Since today India VIX is up by 4.28% currently at 14.36 it is a good time to trade Strategy 1 given in my Conservative Options and Futures Course.
Some people are asking me if they can trade the Directional Strategy (a combination of Futures hedged with Options), but since last month Nifty was too volatile, I think its better to wait for next big news to trade it. As soon as big news is coming you can go for it and enjoy the movement – remember that direction does not matter to us. In the directional strategy move only matters. You can make money even if your Future direction was wrong.
Of course, I keep reading about stock markets and if any news is coming I will surly inform you.
Here are some of the business news highlights that happened during the last 30 days.
1. Good and Services Tax (GST) Bill was passed in the Rajya Sabha. I had said this in my earlier post too that it is good sign for the economy in the long term. But short term no one can say. Results can be seen in long term only.
2. Lot of people have governments jobs and the good news is that the Union Cabinet has accepted amendments to the Seventh Pay Commission. Now this will surly boost spending power and increase consumption. This will also boost the Indian Share Markets. FMCG (Fast Moving Consumer Group) shares may benefit.
3. Monsoon looks good. This will help farmers increase making food products. Demand being the same imports will decrease so the inflation on food products. Rural economy may improve.
4. A few months back stock valuations were looking expensive but due to GST bill getting passed, it is no more looking expensive. Long term stock investors will benefit. Please invest systematically for the long term.
I hope with this knowledge your can decide how to invest in stock markets.
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Dilip Shaw, Founder
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