Since there is absolutely no movement in Nifty since the India-Pakistan tensions I am sure all directional traders by now must have lost much more than they made when they bought calls and puts on that day.
This is the life of directional traders. They seldom make money but do not let their ego die and still are willing to lose money trading the direction.
Whereas the non-directional traders rarely lose money and even if they do, if the trades are properly hedged the losses gets limited which does not affect their pockets. They are happy and move on.
If you are my paid subscriber of my course please note that India VIX has again fallen today. If you entered the trade Strategy 1 last month it should be in profit now. If the profit what we need is met please close the trade and take money off the table. Do not forget to thank the directional traders.
It is strange that people still ask me questions on where and how to find direction so that they can make a lot of money trading the stock markets.
Today morning itself at 9 am I got a call asking how to predict direction of Nifty from Nifty Option-Chain?
Option Chain is nothing but quoting of options prices through a list of all of the options for a given security like Nifty, Bank Nifty, or any other Stock. An option chain is simply a listing of all the put and call option strike prices along with their premiums for a given maturity period.
In India the best way to see current Option Chain is to visit the following link:
Most Active Call Options are here:
Most Active Put Options are here:
Most Active Securities:
Most Active Contracts:
Now tell me after seeing all this can anyone tell where is Nifty Direction heading? No you cannot. That’s the reason please do not run after direction – it will change the direction of your life from positive to negative. Whatever you have made in life will be lost running after direction of the markets.
I agree that if you can really get the direction right 80% of the times you can double your money in 6 months or less and make a lot of money trading Nifty or stocks.
But both are a huge myth – finding the direction of a stock or Nifty in the short term and making a lot of money trading stock markets in the short term.
If you write exactly the opposite it becomes true. See this:
Finding the direction of a stock or Nifty in the long term and making a lot of money trading stock markets in the long term. I just replaced short with long and the whole myth turns into a reality. 🙂
Let me also give you another example why finding the direction of Nifty with 80% success rate is nearly impossible.
Can tell me in which direction your life will go tomorrow? But you will have to tell me with a guarantee. For example will you get a promotion tomorrow or will you fall sick or not or will you meet with an accident or not or will you reach your office on time or not? Can you answer me all of the above questions with guarantee? I am sure your answer is no.
When you cannot predict direction of you own life within a few hours from now (on which you have full control) – how can you predict where Nifty will be tomorrow (on which you have no control) with a guarantee? No you cannot.
If you were right it was fluke. If wrong it was reality that most of the times you cannot predict movement of a stock in a very short period.
That is the reason I keep a reality check on my subscribers from time to time so that they avoid losing money. What do I get by writing these things in return? Nothing. But I will write the fact whether you enroll for my course or not.
I could have easily written do my course and make money fast and I would have get a lot of clients in a month. But sorry I cannot lie and take your money I am not like others and never will be.
If you believe what I am telling is correct only then do my course. It is a slow and steady process of making money without any tensions or hassles of keep looking at Nifty.
And yes with time do compound your money. So that after a few years you have enough not to worry any more about money.
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Dilip Shaw, Founder
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