RM says
Let me add another variation, what if the trader is poor or miserly and can't afford more than 10000 Rs. Perhaps he/she could try Nifty ATM options mostly priced around 100. Beginning with 2 lots a day and earning 5 points a day does not sound a big deal. But at the end of 240th trading day, the aforesaid poor trader's trading volume may equal the entire day's trading volume of ATM options as on date.
This strategy is not recommended for big money guys as they will be starved for volumes on the 200th day itself (small is beautiful)!
(i have elevated his value adding comment in the post below onLet me add another variation, what if the trader is poor or miserly and can't afford more than 10000 Rs. Perhaps he/she could try Nifty ATM options mostly priced around 100. Beginning with 2 lots a day and earning 5 points a day does not sound a big deal. But at the end of 240th trading day, the aforesaid poor trader's trading volume may equal the entire day's trading volume of ATM options as on date.
This strategy is not recommended for big money guys as they will be starved for volumes on the 200th day itself (small is beautiful)!
Hmmm, now that i can see billionaire-dom approaching fast let me get busy in finding a sure shot way of earning 5 points a day.
Bye guys. :)
Bye guys. :)
making 1 crore from 1 lac in 1 year with 10 points Nifty profit a day since the variation has good substance, as always. I have posted the extract table of his calculation with no modification to number or calculation. He has great thoughts! and soon we will post the other great sharing from assortZ on compounding using commodities trading, in the series of mathematical compounding articles on trading and ploughing back ... mo h)
RM's table of Nifty Options 5 points a day with Rs.10000 making in 240 days ... is given below
Chart of RM's table of Nifty Options 5 points a day with Rs.10000 making in 240 days ... is given below
To sum up, Nifty ATM Options with a scalping of 5 points a day, for 240 trading days can see an
initial investment of Rs.10,000 can gain to Rs.1,21,73,95,737 ...
Ofcourse, the concept here is about the cumulation, and not about how to get that 5 points, which is another topic.
Hi Mo h
ReplyDeleteThis is not fair man, it was not meant to be a post!
Will think of a suitable revenge. :)
Lets see the dictionary ...
ReplyDeleteFAIR = Beauty, Exhibition, Good .... ooops i am closing my eyes to those that say evenhanded, just, blah blah only ...
Yes boss, its a BEAUTY, well EXHIBITed to my limited capacity, GOOD display, EVENly done in HANDy work, JUST now ... :)
wow wow a suitable revenge in the form of may be a postable comment coming up soon i suppose,,, gimme gimme :D
and, that comment is signed blissfully by
ReplyDeleteOJN EDITING COMMITTEE ... with a ;)
Good thoughts RM.. always welcome such nice thoughts from you and wish to hear often :)
ReplyDeleteAm not fainted with the figure what RM has projected. Since I tasted small part of success with a disciplined approach using mechanical trading, I can assure here that anything is possible and it purely depends on how you work-out and how you follow your work-out.
I see the workings from Moh and RM only as the guidance and eye-opener. I am not looking for the projections shown but the way the projection is achieved. Even if we reach 10% of the landmark shown here, what else we need ? :)
hi assortz,
ReplyDeletepicking the thread from the last comment reply to you :
I would add your thoughts too here, assortz, 'cos I remember your mentioning a part of my post in your thoughts earlier. And, as RM writes, we were working on concepts and used to laugh at some outcomes of our calculations. It was adding fun to the number crunching.
The approach is from an entirely different dimension, to add flavour.
I was already expecting your Commodity orientation post in the coming days, as your time permits to prepare.
The set will go along well as a thought provoker.
What you told me about this on mat practice are all valid feasibilities and variations.
We will blend it to your article for getting a more filled picture.
regards
moh
Hi assortZ, mo h
ReplyDeleteActually 5 points a day should be possible to make from options. A friend at vtrender has been trying to teach me (and all others in the room) the trick to trade options. His style is to buy a put at a strong resistance (and call at a strong support), the bounce from such resistance generally gives 3-5 points immediately, he books part for 5 points and puts tsl at cost for the balance, so if the trade goes against him, he has some popcorns to keep and when the trade goes in his favor he gets pumpkins. He calls himself a popcorn trader. :)
But one has to be very fast, sometimes the price moves in your favor and back within a few seconds! Hope someday I develop that lightning speed. :)
regards.
rm
hi RM, yeah, room-mates at vtrender are the most dynamic trade-room group we will ever come across. each one is equipped already with good TA, funda, or understanding of options, and downright street smart executions.
ReplyDeleteJanak would also have got used to options what he started trying last year.
It gives lots of real educational value, the vtrender room.
krish writes some fabulous observations.
for me options is an unfamiliar territory but for superficial ideas.
but you have been dabling with it for quite sometime.
i still remember the last 5400 to 5200 nifty days .... :) and the few lots of destiny which saw their destiny, just like now in a rush.
