Those who have taken my course know that 100-200 points move DO NOT bother us. Strangely this is a budget week and Nifty is moving in a narrow range. 7100 on the lower band, and 7300 on the upper band.
But when things are calm and cool, there is a storm waiting in the hide-out. This will break this week for sure either on the Railway budget day or before.
Is it the right time to do the directional strategy?
Lots of people who have done my course called me and asked if this is the correct time to do Directional Strategy?
Yes it is. Nifty movement can come any day so try it. Directional strategy should be set BEFORE the move comes. If move comes in a day or two, you make money and end the game.
If you are setting up the directional strategy today, Monday is the Final day of results. You either make a profit before the budget or on the budget day. Be happy with a 30-50 points profit though and exit.
Those who are more comfortable with Bank Nifty can try the directional strategy there. Bank Nifty is known to move pretty fast and the profits may come earlier.
Do not trade this week without a hedge
It is suicidal to trade either Options or Futures this week without the hedge. Unfortunately most traders right now are on an non-hedged naked Futures trade. I just hope I am proved wrong – but these people are going to lose a lot of money in days to come. If they make a profit, it is going to be limited though.
Never bet on something you do not know. Budget times are uncertain and losses can be heavy. Profits will still be limited. Why? Because of the simple mistake of traders taking small profits out, and letting the losses run unlimited. When “unlimited profits” is ONLY in your mind and not while trading, then why you are doing a trade? Ask yourself – when was the last time you took “unlimited profits”? I mean unlimited profits by using your skills, not as a gift by markets with a gap up or down opening. I think the answer will be NEVER. If you do not have the skills to let the markets decide the profits – then you are trading with a bad formula. This:
“Limited Profits and Unlimited Losses.”
You should actually trade with:
“Unlimited Profits and limited Losses.”
But not many have the skills to learn that, so at least trade with:
“Limited Profits and Limited Losses.”
Tell me – Where Is The Money?
If you trade with the formula “Limited Profits and Unlimited Losses.” – where is the money?
And this you keep doing for your life. You only compound your losses and not your profits.
With stock market losses you are only reducing your Salary every month. A 1 Lakh loss in a year means your actual salary is 8000 less per month than what you actually get. But you pay taxes on what you get on paper, right? That’s double loss if you are not reporting your losses while filing your taxes. I am sure many do not. Strange! Please report your losses and at least get a tax refund.
Do not live on hope and trade
You will be 100 and you will still “hope” of the that day when you will make a lot of money trading. Trading on hope is the most foolish thing to do in a business. Aggressive traders without a plan, trade on hope. When they lose they bring more money and again “trade on hope”. This goes on for life.
Do not trade anything that you cannot compound
I hate any strategy that cannot be compounded – however good it is. What is point in making 5000 per month if you fear putting more capital into the strategy to trade?
With my course the non-directional strategies can be compounded. It means you can re-invest the profits in the strategies back again and again.
But the most important part about my strategies is trading with a peace of mind. Nothing for me is better than making money with a peace of mind. On top of that you make small profits almost every month. What more do you want? To become the richest man walking on Earth by trading?
Email me to know more about the course. If you do not know anything about Options and Futures please tell me, I will try to help you for free.
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You can read about me here and my trading mistakes here.
Dilip Shaw, Founder
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