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Why Nifty Is Rising Since Last One Year

Article Date: Monday, 27 August 2018

Many traders and investors must be wondering why Nifty 50 (NSE) is rising continuously since last one year. Here is the chart:

NSE 24-Aug-17 to 24-Aug-18

52 Week High and Low:

Percentage Increase (20.39%):

Some important notes before you read further:

NIFTY 50 is a diversified 50 stock index accounting for 12 sectors of the economy. It is used for a variety of purposes such as bench-marking fund portfolios, index based derivatives and index funds. NIFTY 50 is owned and managed by NSE Indices Limited (formerly known as India Index Services & Products Limited) (NSE Indices). NSE Indices is India’s specialised company focused upon the index as a core product. read more

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Everyone wants to trade and make money fast – this is fine, but everyone is looking to make a home run expecting to make 10-15% per trade. In this post you will learn that 10-15% per trade is impossible to make.

To try to make 10% a trade, a lot of gambling in stock market is going on and the result is obvious – they lose money. They just do not know what to trade and how to trade so they gamble. Stock markets do not work that way.

Actually its not their fault – there are a lot of misleading things happening online and offline. This is screenshot of a person taking an offline course in derivatives. See his fees (he promises huge returns from a single trade – more than 100%): read more

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How To Scale Out of Your Intraday Trading

If you trade a stock intraday make sure to trade with at-least 5-6 lots to scale the position, or if you do not have that much money to buy so many lot futures, trade in cash. Here is how to scale out of your Intraday trading:

Decide your trade long or short by 11 am

Its not just about deciding the long or short its also about deciding the profit taking and stop loss for the day. Please note that stop loss/profits should be decided on the basis of how much you are willing to lose and take from a trade not what your system is saying. Your system does not know your worth or your financial situation, so do not leave it to the system. read more

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Post date: 20-08-18

NSE Mar-Aug 18

Due to the recent turkey news you may have gone short in Nifty. In that case its better to exit or hedge your position.

If you are long then book profits.

Then wait for the trend to be clear.

India VIX is on the rise indicating volatility in the markets.

India VIX 20-08-18

Its strange that during these times so called market experts have different opinion – some say nifty will go up and hit 12000 by December 18, and some say Nifty may fall.

I am sure you may also be confused as what to do.

My advice do not listen to what the experts say in business channels or websites that you read. Tips or free advice both are bad and will be in your favor 40% of the times – rest of the the times you will lose money. read more

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Newsletter date: 09-August-2018

According to news sources NSE has applied for extending equity derivatives trading hours till midnight from 1 Oct 2018.

If you do not know this news let me take back to a news sometime back in May, 2018. SEBI proposed a committee to look into extension of trading hours and finally in May 18 it gave a nod. You can read the news here:

https://www.business-standard.com/article/markets/sebi-allows-exchanges-to-extend-trading-in-derivatives-till-11-55-pm-118050400653_1.html read more

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Look at BSE/NSE chart on 23-Jul-18 at around 1 pm – what trade an intraday trader would take? Buy or Sell?

Look at the ups and downs throughout the session. It’s up then down then up. I am sure even the algo-trading systems must be confused.

These choppy directionless trading days are most difficult for traders. These are not abnormal days. It happens 75% of the times. Only 25 trading days in 100 trading days have a clear direction. Rest 75 days the markets do not show any direction.

This is the reason I made a non-directional Nifty course. Our trades wins 75% of the times that too with peace of mind as they are fully hedged. You do not even have to check/monitor them continuously. read more

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A lot of people are now moving towards what traders are trying to do in US, UK and other developed nation – Algorithmic and Quantitative Trading.

So I thought let me write a quick post and tell you what it is.

Algorithmic trading is basically done by machines. You must be thinking – wow machines who do not have any emotions of greed and fear – wow they will make a lot of money trading on formulas.

I have made formulas in bold. WHY? Because this is the most important part of Algorithmic Trading. read more

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Date: Wed, Jul 18, 2018

Nifty saw a resistance at 11000. Resistance at 11,000 is a Huge Psychological Resistance At Play in Nifty.

I hope you know that Nifty does not move depending on the derivatives markets – it is totally depended on the Nifty 50 stocks:
https://www.moneycontrol.com/markets/indian-indices/?ind_id=9
https://economictimes.indiatimes.com/indices/nifty_50_companies

On top of that not all stocks have the same weightage on Nifty. Some have more some less.

I am sure you may be surprised that currently some stocks are below their level when Nifty was at 10,500 a few days back. Today its at 11,000 still many Nifty 50 stocks and others too are below what they were when Nifty was at 10500. read more

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Losing money in stock market trading is common but when I come across heavy losers, I write in my blog.

Some examples are 3 crore loss, 2 crore loss, 40 lakh loss (must read) and now this 60 lakh loss. Total loss of these four traders equals 6 CRORE.

Read this whatsapp chat:

Yes I feel bad when someone says he/she lost money trading the stock markets. Well if you start a business without knowing the ins and outs of the business you are sure to lose money. But thne somewhere sense should prevail. You must stop trading and start researching. read more

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In the year 2007 a few people from a local stock brokering firm came to my house to explain about stock markets and I was done. I opened a demat account the next day with a lot of dreams. What happened after that you can read here. Now in 2018 the story has changed but it was after a lot of struggle.

In short I started with stock investing – failed, then intraday trading – failed, then moved to derivative trading – failed there too – lost 7 lakhs and stopped trading to learn trading. Its 2018 now I am totally deepened on trading and investing profits. I left my job in the year 2016 and pretty happy about it. I am also happy that my conservative option course is helping a lot of traders since 2015. Testimonials. read more

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