In media, news channels and among traders there goes a lot of buzz on what will be decision of RBI policy, its impact on stock markets, what trade to take based in RBI policy – go long or short, buy calls or puts, which stock to buy or short etc.
Whenever someone gets a strategy they start back-testing forgetting that a strategy can be made based on back test, but can you really future-test a strategy? You cannot. For that you have to trade that in live markets.
I personally do not believe in back-testing but for those who believe one of my course subscribers did a back-test on my Conservative Nifty Strategy for 2 years and found it too be superb. He is an experienced Technical Analyst and Full Time Trader. He did my course in 2015, so is it working now? Yes Course Testimonials of Year 2018 are proof of that. Three years in a row if a strategy is working in live markets then it will work in future too.
My strategies work because they are non-directional in nature and are properly hedged. Non-directional takes care of avoiding speculative trading, trying to be rich overnight and hedging takes care of restricting the losses. Hedging takes out the fear factor and non-directional takes out the greed in you.
Both combined obviously will have an effect for a life time and then you can pass this knowledge to your kids as well.
Coming back to the topic – it is quite strange that no one is interested in back-testing what happens to stock markets when RBI policy is declared. The result is known to everyone – nothing major happens to Index at least, barring a few stocks here and there – yet traders in India take too many speculative trades on this day.
Banking stocks will see increased volumes on the RBI policy day. And India VIX will increase. Here is a screenshot of India VIX on 06-June-2018 – see that it has slightly increased:
There is a chance that India VIX will drop once the RBI policy is announced. This is the only common factor that happens on any major policy decision day either by RBI or by the Government of India.
And here is screenshot of NSE on RBI policy day 06-June-18:
Can you see it looks like just other normal trading day.
Yes it is only the General Budget that moves the markets for a short time, otherwise other news if not major – it really does not have any major impact on the stock markets. It may have a minor impact but should it really matter to you as a trader?
You can back test and see what I am saying is true, yet traders increase their speculative traders on the RBI policy day.
Let media do what they want to do, but you as a trader, its better you avoid such noise else you will damage your trading account.
Hope you have learned something from this article. Speculative trading either on a major news day or a normal day will do nothing to your trading account except adding losses.
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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:
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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
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To know more Call/SMS/WhatsApp me on 9051143004 or email me now. I know English and Hindi.
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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.
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