Saturday, February 25, 2012

How To Trade Preopen Calls?


There are many people who have questions in their mind about “How To Trade Preopen Based Free Nifty Future Calls”.

Mr. Parvesh (TraderAdda Reader) asked me……

“sir -first of all this buy above and sell below how many points shoud we cosider for keeping a buy or sell order and 2ndly --suppose if we short at 5564.10 and our 1st tgt is 5454 and if it trades below 5450 can we trail with a sl 0f 5454 and daily we should exit from the trade at day end -- ur guidance sir”

Dear Parvesh,

Here is my view about how I trade this…

  • First When a Buy At/ above price triggers… i.e. Comes on screen I shoot the order. Suppose on Friday Buy Above 5502.50 … then when 5502.50 comes on the screen I buy at market price of Nifty Future. Same thing applies to Sell At/below price. So no filter is applied while taking decision. As these are mechanical levels which are generated by a formula developed by me, so there is no manual interruption.
  • Now if we enter at the Price Trigger… and when first TGT Comes one can part book and rest can trail SL at cost or can put it at a safer zone like previous pivot Low. Protection of capital is important.
  • As these levels are for intraday purpose … so it is meant that one should exit at day end. But if your positional TA says you to stay in trade if it is already in profit then one can hold it. As it is said “ Ride The Trend Till it Bends”

Hope you got answers, any further queries are welcome…. they are preferred through comments section not through Contact Us.


For Further Reading,
Trading Education

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