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Ten Questions Newbie Ask............ |
STEPUP
White Belt
Joined: 17 Mar 2012
Posts: 95
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Post: #46  Posted: Tue May 22, 2012 12:40 pm Post subject: |
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| SwingTrader wrote: | | STEPUP wrote: |
ST, I am ,honestly, heartfelt & i will say, i have learnt many things here, so i keep coming even if you keep me banning, no issues on that & i feel, there is no empty space, its either vacuum that needs to be filled or its filled with air.
Regarding Mathematical Approach to Equity, i was reading of PT saying that you & PT were carrying out classes & people saying BUY & SELL signal, & i am not vouching anything of mine & if i do so, please pardon me, I can let you see a system that is precise.
Let me know how i can but regarding posting out here, anyone can take a dig at me & i will not say anything but its my bread & butter, if i go out in public, letting every one see, the market is driven by syndicate money & they go on for each forum, everywhere in every place to see whether their system has been hooked or not & if they come to know, they change it & presently, i know many people of various Big Hedge Funds aka Syndicate Money are present in Icharts, so i am helpless. |
Sure...no issues...I completely understand. |
Appreciate & Regards. |
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svkum
White Belt
Joined: 14 Feb 2007
Posts: 321
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| Post: #47 Posted: Tue May 22, 2012 6:45 pm Post subject: |
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| Let us entertain newbeas isuues , and stop this ' i am great " syndrome, meanwhile newbeas are may be looking at seniors for help, helplessly. |
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amitsaraf21
White Belt
Joined: 20 Feb 2009
Posts: 76
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| Post: #48 Posted: Tue May 22, 2012 10:51 pm Post subject: another question |
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Another question that newbie end up asking is, what is a good return
or more specifically what is a good ROI |
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p_wangdu
White Belt
Joined: 30 Apr 2012
Posts: 126
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| Post: #49 Posted: Tue May 22, 2012 11:28 pm Post subject: |
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| every questions has a right answer if you think you are learnt enuf the subject . |
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amitsaraf81
White Belt
Joined: 25 Apr 2012
Posts: 7
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| Post: #50 Posted: Thu May 24, 2012 4:32 pm Post subject: thx |
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| p_wangdu wrote: | | every questions has a right answer if you think you are learnt enuf the subject . |
thx  |
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amitsaraf81
White Belt
Joined: 25 Apr 2012
Posts: 7
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| Post: #51 Posted: Thu May 31, 2012 5:25 pm Post subject: some more questions............. |
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1. How much return can i expect in futures trading.
2. What is the ROI in trading in this or that instrument.
3. What is a good return in trading this this this......... |
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amitkbaid1008
Yellow Belt
Joined: 04 Mar 2009
Posts: 540
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| Post: #52 Posted: Thu May 31, 2012 10:33 pm Post subject: Re: Ten Questions Newbie Ask............ |
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| amitsaraf21 wrote: | 1. What is the best indicator for intraday.
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All Indicators are best not only for Intraday but for all days
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amitsaraf21
White Belt
Joined: 20 Feb 2009
Posts: 76
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| Post: #53 Posted: Tue Jun 05, 2012 9:54 am Post subject: one more question |
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| which charts are better, live charts, j charts or the platinum charts, which one will give me more profits. |
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hasten
White Belt
Joined: 30 Jun 2011
Posts: 216
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| Post: #54 Posted: Tue Jun 05, 2012 11:58 am Post subject: Re: Ten Questions Newbie Ask............ |
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| amitsaraf21 wrote: |
4. What is better options or futures.
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Futures and options are not the same. The risk profiles of the two are very different. On initiation of a futures contract you have to put up an Initial Margin (IM) which may range from 8 to 15%, based on the Index or stock. More volatile the stock, more the IM. Then you have a daily mark to market margin (MTM) which adjusts your profit/ loss on a day to day basis to reduce the default risk of market participants. This maintains market integrity. The procedure is the same, if you are short or long futures. The IM varies somewhat for long/ short positions, but thats not too important for now.
For a futures buyer or seller, the potential for profit or loss is unlimited.
For options, the buyer only pays a premium and his maximum loss is limited to the premium paid. The profit potential however is unlimited. Once an option buyer pays the premium, there is no further cash flow implication until he squares off, exercises the contract, or the contract expires. If the option ends up out of the money (current price <strike> strike price for puts), then there is no cash flow implication at all, and the premium paid is forfeited. The option seller however, has a limited profit (to the amount of premium received) and unlimited loss profile. In addition, an option seller also has to post margins, to protect the option buyer from the seller defaulting.( Writing out-of-money options allows you to garner small and consistent returns, during adverse market conditions.)
AS PER MARGIN VIEW :-
The main advantage of futures is you get a lot of leverage. But leverage is a double edged sword. It multiplies your profit as well as your loss. Unless you are very proficient in risk control and trading you can accumulate huge losses in very little time - even you can blow up your account. In cash you can control your risk by position sizing as the lot size is only 1 share. In futures the lot size is about Rs.2 lakhs- many scrips have a much higher lot size because of price appreciation. Because of this you cannot adjust the risk to your liking by position sizing unless you have quite a substantial amount of trading capital.Moreover, you can hold your cash shares indefinitely, but you have to settle your futures trade on the last Thursday of the month and accept profit/loss-if any.
