tag:blogger.com,1999:blog-2278954066508341391.post1759954452314830728..comments2023-11-15T12:37:54.936+05:30Comments on Indian Stock Markets: Update for 30 Jan 09…S S Cheemahttp://www.blogger.com/profile/08648402715597232403noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-2278954066508341391.post-18256806635286253052009-01-30T20:39:00.000+05:302009-01-30T20:39:00.000+05:30Thanks for the tip Uma - I will study then during ...Thanks for the tip Uma - I will study then during this weekend.S S Cheemahttps://www.blogger.com/profile/08648402715597232403noreply@blogger.comtag:blogger.com,1999:blog-2278954066508341391.post-45647356766188961922009-01-30T19:58:00.000+05:302009-01-30T19:58:00.000+05:30Oh by the way....test some far out calls and puts ...Oh by the way....test some far out calls and puts of Reliance. The nifty support levels are falling but Reliance support levels are moving up. Their whole goal is to take Reliance as high as possible while keeping the rest of Nifty stable. Operators want to impress the market with a good hold on this counter.Umahttps://www.blogger.com/profile/05904319846900391682noreply@blogger.comtag:blogger.com,1999:blog-2278954066508341391.post-53173459424587608242009-01-30T19:50:00.000+05:302009-01-30T19:50:00.000+05:30I think you have really mastered the art of using ...I think you have really mastered the art of using these simulators and getting the best out of them. I am completely useless at that stuff and usually pour good money on my hare-brained tests rofl.Umahttps://www.blogger.com/profile/05904319846900391682noreply@blogger.comtag:blogger.com,1999:blog-2278954066508341391.post-70328113755654881942009-01-30T19:46:00.000+05:302009-01-30T19:46:00.000+05:30cheema, I sure hope you make money with options, b...cheema, I sure hope you make money with options, but don't focus there too much. Only some very volatile counters work out and patience is a big part of making it work. Why? Because where you entered will determine how much range you get. (This is where bollinger bands come in. <BR/>For more volatile counters (or more volatile phases of market) set the standard deviation at 2.5 or much higher. <BR/>These days all I do is trade small quantities of stocks with a great deal of discipline. For instance, I have 5 shares of Reliance which I held since about 1110. I still hold. I made Rs.1,000 (notional) there. Similarly Educomp recently gave me 2,300 on 10 shares shorted. (Of this I have lost Rs. 500 on shorting Educomp lately).<BR/>It's just SO much easier to control emotions when I hold only 4-5 shares. What are you going to do if the price gets too tempting? Sell two shares? rofl. And why panic...? SL is typically 200-300 bucks on the position. It just works for a complete chicken like me.Umahttps://www.blogger.com/profile/05904319846900391682noreply@blogger.comtag:blogger.com,1999:blog-2278954066508341391.post-12800779324497796912009-01-30T12:11:00.000+05:302009-01-30T12:11:00.000+05:30for example - ntpc is overbought - so it was a goo...for example - ntpc is overbought - so it was a good idea to buy put yesterday and buy a call - when it is 5 rs in red today.<BR/>and one more thing - i talked about a straddle and gave an example of strangle - so pardon me for that.S S Cheemahttps://www.blogger.com/profile/08648402715597232403noreply@blogger.comtag:blogger.com,1999:blog-2278954066508341391.post-88528192663539506822009-01-30T12:08:00.000+05:302009-01-30T12:08:00.000+05:30Uma: Hi and welcome. Uma some lessons from running...Uma: Hi and welcome. Uma some lessons from running simulations on options. Try to gauge the direction of the market - let us say that I was bullish two days back - perhaps the right time to take a put was when the market went to the overbought territory - when i became reasonably confident that the market will fall - and it does in one or two day time now invest in call. What happens - especially in a straddle is that - if the stock has an ATR of 10 Rs (ntpc has an 14 day atr of 10 rs) and the total cost of investment is 12.5 (190 call 5.5 and 180 put 7) within two days of directional move in any good direction gives you money. Well as to how i time out is - without becoming greedy and seeing the momentum indicators in one of the extremes. On the other hand - if the momentum is extreme in one end only that position can be loosened so that a reverse direction earns you one or two more brownie points. The simulations are giving me profit in every other trade with about 50 percent accuracy - now all have to incooperate is the time decay accurately so that I can be better and start actual trading in options seriously.S S Cheemahttps://www.blogger.com/profile/08648402715597232403noreply@blogger.comtag:blogger.com,1999:blog-2278954066508341391.post-30796590429865547292009-01-30T11:42:00.000+05:302009-01-30T11:42:00.000+05:30cheema, your charts are becoming highly populated ...cheema, your charts are becoming highly populated with technicals...but they're better and better :)<BR/>Am going to watch NTPC. <BR/>It's kinda hard...my long-term outlook is bearish and short term is bullish (Reliance only)Umahttps://www.blogger.com/profile/05904319846900391682noreply@blogger.com