like trading using two trading accounts.
Example: Let we take BHEL - 110
* In first account, Make a BUY order @ 110
* In second account, Make a SELL order @ 110
=> You should know when and how to place square off for the both position to get proper profit.
=> Using Bracket Order, you can make profit by pre-planning and placing order.
=> If you unable to get profit, loss is managed here. Whatever the volatility.
I think this strategy will help everyone. It may look somehow complex, if you well-versed in that. You can trade without fear.
Thanks
Hi, I got to know about this contest from a fellow trader. Kudos to the entire team of Zerodha for taking on such a brilliant initiative. I will keep this short for obvious reasons, I don't want to be discussing my strategy with all the details but instead would like to give an overview for the readers to get a gist and the judges to make a fair assessment.
Asset Allocation
I have split my capital in the following way -
10% - Fixed Income
20% - MF’s - Long term investment
30% - Long term investments
40% - Active trading
Since this contest is about active trading, I will be talking only about that 40% of my capital.
The further split up on 40% is like this -
10% - Intraday trading
30% - Options writing
40% - Moment Portfolio
10% - Overnight Futures position
10% - Contingency capital
Why 10% for intraday ? This is because I do make a judicial use of leverage.
Intraday Strategy
I do 1 or at the most 2 trades per day and never beyond that. I trade only stocks from Nifty 50 basket as the liquidity is adequate and serves my purpose. The strategy largely involves identifying stocks which are showing signs of a breakout. These are stocks near strong support areas and invariably attracts large volumes. I particularly like situations where in the stock has just broken over the resistance makes a big move and retraces back to the resistance. I buy into such pullbacks and hold the position till EOD.
Option writing
Identify the mean and standard deviation of Nifty half way through the series. Identify call option strikes which are 3SD away, close your eyes and write them. Premiums are not much, but the chances of you retaining them are high. I even do option writing around corporate events, where the premiums are driven up by higher volatility. I think somewhere in Zerodha Varsity this is explained.
Momentum Portfolio
I buy into stocks and hold them as long as it qualifies to be held in the portfolio. The entire logic is based on this article from Economist, which I think makes sense, check this - http://www.economist.com/node/17848665 . The logic is simple stocks which have shown strength for the last 12 months, will continue to show strength for (at least) the 13th month, so buy them..hold for a month and re evaluate at the end of 13th month. Over the last year and half I have improvised on this and added my own filters, one example is that I do not venture out of CNX 500.
Overnight Futures Position
I identify stocks from my momentum portfolio which are showcasing strengths and buy into them overnight. Do note that because I'm selecting this from momentum portfolio it has already crossed some filtering mechanism so I do not over complicate this.
Contingency Capital
This is basically parked in liquidbees and this is earmarked for M2M requirements and few orportunities that just come up.
Other points
I do not hesitate to pledge my contingency capital and some of my portfolio stocks. I use this pledged amount for my intraday and option writing margins.
So this should give you a basic sense of my trading strategy.
SWING TRADING STRATEGY
An Overview
My strategy is very simple. My focus is on Risk-Reward ratio & not the hit-rate %.
It has 2 main components,
1]Multiple Time Frames -
Daily TF for location & BIG PICTURE TREND. 60Mins for zones & Trend. 10Mins for zone refinement.
2]Institutional Demand & Supply zones.(For low risk high reward setups).
I will share my step by step approach using recent NIFTY long trade setup,
Scenario, NIFTY in DAILY+WEEKLY UPTREND and it Gaps down cause of BREXIT News.
GREAT TIME TO Buy at wholesale in uptrend when most of the people are panicking and selling.
STEP 1:
IDENTIFY DAILY(BIG PICTURE) TREND & LOCATION
NIFTY is in BIG PICTURE UPTREND. So we should be looking to go long.
STEP 2:
Check trend in 60Mins TF.
Confirmed Uptrend = Higher high - higher low - higher high
STEP 3:
FIND a DEMAND ZONE in 60M TF here it is 8153 - 8136
STEP 4:
Confirm it in 10Mins zone for sideways action followed by explosive move out of the zone/Rally.
STEP 5:
Wait for prices to retrace back into zone. Put a LIMIT BUY ORDER(After applying probability enhancers,we wont get into details here.)
PRICES RETRACED BACK SAME DAY & AFTER ALMOST 2 HOURS OUR ENTRY WAS FILLED ,
ENTRY : 8153
STOP LOSS : 8134.85 ( Just below our demand zone)
TARGET : 8302 First opposing Supply zone which is a Pro Gap down.
Check the chart below,
STEP 6:
TRADE MANAGEMENT & CONCLUSION,
We will keep trailing STOP LOSS to higher lows.
Put Target sell order as a LIMIT Order so that we wont need to sit in front of screen.
Here,The trade setup has worked brilliantly giving us 8 times REWARD.(8000Rs. Reward for 1000Rs Risk).
An opposite approach is applied for a swing short trade setup.
I feel glad I was able to share my strategy with fellow traders. Thanks TEAM ZERODHA for this opportunity :)
1). Basic strategy for trading is to Buy Cheap and Sell Dear.