Therefore, with your prior treading and trampling options, you will be able to squeeze them to yield.
Its not popcorn if it is allowed to salt in a barrel,
the packet will become the barrel, which will become a vat, and the of 240days will make it the lager will be more imbibable than the popcorn, if he throws those popcorns into your spreadsheet,
and
if he decides to take the pumpkins for his immediate self.
:)
regards
moh
yeah, the speed factor is a big stuff ...
ReplyDeleteby the time the numbers get typed in the price may travel.
especially with such narrow range if caught in a momentum. Olden remington days typing schools needed .... for a higher :)
I am an oldtimer, learnt typing on remington and its cousins! But brain works at rather a leisurely pace. :)
ReplyDeleteRM,
ReplyDeleteHas anyone discussed Interactive Brokers in your trading room ?
I think they have some programmable order placement.
I dont know in what form they have, but in the advanced form one will be able to place at one stroke a chain order of consequences.
you can check it out,,, it will come handy for those fastscalpers too. Brokerage may not be like RKG, but the benefit may outweigh. All depends on what they are and what they do. It may be another hype living in advertised and lobbied glory too.
regards
moh
ahh hah, i did not know you were remington and raleigh bicycle timer ... :)
dont worry RM, if you put your brain and my brain on a table on a crawl (you cannot say on a race, right), your brain would have creeped ahead of my brain and reached across the 3 feet earlier
ReplyDelete(obviously the tournament has to be across the Width only, since crossing the Length will sound like a marathon)
:D
on a faster note : yep, agreed about individual reaction mechanisms work at different response time. And, i am with you in telling that and being that
:)
@moh
ReplyDeleteThe legal status of these foreign brokers is not very clear. But Kris tells that our own Zerodha (which charges flat 20 rs per trade regardless of number of lots) and uses NSENOW trading interface has a very good advance order system.
ah great, thats winning on both brokerage as well order placement ease counts ..
ReplyDelete:)
then at 20 any lot they lead over RKG 9 @ also.
you can consider discussing with them, RM.
I am not yet back on terminal during mkt hours. Not back in even positionals except some long positionals. Else i would talk to them.
regards
moh
I will moh, just let me bring my brain at par with my fingers first. :)
ReplyDeleteYou will, RM, you are in the best company of matured people now, unlike ever before ...
ReplyDeleteUse it man, be with them and do ...
:)
regards
moh
i mean, do what they do,
ReplyDeleteand make money and send me part of it
:D
money? what money? I ain't making any. :)
ReplyDeletedont cheat, cheater, police police, this man is hiding the moneybag and not allowing me to pinch some off him
ReplyDelete:D
I idea is super and it looks very easy to get 5 points a day.I am doing options in Tatasteel,dlf,idfc,hindunilvr etc., for the past one year.What i learn t is whenever a new entrants put a buy order some one will place buy order with ten lots and sell order 10 lots with a price difference of just 20 paise .We may think that our price order will not be executed.Hence,we may increase the buy price and it will be executed.Immediately the order of 10 lots in both the side will vanish or they will reduce the buy price by 20 paise.I have noticed that when i place order for a particular price an addition of 5000 will be there immediately and if i cancel the order he will also cancel it.Hence, we must be cautious
ReplyDeletewow, Mr Jagannathan,
ReplyDeletethat must be a perplexing situation, making you wonder whats going on ...
unless this happens at peaks and valleys of price action.
one possible analysis what may help you understand this: that is,
It would be worth checking if our entry is at price turning points, that somehow we end up at after making decision to enter trade.
This can be found out when you isolate the situation time, and try to look at the chart and tick data after the market hours, focussing on 10 minutes either side of our entry time, so that we will span a 20 min trading time.
If our entry is indeed at the shoulder of the price action turning point, then it will help to workout why the trade entry is delayed, and whether it can be made early, or dropped if it is closer to turning point.
You are approaching your trade in a matured way. And so this will assist fine tune it to yield better.
Another option oriented possibility is the acceleration in option price when the derivative:option ratio gives it the impetus when influenced by future's action.
regards
moh
Good to read and see
ReplyDeletehi Pradeeep,
ReplyDeleteyes our friend RM is down to earth with his hallmark simplicity, and has put his thoughts on the effectiveness of cumulative trades here well.
:)
wish you great market times!
regards
moh
All,
ReplyDeleteI am using this 5 Point earning with respect of Volume base trading in Nifty future and trading ith same I am getting 90% positive resolve with earn 5 Point daily with set 5 Point stop loss too.
you stop loss trigger once but u will gain more with the same after you get 5 point profit switch you position to 5 point ahead and so one .
trade only once i a day and stay away if your r in loss or profit ...
hi pradeep :)
ReplyDeletethe idea you follow looks good in step laddering the trades ...
with the bottom protected by a tight stop.
