[SmartCat]

Originally Posted by Imran.Syed

Videos have been deleted or taken private since. Any other suggestions for Day 1 or 0 people? Looking to learn more and zerodha varsity didn't entice me enough unfortunately

I think this will be best:

1) Do a youtube search for "options trading basics". Use the phrase "options trading hindi" if you want desi content.

2) Take some virtual trades on www.neostox.com. After all, theory is of very little use. But if you take trades (virtual only, without real money) based on theoretical knowledge, you will understand everything quickly.

3) Ask questions here based on what you see on (1) and (2)

[thirugata]

For those who are interested in learning how to read charts, this book "Greg Morris - Candlestick Charting Explained" can be a good starting point. This explains the basic candle patterns which can be used to understand strength of the trend or trend reversal points.

This method of chart reading is called price action method. Price action can be combined with other indicators to understand the possibility of trend change.

[deetee]

Originally Posted by deetee

One thing very clear with the index chart is that, there are lot of significant supports below 17400. If index has to break down those multiple supports (spaced closely) , it may happen in two ways.

1.) Divide and rule : Index will show a few wide range up and down moves until the supports space out giving a chance of breaking them one after another.

Though index closed above 18k today, the momentum is not convincing. There can be whipsaw movements in the coming days. As quoted above, this looks like a case of larger preparation for taking down the supports leisurely. If anyone is playing with index options, be prepared to see volatility in the coming days. Whichever positions you take, hedging them properly is a good idea to sustain the volatility.

[SmartCat]

I already have a paid Sensibull subscription for doing Options analysis. However, Sensibull does not offer backtesting of strategies. Stockmock.in is too expensive because you have to pay for every backtest. But now I have subscribed to Opstra (https://opstra.definedge.com/) since it is quite affordable (Rs. 1,500 per month, unlimited backtests).

This is a 4 year backtest results of selling 1 lot ATM put spread in NIFTY weekly options on Friday, and holding it till expiry without any adjustments, stop loss or targets:



Although margin needed is just Rs. 30,000 for a spread trade, the system is assuming a capital of Rs. 1.2 Lakhs. This is fair because a strategy has to account for drawdowns too. Such a simple strategy returned 100% (absolute, not cagr) in 4 years. Profit before brokerage/taxes/slippage is Rs. 1.2L. However, note that the effect of brokerage/taxes on P&L reduces when you start trading multiple lots. Strategy has a win rate 68%

For comparison, in the last 4 years, NIFTY went up from 10800 to 18000 levels (absolute returns of 66%)

[GTsunny]

To trade in options, for debt portion of margin pledged, we must consider a couple of things. First and foremost, the debt instruments should be approved by regulators, to be allowed to be pledged as margin. Further, the day some debt instruments aren’t traded in market, the next day these debt instruments may show in MTM margin sheet as 0. Thus we would prefer debt instruments that have daily volumes. Also, we would prefer debt instruments that are traded in high daily volumes in market, with preferably thin buy/ sell spreads, liquidity being a comfort factor.

After all these checks are passed, we would want the debt instruments pledged as margin, to provide us with the highest returns.
LiquidBees and, GOI GSecs are some examples of approved, high volume, and daily traded debt instruments. Some of the GOI GSecs currently provide a slightly better yield than LiquidBees.

I would like to know views of fellow TeamBHPians. What debt instruments do y’all prefer to use and/ or suggest to use please?

[SmartCat]

Originally Posted by GTsunny

Thus we would prefer debt instruments that have daily volumes.

Not necessarily. You can pledge stocks and debt/equity mutual funds too, not just debt securities. When you pledge debt mutual funds, it resolves all the liquidity/bid ask spread issues. Zerodha's list of approved securities & mutual fund is available here:
https://docs.google.com/spreadsheets...t#gid=15947263

(look under 'cash component' tab)

Some of the GOI GSecs currently provide a slightly better yield than LiquidBees.

But Liquidbees returns are smooth with no volatility. G-Secs give higher returns over long term, but can be quite volatile. You can read more about different types of debt instruments here:
https://www.team-bhp.com/forum/shift...ebt-funds.html (Investing in debt funds)

[deetee]

Discovered this really interesting medium term pattern in Nifty chart. This rising support line supported Nifty about 6 times in the past few weeks. Will be interesting to see what happens next.

[deetee]

Originally Posted by deetee

Discovered this really interesting medium term pattern in Nifty chart. This rising support line supported Nifty about 6 times in the past few weeks. Will be interesting to see what happens next.

What happened after that was a carnage!
I have been posting daily analysis of indices on my youtube channel and decided to make weekly analysis of the index as well, as that offers a different perspective.
The video is 20 mins long but I take a detailed look at the chart from different perspectives to get a coherent view:

https://youtu.be/k95hD0_36xE

[satish.gawai]

Hey Guys,
Need one help...

Brief about my stock market exposure - I am doing some investments in the stock market (mainly for the long term). I was doing intraday trading in the past and was successful to some extent (always ending up green) but now it is not possible due to the office.

Query - So I met this guy in Pune (Imperial Markets /Mr. Anand S) who is opening an account in MT4/MT5 for Forex trading ( I have zero knowledge of Forex trading). I google it and found that forex trading is illegal in India, so these guys are routing it through Dubai. One of my colleagues has opened his account and trading with them on MT4, making around 50-70 Euros every day, and asking me to go for it. I am still not sure to do it.

Anyone is doing forex trading here?
Can someone pl confirm, if is it safe to do it in India?
How to manage taxation if illegal?
Is there any other way to do it without opening an account with such consultancies?