The lot size of options are the same as that of futures, but there are some mitigating factors provided you know the various option strategies - which are many in number and require a lot of study and practice. For buying option you have to have the money to pay the premium plus brokerage; but for selling option you require substantial margin. The strike price remains fixed till the end of the settlement but the premium keeps on changing. The profit/loss in buying option is the difference of your purchase price and the current premium. Yes the profit/loss is credited/debited to your account daily at the closing price but you receive it only after closing your open position. One main disadvantage of buying option is its time value which is a wasting asset and the wasting occurs faster as it approaches settlement day.
Note:- You can also use future and option as hedging tool,Hedging is definitely not perfect whether you use futures or options as faltub pointed out you may incur a small loss or a small profit depending on how well you calculate the beta of your portfolio and in any case there is no necessity the portfolio is going to fluctuate in accordance to your calculation of beta, its only an approximation.
I think hedgging is preffered than using a STOP LOSS, for small individuals use options, buy a put or use the bullish/beraish put/call spread technique if you have a preconceived notion of how low or high the market will go, but it makes more sense for large porfolios's to use futures.
Regards, hasten
Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.
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hasten
White Belt
Joined: 30 Jun 2011
Posts: 216
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| Post: #55 Posted: Wed Jun 06, 2012 12:10 pm Post subject: Re: Ten Questions Newbie Ask............ |
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| amitsaraf21 wrote: |
5. What is the best time frame to trade.
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You should test out trading styles that involve several timeframes as the primary focus (for example long term position trading might focus on weekly & daily, swing trading might focus on 4hour, and scalping might focus primarily on 5min and lower)
Most likely, depending on your inner self, there is a timeframe/style that is a very good fit for you. The other styles may not be a good fit for you and no matter how much you try to force them, they may never feel right. My suggestion is several weeks of trading each different style (ie position/swing/scalp) and see if any of them "speak to you" -- you will probably know which one is best for you after doing this exercise.
Once you've identified the style of trading you will focus on, then I agree you should at least be AWARE of activity in the higher-up timeframes. However, this does not always mean you have to be looking at multiple timeframes throughout your trading session. For example I look at them once, draw trendlines (which are carried to my primary trading timeframe) and then I no longer need to look at anything but the chart I'm placing trades on.
Choosing the correct time frame for your style of trading is an important step in creating a workable trading plan. If the time frame is too short or too long to suit your personality, the trading plan will not survive, no matter how good the system or trading approach is. There are many things to consider before deciding on which time frame is best suited to your personality and goals.
NOTE:- Everyone has completely different opinions. I personally believe in multi time frame analysis. But what time frames those are is up to you, and your personal style. Now this forum will encourage 1H+ time frames. I suggest at least 1 TF above and 1 TF below. so if you were to trade the 1H use 15min for more precise entry and 4H for bigger picture/trend analysis. I think that's as good of a set up as any. daily's can take weeks or months to form set ups so you wont get much practice time wise. 1H is probably the best balance. But 15min time frames are tradeable for me personally. But for a beginner don't no give them all a try and see what works for you. that's what demo is all about.
Regards, hasten
Technical analysis is a skill that improves with experience and study. Always be a student and keep learning.
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amitsaraf21
White Belt
Joined: 20 Feb 2009
Posts: 76
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| Post: #56 Posted: Mon Jun 11, 2012 8:02 pm Post subject: Re: Ten Questions Newbie Ask............ |
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chha gaye guru chha gaye
| hasten wrote: | | amitsaraf21 wrote: |
5. What is the best time frame to trade.
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You should test out trading styles that involve several timeframes as the primary focus (for example long term position trading might focus on weekly & daily, swing trading might focus on 4hour, and scalping might focus primarily on 5min and lower)
Most likely, depending on your inner self, there is a timeframe/style that is a very good fit for you. The other styles may not be a good fit for you and no matter how much you try to force them, they may never feel right. My suggestion is several weeks of trading each different style (ie position/swing/scalp) and see if any of them "speak to you" -- you will probably know which one is best for you after doing this exercise.
Once you've identified the style of trading you will focus on, then I agree you should at least be AWARE of activity in the higher-up timeframes. However, this does not always mean you have to be looking at multiple timeframes throughout your trading session. For example I look at them once, draw trendlines (which are carried to my primary trading timeframe) and then I no longer need to look at anything but the chart I'm placing trades on.
Choosing the correct time frame for your style of trading is an important step in creating a workable trading plan. If the time frame is too short or too long to suit your personality, the trading plan will not survive, no matter how good the system or trading approach is. There are many things to consider before deciding on which time frame is best suited to your personality and goals.
NOTE:- Everyone has completely different opinions. I personally believe in multi time frame analysis. But what time frames those are is up to you, and your personal style. Now this forum will encourage 1H+ time frames. I suggest at least 1 TF above and 1 TF below. so if you were to trade the 1H use 15min for more precise entry and 4H for bigger picture/trend analysis. I think that's as good of a set up as any. daily's can take weeks or months to form set ups so you wont get much practice time wise. 1H is probably the best balance. But 15min time frames are tradeable for me personally. But for a beginner don't no give them all a try and see what works for you. that's what demo is all about.
