Thursday 11 April 2013

Today's Signal

Good Afternoon!

Nifty Futures Levels to watch out for:

Buy Above: 5550.25 SL: 5531.64 Targets: 5566.1, 5584.76, 5603.46, 5622.18
Sell Below 5531.64 SL: 5550.25 Targets: 5515.81, 5497.26, 5478.73, 5460.24

Buy/Sell Nifty naked Call/Put, if price goes above buy price Or, price goes below Sell price. Please follow my strategy updated in previous posts.

Remember: Trend is your friend

Happy Trading...

Cheers!

DayTraderBT

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Following group was created to add members who would be interested in my Daily
Signals. 

Good thing about this is Members will get automatic emails as soon as this group is updated.


Happy Trading...

Cheers!

DayTraderBT

Today's Performance

Nifty started the day off in typical fashion, moving sideways. From 12 noon onwards, real action began as usual with the Nifty, first falling and testing the 200 sma. Then price could not sustain below the 200 sma and it eventually started heading north.

We had our Buy positions ready as soon as Nifty breached the Buy level, going well with our strategy to trade with the trend and not against it. Price broke the Nifty futures Buy level at 13:50 hours, and went on till TP1 and went further higher still. We closed all our positions as soon as price started to fall with relatively strong momentum and started to go below TP1.

After retracement to the Fibonacci 38.2 level, price started to go up again and went past TP1 again for the second time in the day. However, could not go beyond the day's high as the trading volumes were wearing off quickly as it was close to market close. Picture A below shows the Nifty Futures and Picture B shows the Nifty 5800CE.

Picture A

Picture B

After today's price action, the Nifty has a slightly upward bias. This view is justified by the fact that yesterday's low was not breached. On the upside, yesterday's high was breached and Nifty has closed above yesterday's high as well. Add to this, the 100 and 200 sma's are both looking up.

Profit for Today's Signal: 
1st Trade: 4 lots of 5800CE bought @ 10.00 per unit. Exited all 4 lots when price fell below TP1 @ 11.5
(4 * 50 * 11.5) - (4 * 50 * 10) = 2300 - 2000 = 300 for 4 lot
2nd Trade: 4 lots of 5800CE bought @ 10.00 per unit. Exited all 4 lots when price fell below TP1 @ 11.5
(4 * 50 * 11.5) - (4 * 50 * 10) = 2300 - 2000 = 300 for 4 lot
That is: 300 + 300 = 600 for the day
Gross Profit %: 30%

Lot of things to look out for tomorrow. Hope you were playing with the trend today.

Happy Ugadi...

Cheers!

DayTraderBT

Wednesday 10 April 2013

Today's Signal

Good Afternoon!

Nifty Futures Levels to watch out for:

Buy Above: 5587.56 SL: 5568.89 Targets: 5603.46, 5622.18, 5640.94, 5659.73
Sell Below 5568.89 SL: 5587.56 Targets: 5553.02, 5534.40, 5515.81, 5497.26

Buy/Sell Nifty naked Call/Put, if price goes above buy price Or, price goes below Sell price. Please follow my strategy updated in previous posts.

Remember: Trend is your friend

Happy Trading...

Cheers!

DayTraderBT

Today's Performance

Nifty was choppy today without any clear direction evident. It closed below the low of yesterday, and wasn't able to break the high of yesterday. This means, it is unclear at this stage where the Nifty is headed. The general bias, however, is still down.

Today up until 12 noon, Nifty Futures was listless. It tried to break past the 100 sma after noon, however, faced stiff resistance and fell down convincingly to break previous day's low, only to make a late session recovery to head north.

Going by the overall downward trend approaching 12 noon, our Sell orders were activated, the moment Nifty Futures broke the Sell level. However, the downward movement could not take further steam and fizzled out just a few steps from TP1.

Then, it made an upward movement in leaps and broke past our Buy level. It continued its climb and almost reached TP4!

The question is: Should I have taken this late upward surge? Answer is a resounding NO.

