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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: read more

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When Stock Markets Fall It Is Time To Buy Stocks

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:

Nifty Fall 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. read more

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Amazing Fall In Nifty Do Not Trade

Today Nifty is seeing Amazing Fall – DO NOT TRADE. Its very dangerous to trade when stock markets are falling sharply.

The reason is pretty simple – you take a short position and suddenly government releases a good news to arrest fall of markets and your trade will stop out.

Check my earlier emails (if you are my newsletter subscriber). I had said clearly to be safe many times.

Hope you listened and stopped trading before Budget Day 2018.

10% Long Term Capital Gains announced in the Budget is the problem for fall. read more

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LTCG Tax of 10% Pulled Markets Down

Look at this:

Nifty – 02 Feb 2018

Source: http://money.rediff.com/

This was the SEVENTH BIGGEST FALL in the history of Sensex (source: moneycontrol.com)

Sensex Steepest Fall In History

How much you lost?

I can tell for sure that more than 70% of retail future traders must have become greedy and out of hope would have been long Future Buy on Nifty and then 256 points fall. This is a loss of 256*75 = Rs.19,200/- in a single lot.

But during these times people get greedy and trade with as much money as possible. Some even borrow money to trade. Its not good to borrow money to trade. 🙁 read more

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Nifty Fall Was Expected

This Nifty Fall was expected after Budget 2018. If you were my option course member it would have saved you money (they get different newsletters from time to time what to expect from market in near future, which strategy to trade etc).

Anyway if you were long on Nifty I suggest do not wait for any kind of hope. Long term investors are not happy due to Long Term Capital Gains Tax at 10% and exiting their positions.

You can either:

1) Take a stop loss and exit and wait for markets to stabilize, or,
2) Hedge your positions and exit whenever you want – if you know what I mean. read more

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What I Wrote Yesterday Comes True

Check my yesterdays post. What I wrote yesterday is now the truth.

Long Term Capital Gains Tax (LTCG) – investments in equity mutual funds and stocks over 1 year, will now be taxed at 10%. The set date is 31st of January, 2018. The highest price traded on that day of the stock investors had bought will be calculated as base price to check for the final profits.

This is very complicated as many investors may not now the highest price traded on their stocks on 31st of January, 2018 (Wednesday), and may end up paying more taxes which will never be refundable. read more

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Nifty Falling VIX Also Falling

Nifty falling, India VIX also falling is a strange indication. It looks like HNIs as well as DIIs are not expecting anything extraordinary from the budget plus there is a small indication from different media sources that government may implement taxes on Long Term Capital Gains (LTCG). Right now Long Term Capital Gains are not taxed. This will be bad news for investors.

Long Term Capital Gains will increase short term trading. More than 70% of investors do not sell stocks and mutual funds just to save taxes – including myself. I do not know if that become true what will happen to the markets but this is not a good news. read more

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Nifty And India VIX Are Inversely Proportional

Sensex/Nifty and India VIX are inversely proportional.

Look at last 5 years graph of India VIX:

5 Years India VIX 29-Jan-2013 to 29-Jan-2018

Source: http://www.moneycontrol.com/indian-indices/india-vix-36.html

And now look at 5 years graph of Nifty:

5 Years Nifty 29-Jan-2013 to 2-Jan-2018

Though its hard to find out everyday – you can still see how Nifty has continuously gone up but Inida VIX has fallen.

India VIX has a range, usually from 10-15 which is normal.

In the last five years India VIX was highest at 37.71 on 09-May-2014:

Highest India VIX

India VIX rises during major events. Because Budget 2018 is just 2 days away India VIX has gone up from average of 13-14 to 17-18: read more

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How To Do Swing Trading

What Is Swing Trading

Swing trading is buying low and selling high in a short span of time. Some traders do it Intraday called as day traders and some take position for a few days.

Swing trading combines fundamental and technical analysis in order to find the stocks direction from the current position. Swing traders do not look for only up direction, if they feel the stock may go down they short them. All they are looking for is short momentum.

When they see the stock is not poised to move they do not take the trade. The benefit of swing trading is efficient use of time and money and higher returns. However their are drawbacks as well like high brokerage commission and high losses if their trade goes wrong. read more

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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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