Note: This is edited part of newsletter sent to my subscribers on 20th of August 2015.
Today I got an interesting email from one trader who took my course.
This was his Nifty Future trade – the directional strategy – it can make money even if the Future trade loses money because of the options hedge. Of course, I will not reveal the hedge part of the trade as its only for paid subscribers of my course. 🙂
On 16th of July 2015, he had bought Nifty Future @ 8626, and on 28th of July he sold it @ 8350.
If it was a naked Future trade (a trade without hedge) he would have lost 8350-8626 = (-)276 points – that’s a lot of points. But overall when he closed it, he was in 50 points profit – which comes to around 5% of margin blocked in 12 days. Yet he was NOT happy.
This was his question:
After doing calculation in this trade getting 50 point minus charges around 30 point so only saving is 20 point even nifty future moved 276 point.
This is what I call GREED. You take courses for 15,000 or more and when you trade them you make losses or find out that the strategy cannot be traded in live markets.
Now you took a course for much less – your trade went horribly wrong – you still made 5% profit in 12 days, but you are cribbing on why this strategy did not make more? Isn’t this Greed?
My reply was simple: There is nothing to see. You were wrong – the trade still made a profit. Why crib? Just be happy. 🙂
I cannot understand where this greed ends? I mean tell any experienced stock trader that you took a Future trade and lost 276 points but still ended up with a 5% profit on margin blocked in under 12 days. I swear he will first stand and ask “What exactly did you do?”.
And this guy is complaining why the strategy did not make more? How much more you want Mr. Jha? Please tell me. I am sure he will NOT be satisfied even if he makes 10% on that trade.
You made money when you were WRONG – that’s it be happy – do not look at how much. The directional strategy is meant for that. If you are right its obvious you will make money, if you are wrong you can still make money – but it does not promise how much. You can lose money if the stock is in very narrow range and is going against the Future, however the loss will be limited. Since the whole thing is totally hedged by options you can always wait for the Future to reverse direction and hit the target. That’s the benefit of the hedged trades.
Therefore I strongly recommended hedging all your Future and Options trade. Read this article to know how to hedge a Future trade.
I would be happy to take no loss when wrong in a Future trade. Dude, my prediction went horribly wrong – yet I am getting out in break even – hell I should be happy right?
If you really want to be a happy trader its very important that you be happy with even a small profit of 1% especially if that has come under 15 days because that converts to 2% a month. That’s more that enough if you can consistently make them and restrict the losses.
The best way to avoid being unhappy is NOT to look back at the trade on the expiry day and think what would have happened had you left the trade till the expiry day. The trade is over and looking back will only be painful, of course it can bring joys if it would have lost more. But it does not make any sense.
As you can see these things are a waste of time unless you are researching a strategy. The problem is these emotions can alter the way you trade. For example if you see that a trade that you closed in loss would have made huge profits had you left it till expiry will change your plan for the next trade. Unfortunately next time you may leave it as it is and not take a stop loss only to see it made huge losses on the expiry day.
Therefore once I have experimented and researched a strategy, I never look back and see what may have happened had I left the strategy till expiry day. For me once the trade is over I move on. But if the trade taught me something I will write it down, where I write results of all the trades so that I do not repeat the same mistake again.
To end this is my advice – control you losses (by hedging or stop loss) and be happy with the profits – even if small. Just don’t let greed overcome you – else you will never be a happy trader.
Its highly recommended that you do not trade Futures without hedging, however if you trade naked positional Futures you should take this course. It will help you a lot.
You Can Read More On My Site
Hi, I am Dilip Shaw, owner of this website. I am a trader like you. I have been trading since 2007, but lost a lot of money till 2010. I then stopped trading and studied options like college exams. Started trading again from 2011 and never looked back since. I did a lot of research, read books and did countless paper-trading before being profitable. You can read about me here.
My conservative trading course since 2014 is helping many retail traders just like you who have a job or business make consistent profits like this:
What Traders Say About This Course
Testimonials Year 2015
Testimonials Year 2015 Page 2
Testimonials Year 2015 & 2016
Testimonials Year 2016
Testimonials Year 2017
Testimonials Year 2018
Testimonials Year 2019
Testimonials Year 2020 to 2023
What People Say Just After Reading My Course
Emotional Testimonial by a Young Woman Trader and Her Mother
One Of My Client Is Making Rs.25k Per Week
Difference Between Other Courses And Mine
What Others Charge for Courses
You can do this course from your home. Some traders make amazing profits like Rs. 16.26 lakhs profit in 5 days though results may differ for all.
This course helps you learn to trade conservative option strategies for monthly income. Once you finish the course you can start trading immediately. You can start trading from any day. No need to wait for expiry. You will make profits consistently.
This course is good if you have a regular job or business. You DO NOT NEED to monitor your trades every second.
What You Get?
Before reading please understand that for all 5 strategies, strike selection will be taught. Strike selection while trading Options is the most essential part to succeed.
You get two conservative non-directional strategies on options, one conservative stock option strategy and two conservative directional strategies on Future & Option combination.
Non directional trades are profitable 80% of the times and make 3-5% per trade (Results may vary).
Directional strategy makes money fast. It does not matter which side the stock moves. In fact you make more when you are wrong in the Future trade. 🙂 Some amazing profits possible here.
The stock option trade makes 30,000 in one trade and if SL is hit there is a way to recover losses plus make 30k in that trade.
Technical knowledge is NOT required. No need to monitor trades every second.
In the course you will learn how to select the strike prices. You learn when to trade, which strikes to sell which to buy, how much profit target you should be looking for, the best place to take stop loss and what to do after taking stop loss – means how to get that money back. The success rate is more than 80%.
Since trades are properly hedged there is no stress in trading my strategies.
I am very confident that you will make money trading my strategies. To help you succeed I offer few months support for FREE.
11 Reasons Why You Should Do The Course:
1. TA Knowledge NOT required
2. NO Software Required
3. Regular Monitoring NOT Required
4. Continue with Your Job
5. Do Course From Your Home
6. 100% Hedged
7. Stress-Free Trading
8. Not too much money needed to trade
9. Scaling Possible
10. One Time Fee
11. FREE Support For Months
To know more Call/SMS/WhatsApp me on 9051143004 or email me now. I know English and Hindi.
Read the details of the course here.
If you want to enroll for the course you can do so here.
P.S: So many years of trading has thought me one thing - it is always better to make small profits month after month, rather than lose money month after month trying to make too much money. It never happens. But small money accumulated month after month can become very big in only a few years.
WhatsApp or Call me: 9051143004
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Dilip Shaw, Founder
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