Since morning today I have been reading in various online journals and I see that most experts are feeling that the markets right now are looking a bit stretched as they cannot break the barrier of 9000 and cross over it so it looks like it will fall.
Some say the fall might be around 10%. Frankly I read news just to see if there is some REAL NEWS in it. Not just what experts feel. Markets do not have any emotions – humans have but markets dot bother for human emotions.
So the reason that 9000 is not crossed for long does not fit into real practical news. There can be a fall but not because 9000 unable to break but could be for some other reason. But frankly 10% fall looks a bit far at least not this year until some real bad news hits in. In fact this strays true for ever.
History is a proof that many times the experts were proved wrong by the markets. So just read to know if there is some reality in the news, if not just ignore. Like I did today.
One news I felt correct was that results of US elections may propel markets higher. At least till then I feel 8,600-8,900 range will stay.
What may move the markets in coming weeks?
Quarterly results are coming from blue-chips like TCS and Infosys. These are big companies and any good or bad news may move the markets but not more than 100 points for Nifty.
Also announcement of macroeconomic data – IIP and inflation is coming. I will keep an eye on this and will inform you.
The above factors will definitely move the markets. Up or down depends on what the news is.
Markets will remain closed on 11-October-2016 (Tuesday) for Dussehra or Vijay Dashami, and 12-October-2016 (Wednesday) for Muharram.
In my last article on Option Chain And Myth In Stock Markets there was a comment from Michael:
If you dig deep in to the option chain, you will see that the market generally reverses direction at the strike price of max open interest. For eg, its good to buy when price is nearing the max puts (provided puts at that strike are continuously increasing with price is near) and its good to short when price is nearing max calls (provided calls at that strike are continuously increasing when price is near).
If the price is about to break out from the max open interest strike, the numbers of puts (for a break down) and the calls (for break out) will generally decrease. You can back test this for yourself, in the recent months and see the option chain predicted precisely.
Combining this with your directional strategy improves the odds of success 🙂
The reason this works it, professionals usually write options & hence by aligning with their direction, we have the upper hand. No wonder option buyers lose money.
IMP NOTE For People Who Have NOT Done My Option Trading Course: Please take this as educational purpose only as it is just a comment. Please do your own research before doing what Michael is saying. I will do research on this and write a post some day. But what he says is if true then why most technical analyst fail? They should be doing the above and make a lot of money. So on the face of it I do not agree until research confirms this.
I will do some research on this. I have given a solid reason for not doing as anyone says. So please if you are a technical analyst (TA) do your own research on the above comment and let me know your results. It will be great help.
IMP NOTE For People Who Have Done My Option Trading Course: Since our trades are properly hedged and we are least bothered about direction of the markets you can try this. Since the hedge will take out tensions of trading nothing wrong to try this out. But please paper trade at least three times before trying this out and also send me the results. I am more interested in what my clients are doing rather than what I am doing as I am more interested in your profits and Thank You emails or WhatsApp messages which money cannot buy. I only get it by giving proper guidance and knowledge. In fact your Thank You emails and/or WhatsApp messages makes me more happy than when you pay for the course. 🙂
I still have some 150+ Thank You emails and WhatsApp messages which I am unable to upload in the site due to lack of time since customer service still taking too much time. Anyway if I find time I will upload – but I am saying this since last one year I think. 🙂
So please keep sending those messages it motivates me a lot and makes me very happy.
Wishing You All The Very Best.
You Can Read More On My Site
Hi, I am Dilip Shaw, owner of this website. I am a trader like you. I have been trading since 2007, but lost a lot of money till 2010. I then stopped trading and studied options like college exams. Started trading again from 2011 and never looked back since. I did a lot of research, read books and did countless paper-trading before being profitable. You can read about me here.
My conservative trading course since 2014 is helping many retail traders just like you who have a job or business make consistent profits like this:
What Traders Say About This Course
Testimonials Year 2015
Testimonials Year 2015 Page 2
Testimonials Year 2015 & 2016
Testimonials Year 2016
Testimonials Year 2017
Testimonials Year 2018
Testimonials Year 2019
Testimonials Year 2020 to 2023
What People Say Just After Reading My Course
Emotional Testimonial by a Young Woman Trader and Her Mother
One Of My Client Is Making Rs.25k Per Week
Difference Between Other Courses And Mine
What Others Charge for Courses
You can do this course from your home. Some traders make amazing profits like Rs. 16.26 lakhs profit in 5 days though results may differ for all.
This course helps you learn to trade conservative option strategies for monthly income. Once you finish the course you can start trading immediately. You can start trading from any day. No need to wait for expiry. You will make profits consistently.
This course is good if you have a regular job or business. You DO NOT NEED to monitor your trades every second.
What You Get?
Before reading please understand that for all 5 strategies, strike selection will be taught. Strike selection while trading Options is the most essential part to succeed.
You get two conservative non-directional strategies on options, one conservative stock option strategy and two conservative directional strategies on Future & Option combination.
Non directional trades are profitable 80% of the times and make 3-5% per trade (Results may vary).
Directional strategy makes money fast. It does not matter which side the stock moves. In fact you make more when you are wrong in the Future trade. 🙂 Some amazing profits possible here.
The stock option trade makes 30,000 in one trade and if SL is hit there is a way to recover losses plus make 30k in that trade.
Technical knowledge is NOT required. No need to monitor trades every second.
In the course you will learn how to select the strike prices. You learn when to trade, which strikes to sell which to buy, how much profit target you should be looking for, the best place to take stop loss and what to do after taking stop loss – means how to get that money back. The success rate is more than 80%.
Since trades are properly hedged there is no stress in trading my strategies.
I am very confident that you will make money trading my strategies. To help you succeed I offer few months support for FREE.
11 Reasons Why You Should Do The Course:
1. TA Knowledge NOT required
2. NO Software Required
3. Regular Monitoring NOT Required
4. Continue with Your Job
5. Do Course From Your Home
6. 100% Hedged
7. Stress-Free Trading
8. Not too much money needed to trade
9. Scaling Possible
10. One Time Fee
11. FREE Support For Months
To know more Call/SMS/WhatsApp me on 9051143004 or email me now. I know English and Hindi.
Read the details of the course here.
If you want to enroll for the course you can do so here.
P.S: So many years of trading has thought me one thing - it is always better to make small profits month after month, rather than lose money month after month trying to make too much money. It never happens. But small money accumulated month after month can become very big in only a few years.
WhatsApp or Call me: 9051143004
If you have any question you can contact me.
You can read about me here and my trading mistakes here.
Dilip Shaw, Founder
Copyright Infringement: Any act of copying, reproducing or distributing any content in the site or newsletters, whether wholly or in part, for any purpose without my permission is strictly prohibited and shall be deemed to be copyright infringement.
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.
DISCLAIMER: I am NOT an Investment Adviser (IA). I am an Authorized Person (AP) of a Stock Broker. In other words I am a sub-broker. I DO NOT give tips or advisory services by SMS, Email, or WhatsApp or any other forms of social media. I strictly adhere to laws of my country. I only offer education for free on finance, risk management & investments in stock markets through the articles in this website. You must consult an authorized Investment Adviser (IA) or do thorough research before investing in any stock or derivative using any strategy given in this website. I am not responsible for any investment decision you take after reading any article in this website. Click here to read the disclaimer in full.