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Nifty Budget 2018 Expectation Rally

Traders must be thinking why Nifty is running up like mad? This is a Budget 2018 Rally nothing else.

Its called Expectation Rally.

Do not forget that after GST implementation this is the first budget of this government.

Hope has no limit.

The rally will end once the budget is out.

But all this is tension of a speculative trader.

You may be long or short I do not know but if you are not making profits 70% of the times you trade then you are for sure losing money.

When there are strategies where you need not predict market direction yet make money then why are you still losing money? read more

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EOD End of Day 22-Jan-2018 India VIX up by 10.09%

EOD (End of Day 22-Jan-2018), INDIA VIX is up by 10.09% this is due to upcoming budget on 1-February-2018. This will increase until budget and will fall after that. Market direction will depend a lot on budget announcement.

INDIA VIX EOD 22-Jan-2018

INDIA VIX EOD 22-Jan-2018

But when INDIA VIX moves a lot option premiums moves a lot too.

If you do not know INDIA VIX has a lot of effect on option premiums. They are directly proportional. When INDIA VIX rises option premiums will also rise. When INDIA VIX drops option premiums will also drop creating a lot of problems with option buyers. When INDIA VIX rises option premium rises creating a lot of problem with option sellers. read more

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How To Let The Winners Run In Stock Trading

New traders and even the experienced ones fall for greed or show no patience and book profits early in a profitable trades but let losers ride for more losses in their trades. This leads to more losses and small profits. Ultimately their financial year ends in a loss.

I have told this many times in my blog not to speculate and trade but how many listen? Buying options as a pure speculation is gambling not trading – it will not make money. This falls under greedy trading not well planned trading. read more

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Nifty 2017 Rally What To Do Now

See this amazing Nifty rally (Bull Run) of the year 2017:

Nifty Rally 2017

Biggest question in traders mind is When It Will Stop or What To Do Now?

Who is asking this question? Speculative traders.

Speculative traders have a bad life. They are hanging between BUY or SELL, Call or Put, which stock to buy Intraday etc.

This is not the way you should be trading.

You must have a highly successful plan in your trading tools, not think about what to trade next day. Speculation will take you nowhere.

Check this thinking of a speculative trader: read more

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How To Get Back Your Huge Trading Losses

Every trader’s journey starts with loses. Some huge, some very huge and some unbelievable loss.

But the fact is large or small everyone starts with a loss. Including me.

We all try to get back our losses trading the stock markets. Some succeed, some do not. But unfortunately only 5% traders succeed. 95% of traders remain losers for life and retire with much less money that they earned.

Some Ideas on How To Get Back Your Huge Trading Losses

Loss is a bad experience. But problems with traders is that they think 2000-3000 loss is small, but they forget that if this keeps repeating then it can go up to lakhs. Some do not even track their losses. They call me and say they lost more than 3 lakhs. read more

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How To Trade During Earnings Season

Historically there is huge volatility during earning result season. Companies report their performances every quarter. This is the time even stocks see good liquidity in options and futures trading.

Note: In India compared to developed countries liquidity in stock options and futures is very low. Therefore is is recommended to trade only popular stocks during results season as volume spikes during this time. It is also highly recommended to hedge your future or option position to avoid huge loss in a highly volatile market. You can learn hedging options and futures by doing my course. read more

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Do Not Believe Tips From Your Broker

We start dreaming big as soon as we open a demat and trading account. Demat account is different than a trading account. Demat account is like a bank account where we keep our money to buy shares or trade options/futures. Trading account is where we are allowed to buy shares, or trade options/futures.

The problem with novice traders is that as soon as they open a trading account they start dreaming big, bring lots of money to their demat account and start trading first “whatever they feel like”, then what their brokers or friends say, then whatever they see or read in any website or magazine, and then when nothing of the above works – they go for tips providers. read more

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How To Be A Better Trader In 2018

Read to know how you can improve your trading skills and become a better trader in 2018.

If you do not plan well you will not succeed in anything that includes everything not just stock market trading. Your first job should be to learn from your mistakes.

1. What mistakes you did in the year 2017?
2. Was your money management skills poor?
3. Did greed overtook you and you traded more than you could afford?
4. Why you did not take the stop loss as planned?
5. Did you take tips? How much you lost on tips?
6. Any research you did on trading? If yes what was the result? read more

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Nifty In A Range

Nifty (my favorite trading index) is dangling near 10500.

NIFTY 25-Jan-18 CE 10,600.00 has the Highest Open Interest – 13% increase.

Its quite strange that NIFTY 25-Jan-18 PE 9,000.00 has the Highest Open Interest in Nifty Puts.

Most High Open Interest are in Nifty Calls only.

Traders have a strong view of Bullish Markets.

It looks like buyers think Nifty will break out 10600, and sellers think it will not. Therefore 10600 has the highest Open Interest.

What does it mean?

It means – (will be told to my paid subscribers only of my option course). Free subscribers DO NOT get emails sent to my paid subscribers. read more

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Do Not Believe In Huge Profit SMS

Look at this SMS I got yesterday:

Do Not Believe In Huge Profit SMS

Do Not Believe In Huge Profit SMS

Do you think what the person who sent this SMS is telling the truth.

1 Lakh to 5 Lakh in one day. Here is some compounding for you. In one year there are 250 trading days approx. Forget that lets take average of just 22 trading days in a month. Lets forgte that also – lets see what one lakh becomes in just 10 trading days:

= 1 –> 5 –> 25 –> 125 –> 625 –> 3125 –> 15625 –> 78125 –> 390625 –> 1953125 –> 9765625 read more

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