bajfinance trading update for November

 I have traded Bafinance 100 quantity last week . 

Here is the trade result:

I blurred other columns as those expenses includes all equity trading in this period.

Plan for next week;

1. Increase position size 

2. I will take three trades one early morning 9:5 to 9:45, 11 AM - 1PM, 2PM to 2;45 PM

Bajfinance trade set up - 2/11/2020

Bajfinance  Astrotechnical Analysis - 2nd November'20

High of January'20 4923

Low  of May'20      1723

50% 3356 

Bajfinace closed below 50%  in October 

Price is near median of 10 days Donchian channel 

RSI(14)   48.35 

ADX 12.2

MACD D below zero line 

30th Oct High 3389 and low 3255

Bajfinance is consolidating in daily TF . It is forming lower high and higher low structure. Normally, brake out in any direction  can give a big movement. 

However OI analysis shows short build up.

Stock is trading close to 200 DEMA . If stock closes below 200  EMA with volume , stock can be shorted for a target 3170

ATR of Bajfinance is 100. 

Trade plan for 2nd Nov - Quick scalping of 10/12 points in 2 min TF. 

Scalping setup 

1 Will use Nimblr multi timeframe analysis for scalping. As long term trend is negative. Will short the Bajfinance future whenever CCI 8 in 5 min TF goes above 150. 

2. I will trade close to  refer 20 MA and 200 MA 

3. Will buy if 3 hour and 40 minute trend become positive together.

Important  Gann levels 

credit :Satevch

Trade initiation time base9d on NSE 15 bhavhart and my personal horoscope

9:30 AM to 9:55 AM     Scorpio ascendant 

11:21 PM to 12:21  PM    Capricorn ascendant

Astro time cycles 

9:33  AM   Sun-Jupiter 

1:47  PM    Sun-Saturn

5:30   PM   Sun-mercury

Should I Trade One Stock Daily To Make Living ?

I have decided to start a new experiment to trade one equity stock daily. I am starting this thread to check can I earn Rs. 2000 daily from stock market by trading one stock daily.

Trading Rules for daily trading of a single stock

Total account margin - 1 lakh 

Max trade risk : 5% of account balance i.e. 5k

Total Risk per day 10% 

Experiment will terminate if  loose 50% of my account.

Instrument : Bajfinance Future 

Lot size 250 

Margin required for one lot covered order - Rs. 50250

Fixed SL - Rs. 5000 i.e. 20 points  

( Fixed SL will be entered in system to avoid any sudden movement) 

SL will be moved to cost once trade earns at east 10 point. 

Brokerage and cost calculation at zerodha

For 20 point  SL, my account will be reduced by Rs. 5184 

Trading single lot in future is cheaper than trading in cash as margin requirement will be around 1 lakh and points to brake-even will be 1.73 

I will not use synthetic future as I am trading with single lot and intraday.

I will avoid options as sometimes squaring off options becomes difficult. 

Day 3 of 100 Days trading challenge

4th July trading challenge update

Nifty 

I am carrying forward below Nifty position . I expect volatility will increase due to budget session. Increase in volatility will compensate loss in time value as we are still in 1st week of contract.

NIFTY 25 Jul 2019 11900.0 CE     150
NIFTY 25 Jul 2019 12200.0 CE -225
NIFTY 25 Jul 2019 12400.0 CE   150

Option Greeks

Delta:    44
Vega:  334
Theta -157

Property of strategy

Total capital          3.2 lakh.
Maximum loss         18500
Maximum profit  unlimited
Brake even                12025


Exit plan Nifty spot 12400 or 3% of capital deployed  i.e. 9600  by 5th July

Adjustment

1. The position will require adjustment if Nifty spot is trading below 11900. Square off   12400 CE
2. If Nifty trades above 12200,  square off 12200 CE


Banknifty 

There is no open position

Profit in 4th July expiry trading 2435

Loss in 11 th July straddle  -3380

The loss attributes to followings

1. Not closing 11th July CE buy while closed CE short of 4th July.
2. Asymmetrical long straddle on expiry day


Crude oil 

Loss - 330


Equity  SIP

LT
BHEL
NCC
HUL
Titan
VIP industry

Lesson learned: There is subtle difference between trading as a business and speculation. This is most critical obstacle to become a consistent trader.

Some of you requested for the rational of my analysis and I will write a long post on that soon.

Click below link to read the details of 100 day challenge

Can I make living with short term swing trading ?

Day 2 of 100 day trading challenge

2nd July no trade as astrologically the day was not favorable for trading as per my horoscope.

Today also moon and Saturn is in opposition. will avoid trade from 12:30 PM to 1;30 PM as I am expecting high volatility in that duration.

Today 3rd July though trading is not recommended as per horoscope but will trade in small quantity as today star lord is Jupiter.

Trade plan for 3rd July 2019

Nifty 

Buy 11920 and target 11950
Sell 11880 and target 11850

Will buy call or put based on levels at 5 min time frame.

PnL = (-) 840

Position

Position carry forward .

