Analyse KP-Graphs and Market Sentiment for day trading

Intraday Trading: Intraday trading refers to the action of an individual who opens and closes a position in Index Futures or Options in the same day. This can be buying and selling of a CALL Option or buying Index Futures to capitalize on a potential rise in the index value or by shorting Index Futures and covering the short to capitalize on a potential drop in the Index value or buying a PUT Option and selling the same.
What is a Stock Market Index: A stock market index is a measure of the relative value of a group of stocks in numerical terms. It is computed from the prices of sector specific selected stocks (typically a weighted average). As the stocks within an index change value, the index value changes. An index is important to measure the performance of investments against a relevant market index. It is a tool used by investors and financial managers to describe the market, and to compare the return on specific investments.
Futures and Options Futures: A futures contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. All the futures contracts are settled in cash. Options : An Option is a contract which gives the right, but not an obligation, to buy or sell the underlying at a stated date and at a stated price. While a buyer of an option pays the premium and buys the right to exercise his option, the writer of an option is the one who receives the option premium and therefore obliged to sell/buy the asset if the buyer exercises it on him.
Calls and Puts options: Calls give the buyer the right but not the obligation to buy a given quantity of the underlying asset, at a given price on or before a given future date. Puts give the buyer the right, but not the obligation to sell a given quantity of underlying asset at a given price on or before a given future date. All the options contracts are settled in cash.
How do I start trading: Futures / Options contracts in both index as well as stocks can be bought and sold through the registered trading members / brokers of a stock exchange. You are required to open an account with one of the trading members and complete the related legal formalities. The trading member will allot to you an unique client identification number. To begin trading, you must deposit cash and / or other collaterals with your trading member as may be stipulated by him.
Futures and Options contracts expire: It is the last day on which the contracts expire. Futures and Options contracts expire on the last Thursday of the expiry month. If the last Thursday is a trading holiday, the contracts expire on the previous trading day. Futures and Options contracts have a maximum of 3-month trading cycle -the near month, the next month and the far month.
In-the-money options (ITM): An in-the-money option is an option that would lead to positive cash flow to the holder if it were exercised immediately. A Call option is said to be in-the-money when the current price stands at a level higher than the strike price. If the Spot price is much higher than the strike price, a Call is said to be deep in-the-money option. In the case of a Put, the put is in-the-money if the Spot price is below the strike price.
At-the-money-option (ATM): An at-the money option is an option that would lead to zero cash flow if it were exercised immediately. An option on the index is said to be at-the-money when the current price equals the strike price.
Out-of-the-money-option (OTM): An out-of- the-money Option is an option that would lead to negative cash flow if it were exercised immediately. A Call option is out-of-the-money when the current price stands at a level which is less than the strike price. If the current price is much lower than the strike price the call is said to be deep out-of-the money. In case of a Put, the Put is said to be out-of-money if current price is above the strike price.
Margins payable and Contract settlement: Margins are computed and collected on-line, real time on a portfolio basis at the client level. Trading members / Brokers collect the margin upfront from the client. All the Futures and Options contracts are settled in cash on a daily basis and at the expiry or exercise of the respective contracts as the case may be. All out of the money and at the money option contracts of the near month maturity expire worthless on the expiration date.
Trading Instruments: The rise and fall of the Index is what KP Graphs allows you to predict. The products to use are Index Futures, Call Options and Put Options. Futures are high risk products resulting in unlimited loss or gains, you can buy them if you analyse the rise of Index else sell if index is to fall. You need to square off on a daily basis. Options have a limited loss to the extent of the premium whereas gains are unlimited. Call option is to be used if you have analysed that the index will be rising for the next few days or till a major changeover of level occurs. If the index is to rise then you are going long using a Call option. The variation in call values are not linear with the index futures. Put option is to be used if you have analysed that the index will be falling for the next few days or till a major changeover of level occurs. If the index is to fall then you are going short using a Put option. The variation in Put values are not linear with the index futures. Calls and Puts values derate overnight due to Time-Value loss. It is generally preferred to buy a Call or a Put for the current value of the index and generally termed as in-the-money as their response to the index is faster than others.

Brokerage is a consideration along with taxes which are the fixed costs that need to be factored for the minimum points the Call, Put or Index futures has to rise to make money.
Trading Philosophy: Trading Philosophy, the approach to money making has to have some semblance of discipline and a systematic plan to first make money equal to the amount you would have to invest in buying a Call or Put or Index Futures. The next step would be to make twice the amount then thrice and so on.

After you have made 5 times the amount required to buy a Call or Put only then you should increase the number of Call or Puts to 2 and continue with this for some time till you gain confidence and not be over confident to spoil all the accrued gains.

The amount required to buy 1 contract of index future has to be earned by using the Call and Put options. The actual earnings has to be 3 times the amount required to buy 1 contract.

Please note that when a Call is bought it is to be covered by selling a Call for the same strike price, same is true for a Put. You should never Sell a Call or Put by itself as it amounts to Call writing or Put writing as you have not become an expert in the same.

