Is Buy Today Sell Tomorrow, the way to go?
Over the last one year, I focussed on learning commodity trading and occassionally traded equities and derivatives. As usual, I was not profitable. However, the sense of confidence increased and I feel much more comfortable and relaxed while trading.
Coming back to derivatives, I believe short-term trading with high probability can be achieved by BTST trades especially using the breakouts or retracement strategies. The key tricks are around:
1. See if your script is making a base
2. See if there is good active interest (OI and volume)
3. See if medium term trend is in your favor (5 day and 1 month)
4. See if market is in your favor (index)
If the above are favorable, the only factor left out is good entry and exit. Unfortunately, this requires quality time to be spent watching the price movements. All I could spend is 1 hour per day. So, I look at the charts at 3.10 pm and see if I can find a good F&O scrip that matches my criteria. If it does, I go ahead and trade. I close the trade next day morning before 9.45am. This suites me since it helps me focus on my work rest of the time.
Tried it for few days and here are the results:
Over the last one year, I focussed on learning commodity trading and occassionally traded equities and derivatives. As usual, I was not profitable. However, the sense of confidence increased and I feel much more comfortable and relaxed while trading.
Coming back to derivatives, I believe short-term trading with high probability can be achieved by BTST trades especially using the breakouts or retracement strategies. The key tricks are around:
1. See if your script is making a base
2. See if there is good active interest (OI and volume)
3. See if medium term trend is in your favor (5 day and 1 month)
4. See if market is in your favor (index)
If the above are favorable, the only factor left out is good entry and exit. Unfortunately, this requires quality time to be spent watching the price movements. All I could spend is 1 hour per day. So, I look at the charts at 3.10 pm and see if I can find a good F&O scrip that matches my criteria. If it does, I go ahead and trade. I close the trade next day morning before 9.45am. This suites me since it helps me focus on my work rest of the time.
Tried it for few days and here are the results:
| Date | Buy/Sell | Scrip | Buy Price | Sell Price | Qty | P/L | |||
| 6/10/2013 | Buy | BIOCON | 288 | 292 | 1000 | 4,000.00 | |||
| 7/10/2013 | Sell | JSWSTEEL | 599 | 593.4 | 500 | -2,800.00 | Total P/L | 850 | |
| 7/11/2013 | Sell | RECLTD | 199.5 | 199.85 | 1000 | 350.00 | |||
| 7/12/2013 | Buy | RELINFRA | 387 | 384.8 | 1000 | -2,200.00 | Made a low of 383.1 and then went up to touch 392 | ||
| 7/12/2013 | Sell | RELINFRA | 383.4 | 385.4 | 1000 | 2,000.00 | nonbtst | ||
| 7/15/2013 | Buy | BIOCON | 294.8 | 293.5 | 1000 | -1,300.00 | Made a low f 292 and went on to touch 300 at 9.30am | ||
| 7/24/2013 | Buy | HEXAWARE | 116.8 | 117.2 | 2000 | 800.00 |
I should say, not bad for a starter but can do much better with time.
MCX Crude oil last week showed sideways movement found support of psychological level of 3500 and consolidate around it. Now, if it sustain below 3500 then bears may again active and find next support around 3100. If some correction occurs and maintains above 3800 then 4000 will act as major resistance for it.
ReplyDeleteMCX Tips