Here's why: Firstly, it would have been against the overall trend and Secondly, price was below the 100 and 200 sma and only just crossed the 20 sma, when it broke our Buy level. If you have been  following my approach / strategy, you would have never traded against the trend.

In the long run, if you are honest and true with your strategy, you are bound to achieve greater success, as the Number 1 reason for failure in financial market is because of constant picking and changing strategies every now and then. Eventually, they end up losing money most of the times; and go permanently out of the market never to return again.

This is a business like any other. Requires immense patience, discipline and mechanical focus, to achieve more gains and few loses, in the long run. That's how you build your equity.

Profit for Today's Signal: 4 lots of 5300PE bought @ 18.5 per unit. Exited all 4 lots @ 16.5
(4 * 50 * 16.5) - (4* 50 * 18.5) = 3300 - 3700 = -400
Gross Profit % = -11%

Quote of the Day: Cut your losses short; and let your Winners run.

I'm interested to know how you would have approached the levels I gave out today. Write into daytraderbt@gmail.com

See you again tomorrow. Hopefully, will see better action.

Have a good one, Everyone...

Cheers!

DayTraderBT

Tuesday 9 April 2013

Today's Signal

Good Afternoon!

Nifty Futures Levels to watch out for:

Buy Above: 5513.06 SL: 5494.51 Targets: 5528.87, 5547.47, 5566.1, 5584.76
Sell Below 5494.51 SL: 5513.06 Targets: 5478.73, 5460.24, 5441.78, 5423.35

Buy/Sell Nifty naked Call/Put, if price goes above buy price Or, price goes below Sell price. Please follow my strategy updated in previous posts.

Remember: Trend is your friend

Happy Trading...

Cheers!

DayTraderBT

Today's Performance

Awesome Day! Wasn't it?

To start with, today we had a more than decent Gap Up opening, and that caused our 100 and 200 sma's to automatically show an upward trajectory. So, since 100 and 200 sma's were looking up at around 12 noon today, we would only be looking for Buy opportunities in Nifty Call options.

While I was busy publishing today's signal, in the background however,  Nifty Future had already breached the Buy price level of 5606.26. This is a classic example of a situation where price is higher than the Buy level at time of publishing today's signal. What would you do then? Well, what I would do is, wait for price to come into our consolidation zone (this zone is between the buy (5606.26) and sell (5587.56) levels) and then break either up or down with relatively strong price action candle.

In this case, price traveled up for a little while, then fell right back into our consolidation zone. Then, it broke past the Sell level with a strong move downward. You would have entered right at the moment price broke past the Sell level. This strong move sometimes is reason enough to enter a position. So, entry was at the point the candle marked by the vertical line' next candle (12:55 pm) breached the Sell level marked by horizontal line in red as shown in Picture A below.

Picture A (Nifty Future 5min candlestick chart)

So after 12:55 pm, I would go and Buy any of one of the top 3 Nifty Option naked Put strikes w.r.t. Open Interest shown at that time. Picture B below shows a vertical line just before the candle at which today's position was entered in 5300PE option:
Picture B (Nifty Option 5300PE 5min candlestick chart)

From Picture A above, we can see Nifty Futures level kept falling and continuously hit all our Target Profit levels. Blue horizontal lines are TP levels. Correspondingly, we see 5300PE keeps moving up. We would have closed 1 lot each after hitting each Nifty future level. Today, we hit all our TP levels.

Profit for Today's Signal: Bought 4 lots of 5300PE @ 12:55 pm @ 8.80 per unit. Exited 
First 1 lot @ 10.00 = 1.2 per unit Or 60 per lot, 
Second lot @ 12.00 = 3.2 per unit Or 160 per lot,
Third lot @ 17.40 = 8.6 per unit Or 430 per lot,
Fourth lot @ 18.00 = 9 per unit Or 450 per lot
Total Profit: 60 + 160 + 430 + 450 = 1100 Or 11000 for 40 lots
Gross Gain % = 1100 / (8.8 x 200 = 1760) * 100 = 62.5%
Note: Please deduct brokerage to arrive at Net Profit.

