Thursday, August 6

Tag: Trading Markets

Bearish Put Diagonal Spread to Capture the Downside Odds
Top Trading

Bearish Put Diagonal Spread to Capture the Downside Odds

The most important thing is taking a view and riding with options strategy is the breakeven level. Faster the breakeven levels better the odds of risk-reward ratio. Diagonal Spreads has a faster breakeven with controlled risk and limited reward. Trade Expectation: Nifty to touch the freak low 10800 as explained in the How to Design a Bearish Hedged Bear Put Spread article. Nifty has been hovering around psychological reference around 11000. Any Acceptance below 11000 can test towards 10800 and 10750 respectively. Bearish Put Diagonal Spread Bearish Put Diagonal Spreads are used to take a mild bearish view with limited risk and limited reward. Where the main position is the long dated option. In this example 11050PE Put Long 13th Aug 2020 expiry considered for long dated option which is ...
How to Design a Bearish Hedged Bear Put Spread
Top Trading

How to Design a Bearish Hedged Bear Put Spread

In this tutorial, we are going to learn how to reduce the risk in a bearish strategy at the same time effectively use the margin using (Hedged Bear Put Spread). Currently Nifty is trading around 11200 levels in spot and expiry is around the corner. However Nifty hits the major supply zone (Resistance zone) 11000-11400 as shown below where institutional selling pressure is expected at higher prices. Nifty CMP : 11202.85 ( as on 29th July 2020 Closing) If you are very new to price action based studies it is recommended to start with the free course to get some of the basics of Institutional Orderflow and Price action. Trading Sentiment on wednesday trading session turned negative which could be the starting point of short term correction with positional sell side odds. As you are well ...
EMA vs SMA – How to use moving averages
Online Trading, Technical Analysis

EMA vs SMA – How to use moving averages

I get often asked about the best moving average and how to use moving averages the right way. In this article, and in the video above, I provide the most important tips when it comes to using moving averages the right way. EMA vs SMA First, it’s important to realize that the difference between the EMA and the SMA is not significant. I plotted the 50 period EMA and the 50 period SMA on the chart below and you can see right away that the two moving averages are mostly very close together. Thus, obsessing about which type of moving average is better is a waste of time – especially once we get into the other points shortly. Learn to deal with imperfection This is THE most important principle when it comes to using any trading strategy successfully.  Sometimes, the EMA will work. So...
Worldwide Surge in Trading Accounts During this Pandemic
Top Trading

Worldwide Surge in Trading Accounts During this Pandemic

Flood of new retail traders flocking into the stock market and most of the brokerage firms across the world reporting surge in trading accounts. Does it feel like 2008? Obviously not. A recent surge is people are started seeing stock markets as an alternative income as the interest rates are reducing and frequent lockdown brings the risk of job loss. Small-time investors might tasted the success of profits from their sofas due to the recent uplift from the stock prices. It it a Herd Mentality? Could be the starting point of herd mentality. Everybody knows that the herd mentality push the new investors and traders to get into dangerous ideas and risking their money in penny stocks and other dangerous trading instruments. The number of newbie investors trading during the pandemi...
Introduction to QuantZilla
Top Trading

Introduction to QuantZilla

QuantZilla is a 75+ hours of immersive coding mentor-ship program on designing trading systems, converting trading ideas into indicators and trading strategies, automating the trading systems. Starts on August 03, 2020 | 06.00 – 09.00 p.m IST What you will be learning in QuantZilla? QuantZilla is classified into two categories 1)QuantZilla Basics: It is designed for traders who are noncoders and want to design their own trading systems or indicators, alerts, Trading Dashboard etc with zero coding experience. 2)QuantZilla Advanced: QuantZilla Advanced is designed for Automated Traders or Coders who want to learn various execution techniques, multi-legged options execution, hedging techniques etc. Prior Programming experience is a must or they should have already attended Quantzilla ...
10 tips for new traders
Online Trading

