iCharts Discussions

[vinay28]

May be saumya but price has crossed all fibo levels so far and further sharp rises can push BB envelope up. Also, liquidity is is very strong and there are other patterns such as WWs, CnH, etc. which give much higher levels. For example, for academic purposes, the two medians of APF meet after about 6-8 weeks at about 6500+. That's why I had posted last week a figure of 6531 (considering Kaprekar effect on 5631 of Feb high). But that doesn't mean it should come just because I say so. Let's go one step at a time with proper SLs.

[pkholla]

"But that doesn't mean it should come just because I say so. Let's go one step at a time with proper SLs."
Nice to know that the great man can be humble also. Keep up the good work, Vinay. I am looking fwd either to your 6531 or another IChartian's 7400 to empty my recycle bin and start afresh. More power to your predictive abilities. Cheers, Prakash Holla

[Just Trade]

Hi Vinay

Completely agree with you. Logical target for this move which started in June is 6309 Had posted in late June when I took position

Regards

JT

[vinay28]

Thanks JT, at least there are a few who are in my boat. But, being a novice, I will be going by reference to previous highs of 5741, 5945, 6181 and 6336 while watching other existing and future patterns that develop. I am also willing to accept and be prepared for small to medium fall from any point in near future. Let's see how it goes.

Prakash - "great man"?

You are NOT the only one to have a recycle bin!

[saumya12]

Thanks JT for your views

Thanks Vinay for your views and analysis. Your views will be helpful for me in the near future. You call youself as a novice but I dont agree, you have good knowledge of technicals. Keep it up and keep posting your technical views.

I just want to know one thing why it is said that option trading is dangerous (thats why I kept myself away from options for a long time), on the contrary I found it quite interesting. In buying and then selling calls and put I know my limitations and know the maximum amount that I can loose in the trade, then how it can be dangerous.

Thanks

[vinay28]

saumya, I am surprised by your statement "In buying and then selling calls and puts I know my limitations and know the maximum amount that I can loose in the trade, then how it can be dangerous."

You will always know the amount that you can loose when you buy anything, including goods in case they are a waste. The real crux is whether your decision to buy was correct. Nobody knows, not event he best traders though the latter at least have a lot of experience and knowledge.

And hence the concept of SL but it is very difficult to find a correct SL for options and put a squareoff order accordingly, since their price slowly drops with time assuming constant IV. In addition, they also drop when big players start hedging their longs in fut with shorts with options. Just observe the chart of options and see how price refuses to move even when index/scrip is moving and you will know. Therefore, some traders keep a SL of index/scrip price in mind and then squareoff the option when it is violated. Others, load various indicators on option charts which tell them when to cover just as in case of index/scrip price.

The best traders and "price makers" only write options and live on others' premium. A survey found that, in general, option buyers rarely make money unless you are lucky to find yourself on the right side of a trending move, which is, on an average, once in a fortnight or so. One way of avoiding losses is to trade in in-the-money options but then you can't buy large qty.

Saumya, you find it easy/good because you may be "living" within your means. Ask someone like me who started with hundeds of lots and ...........

I am sure everyone who has tried or still deals in options will have his/her story and philosophy to tell.

[saumya12]

Thanks Vinay for your views.
Yes I trade within my means. And thats may be a reason.
Thanks once again.

[pkveenu]

[psalm]

BankNifty has been an out performer in the last few days. I'm still maintaining my bullish bias for the Banks. However, there is reasonable resistance in the range 11450-11550. Current rate is around 11445...the high made as of now is around 11465....So, if any one holding BankNifty Longs or Banking stocks, there is nothing wrong in booking profit in this range or at least having some protection. I've initiated a few SHORTs (very little quantity though) already in the BankNifty a while back and is planning to add more shorts on rises up to 11500 or 11550...with a tight stop....Anyway, let's see...

[apka]

[psalm]

[pkholla]

SAM: You forgot to add

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javascript:emoticon('')

Prakash Holla

[psalm]

[psalm]

As per my calculations, many front-line stocks have reached their targets by friday and today.....So, one must be wary of some profit booking in those stocks from here onwards....Having said that if there is another round of buying coming in, the same stocks will break above those levels and could head to their next resistances...so, its a tricky situation....but I doubt there is some kinda complacency out there in the market now....when most of the people are complacent, expect some profit booking or correction.....Now the situation is like "whatever you buy, you'll get a reasonable return in a few days"...when this kinda euphoria surfaces, consider it as the onset of distribution. Anyway, it could be too early to give a comment on that....but one must not be complacent at this point of time, I feel...be careful while riding your profitable positions....LONG or SHORT...

[vinay28]

very naughty, prakash/sam/apka. How about stories around a fire as in ancient times?

By the way, I feel one should buy around 5660/50 with 5600 SL