2). Pick up fundamentally sound and liquid scrips with good volume on the bourse ;
3). Technically track daily movements and 20-day Exponential moving average on BAR chart OR candlestick chart ;
4). On Elliott Wave Theory, track end of each waves 1, 2, 3, 4 & 5, and take positions accordingly. This should be for short to medium term ;
5). For short to very short term, BUY when daily rates line pierces the 20D EMA from below ; SELL when daily rates line pierces the 20D EMA from top.
6). Booking Profit on each occasion depends on individual’s appetite and risk taking capacity ;
7). STOP LOSS must be maintained on every transaction.
Capt Vivek Jain.
MY TRADING STRATEGY IS SIMPLY BASED ON TECHNICAL ANALYSIS. I ALWAYS WATCH 1 YEAR CANDLESTICK CAHRT WITH RSI, MACD, WILLIAM’S %R, MFI INDICATORS ON END OF DAY REGULARLY. IT HELPS ME TO CHOOSE 5-7 SCRIPTS FOR NEXT TRADING SESSION . MOST OF MY TRADES ARE INTRADAY ( IN FNO SEGMENT). I TRADE ONLY IN ACTIVE/HIGH-VOLUME STOCK/FNO. I TRADE WHEN BREAKOUT OF PIVOT POINT HIGH OR LOW VALUE IN 10 MIN CANDLESTICK CHART AND ALSO ADOPT SL ACCORDINGLY. I USE BULL CALL SPREAD & BEAR PUT SPREAD FOR STOCK/INDEX OPTION FOR OVERNIGHT POSITIONS. ALSO USE LONG STRADDLE STRATEGY FOR NIFTY OPTION ONCE A MONTH. FOR POSITIONAL TRADES I PREFER MID/SMALL CAP STOCKS WHICH SHOWS BREAKOUT IN 1 YEAR CANDLESTICK CHART WITH INCREASE IN VOLUME.
Hi readers hope this post help to new traders and aspiring traders.
Just one thing before we get into trading strategies: Do you seriously want to be market making consistent profit or just blow account to zero blaming market?
If we seriously want to make consistent money and be in it long run we need to maintain 4 things from my perspective.
1) Strategy
2) Money Management
3) Psychology
4) Continuous Learner
Trading is never been easy for many people because they wont follow properly, i want to share my trading strategy which is quite successful intraday Trade.
Intraday Trading strategy:
- Simple Observations will give YOU good money if you CONCENTRATE.
- Take any liquid stock or index( nifty & bank nifty).
- I'm using the bhel as example here.
- To trade current day look into the scrip yesterdays(30/6/16) close first consider BHEL values as Eg
127.7 is the yesterdays close.
- In Current trading day if the price opens greater than yesterdays close(129>127.7).
- Then watch for some pull back( their might be exceptions open=low, open= high in which u can enter if it doesn't break) if day low of the scrip comes slight down from opening watch for yesterday close if it took support or jumping from day low without touching yesterdays low then our trading entry starts.
- As soon as it crosses the day opening buy immediately watch for spot prices only u can get easily good profit depending on the volatility of the stock.
- calculate your break even point so that you can trail your stop loss.
https://zerodha.com/brokerage-calculator
- placing sl in this intraday trade is 1:3 ratio from entry price.
- In order to execute this trade there are few things to check.
1) volumes should be more than last few days(take 5 to 10 days average).
2) you need to look historical chart for support and resistance in order to get rough idea until where the stock trades to exit your trades( getting in always easy but exiting with profit is risky).
3) always check yesterday candles so that if they make any pattern you can turn intra position to positional trade.
Placing stop loss is important lets consider 5 trades continuously, if market surprises by hitting 2 trades sl also then next 3 trades in profit( only 2% loss with 5- 8% profit(1-1.5% brokerage))
which ultimately makes you stay in market for long time.
please do read about market news papers.
don't watch TV channels.
don't listen to people who claim unnecessary advertisement.
do select stocks which are more liquidity in cash or f&o.
- with this strategy one can initiate trade in futures and options also.
- coming to option strategy buy just 1 away OTM from the ATM option.
- calculate volatility and Greeks if you had patience.
- look for strategy said above on spot price and execute as fast as you can when scrip bounces back from day low to open price.
- never loose more than 30% max capital in option trading( if u r a aggressive trader) 20% min.
- always trail your SL once trade crosses break even point of your trade to minimize the market surprise.
MORE OVER THE ABOVE STRATEGY TO WORK IN TRADER FAVOR ONE NEEDS TO LOOK IN FOR FIRST HALF N HOUR SO THAT YOU CAN EXIT WITHIN 1 TO 2 HOURS OF EXECUTION OF TRADE.
Trust me this gonna work max percentage. if you do have doubt take some liquidity stocks which have trading with more volume and check as i took BHEL as example.
Ones own trading intuition comes by experience and inborn skills.
Success percentage depends on stock selection also.
You need to learn simple things which affect market in greater way so that which thing affects which industry in what way you should get to know (helps in picking stocks).
Psychology plays major part as market rewards patience.
Thanks for creating this opportunity.
