Nifty July Expiry Analysis

[ Thursday, July 31 | 0 comments ]
  • FII's bought 16225 contract of Index Future worth 638 cores, 33.3  K Long contract were added  and 16.9 K short contracts were added by FII's. Net Open Interest increased   by 50.2 K contract.FII's have net 89 K contract of Shorts open and 85.8 K Contract of Long open in current series. If we removed last 3  days of shorts added by FII, we are left with 48K contract which were majorly added 01 July to 10 July when Nifty traded in range of 7677-7809, so 7677 below these shorts will become  profitable so FII's will try to push index below 7677 to exit the trades in profit, unable to do so we can expire above 7800 so next 2 days we can see a 150+ move in market.
Nifty made low of 7707 before bouncing back furiously and close near 7791, Bounce was on back of low volumes and will not be surprised nifty retracing the whole up move tomorrow. 34 HEMA @ 7773

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Trading Comparison: Amateur Traders Vs Professional Traders

[ Tuesday, July 29 | 0 comments ]
“A trader is the weakest link of any trading system" (Alexander Elder)
After 4 years of winning and losing hundreds of trades and blowing out several accounts both demo and live, trying different systems, experimenting with many strategies, I am still unable to achieve my trading goals and become a consistent profitable trader. I wonder why I am taking two-step forward one step backward and one step forward two-step backward and pretty much in league of majority of traders who are struggling to make consistent profit day in day out.
I decided to dig deep to find out reasons for my failure, as such I started reading several books and interviews of successful professional traders, soon I realized that my failure lies in my trading approach. I am still thinking & reacting on emotion, fear & greed like majority of amateur traders and that I need to change the way I think and get rid of this herd mentality, otherwise I won’t be able to become profitable trader, no matter how hard I try.
"If you want to have a better performance than the crowd, you must do things differently from the crowd" (Sir John Templeton)
Professional traders think different from rest of the crowd majority of the time and that is why they are consistently profitable over longer period. Lot of
these traders have started with small capital and made big fortunes by trading consistently year after year. Although their trading style and system is different from each other, some are technical traders, some are fundamental traders and some mixture of both.

Patience & Discipline

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Trading vs Gambling – Is there a Difference?

Put a  trader in a group of non-traders and the conversation will inevitably turn to gambling.   At a recent family gathering I was asked about my share trading by an interested (or polite) family member, to which I responded with my usual cheery, ‘Good thanks!”
I had just mentioned that we were planning on selling our house and using the money to trade with, when a bystander with good hearing said rather loudly ‘Put it on Black!
These situations come up rather a lot, in fact some of my closest friends have expressed their thought that in the stock market it’s all luck and pretty much a 50/50 bet.  And for them, it probably would be.  Meanwhile I quietly bit my knuckle (hard) to stop myself from climbing a-top my soap box.  Because it was a dinner party, after all.
It seems the general population (in particular men in their forties on grand final day) don’t seem to consider a few quite important points, including but not limited to the fact that -
  1. It is highly offensive to be considered a gambler, particularly when you’ve just said your selling your house for funds.
  2. As traders we might have a slightly better idea of how the markets work than they do.
  3. A ‘girl’ in her extremely early thirties could have any knowledge at all of things they themselves don’t understand.

So, what is the difference between Trading and Gambling?

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Nifty Weekly Analysis for July Expiry Week

[ Sunday, July 27 | 0 comments ]
Last Week we gave Chopad level of 7685, Nifty did  2 target on upside rewarding trend follower with 150 points. Lets analyze how to trade Nifty in Expiry week.

 Nifty Hourly Chart

nifty hourly
Hourly charts shows have been trading in a channel, now currently trading at the channel bottom which is around

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Trading Lesson Learnt From my Trading Guru

[ Saturday, July 26 | 0 comments ]
The day I started trading I hoped to make lot of money, and ultimate goal of every trader is to trade for a living. My Guru asked me how you are going to make "a lot of money", I said some blah blah but Honestly speaking I did not had any concrete answer.  Somewhere in the back of my mind I secretly hoped I will catch the one big move that will make me enough money to trade like Big boys. Unfortunately the odds of catching the "big one" are probably the same as those for winning the lottery.
I hope many traders who are trading or willing to start trading will be facing with the same dilemma and confusion so today am sharing few fundas i got from my trading guru. Use them and see the change in your trading.

Have a realistic trading goal

First and foremost thing my Guru told me  "I should have a trading goal". The goal did not have to be a large one like being a millionaire in 1 year, Trading goal should be simple and realistic. Having a trading goal would help me focus better on the markets. I would come to see better opportunities (note this is not the same as “more opportunities”) as well as managing my money better. Since I did not have a very large trading account at that point of time ,My Guru suggested to start with a goal of netting 2500 per week out of the markets. So If I could do this consistently for four weeks, I should be able to net Rs1000 a month which is almost 10% return on capital.
I told my Guru "Sir its not possible for me to live of  Rs 10000 a month !". He laughed at my innocence and told " Bramesh "  If you could consistently net 2500 a week, using single contracts,

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