Well, it was a good day to take home some profits after 2 days of almost no activity. Hope you were part of this run today. 

Please feel free to write into daytraderbt@gmail.com with your comments or feedbacks, I'm all ears!

Have a good day ahead...

Cheers!

DayTraderBT

Monday 8 April 2013

Today's Signal

Nifty Futures Levels to watch out for:

Buy Above: 5606.26 SL: 5587.56 Targets: 5622.18, 5640.94, 5659.73, 5678.54
Sell Below 5587.56 SL: 5606.26 Targets: 5571.67, 5553.02, 5534.4, 5515.81

Buy/Sell Nifty naked Call/Put, if price goes above buy price Or, price goes below Sell price. Follow my strategy updated in previous posts.

Remember: Trend is your friend

Happy Trading...

Cheers!

DayTraderBT

Today's Performance

Nifty was lackluster again today, going sideways mostly. Were there any trade opportunities?

None. Why? Because, going by my Strategy (posted in earlier posts), price did not break the Sell level even once. It did breach the Buy level though. However, from what we had learnt earlier, we would not have taken that trade as it was against the prevailing trend.

Net Profit: 0 (No Trade)

Note: You don't have to get into trades every single day, to be a successful day trader in the long run. So, sometimes no trades are a blessing in disguise.

Can we expect a favorable breakout in our trending direction, tomorrow? Only tomorrow will tell, but, we will keep our eyes open for it...

Cheers!

DayTraderBT

Sunday 7 April 2013

Today's Signal

Nifty Futures Levels to watch out for:

Buy Above: 5568.89 SL: 5550.25 Targets: 5584.76, 5603.46, 5622.18, 5640.94
Sell Below 5550.25 SL: 5568.89 Targets: 5534.4, 5515.81, 5497.26, 5478.73

Buy/Sell Nifty naked Call/Put, if price goes above buy price Or, price goes below Sell price. Follow my strategy updated in previous posts.

Remember: Trend is your friend

Happy Trading...

Cheers!

DayTraderBT

Friday 5 April 2013

Today's Performance

Nifty was lackluster today going sideways mostly. Were there any trade opportunities?

None. Why? Because, going by my Strategy (posted in earlier posts), price did not break the Sell level even once. It did breach the Buy level though. However, from what we had learnt earlier, we would not have taken that trade as it was against the prevailing trend.

Net Profit: 0 (No Trade)

Note: You don't have to get into trades every single day, to be a successful day trader in the long run. So, sometimes no trades are a blessing in disguise.

Happy Weekend to All...

Enjoy IPL, if nothing else...:)

Catch you on Monday...

Cheers!

DayTraderBT

Thursday 4 April 2013

Today's Signal


Nifty Futures Levels to watch out for:
Buy Above: 5568.89 SL: 5550.25 Targets: 5584.76, 5603.46, 5622.18, 5640.94
Sell Below 5550.25 SL: 5568.89 Targets: 5534.4, 5515.81, 5497.26, 5478.73

Buy/Sell Nifty naked Call/Put, if price goes above buy price Or, price goes below Sell price. Follow my strategy updated in last post.

Happy Trading...

Cheers!

DayTraderBT

Today's Signal (Example Trade)

Today's Nifty Futures levels to watch out for:

Buy Above:     5643.76             SL: 5625          Targets: 5659.73, 5678.54, 5697.39, 5716.28
Sell Below:     5625                  SL: 5643.76     Targets: 5609.06, 5590.35, 5571.67, 5553.02

Buy/Sell Call/Put options as soon as price crosses the above Nifty
Futures Buy(5643.76) / Sell(5625) limits.

Strategy: We will look for price to break, with reasonably good Price Action candle, for the Buy level (5643.76) or Sell level (5625). Please refer below pictures for reference. Picture A below, shows Nifty Future 5min candlestick chart and Picture B below shows Nifty-PE5500 strike 5min candlestick chart.


