All traders see losing days. I do not think there is a single trader who has never lost while trading options/futures or equities. If you take too much stress then trading is not for you. These days will come for sure, you cannot avoid them. If you get frustrated due to losses you will start doing revenge trading – revenge trading is a sure shot way to lose more in the stock markets. Even if you succeed one one revenge trading it will not bring back all the money lost. This can bring in mental issues. This is the reason I emphasis on hedging all your trades so that even if you lose money it will be small amount that will not bother you much. You can do my course and learn hedging in a proper way plus you will learn strategies to make a monthly income.
When a trader begins option trading they are bugged by payoff charts and diagrams. They try to know everything possible under the sun and try to make money. This is mainly with highly educated option traders.
By educated I mean traders just passed out from colleges who have access to smart phones etc. No there is nothing wrong in reading about options or futures or payoff graphs, Greeks etc., but having a wrong assumption about it is wrong.
What is a Payoff Diagram?
A Payoff diagram is a graphical representation of the potential outcomes of a option strategy. What can be the profit or loss and sometimes the success percentage of the strategy. It gives a visual representation of the possible outcome of a strategy if played at that time on a stock or indices.
According to most Technical Analysis Indicators, Nifty is now in a sell zone.
Moving averages for 5, 10 and 20 says STRONG SELL, however 50 and 100 says BUY.
So basically you can go short on Nifty for the short term. Success rate is 50%.
Why am I saying only 50%? Because this is what are Technical Indicators.
Technical Analysis Indicators Change Every Hour Every Day
They may also change EVERY Minute, Hour, Day or in a jerk due to the news.
We are not computers that we will keep automatically checking Technical Indicators every second or read news every minute. We have better jobs to do than to stick to our monitors and keep trading and keep changing our positions.
Today (Friday, February 23, 2018) is the first day of Mar 2018 derivatives (F&O) expiry and I am sure you will start with a “new plan”. Most speculative traders start their speculative strategies today. So what is you plan? Buy which Call or which Put or sell which Call and which Put? May I know why are you doing this trade? If your answer is “I think so”, then sorry to say you are gambling, not trading.
How many times you have lost money because you took a trade based on “I think so?”.
Fear is your biggest enemy in trading. In this article you will learn how to convert your fear into profits.
New traders start with greed but no fear. After a few losses their greed turns into fear and either they stop trading or they reduce the trading size quite considerably.
Stock trading is a calculated risk, people who take calculated risk almost always make money – those who do not take a risk or take too much risk almost always lose money.
If you fear trading you will never trade and never make any money or take a stop loss in panic losing money. Fear is responsible for a lot of mistakes new traders make.
PNB Scam has pulled Markets Down, its better not to trade/buy banking stocks now.
But there is a way to turn your fears into trading profits. I am currently writing an article on it, will be live tomorrow or day after. Will let you know when live.
Well its was made live on February 21, 2018, you can read it here.
Markets are still awaiting the full description of the PNB scam, after that markets may bounce back.
India VIX is on higher range means fear is still there in markets due to PNB scam.
If you are a non-directional trader its a great time to trade, hard for directional traders as directional is not clear.
If you are a new trader you must be struggling as a stock trader to make profitable trades. This article will give you 10 good tips to make your trading career successful faster.
In short three things are very important to be a successful trader:
1. 100% Control over Greed and Fear,
2. Proper Planning in Trades, and
3. Proper Risk and Financial Management of Your Portfolio.
Without control on the above, its almost impossible to become a good trader. Treat your trading career as a job.
Here are some more important tips to become a successful trader:
On Feb 6, 2018 I had told my newsletter subscribers to buy stocks because Nifty may reverse anytime. See what happens after I send newsletters:
Exactly after that see how Nifty has rallied:
Today already 124 points up.
However these are sent occasionally not regularly.
If you want to make regular profits and not depend on my free newsletters you can do my course.
Learn to trade yourself, it will help you for life. Do not depend on anyone else – especially tip providers as they will not make you money. Moreover can you get tips and become rich? Can you trade 10 lakhs on someone tips? You will keep paying someone or many people for months if you go for tips and you will lose money plus still not be able to trade on your own.
After the Budget 2018, the 10% Long Term Capital Gains (LTCG) Tax news got the traders angry and bears took over.
After a great fall finally slowly stability has come. Bulls have entered, but still these are fearful bulls. India VIX has dropped. Its 9.37 am on 07-Feb-2018, when I saw. It can change anytime if you are reading this late.
You can start buying good stocks, or go for call options with proper hedge.
You can learn hedging in my option course. If you hedge there will not be any tension or stress. Otherwise you can be at unlimited loss or huge loss.
Since last 2 days stock markets have fallen a lot. From 11500 to 10500 is a great fall.
Do not forget that What Comes Down Has To Go Up is a great Mantra to trade and make money in stock markets.
Pic updated on 15-Feb-2018:
Now is the time to buy stocks not trade. Some great stocks have fallen and its time to accumulate them.
Look out for large-caps not mid-caps. Large-caps recover faster than mid-cap stocks. If you want a list of good large caps that you can invest for long term you can contact me.
Today, India VIX is very high 33% up and above 21.