≡ Menu

FED May Increase Rates Next Week

Open ZERO Brokerage FREE Share Trading Account - Buy and Sell Stocks Without Brokerage - Set GTT (Good Till Triggered) Orders on System and Forget

Traditional brokers charge a lot for brokerage; however, this broker does not charge anything for stock buying and selling. Also, you can set GTT (Good Till Triggered) order after buying a stock, so that the system can sell the stock automatically at your target price even if you are not monitoring the market. Only 25k is blocked for option selling with hedge. Also, you get a lifetime free account in Sensibull (virtual trading app & strategy builder) which charges Rs.800/-+GST a month. Learn option hedging strategy if you open an account today. It takes 5 minutes to open an account online. Click here and Open Free Account with Them Today >>

FED policy making committee will meet next week and may raise interest rates but it will be very small.

Which Strategy to Trade for Paid Subscribers: [Hidden from free subscribers and all website visitors.]

Now free for all content:

There is too much anticipation the world over whether The Federal Reserve will increase rates or not. Interestingly 50% of the committee members wants an increase in rates, and 50% do not want a raise. Both the parties have some valid points to say.

Those who are against increase in rates say, let the American economy recover fully then increase rates, the other half that favors rate increase says the economy is getting stagnant due to not increasing rates for years and investors are investing money in more attractive and developing markets like India.

To give you an example if they just invest in any good debt fund in India they will get a return of almost 9% a year with ZERO risk. Compare this to 0% return there in America. If you had a lot of money where you would have invested? Of course India.

They are saying if FED increases rates at least some money will be invested in their economy and not go out to countries like India and China.

To some extend it may be true, but I personally feel comparing 1% to 9% is no comparison at all. Agreed they do not get all that 9%, there is some fees and brokerages involved, but still even if they are making 6% a year it is much more than 1% a year. So even if FED increases rates I do not think the investments in Indian markets by Foreign Institutional Investors (FII) will go down. It may go down by 5-10%, but this small dip will not have any effect on Indian markets at all.

So those who have done my course please do not panic. We are least bothered about direction of markets neither our capital is going to be eroded as our capital is heavily protected by hedge. Whenever there is a small 2% loss those who are trading naked will pay for our losses and we will escape a huge loss. Let those greedy aggressive traders lose money while we keep making money. 🙂

Please remember that FED policy making committee is meeting next week and may possibly increase rates as they are too much in pressure to raise rates. Since this is almost known to all markets in the world we are not seeing a huge correction in any stock market in the world. There is just a small dip because of traders who always love to trade in panic. I do not know why educated smart people trade naked and in panic and are willing to erode their wealth for no other reason but greed. These people will come and go, only those who follow the correct path to making money will keep making money. This is how any business works including the stock markets. I fail to understand why they do not understand this for years and by that time lakhs of rupees they have already lost.

Anyway till now due to fear of FED increasing rates, no market in the world has at least till now priced in a rate increase which is almost certain. Which means there is nothing to worry.

TheOptionCourse.com © Copyright Since 2013 ® All Rights Reserved

Click to Share this website with your friends on WhatsApp

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. I do not give tips or advisory services by SMS, Email, WhatsApp or any other forms of social media. I strictly adhere to the laws of my country. I only offer education for free on finance, risk management & investments in stock markets through the articles on 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 on this website. I am not responsible for any investment decision you take after reading an article on this website. Click here to read the disclaimer in full.

Disclaimer | Privacy Policy | About Me | Conservative Option Course | Bank Nifty Weekly Options Strategy
Find 200+ testimonials of my course on these pages too posted year-wise:
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
Testimonials Year 2021
Testimonials Year 2022
Testimonials Year 2023
Testimonial of one of my client making 25k per week
Emotional Testimonial by a Young Woman Trader and Her Mother
Difference Between other Courses and Mine
What others charge for online courses
What People Say Just After Doing My Course
Bank Nifty Course Testimonials

My student gets the Winner's Certificate of Zerodha 60-day Challenge - Click here and Open Stock Buy and Sell Free Account with Them Today!!!

Traditional brokers charge a lot on brokerage, however this broker does not charge anything for stock buying and selling. Also, you can set a Good Till Cancelled order after buying stock so that the system can sell the stock automatically at your desired price even if you are not monitoring the market. Plus only 25k is blocked for option selling. It takes 5 minutes to open an account online. Click here and Open Stock Buy & Sell Free Account with Them Today >>

About the author: Dilip Shaw I started trading stock markets since 2007. However my first 3 years were losses. Then I dedicated almost 1 year on studying, researching, paper trading options and learned a lot in that time. Since 2011 I am trading Nifty options profitably. Call me if you need any help trading options on 9051143004.

{ 2 comments… add one }
  • Vidyapati September 15, 2016, 5:29 pm

    Its my study. You have witnessed last few months bonds returns are also volatile now a days because a lot of money has been invested by FII and their withdrawal, which sudden, is the reason of volatility. FII calculate the return in Dollar terms that’s why exchange rate is important for them. Say $100@ 7% invested, ruppe rate is 65. Return at the end of year will be 6955. If exchange rate at the end is Rs 68 per $ the return will be 102.2 ie only 2.2% excluding commission and brokerage.
    One more thing I want to share though NSE pe is 23 which is high and correction is due. But AMCs are getting 28000 crore through SIP every month and mostly in midcap MF scheme (As per CEO of Sundaram MF), going market deep down for long term has some reservation.

    • Dilip Shaw September 16, 2016, 5:32 pm

      Vidyapati I too agree that Nifty will not go down very deep anytime soon but my reasons are different. I see all positive news coming which will make sure investors will keep investing, like again today Nifty was up 90 points.

Leave a Comment