Picture A

Picture B
Looking at Picture A, we can clearly see price broke the Buy Level of 5643.76 and went up. However, we will not take this trade as the overall trend as per the Moving Averages is slanted down. You may get into a counter trend, however, better to be with the trend. Remember, the adage: Trend is our Friend.Well, it holds very true here, particularly because, the SMA200 and SMA100 are both pointing down when price breaks Buy level.

So, we wait for Price to break our Sell level of 5625. This would be playing with the trend. Price breaks the Sell level at 12:50 PM IST. We immediately go and open a Buy call for any of the Nifty Put options available. Always go for the strike price that has Open Interest in the top 3 in terms of number of contracts shown in OI. Here, I had chosen Nifty PE5500. You can easily see from Picture B above, the PE Option price went on going up from 12:50 pm onwards, after a small break. 

After taking this position, we will keep monitoring the Nifty Future price levels and as soon as a TP level hits, we will immediately close 1 lot. If price hits TP1 and shows signs of going down further, exit all lots at this point with a small loss and don't wait till the actual SL is hit. However, if price keeps moving up and keeps hitting subsequent TP levels, we will close 1 lot at each TP level, till all our lots are executed. 

In this case, since we have 4 TP levels, it would be good to have lot sizes of multiples of 4 for easy calculation and quick closure. Example: 50 units make 1 lot. So, the lots should be in 4 multiples, like 200, 400, 600, 800... etc. depending on how much you wish to invest.

In the above live example, todays signal, we see price had hit TP1 and then went further down, after a small retracement, and closed tad above the low, but surely below TP1 level. So we would have closed all positions today at around 3:15 pm for a nice profit. 

Profit for Today's Signal: We entered Nifty PE5500 at 33.35 and exited at 44.67. Difference of Rs. 11.32 per unit bought. That translates to Rs 566 per 50 units lot. That's, Rs 5660 for 10 lots for 33% gain. You can deduct your brokerage amount from this to get your Net Profit for the day.

Hope you have understood this strategy. For any queries / suggestions/ feedback's  please do write into daytraderbt@gmail.com

I will be looking forward to your emails...

Happy Trading...

Cheers!

DayTraderBT

Tuesday 2 April 2013

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Introduction

Hello & Greetings my Fellow Countrymen!

There is money to be made in the Indian Stock Markets. Only thing that is required is a decent strategy, loads of Discipline and Patience. Discipline here means discipline to accept the inevitable loses that can happen every now and then and are so very part and parcel of trading. And, Patience to stick to your winning positions as much as possible.

In this Blog, I will be updating Daily, Buy/Sell Signals for Nifty Futures. I use these levels to Buy/Sell naked Call/Put options and Nifty Futures.

Signals will be updated every trading day at around 12 noon.

Example Signal:
Buy above 5738.06 SL: 5719.14 Targets: 5754.13, 5773.11, 5792.11, 5811.15      
Sell below 5719.14      SL: 5738.06   Targets: 5703.1, 5684.23, 5665.39, 5646.58  

How I Trade:
At around 12 noon, after looking at the levels for Nifty Futures, I keep a close eye for price to break upper Buy price or lower Sell price. As soon as price crosses any of these levels, I immediately take 4 lot positions in naked Call/Put options. I also sometimes initiate 4 lot positions in Nifty Futures, however, not always.

Then, I wait for price to hit the TP levels. At each hit of TP level, I close out 1 lot position. Then, immediately set SL to Breakeven + brokerage. This will make it a risk free trade for rest of the day.
If price hits higher TP levels and decides to go down, don't hesitate to sell all remainder lots at the lower TP level and exit the market.

Tip #1: Do not over trade
Tip # 2: Be disciplined and strictly follow this method.
Tip # 3: Repeat Tips # 1 & 2 every trading day

Happy Trading...

Cheers!

Rakesh