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Nifty is Down by 4% What to Do

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Part of newsletter sent on: 24th of August 2015.

Today what happened, happens once in 6 months. Sensex crashes by 1000 points and Nifty down by more than 4%. Chinese economy is bringing down the stock markets all over the world.

INDIA VIX is at 23.58 an increase of 6.47 points and 37.81% over Fridays close. This is very rare.

The truth is after three and a half months, stop loss is hit in our Strategy 1. We should accept it gracefully. The kind of losses that are being reported are like 8 points or 10 points which is cool.

Now is the time to go to Strategy 2. A lot of my paid subscribers of course will experience strategy 2 for the first time.

These events happens rarely – so stay put. We cannot be winners every time – today is one of those days. I am sure a 10 point loss is very much acceptable.

Those who have still not started – do not trade right now. Within couple of days Nifty will settle down then you can start trading strategy 1.

Imagine a trader who bought Nifty Future on Friday without a hedge. He is now out of the game – we are not. Compare this with our directional trade where you can now exit in profits, even after huge losses in the Future trade – this is the beauty of hedging.

This is also a great time to stick to the theory of “buy when everyone is selling”.

Some great stocks are down. You should buy them in cash NOT Futures. Please stick to what is being said.

If you really want to play with derivatives then I would suggest the following limited profit limited loss trade:

Sell ATM Put Option
Buy just 1 level below strike Put Option for protection

– Same number of lots, same expiry for both trades

This is a Bullish Put Credit Spread trade with limited profit and loss. Of course do it only if you do not have cash to buy.

Some of the stocks that you can do this strategy are:

YES Bank
Bank of Baroda
Tata Motors
ICICI Bank
Axis Bank
SBI

Warning: Do not trade them without hedging please like just buying Futures. Only do the trade that’s written above or buy in cash and hold. If the shares finishes above the current level by expiry you can make good money. You have more than 30 days for it – and this is a calculated and limited risk trade with high chances of success. Because in the next 30 days, there is a lot of chance that some good news will come and stocks will reverse and you can make a profit. If it does not happen, its ok as the loss will be anyway limited.

Markets over-react, we must be ready to take benefit of this over-reaction.

Thanks for being my subscribers.

If you think knowledge is important for stock trading and do not want to depend on tips providers, you should take the course. If you see value buy it. Please remember that option to pay 5000 for email support will not be there next month.
Option Trading Course:
http://www.theoptioncourse.com/learn-how-to-trade-options-for-monthly-income/


Fill this Form to Get 5 Day Free Course on Options & Download Option Greeks PDF File - Download Link Will Be Sent To Your Email

What you should do now

1. If you have still not subscribed for my free 5 days course you can do by filling the form above. You will learn a lot about option trading.

2. If you are a new option trader, not much experienced and are making losses you can do my paid course. I recommend Nifty Conservative Option Course for beginners because it is easy to understand and easy to trade. Even a 18 year old young trader or a housewife can learn it and start trading from next day. It will help you to earn consistent monthly income without any software or speculation or stress or big risk. You will learn proper hedging strategies that works in any market condition.

3. If you are banknifty weekly options trader you can do my Bank Nifty Weekly Options & Futures Strategy Course. You will learn future and option hedging strategies that works in volatile market condition.

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Here is complete process of my course

1. Once you pay I will send you the course materials for studying to your email.
2. You read and ask me questions via phone/whatsapp/email to clear doubts.
3. Then you start paper trading and still can ask me questions.
4. After about one month you can start trading.
5. Since doubts can come anytime the support will be there for one year.

Within one month you can start trading on your own. No need to depend on anyone once you are on your own.

If you have any question you can contact me.

You can read about me here and my trading mistakes here.

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Dilip Shaw, Founder

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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.

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Profit in Trade Despite Loss in Futures

About the author: 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 }
  • vivekanand

    Thanks for your view posted on 24Aug

    • Thanks Vivekanand. On such a day it was important that I help my subscribers. 🙂

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