I believe that a person’s thought process and behaviour reflects in the way he or she trade or invest in the stock market and if someone tries to do something against his usual thought process, then the chances of making incorrect decisions increases manifold. I like to invest in stocks and business that I understand personally. Also, I perform a lot of fundamental analysis of the financial documents and once satisfied, I enter into a script and holds it for medium to long term. The major aim is to get inflation beating returns which leads to true wealth creation. There are no shortcuts I believe and to succeed one needs to invest a lot of time and effort to identify financially stable scripts which have a good cash flow and less debt on the balance sheet which enables business to invest in new avenues and stop any erosion of profit.
I HAVE TRIED ALL THE CHARTS AND TECHNICAL ANALYSIS .
BUT THEN I BUILD MY OWN STRATEGY WITH RENKO CHARTS.
BUT BEST IS RENKO WITH TMA.
I BUY WHEN THERE ARE 3 GREEN BRICKS AND SELL OR EXIT MY POSITION WHEN THERE ARE 3 RED BRICKS.
IT WORKS BEST WITH NIFTY (USING 2 POINTS BRICKS).
BUT IN THIS YOU HAVE TO BE VERY CONCENTRATE ON YOUR CHARTS AND STICK TO YOUR STRATEGY.
IT ALSO HELP YOU TO KNOW THE SUPPORT AND RESISTANCE .
Active trading is the act of buying and selling securities based on short-term movements to profit from the price movements on a short-term stock chart.I prefer these following strategy:
Day trading is perhaps the most well known active-trading style. It's often considered a pseudonym for active trading itself. Day trading, as its name implies, is the method of buying and selling securities within the same day.
Some actually consider position trading to be a buy-and-hold strategy and not active trading. However, position trading, when done by an advanced trader, can be a form of active trading.
When a trend breaks, swing traders typically get in the game. At the end of a trend, there is usually some price volatility as the new trend tries to establish itself.
too much indicators only creat havoc in ur little brain lele keep it simple and use 1 indicator and try to master it what so ever. MACD is one of the great
Chandan Taparia's (Anand Rathi) top trading ideas for the day
Here's one of the best and simple intraday strategy which i use and anybody can use.
Opening Range Breakout (ORB) is a commonly used trading system by professional and amateur traders alike and has the potential to deliver good returns if done with proper discipline and money management rules. This system is applicable only for intraday trading.
ORB trading has several variations practised by traders all over the globe. Some traders trade on a significant breakout from opening range, while others trade immediately on opening range breakout. The time window for the trades also varies from 10 minutes to 1 hour.
Quite Simple and straightforward. Rules in the next section need to be adhered to increase the success rates dramatically.
Any stock creates a range in the first 10 to 30 minutes of trading in a day. This is calling Opening Range. The highs and lows of this timeframe are taken as support and resistance.
1. Buy when the stock moves above the Opening Range high.
2. Sell when the stock moves below the Opening Range low.
General Rules – Applicable for both Buy and Sell:
Opening range is defined by the high and low made in the first 15 minutes. You can set the duration as per your wish, it could be either first 5 mins range, 10 minutes range or 15 mins range.
Rules for Buy
Buy when the stock price crosses above the opening range.
Where to keep Stoploss
Initial Stoploss – Low of the Opening Range.
Rules for Sell
Sell when the stock price crosses below the opening range.
Where to keep Stoploss
Initial Stoploss – High of the Opening Range.
High Probability Trade Setups
Below additional conditions will give a high probability of success:
The Opening Range breakout is above previous day’s high for buy.
The Opening Range breakout is below previous day’s low for sell.
Trade is in the direction of higher time frame charts (15 min /30 min).
Overall Market is moving in the direction of the trade.
Opening range breakout happens after a brief period of consolidation.
Important Additional Points
If the opening range is too wide, better do not trade ORB, since the SLs will be very far in our system. You can use other trading systems in such a case.
Avoid Opening Range Breakout trades in case of a heavy news flow day. ( Like Inflation, Manufacturing, Policy decisions etc.). Use other trading systems once the market settles down after the news.
Even if the above rules looks a bit complicated to you, then follow just one simple rule.
Mark the High-low range for 1st 15 mins,
Go Long if the High range is broken, with a stop loss as low range.
Go Short if the low range is broken, with stop loss as high range.
Buy Example:
LT Stock price - 1st 15 mins range is marked below. The stock has given a breakout by moving above the high range. Hence we go long at that level and exit the stock at the end of the day with profit.
MARUTI - Short trade example. The stock has given a breakdown by going below the 1st 15 mins range low. So we make a short trade here and make a profit.
Active trading is the act of buying and selling securities based on short-term movements to profit from the price movements on a short-term stock chart. The mentality associated with an active trading strategy differs from the long-term, buy-and-hold strategy. The buy-and-hold strategy employs a mentality that suggests that price movements over the long term will outweigh the price movements in the short term and, as such, short-term movements should be ignored. Active traders, on the other hand, believe that short-term movements and capturing the market trend are where the profits are made. There are various methods used to accomplish an active-trading strategy, each with appropriate market environments and risks inherent in the strategy. Here are four of the most common types of active trading and the built-in costs of each strategy. (Active trading is a popular strategy for those trying to beat the market average.