Blog by a trader who trades for living.

This blog is all about day trading Nifty Future, Nifty Options, MCX Crude Oil and Emini with Price Action and Decision Points. First time visitors are requested to go through the section "Free Education" above to understand the trading system and blog posts better.

Nifty Options

Advantages of day trading Nifty Options.

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MCX Crude Oil

All basic information about day trading MCX Crude Oil.

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Emini

All basic information about trading Emini SP 500.

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Thursday, 25 August 2016

Trading Index Options Can Make You Profitable

I recently received a trade log from a trader friend, asking me to analyze what is going wrong with his trading.  He day traded one lot of Nifty Future the whole month.














This is how I analyzed.  He took around 20 trades in a month, so no over trading or under trading.  He applied proper risk management and adhered to the stop losses.  That is perfectly fine and right way to trade.  Only thing missing was the big profit. Okay, that is fine too because we can always work on that.

Now apart from these, the one thing that stood out was the cost involved in trading. He made the profit of around 30 points at the end of the month but after deducting different taxes per trade the net result was loss.  Then I added another column of taxes involved in option trading and to the pleasant surprise the ultimate result was net profit, imagining he traded the same way Index Options too. I excluded brokerage cost because I felt it is negligible nowadays.

So this is how the day trading Index Options makes the difference in overall profitability. Now multiply it with number of lots that you wish to trade.  I trade 10 lots of Index Options and if the same kind of profit I multiply with 10 lots, this little profit of 30 points can turn into Rs. 18K. In India, it is a big amount as most of young college grads strive for it as a monthly income.

Think about it if you are still trading Futures.  Switching to Option trading might make you profitable if you trade it correct way.

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Nifty Future 25082016
















It opened above PDH and traded in a narrow range above it for first half of the day.  It broke down and presented a nice BPB setup to initiate short which moved well and made up for the week where it did not do much.  It was kind of a day where as Motilal Oswal says, you have to "Buy right and sit tight." The Nifty 8600CE which I sold at 60.30 became 0.

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Wednesday, 24 August 2016

More on Mentoring Program


Today I feel proud to share with all of you the feedback that I received from Mr. Gururaj after completing the mentoring program.  Click here to read it.  He has done all the right things and set a great example for others who want to pursue the day trading as a career. He has his own blog where he keeps a record of his trades.  Click here for the blog. If you go through his blog carefully, you will appreciate the fact that how wonderfully he has maintained the log of trades.  He has right mindset, patience, discipline, and an eagerness to learn, in short all the makings of becoming a good trader.

Today also I announce on-market mentoring which will be done during live market hours, Monday through Friday along with off-market mentoring which will be done on weekends and holidays when markets are closed.

If you struggle with your trades, not sure what system to pick or strategy to adopt, not profitable, getting nervous before or after putting on a trade, getting frustrated with your failed attempts, or just don't know from where to start, then you are probably missing one piece of the puzzle to make it all work.

Now please allow me to guide you, show you and push you the right way to day trade any kind of markets or instrument. I will help you save countless of months or years so you don't have to have the same frustrations that I had when I first started and you won't have to experience the losses that I have encountered.

Hurry up and avail the benefits of both off-market and on-market mentoring. 
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Monday, 22 August 2016

Nifty Future 22082016
















It opened within yesterday's range and broke down PDL.  BPB trade was not possible because
it moved a lot after breakout.  After that traded in the range.  Attempted BOF of range high which failed.
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Friday, 19 August 2016

Today's Trades 19082016

As discussed in Premarket charts and way to do live video today, prices moved as anticipated.

Trade 1.  Sold 8600CE as per system discussed in Index Options video at 104.5 and covered at 92.5.  Alternatively one could have bought 8700PE at the same time.  It yielded almost same.

Trade 2.  Bought Bank Nifty as marked on the chart.  It fell short of the target and did not yield much. This trade was based on the thinking that BN was showing strength and it gave an opportunity to buy at range low in an up trend.































I hope you all understood the knowledge shared through last few days posts and benefited from it.

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Way to Do


Here is the small video which I recorded live today and just uploaded it during the market hours. This is to demonstrate how I look at the prices, assess them and position myself for the trades.  If you find this way suitable to you, you may use it as a sort of template to work on that direction, or you may choose your own way to do that provided it is in right direction.  I also posted Premarket charts of Nifty and Bank Nifty in last two days, so with this video now you will be able to correlate those charts better.

Always remember, no matter how hard we try to do it properly, markets will always give us surprises. It will require developing an ability to constantly adapt to those surprises and align our thought process to those surprises, and this ability is what makes the difference between a good trader and not so good trader.

I have tried to include not only this, but each and every way I know to assess the price action and how to benefit from it in my Video Tutorial with such examples. It is an attempt towards providing Continuing Education on successful day trading where more and more videos will be added in the future and you will benefit from these new videos without any extra cost. It is like once in a lifetime investment.  Just to update you, currently I am working on Volume, its role in day trading as well as positional trading and how to read the Volume as an edge in decision making.  It will uploaded to the kitty very soon.

Click Here for Video
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Premarket Nifty and Bank Nifty 19082016































Charts are self explanatory.
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Thursday, 18 August 2016

Nifty Future 18082016
















As discussed on Premarket chart, it seemed stuck into the range between BRNs and that range did hold today.  Only tradable setup was as marked.

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Bank Nifty Future 18082016
















Today traded only in Bank Nifty.  As per the chart posted of Premarket, it broke out of its recent high and there was also good BPB of PDH.  It was like chart shouting out loud to take the position. Initial SL was around 30 points and could ride it out maximum as it was turning out to be a Type 1 trend day and booked at little less than 200 points profit.

Once we acquire the ability to read the prices well, we will be able to trade any market, any instrument in the world.  There are no short-cuts.  Either you gain this ability from others' experience and knowledge or acquire on your own.

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Premarket Bank Nifty 18082016
















Markings on the chart are self explanatory. 
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Premarket Nifty 18082016
















Assessing the Big Picture in brief, there are two ranges at play as marked on the chart.  Recent range has become narrower.  We will have to trade this range today if prices react there. If price action permits, sell around 8700 and buy around 8600.  That is the final assessment.

Day trading is not only trading at DPs.  All this exercise requires.
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