iCharts Discussions

[ndpotade]

ANY BODY CAN DO EQUITY & FUTURE TRADING without opening a/c with any broking house.

I am posting here an excel file whereby you can do paper trading before real trading in NIFTY & BANK NIFTY.

I hope that you will find it useful for trading.

Dear Admin - I have understood the mistake which I have made while posting excel file in the earlier thread. I assure you that the mistake will not repeat again. Thanks for co-operation.

[pkholla]

Nitin: Thank you most sincerely for the trouble you are taking.
After practicing on your excel sheet we will be knowledgeable not only about ABCDEF of BNF/NF trading but also upto UVWXYZ! (I am paying a serious compliment and NOT being sarcastic etc, please note). Prakash Holla
PS: Please post the Excel sheet not only as .xlsx but also as .xls (for those like me who are satisfied with 2003 version)

[ajit602]

[ndpotade]

WHY ONLY FIIs or BIG INVESTORS ARE MAKING CONSISTANT PROFIT FROM TRADING ???
WHY 96% INVESTORS/TRADERS ARE IN LOSS & 4% INVESTORS/TRADERS ARE IN PROFIT ???
WANT TO GIVE JUST ONE EXAMPLE.

TRADE : NIFTY EXPIRY : AUGUST'2013 AMT REQUIRED : 2.50 LACS EXP. RETURN 1 TO 4 % P.M.
IF NIFTY CLOSE AT 5600 OR AT 6400 ON AUGUST EXPIRY, HERE PROFIT IS CONFIRMED.

[hemant_parikh]

GOOD ONE NITIN JI

[ndpotade]

GOOD MORNING...

TRADE : BANK NIFTY
EXPIRY : AUGUST'2013 AMT REQUIRED : 1.50 LACS EXP. RETURN 2 TO 5 % P.M.
IF BANKNIFTY CLOSE BETWEEN 11000 - 12400 ON AUGUST EXPIRY, HERE PROFIT OF 200 POINTS IS EXPECTED.

11000 - 12400 CAN BE TAKEN AS STOP LOSS.

THIS IS NOT RECOMMENDATIONS AND IT IS FOR STUDY PURPOSE ONLY.

FOR TRADERS, WHO DONT KNOW THE RISK & REWARD OF OPTION HEDGE TRADE, PLEASE WATCH & TRY TO LEARN.

[saumya12]

Thanks

[shekharinvest]

[ndpotade]

[shekharinvest]

Nitin,

Thanks for responding.

What you have said is quite clear from the table posted by you.
MTM profit and MTM loss at the end of expiry are quite obvious.

Probably I failed to make myself clear. Here is an another attempt.

If we close position after 10 day at 12400 (SL) and still one month to go there is still enough time value and premium hike because of increased volatility remains, Will MTM profit/loss will be more or less same as you have shown in the table.

What have been your experience. ?

Here are some observations which shows that BNF gives large move and one will need to cut position before expiry, to come out of net one lot short CE/PE



Position taken in middle of month (10th-20th) for next months expiry
Values and time are just approximation.


In mid Feb: BNF was at 12500 and it droped to 11100 in less than 2 weeks. Move of 1400 points
mid April: BNF was at 11100 and rose to 12800 in less than 2 weeks. Move of 1700 points
mid may: BNF 13200 dropped to 11700 in just over 2 weeks. Move of 1500 points.


Trade taken at 11700, I assume market is moving up for the given example as posted by you. And we are at 12400 after 10 days and need to close the position (SL hit)

Max gain from 1 long PE and 2 short PE is 99 until the Expiry in the end of Aug so it will be less if we close after 10days

Gain from 1 long CE 11700 bot @ 400 and 1 short CE 12000 sold @ 300 max gain possible is 200 until the Expiry in the end of Aug so it will be less if we close after 10 days

Now we are net short 1 lot CE 12000 sold at 300 approx. BNF at 11700 , Now BNF reaching 12400 a gain of 700 points this CE premium will increase substantially my guesstimate is it will gain min. 50% that is 350 hence it will be trading at 650 approx. hence loss would be 350


NET loss = 99+ 200 - 350 = 50 approx. this is minimum actual may be higher.

SHEKHAR

[ndpotade]

EOD POSITION ON 16-07-2013

[ndpotade]

BANKNIFTY DOWN BY 500 POINTS BUT THERE IS NO MAJOR LOSS...

[ndpotade]

TARGET OF 2% ie 200 points achieved almost...

If you have doubt about strategy means you dont have faith and you wont have patience to hold position.

Lack of faith, patience & discipline can leads to LOSS...

I hope that now most of the doubts got cleared till now.

[shekharinvest]

[pkholla]

Shekhar: you are correct
Nitin: Please simplify the spreadsheet and your trading approach if possible. More complex the approach, more likely you are to make mistakes
Jai Hind, Prakash Holla