DAILY TRADING REPORT - 18.08.10 (Wednesday)

Nifty Futures 10.30AM Call

10.30AM: Nifty Futures opened today unchanged at 5424, and is currently trading at 5432. It has so far recorded a HIGH of 5435 & a LOW of 5421. Asian cues are mixed, US futures are just flat, and European markets may open in negative today. The trading range for NF today is likely to be 5380-5445.

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Nifty Positional Trade

17.08.10: Short in nifty at 5424. Target 5290/5240. SL 5461.

18.08.10, 11AM: Bring down SL to 5447.

2.40PM: SL hit at 5447. Loss 23 points.

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Nifty SMS Trade

11AM: Sold nifty at 5440. Target 5400/5390. SL 5447.

2.40PM: SL hit at 5447. Loss just 7 points.

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Nifty Trades - Just an Afterthought!!!


1. Took positional short yesterday at 5424 with SL at 5461, Reduced the SL to 5447 today.

2. Took intraday short at 5440 today with SL at 5447.

Both trades SL hit, loss on first trade 23 points, loss on second trade 7 points. Total Loss 30 points.

INSTEAD

If I had converted the positional short into positional long at say 5424 with SL at 5417, the position would have been loss on one trade would be just 7 points, but the gain on the other winning trade would have been 40+ points.

Practically the above kind of trades is possible due to nifty remaining rangebound for most part of the trading hours. Only condition for this kind of trade is that we should take one trade in one account and the other trade in some other account, and that both trades should be taken with SL of less than 10 points.

We will try this kind of hedged trades from tomorrow. If we get good results, the trades can be done in big lots.

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