Please do remember that our objective is to earn and keep on earning due to the index. All other issues are not in the scope of our discussion due to lack of expertise in the said subject of Call or Put writing.
Trading Example for Intraday: Trading Example for Intraday, Imagine that you are going Long or Short on index futures based on our KP Graphs, obviously you can only do this only after learning to read them in depth. The investment for Nifty index futures currently is Rs 50,000 plus for one contract of 75. If you are able to precisely select an entry or exit point and choose to exit after you gain 20 points within one L4 period this will give you gains of Rs 1500.00. Incidentally if there are 2 L4 levels in our KP Graphs then you could have 2 trades. We will ignore the other L4 level and consider that you have earned Rs 1500.00 in a day on an investment of Rs 50,000.00 plus, here we will ignore the brokerage and taxes for simplicity. If you continue to trade for 22 more days then you will have made Rs 33,000.00 which is Rs 17000.00 less than your initial input. You should continue to do this for the next 5 months and evaluate the success rate of making money by reading our KP Graphs. Let us not forget that so far we have calculated on the basis of only one trade of buy/sell or sell/buy. In all probability you would try and do more such trades in other L4 periods of the trading day. Let us also not forget that you could have made a mistake and lost some money. Trading discipline is a must else on a wrong day everything can go wrong.

Recap, To recap, first recover your initial input in a slow manner by trading in only one contract then continue this for 5 to 6 months.
What Next: What Next is the obvious question, If your inputs have multiplied 3 to 4 times then you can consider adding one more contract for which you should have already earned, continue 2 contracts for another 5 to 6 months. Once you have reached a point of carelessness stop and think again about your needs first, try to reach those milestones on a regular basis and always keep your greed on the back-burner where it rightfully should stay all the time.

Daytrading can be a possible occupation after retirement as the market is 5 days a week with 2 holidays in a week to attend to your other needs. You need to ascertain your financial needs, first for cost of living then other obligations and creating a reserve fund for backup in case of emergency or if you wish to take a month long holiday. The other need could be for loan repayment or the EMI to be paid against capital intensive investment or need for a home.

Caution : Please stay away from Call and Put Options as they seem to be attractive due to less investment compared to index futures but only index futures can give you directly proportional returns. In case you happen to use them the time required to earn sufficient amounts will be long and you will need enough patience.
Who can use this service: Who can use this service, Day Traders, Investors, Salaried Individuals, Professionals, Self Employed, House wives, Retired Individuals, Students and others. If you are above 18 years of age you can use this service for enhancing your income, provided you are able to trade during market hours without ignoring your main occupation.

Index Analysis : Sentiment Analysis by KP Graphs: Index Analysis : Sentiment Analysis by KP Graphs
Turning points in any of the major World Indices can be analyzed in a graphical form for the Intraday trader using KP-Graphs based on simple interactive math's between Levels L1 to L6 to predict the movement of the index. KP-Graphs is all about Sentiment Analysis and is much more than Technical Analysis.
Learn and Earn : Look for Flow within Levels: Learn and Earn : Look for Flow within Levels
KP-Graphs based on Moon provides turning points based on L1 as the input or sentiment compared with L2 & L3 difference or interaction as the reference level. Observe the flow and or interaction of L4 & L5 and compare it with the holding level of L2 difference L3 for the day and improve your trading success in the stock market. Trading as an investor or a day trader is now within your reach.
Scope of KP-Graphs usage : Analyse the Sentiment and trade: Scope of KP-Graphs usage : Analyse the Sentiment and trade
Capital markets are supported by Day trading, Swing trading, Scalping (trading) along with activities of other types of traders or Investors, based on analysis of Market trend, Fundamental analysis, Technical analysis and Trend following. All participants in the Financial market, Money market, Stock market, Stock market index, Trader (finance).
Algorithmic trading : KP-Graphs is the Visual Algorithm: Algorithmic trading : KP-Graphs is the Visual Algorithm
KP-Graphs can be used for Algorithmic trading by individuals as the L4 Levels along with L5 levels indicate what will happen in its time slot. KP-Graphs gives a visual inside information within each L4 level time slot.
KP-Graphs Outline: KP-Graphs Outline is presented to overcome the hesitation about Stock Markets earning potential based on the earlier Wave theory and offer you an opportunity to learn and earn thereby experience a steady income or return on investment. Stock Market analysis is based on Moon in transit.
New to KP-Graphs :: New to KP-Graphs : You,are skeptical about KP-Graphs but mildly Optimistic. The Way Forward, is offered to you for easy understanding. after you review, all that we have to offer as an explanation about KP-Graphs followed by Inspection,of historical KP-Graphs and NIFTY from year 2007 to 2019.
Learning from the historical KP-Graphs: Learning from the historical KP-Graphs and comparing it in Real-Time at www.intradaygraphs.com by using Interactive math's of KP-Graphs in Real-Time at www.intradaygraphs.com and planning, to further explore from NZ50, AORD, N225, TWII, SSEC, HSI, NIFTY, FTSE, GDAX and DJI.
Training Examples: Training Examples to be reviewed in parallel to Real-Time testing. Assessment, of possibilities to make this as a prospective source of earning. and the analysis, of the outcome of paper trades and actual trades undertaken, followed by setting Targets, for income generation and using dormant funds like Fixed-Deposits to re-generate an create return on investment.