STOCK FUTURES TRADES
19.01.2011: Long in one lot (250 shares) of Colgate Palmolive - Feb11 series @ Rs 843.
20.01.2011: Long in one lot (250 shares) of Aban Offshore - Feb11 series @ Rs 709.
20.01.2011: Long in one lot (250 shares) of Aban Offshore - Feb11 series @ Rs 709.
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NIFTY FUTURES 11am CALL
11am: Nifty Futures opened today at 5698 against its previous close of 5718, and is currently trading at 5693. It has so far recorded a HIGH of 5715 & a LOW of 5682. Asian cues are negative, US futures are in red, and European markets may open little changed today. The trading range for NF today is likely to be 5670-5740.
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NIFTY FUTURES INTRADAY TRADES
11.10am: Sold nifty at 5706. SL 5716. Target 5672.
12.13pm: SL hit at 5716. Loss 10 points.
1.48pm: Bought nifty at 5673. SL 5661. Target 5726.
3.15pm: Booked out at 5703. Gain 30 points.
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NIFTY TRADES UNDER 6-POINTS FORMULA
1. Total Trades: 2
2. Winning Trades: 1
3. Losing Trades: 1
4. Points Gained: 30
5. Points Lost: 10
6. Net Gain: 20
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STOCK FUTURES
Here is a method to earn profits out of investments made by all of you in stocks recommended by me. Pl follow the instructions carefully:
1. Ensure that all the investments made by you are in one demat account, preferably in a sound & well known brokerage house like ICICI Bank.
2. Do not mix any of your trading positions including short term stock trades in this account.
3. Create "FnO Margin" by just pledging the shares held by you for long term. Every brokerage house allows this by giving a margin against all shares after deducting the fixed "hair cut". For example, for Balaji Telefilms, ICICI Bank deducts only 15% hair cut, and allows a margin of 85% of the market value of the shares.
4. Utilise the "FnO Margin" created as above for stock futures trading. The thumb rule is if you have created a margin of Rs 1 lakh, you should never use more than Rs 50,000 worth of margin for stock futures, allowing the balance 50000 for MTM losses if any.
5. I will do this shortly, create FnO margin for the purpose of stock futures, take positions in selected counters, only one at any given time, and place my trades in this blog. Members may just watch this space, see the performance of such trades, and then follow the trades.
6. All my trades will be in first class counters like Colgate, and the margin required for one lot of such shares will be in the region of 30-40K, which means you need to create a FnO margin of 70-80K by the above method.
I request all those who want to follow the above trades, to ensure that they dont deviate from any rules which I have mentioned above. Overtrading is strict NO NO, and ensure that you have an outstanding position only in one counter, and that too for one lot.
kadiyali.
2. Do not mix any of your trading positions including short term stock trades in this account.
3. Create "FnO Margin" by just pledging the shares held by you for long term. Every brokerage house allows this by giving a margin against all shares after deducting the fixed "hair cut". For example, for Balaji Telefilms, ICICI Bank deducts only 15% hair cut, and allows a margin of 85% of the market value of the shares.
4. Utilise the "FnO Margin" created as above for stock futures trading. The thumb rule is if you have created a margin of Rs 1 lakh, you should never use more than Rs 50,000 worth of margin for stock futures, allowing the balance 50000 for MTM losses if any.
5. I will do this shortly, create FnO margin for the purpose of stock futures, take positions in selected counters, only one at any given time, and place my trades in this blog. Members may just watch this space, see the performance of such trades, and then follow the trades.
6. All my trades will be in first class counters like Colgate, and the margin required for one lot of such shares will be in the region of 30-40K, which means you need to create a FnO margin of 70-80K by the above method.
I request all those who want to follow the above trades, to ensure that they dont deviate from any rules which I have mentioned above. Overtrading is strict NO NO, and ensure that you have an outstanding position only in one counter, and that too for one lot.
kadiyali.
Sold nifty at 5706 at 11.10am as per 6 points formula with SL at 5716. Target for this trade is 5672.
ReplyDeleteSimilarly placed a separate account trade of buying nifty at 5673 with SL at 5661.
Friends, starting from today, I am placing orders for nifty trades as per 6 points formula. Pl closely watch the result of these trades for next 10 trading days. If satisfied, you may also trade in similar style. Low target lower SL is the key.
ReplyDeleteHi....Good Morning all. Have a Nice day !!
ReplyDeleteGOOD DAY TO ALL!
ReplyDeletekADIYALI:Also record your profit or loss as and when it occurs and do not wait for the end of the day.
At 11 am the Nifty high had been 5713 and so your short should have been either at 5703 or 5723 but you have shorted at 5706.Why?
Similarly the SL should have been at 5714 but you have fixed at 5716.Why?Anyway your trade had resulted in 10points loss already.
Now would you continue with the other side or would close for the day?
These things are not very clear.Pl explain.
Ganapat, the 11am NF high was 5715.90, and hence placed the order immediately for SELL at 5706, and got executed at 11.10am. Similarly as the high was 5715.90, placed SL for 5716. Loss any way was 10 points. Could it be better if SL is 10 points away from high? We will gain experience if we do it daily.
ReplyDeleteGanapat, yes, my other trade to go long at 5673 is on. Let us wait.
ReplyDeleteThanks for the reply and feed back,kadiyali.
ReplyDeleteI think it would be advisable to add a time factor also for the orders.For example after 2.30 we should not enter in to any fresh trade
Good luck
Ganapat, you seem to be right, but let us take that position today if it happens even after 2.30pm.
ReplyDelete@ Kadiyali Sir...I guess ur trade got executed...lucky enuff :)
ReplyDeleteHi Kadiyali,
ReplyDeleteCan u idendify some stock which i can do a covered call short ? Idean is to earn by option margin consistanly. I will but the staock and sell out of the monet option call. I f stock goes higher i will sell the stock. Downward risk is there. Analysis say that 75% primum in options goes worhless
Thanks & Regards
Shine Karumathil
NO Updtaes.....EXECUTED or NOT ?? Plzz update.
ReplyDeleteneelima, the BUY trade got executed at 1.48pm due to a big sell happened that time, but the NF recovered gradually thereafter as no volume selling came. Finally booked out at 5702 for a gain of 30 points.
ReplyDeleteSKV, you can go in for Suzlon investment in quantities below 50 if & when available, and thereafter go for shorting 60CA whenever the stock recovers towards 55.
ReplyDeleteWhere has d 24th page gone ??
ReplyDelete