I also offer a conservative course for option & future traders to earn a monthly income. Click here for the details of the course. Click here to know the course fees.
First a Disclaimer: Not every trade can bring the same results but it really helps if you have the knowledge of hedging. Every trader’s results may vary so please do your own research before investing in stock markets. It was because of the hedge knowledge he got from the course that Mr. Ravindra took such a huge risk in his First Trade itself. He is a very experienced trader. It is highly recommended that you start small.
Last month a smart customer took my course and result of his first directional trade is stunning. Yes a 10.65% profit trading Intraday with hedging yesterday. And the best part is the trade was NOT a copy cat as written in the document – he bought Nifty Call Options instead of Nifty Futures buy. The calculated risk paid off. We will know shortly why he preferred to buy the Call Option instead buying a Nifty Future.
See his yesterdays’ email (please click on image to enlarge to read properly):
Some guys are smart really. Hey don’t we have students better than teachers all over the world. 🙂 Well it looks like its in my case as well and am so proud of my customers. 🙂
Now if you work this out it is (4.05/38) * 100 = 10.65% ROI (Return on Investment). So this looks like a great return. I have always said, people who can master the directional strategy can make more than 3% a month. Some are making more than 3% per month even in non-directional. 🙂
Whenever you are taking the directional trade you should know your maximum risk BEFORE you take the trade. People who have taken my course know that profits can be unlimited especially if you are wrong in predicting direction.
And how many times did you took the Nifty Futures trade and got the direction wrong? I am sure most of the times. But what if you can make more money if wrong? 🙂
Note: Ravi converted the positional directional trade (Futures hedged with Options) into an Intraday trade. It was an Intraday trade done Monday, January 04, 2016. Please also note that he did not buy the Nifty Future, but bought the Call as he wanted to go long on Nifty, but was horribly wrong and was awarded Rs. 4.05 Lakhs by markets in a single trading day because he was wrong in predicting direction. How many times has that happened to you? 🙂 Aren’t we punished by markets whenever we are wrong? Add to that the worries we have, when we trade Nifty Futures naked (means without hedge). All that worries will go if you are hedging.
He also bought the Call Option to save money on margin. For Future Buy/Sell your broker will block at least Rs. 40000-45000 for 1 lot Nifty. But here he pays the option premium multiply by the number of shares bought. This reduced his margin by a whopping 75%. He traded in 7500 shares or 7500 / 75 = 100 lots. This is another reason why he got an increased ROI.
If you have taken my course please do not ask me why he bought a call. This was a smart move by the trader – more to do with trading with less margin and to get an increased ROI. This is where your brain comes in. 🙂 Returns will be more if you can use your intelligence plus the knowledge you get from the course.
How many times you made money when you were wrong in direction? None I think. That is what I call beauty of hedging. It not only protects your capital but it can make money as well.
Agreed it will not make money always – but understand this – when it makes it makes unlimited money and when it losses the losses are limited and you can wait for profits to come. Two great trades and you are done for the month. On top of that, you need not be correct on direction. What more do you want?
When I replied “great trade” this person replied this:
Update on Monday, January 04, 2016:
Now this is amazing. As promised he shared his trade details done today. Ravi had another great day. He made another Rs. 1.80 Lakhs trading Intraday on the same directional strategy only with options. Surprisingly there was no movement today, but still the trade made a profit. Note that the trade needs movement to make money. It does not matter which side.
So profits in 2 trading days:
Rs. 5.85 Lakhs on 38 Lakhs.
ROI (Return On Investment): (5.85/38) * 100 = 15.39% in 2 trading days. Amazing. Hats off to him.
I have written him to continue sending the trades so that I can see if I can convert this into Intraday Trading. Lots of my subscribers are looking for Intraday strategies – and if research proves it to be good then lot more traders can benefit.
I personally do not like trading Intraday, but if something good comes out – then I am Ok.
Lets wait and watch how this one plays out. I will start start doing some research on this.
Thanks Ravi for trading with Guts and Brains. Like I always say: If you are doing it right, hedging your trades, and know what you are doing – over time you will make money.
Calculated risk taking traders will play out well in the long run, speculators will phase out in long run. Unfortunately humans love to gamble and therefore more than 95% of traders are gamblers who lose money.
I hope you do not.
Update on Monday, January 06 2016:
Mr. Ravindra has another Roller Coaster Day. Makes Rs. 4.76 Lakhs Profit on 45 Lakhs margin blocked. Here is his today’s email.
I have got just too many requests today from my clients to share his trade details and I have not sent it to single person. The reason is pretty simple. I want to be 100% sure this directional trade can be converted to intraday trading. Until and unless I am not pretty sure I will NOT share his details.
Today he took some risks. There were a total 4 trades and he booked profits in ALL the trades. Since it was intraday he kept booking profits in different legs at different times. This is his intelligence and the credit goes to him.
Yes he took calculated risk for the day and it paid off since he knew even slight whipsaw (change of direction) of Nifty will bring him profits in all legs. It worked.