Nifty 2 lots 11900CE long
Nifty 3 lots 12200 CE short
Nifty 2 lots 12400 CE long

I set his strategy as I am  expecting market will be bullish and volatility will be high.



Options Greek

Delta : 44, Vega : 421 , Decay :( -)  158

The position will loose below 12000.

Banknifty 

Buy 31300 and target  31400
Sell  31200 and target  31100

4th July 31500 CE long 7 lots
4th July 31600 CE  short 6 lots
11 th July 31800 CE short 1 lot

Banknifty position has positive delta. Shorted 11th July call to mitigate gap down opening. It would have been better to buy put than shorted call because increase in vega will hurt position and there is a high chance vega will increase as 5tth July is budget day.

Position current PnL is -1104

Crude 

Will trade with 5 minilots based on Gann levels suitable for Jupiter starlord day

bought 2 mega lots @3876 and closed at @3905. It gave me profit 4000.

Equity SIP for 3rd July

Ashok Leyland
M&M
Motherson Sumi
KEC Internationnal
KEI Inustry

booked al PSU banks shares.

Equity investment is based on swing trading concept by Mahesh Kausik


Click below link to read the details of 100 day challenge

Can I make living with short term swing trading ?

Day 1 of 100 day trading challenge

Nifty

If Nifty spot cross 11850 and trade their for 3 minutes, will buy 2 lots 4th July  11900 CE . I will place stop loss buy on day high for 4th July 11800 PE

Stoploss is 20 points in Nifty spot from entry

Banknifty

If Banknifty spot crosses 31300 and trade for 5 minutes, will buy 2 lots 31400 CE. Will place stop loss buy over day high for 31200 PE

Stoploss is 50 points in Nifty spot from entry

Crude

Crude buy 4 mini lots @ 4065 or @40193
Crude sell 4 mini lots  @ 40161

Risk 15 points and target 32 points

I will initiate all trades with SL, and move the stop loss to cost to avoid loss. In this way I can avoid loss in my account.

Monday SIP in equity

Bank

HDFC bank
ICICIBANK
SBI
Bank of India

NBFC

Bajaj Finance
HDFC
LT Finance

Around  1000 Rs will be invested in stock to buy. This investment is continuous process. Whenever, any stock has profit more than 4%  , the same will be squared off but investment will continue as per plan.

Today's trade 

Nifty, Banknifty and crude all triggered and closed in green

Profit for Day 1  is 3663

My broker trades based on my plan. I do not see life market - a lesson from Ed Seykota. 

Click below link to read the details of 100 day challenge

Can I make living with short term swing trading ?

Can I Make A living By Day Trading?

I was wondering how do I manage my life style post retirement as I will reach the winter of my professional life. Initially, it was just a thought but increasing cost of living and unplanned expenses in Mumbai made me think seriously for last one year or so.

Biggest flaw in my personal financial management

I depend on endowment plan  f life insurance, PPF and fixed deposit with a very small exposure to equity market through mutual fund.

Fallacy of investment world

The biggest fallacy is return from all investment including rental income from property is negative with respect to actual inflation. This means I need to add fund to my account s that fund stays till the lifetime of my self and wife.

The only solution is to have some positive cash-flow to adjust against the dent created by inflation.

I found trading and investment is the only method which has highest probability to  achieve my goal which is totally flexible on time and effort. Here, I can earn based on my capability, experience and psychology.

Why day trading?

I can trade in the active market on equity and commodity. But,trading is a risky venture and 90% people do not make consistent profit from trading.

Plan to manage day trading as business

All business needs investment and loss is one of the possible outcome. My plan is to consider trading as a business where my losses will be considered as investment  to self learning to become a better trader.

• I will make a plan before market opening and trade the same plan. 
• I will trade with predefined risk per trade. Risk is the only entity which I decide  risk in this business.
• I will work with  a minimum risk to reward ratio
• My winning probability should be within 65% to 72%.

I will trade on selected 3 instruments (Nifty, Banknifty and crude oil) based on my research and back test result. I prepared a simple trade plan for these instruments . I will also set up a SIP based investment plan in direct equity market for long term wealth building.

I will take 100 trades on each instrument starting from 1st July 2019. I will build and share my trade plan in my blog daily. Will update trade result post market hour.

If I do  not make loss in these 100 trades,  i will just double my deployed capital.

Target -  6% to 8% per month post all expenses.

Will it be possible that I will loose all money by wrong trading? 

This is the first question my wife asked me. She believes I  might lose money in order to protect some loss due to inflation. Her concern is genuine .

We discussed and  decided to  make some effort to see feasibility of my idea. We agreed to set up a training budget and opened two accounts for trading.

I studied for several months, spends money in learning from some so called experts and did some trading. I will share with you the details of my training and those are just of money.

Tools to be used

• Gann sq9 calculator
• Daily Panchang  for NSE 

Indicators

• 20 period moving average for three time frame
• RSI 14

Stay tune to know my live trading experience.

Click the link below  to know trade plan for 1 st July'19 and how I mange my trade in a total hands free mode.

Day 1 of 100 day challenge

Day 2 of 100 day challenge 

Day 3 of 100 day challenge