Regards, hasten
Technical analysis is a skill that improves with experience and study. Always be a student and keep learning.
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hasten
White Belt
Joined: 30 Jun 2011
Posts: 216
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| Post: #57 Posted: Tue Jun 26, 2012 10:01 am Post subject: Re: Ten Questions Newbie Ask............ |
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| amitsaraf21 wrote: |
6. What is the best system for range bound/sideways markets.
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Sideways Market :- When prices are stuck in a range-they are neither going up or down in any significant manner-the market is said to be in a sideways trend or rather it is trendless.
When It Comes and How to Identify :- The market goes in sideways move after the trend. Sideways move is identified when you have high and low points and market stays in between these points without breaking either the high or the low.
Most of the time, when the market starts a range after a large up or down move, it's in consolidation, and the ranges are basically flags, or pennants.
How to Trade :-It all depends on the size of the range. The smaller the range, the Smaller the time frame I use to filter out the headfakes. So for sideways trade(where range is too small) you have to shift on lower time frame like 5min 3min or 10 min .On sideways move days we have to be happy with small moves and we need to trade very fast for smaller moves.
For countertrend trading one either needs to identify the exhaustion of the move and take a countertrend position or the market has to be in sideways mode so we buy near support and sell near resistance. There are ways of identifying move exhaustion.
Contrary :- Many People here think don't trade in sideways market ,Trading this in sideways "doing nothing markets" will give whipsaws and too many trades.But Determining the trend is not a problem. Statistically any market will consolidate or trade sideways 70% of the time. That means the trends will not occur everyday. So if you want to make money everyday , YOU MUST LEARN TO TRADE SIDEWAYS MARKETS.
NOTE :- I personally prefer Option Spread to trade in sideways Market .spread gives lots of premium to eat .
Regards, hasten
Making money in trading is not the hard part, KEEPING it is ! |
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sumesh_sol
Brown Belt
Joined: 06 Jun 2010
Posts: 2344
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| Post: #58 Posted: Wed Jun 27, 2012 10:44 am Post subject: Re: Ten Questions Newbie Ask............ |
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| hasten wrote: | | amitsaraf21 wrote: |
6. What is the best system for range bound/sideways markets.
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Sideways Market :- When prices are stuck in a range-they are neither going up or down in any significant manner-the market is said to be in a sideways trend or rather it is trendless.
When It Comes and How to Identify :- The market goes in sideways move after the trend. Sideways move is identified when you have high and low points and market stays in between these points without breaking either the high or the low.
Most of the time, when the market starts a range after a large up or down move, it's in consolidation, and the ranges are basically flags, or pennants.
How to Trade :-It all depends on the size of the range. The smaller the range, the Smaller the time frame I use to filter out the headfakes. So for sideways trade(where range is too small) you have to shift on lower time frame like 5min 3min or 10 min .On sideways move days we have to be happy with small moves and we need to trade very fast for smaller moves.
For countertrend trading one either needs to identify the exhaustion of the move and take a countertrend position or the market has to be in sideways mode so we buy near support and sell near resistance. There are ways of identifying move exhaustion.
Contrary :- Many People here think don't trade in sideways market ,Trading this in sideways "doing nothing markets" will give whipsaws and too many trades.But Determining the trend is not a problem. Statistically any market will consolidate or trade sideways 70% of the time. That means the trends will not occur everyday. So if you want to make money everyday , YOU MUST LEARN TO TRADE SIDEWAYS MARKETS.
NOTE :- I personally prefer Option Spread to trade in sideways Market .spread gives lots of premium to eat .
Regards, hasten
Making money in trading is not the hard part, KEEPING it is ! |
Wonderfull explained in easy language hasten bhai.. keep it up.. !  |
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ali522003
White Belt
Joined: 03 Jul 2010
Posts: 217
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| Post: #59 Posted: Wed Jun 27, 2012 3:33 pm Post subject: Re: Ten Questions Newbie Ask............ |
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| sumesh bhai ,, check ur fb message |
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hasten
White Belt
Joined: 30 Jun 2011
Posts: 216
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| Post: #60 Posted: Sun Jul 15, 2012 3:15 pm Post subject: Re: Ten Questions Newbie Ask............ |
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| amitsaraf21 wrote: |
7. How much money do i need to start trading.
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The value of the money you start with is not important.. Your trades did not become more successful simply because you increased your starting balance from $1,000 to $10,000..
You need to start with enough to feel it if you lose some money, but not enough that it's going to make you broke..
Start off much smaller is better though. For instance, if you have 1 lakh to use for trading, don't dump the whole 1L in, put in 10000rs, and trade nanos, or micros. I know pennies seem to be not worth the effort, but even losing pennies will bug you mentally at first. If you break even, or even make a little money after a month, put in another 10000rs, and so on.
Regards, hasten
I can explain it to you,But i can't undetstand it for you . |
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