Pl suggest...

[SmartCat]

Originally Posted by satish.gawai

Anyone is doing forex trading here?
Can someone pl confirm, if is it safe to do it in India? How to manage taxation if illegal? Is there any other way to do it without opening an account with such consultancies?

Any derivatives trading (including forex) in foreign exchanges is illegal. But forex trading in Indian exchanges (NSE/BSE) is legal. We have futures in 4 currency pairs and options in one.

USDINR
EURINR
GBPINR
JPYINR

You can trade these currency pairs using any Indian broker.

If your colleague's bank finds out that he is trading forex in foreign exchanges, they can freeze his savings account or credit card, and apply penalties.

[satish.gawai]

Any derivatives trading (including forex) in foreign exchanges is illegal

Thanks, Smartcat.
So that means we can not trade in foreign currency pairs like USDEURO and so on legally. How then are these apps like Octafx and others operating (even advertising on national television)?

I am using Upstox for my trades and saw foreign currency pair with INR which is then safe as you said.

Just a random question, Is it profitable to trade in currencies. any experience?

[SmartCat]

Originally Posted by satish.gawai

So that means we can not trade in foreign currency pairs like USDEURO

USDEUR is available on NSE too, but has no liquidity. So most brokers have disabled trading in currency pairs that do NOT have INR. However, you can use cross-currency pairs to take directional bets.

For eg: If you are bullish on USDEUR, you can buy USDINR futures & sell EURINR futures. If you are bearish on USDEUR, you can sell USDINR futures & buy EURINR futures.

How then are these apps like Octafx and others operating (even advertising on national television)?

OctaFX is illegal and it is a surprise they are able to hire celebrities to promote their platform.

ED freezes accounts with over Rs 21 crore belonging to OctaFX for illegal online Forex trading
https://www.indiatoday.in/india/stor...363-2022-09-29

OctaFX type of websites are illegal in most countries. That's why you will notice that their head office will ALWAYS be in a remote island in the West Indies.

Just a random question, Is it profitable to trade in currencies. any experience?

It all depends on your strategy. I trade USDINR options (non-directional strategy), but more people take directional bets using futures.

But remember that Volatility in currency market is low and so margin requirement is also low. You can take exposure for Rs. 10,00,000 using just Rs. 30,000 margin (3%). A technical analysis strategy that works for NIFTY might not work for USDINR, because of significantly lower volatility

[satish.gawai]

Originally Posted by SmartCat

USDEUR is available on NSE too, but has no liquidity. So most brokers have disabled trading in currency pairs that do NOT have INR. However, you can use cross-currency pairs to take directional bets.

For eg: If you are bullish on USDEUR, you can buy USDINR futures & sell EURINR futures. If you are bearish on USDEUR, you can sell USDINR futures & buy EURINR futures.



OctaFX is illegal and it is a surprise they are able to hire celebrities to promote their platform.

ED freezes accounts with over Rs 21 crore belonging to OctaFX for illegal online Forex trading
https://www.indiatoday.in/india/stor...363-2022-09-29

OctaFX type of websites are illegal in most countries. That's why you will notice that their head office will ALWAYS be in a remote island in the West Indies.

Attachment 2489183



It all depends on your strategy. I trade USDINR options (non-directional strategy), but more people take directional bets using futures.

But remember that Volatility in currency market is low and so margin requirement is also low. You can take exposure for Rs. 10,00,000 using just Rs. 30,000 margin (3%). A technical analysis strategy that works for NIFTY might not work for USDINR, because of significantly lower volatility

Thanks, Smartcat.
Nicely explained. Many doubts are clear.
Since I am not trading in options yet, need to do some practice first. But I will explore USDINR in the coming days.

[kd_r16]

Hello everyone, I need guidance on the setup required for trading the market, by setup I mean the following.

1) Which software/website to use for charting, analysis, tracking stocks?

2) A good video/book on technical analysis.

3) As a beginner which segment should I begin with Futures/Options/Equity/Commodity/Forex or a mix ?

4) I am very good with fundamental analysis, how do I use it to my benefit?

5) How to develop mindset for trading any books/video.

Personal experience & guidance of the fellow members will be the biggest advantage I can get.

Thanks.

[thirugata]

Originally Posted by kd_r16

Hello everyone, I need guidance on the setup required for trading the market, by setup I mean the following.

1) Which software/website to use for charting, analysis, tracking stocks?

I use tradingview and investing.com


2) A good video/book on technical analysis.

There are lots of videos on Youtube. Look for videos where you get to learn how to read an individual candle, then just adding up multiple candles to understand the whole story.

3) As a beginner which segment should I begin with Futures/Options/Equity/Commodity/Forex or a mix ?

Would recommend Equity intraday, by choosing intraday you will get into the habit of taking quick decision. It also gives more trades in short time frame making your learning time short. And trading stocks helps you to take very little risk when you learn as you can buy even 1 stock and learn

4) I am very good with fundamental analysis, how do I use it to my benefit?

I am assuming your mindset is suited for long term holding. There are quite a few people who identify which stock to buy using FA and when to buy using TA. You should find enough Youtube videos on this

5) How to develop mindset for trading any books/video.

Difference between investing and trading is knowing when you want to exit before you buy including cutting your loss at a preidentified price. Risk management plays a bigger role in trading

Personal experience & guidance of the fellow members will be the biggest advantage I can get.

Thanks.

My answers in line, hope that helps.