See this amazing Nifty rally (Bull Run) of the year 2017:
Biggest question in traders mind is When It Will Stop or What To Do Now?
Who is asking this question? Speculative traders.
Speculative traders have a bad life. They are hanging between BUY or SELL, Call or Put, which stock to buy Intraday etc.
This is not the way you should be trading.
You must have a highly successful plan in your trading tools, not think about what to trade next day. Speculation will take you nowhere.
Check this thinking of a speculative trader:
I have one clarification and need to know, if I am selling naked Nifty Feb put option of strike price 10600 @150 and can we buy the same put option later and can be adjusted.
If yes how much we need to invest or margin required.
And is there any high risk and is it advisable?
My reply: Naked option selling is risky but yes it can be bought back. Margin blocked will be Rs. 45,000 (my broker block that margin for 1 lot Nifty as on Jan-2018 Lot size Nifty now is 75)
His reply: Ok thanks but buying also I am feeling risky because please don’t take mistake, if we are selling the put option of strike price around 10500 and if the market is coming down to even around 10500 I think we might not be loosing anything.
Is it correct or wrong?
Please let me know.
He was planning more dangerous speculative which is not disclosed here.
Please DO NOT copy the above trade its just his opinion. He may be in profit or in loss, but if Nifty falls heavily in next few days he will be staring at a huge loss.
This is the reason you should never speculate and trade.
Even when investing in stocks you must do research before investing. In stocks you have a life time waiting period, but in options and futures you do not have much time. You have to be right before that time or lose money.
How many times will you be right trading like this? And can you continue this type of trading for life?
You can learn some good non-speculative strategies in my course or research yourslef but please stop speculating in the hope to make a lot of money but lose money.
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Dilip Shaw, Founder
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