Very Important Note: Mr. Ravindra took the course on 26-Dec-2015. Paid 5000. Did not email me for a single doubt and takes his first trade with a margin of 38 lakhs. He has experience of 5 years in options trading. How many of us even with 10 years of experience can do a course and risk 38 Lakhs on a single trade? This person has the guts. Even if you are a crorepati can you risk 38 Lakhs in your first trade after doing a course? On top of that he converted the positional trade to Intraday. Which means he is very experienced and smart trader. This is the reason I am not sending his trade details to anyone right now. People will start copying.
But its easy to know what he did which is there in his email itself. Except for today’s trade where he did buy Futures, he just bought the ATM Call Option instead of the Futures. Rest of the trade remains more or less same. So please look into the document I sent you and start experimenting. Paper trade first and see how it goes. Then do the real trading on a single lot. Remember he is doing it Intraday – so paper trade Intraday only.
Ravindra’s total profit in last 3 trading days:
4.05 Lakhs + 1.80 Lakhs + 4.76 Lakhs = Rs. 10.61 Lakhs
ROI: (10.61/40) * 100 = 26.52% in 3 Days.
Enjoy Ravindra Hats Off.
Ravindra’s total profit ending this week is Rs. 16.26 Lakhs on Rs. 38/- Lakhs margin blocked
Ravindra’s total profit ending this week 4th to 8th January 2016 is Rs. 16.26 Lakhs on Rs. 38/- Lakhs margin blocked. This is (16.26/38) * 100 = 42.78% return in 5 trading days. Humongous!!!
In the last few days I got many requests from my paid as well as non-paid customers to show his trading details. Unfortunately Ravindra was NOT comfortable, but when I told him his personal info will not be revealed he readily agreed.
Here is the screen shot of his profits for the week taken out from back end of Zerodha.
I got quite a few emails where some people suspected this to be fake. Let me tell you that I do not lie, at least on this website. I know you people trust me and breaking trust is something I am yet to discover.
But please remember these kinds of returns are not possible from every trade or trader. You must have expertise like Ravi to get such kinds of returns. Look at his qualifications – he is MBA and CPA. And am sure he was doing good even before he took my course.
Here is his email:
I do not even take credit for his returns. He learned hedging from the course and took advantage of the knowledge – that’s it. Note that he changed the strike prices as per his views that day. Even entry and exit of all legs were timed differently. This cannot be taught in a course.
This is something that will take you months to master. Therefore even I was reluctant to show his trade. Next day Nifty changes and so the strike prices – but I know there are lot of people with a lot of money who would try to copy the trade and of course fail and blame me for that.
He commented below is apt, which I must mention here:
I cannot tell you how much of an eye opener your hedging techniques have been. So far I use to work with a strict SL and now with your hedging techniques I can take more risk knowing that there will be multiple exit opportunities for each legs of the trade.
Anyway – my humble advice is , mastering the 3%-4% returns per month trades until one has the epiphany and starts his/her own financial engineering. Bottom line is, understanding the setup and the strikes. It comes with experience and most of all by making mistakes 🙂
I have therefore hidden the strike prices but people who have taken the course may get some idea about it. But please understand that even I do not know when he entered and exited the trade. Guess work can be counter-productive.
Ravi has promised me to come with a white-paper on this. And he also wants to write on this blog for free. He is a class apart trader and therefore I think he fits great to write for us and help this community.
And most importantly he is NOT charging me anything to write in the site. Thank You Ravi. We all will be really grateful to you, especially the Technical Analysts who visit this blog. All articles written by him will be attributed to him.
Thank you for this extraordinary week Ravi. We all learned a lot. 🙂
Very Imp Disclaimer: These results are typical and its not guaranteed that every trade will produce the same or similar results. However the hedging methods in the course will help you to take such aggressive trades even with a lot of cash. Because you know that capital protection is there no matter what. Smart traders will always make more.
If you are an experienced Future trader I can only say that the hedging methods in the course will help you a lot. Since this hedging will take stress off your mind because of either limited losses or unlimited profits, you can trade better and make better income.
After the course you will actually start looking for the worst tips providers in India and hope their Future direction is wrong. No I am not joking – this is how you can make more money. 🙂 Well you still make money, though limited if right.
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Dilip Shaw, Founder
INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However every trade depends on the trader and his level of risk taking capability, knowledge and experience. Moreover stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website. Please note that I DO NOT give tips or advisory services by SMS, Email, or WhatsApp or any other form of social media. I strictly adhere to laws of my country. I only offer education on finance, investments on stock markets in the best possible way as much as I can through this website. Still, you must consult an authorized advisor or do thorough research before investing in any stock or derivative before trading any strategy given in this website. I am not responsible for any investment decision you take after reading any article given in this website. Knowledge is the only way to get success in stock markets. I try my best to give stock market investing and trading knowledge through the articles posted in this website. Thanks for visiting my website.