:)
wish you the best in your trades!
have a great weekend!!
regards
moh
yeah, that one trade a day is also good checkpost
ReplyDelete:)
from getting lost in runaways
@Pradeep
ReplyDeleteDon't forget to share 10% profits with the promoters of the idea. :)
Happy weekend!
@moh
Let other's become billionaires, we'll earn our millions thru the royalty payments, Happy weekend!
:)
hey rm :)
ReplyDeletetalk of the ... ... ... ... ...
and HE is here :)
good to see you back at your post, man
we also keep exercising our option to keep a profiling on you, its mind over 10% on this 10% tooooo :)
pradeep got a good idea cell on using this concept, while capturing the wind and keeping off from the storm, trying to breeze through!
have a great weekend you too!
regards
moh
Today Dated 30 April I am quit Bearish as per the indication of volume.
ReplyDeleteMay be i am wrong.
i prefer NSE chart since it is more direct ...
ReplyDeleteNifty live intraday and EOD charts at NSE
you will get indicative volume there.
moh
also, what you refered does not show volume, it shows advance decline issue (how many stocks of nifty advancing and how many falling compared to the earlier day close), pradeep.
ReplyDeletethis info too you can see at NiftySparks page of NSE, along with list of which stocks are doing what.
that will give you a more complete picture.
regards
moh
Its quit difficult to realized the nifty moves.some time volume is in favor or sometime now , Please suggests your thought on this please...
ReplyDeletehi pradeep,
ReplyDeleteat best of times the market keeps us on tight toes by its inertia and the substance of randomness, the inherent nature of it ...
my small perception as to current period is :
there is high indecisiveness in arriving at fair value, this keeps it sideways for past few months.
now this sideways band is tightening with the top having fallen to midline of starting part of the triangle, while the bottom is holding the 200sma horizontals, with few excursions below it and most levels held at 200ema and 100ema.
this movement is slowing squeezed towards an apex.
here a breakout can make the market take a direction, which way will depend on other factors though 200sma at bottom is a comforting factor for now.
till this brkout, this indecisive sideways, with wideranging rapid volatile movements.
this gives the channel trading potential with builtin risk of whipsaws.
this strategy will look for quick entries and booking profits.
this will also need tight watch for breakout which will carry price further.
and so the need to keep stoploss always, above and below the channel to protect channel trade from breakout.
another potential is the intraday breakout trades.
breaking out of opening range, camarilla levels.
here again a quick booking profit on gained momentum will help.
here a stoploss below breakout level, or below trendline, if drawable.
@moh
ReplyDeleteThanks man!
I wish that you could write a piece about your perception of the market on weekly, monthly or "whenever time permits" basis. One pair of eyes will be on constant lookout for it. :)
regards.
rm
hey RM, :)
ReplyDeletegood to see you in full form!
dont worry, you got multiple pairs of eyes watching over you in the traderoom ... :)
his anxiety made me close the other project excel files and open up the comment box to reply.
the charts show a tight squeeze below 20ema above 200ema, rm.
and it is holding this week above the gaparea band top of 5225, but is below the falling line.
:)
@moh
ReplyDeleteDaytraders are being squeezed out, pressed between your ema's. :)
Shai was joking in the trading room that there is no local to local trading (in MP terminology) any more, it is just between DII and FII. :)
@rm,
ReplyDeletethat would mean all the level 2 will show is 15000 each order :)
and the profile will rather need landscape monitor than portraiting.
:)
guess this season makes it very interesting reads for the profilers!
also, rm,
ReplyDeletewe can equate this tight band equal to autobahn.
get on that without a vehicle, and get run over,
wiser ones stay on sidepath,
safe and sound, waiting for
service road openings
:)
Aha! Now I know the Raison d'être for the sidepaths on autobahn. :)
ReplyDeleteHello sidepaths, here comes a permanent camper (let the owners of 10% come and wake me up!)
:)
:)
ReplyDelete:)
no sidepath ... only the fenders ...
lets hide behind 'em from those FII merc trucks and cat haulers ...
:D
keep a place for me toooo ... !!
I am quit satisfied to follow the RSI chart for upper level 81 and lower level 20 Ban to buy nifty call and put and getting 95% result as of now from last 1 week.
ReplyDeleteas i believed after monitoring the mkt we can get chance to earn at least 5 point daily for sure , I am with same way to get me the target
hi Pradeep,
ReplyDeletegood to know RSI helps,
with regards
moh
Hello Moh,
ReplyDeleteplease share me some information regarding RSI indicate to improved my trading knowledge.
regards
pradeep
hi pradeep, :)
ReplyDeletepls give me sometime i will give you good links to get RSI trading materials.
meanwhile you can use these :
http://thepatternsite.com/rsisetup.html
http://stockcharts.com/education/IndicatorAnalysis/indic_RSI.html
http://informedtrades.hubpages.com/hub/How-to-Trade-the-Relative-Strength-Index-RSI
regards
moh