10 tips for new traders

1. Treat trading seriously If your ambitions are to trade professionally, you must approach trading with the seriousness it requires. As I said on Twitter before: you can’t have the millionaire lifestyle with the 9-5 work ethic. Makes sure to check your priorities and align them with your daily actions. 2. Avoid shortcuts If something sounds too good to be true, it usually is and there is no way around putting in the hours. There is no get a rich quick way and all potential shortcuts you may take will end up costing you way more time and money in the end. 3. Give yourself at least 5 years You won’t become a profitable trader within a few weeks or months. From my experience, I can say that it takes years for someone to acquire the skills necessary to trade profitably long-term. And ...
How to Take a Short Term Neutral to Bullish View using 4 Legged Option Strategy
Top Trading

How to Take a Short Term Neutral to Bullish View using 4 Legged Option Strategy

In this tutorial, we are going to look into a mild variation of Double Diagonal Spread to take a neutral to the bullish view. Double Diagonal Spread is a 4 legged option strategy and nothing but a combination of bull call diagonal spreads and bear put diagonal spreads which is more of a neutral approach towards trading. Let see how we can take a mild bullish bias with a slight variation in Double Diagonal Spreads. Lets get some primer on Diagonal Spreads and Calendar Spreads before jumping into the actual trading strategy example A calendar spread is a strategy involving buying longer term options and selling equal number of shorter term options of the same underlying stock or index with the same strike price A Diagonal spread is a strategy involving buying longer term options and se...
AlgoMojo – Partnering with Tradejini for Providing Web-Based Free API based Algotrading Platform
Top Trading

AlgoMojo – Partnering with Tradejini for Providing Web-Based Free API based Algotrading Platform

Algomojo is a web-based trading bridge for sending orders automatically to the exchange is partnering with Tradejini – Bangalore based discount broker to provide Free API based algotrading access to their trading clients who opens a trading account with algomojo. Algomojo is a web-based automated trading platform with a minimalistic design built by traders for the traders. Algomojo comes with Integrated all-in-one solutions (API, free & proprietary Strategies, Datafeed, Virtual servers, and end to end support at one single marketplace). It helps traders to simply their Algo trading and makes life easier for the traders. Attend the live webinar this Saturday 25th July 2020 to get to know more about Algomojo Trading Platform Can Existing Tradejini Customers use the AlgoMojo Platfor...
How to Construct a Bearish Option Strategy with Hedged Puts?
Top Trading

How to Construct a Bearish Option Strategy with Hedged Puts?

In this tutorial, we are going to learn how to construct bearish hedge options for a price structure with crowded short term longs. Crowded Short term longs in Hindustan Unilever witnessed from the Price Structure point of view and those crowded longs are reaching a kind of Euphoric state as the price started trading currently above 2320 levels. Now lets try to understand the price structure and how one can build a trade setup with reference to the current market sentiment. Since May month onwards one can see multiple layers of price compression followed by reaching the euphoric state with a gap on 17th July 2020. Price is reaching an extreme where short term trend reversals are possible as the multi layers of price compression is nothing but crowded short term traders reaching the ...
What We Can Learn from the Sideways Market – Part 2
Top Trading

What We Can Learn from the Sideways Market – Part 2

In Part 1 – We learned what is a sideways markets and the characteristics of the sideways markets. In this section, we are going to learn what are the major qualities required to trade the sideways markets. What is more required during a sideways market is frequent evaluation of your strategy, keeping your emotional balance in check, and not getting into too many trades. Five Major Qualities are required to trade the sideways markets. 1)Developing a strong balance trading rules which help traders to identify price based breakout failures (Look above the balance & Fail, Look below the balance and fail, Look above and accelerate, Look below and accelerate, etc) 2)Bringing the ability to distinguish the false breakouts with the stronger ones. Volume Price Analysis or Orderflow comes h...