Date of post: 25-Feb-2019
Some reasons why there is too much volatility in the markets:
- Indo-Pak Tension – This could have tanked Nifty but luckily it did not break 10600, but created confusion in traders mind. It did go down but not too much.
- Tussle Between Government and RBI. This problem is going on since very long and I do not think this will get over soon.
- General Elections in Apr-May 2019 – This is a major source of volatility and will keep moving the markets till the elections are not over.
My advice is trade with the basics of trading – do not let the stop loss be violated. This means if you have decided to keep stop loss on certain point – it’s better to exit the trade at that point. And when it comes for time to book profit – just do that. Do not wait for more.
If you want to play safe my courses will help you. Please note that option selling is required so you must have at least 75,000 in your account to do my strategies.
Though 150,000 is better you can still trade with 75k – just that your profits will reduce.
There is nothing better than trading options with limited risk and without looking at charts and without giving too much time to stock markets yet make a monthly income – this will help you surpass results of many technical traders who scratch their heads in the morning everyday to find direction of nifty. Technical traders forget that Nifty is not a stock – it is an average of 50 stocks – so essentially they are doing technical analysis on 50 stocks combined not one. Is that possible?
Is Volatility Killing You?
How long will you keep speculating in this volatile markets?
Today morning at 3.30 am while you were sleeping, several Mirage 2000 aircraft form the IAF dropped 1,000 kg bombs on terrorist camps across the LoC.
Why am I telling you this?
Because if you are positional trader you have no control on what is happening when markets gets closed at 3.30 pm. Yes trading gets closed but the world and its business runs 24*7 – it never stops. You do not have control over what happens when the markets gets closed. Something may happen in US and our markets may suffer. But today morning what happened has definitely given fear in the mind of traders so this happened:
And have a look at India VIX:
I have a question for you – how long you want to suffer such casualty in trading? Yesterday Nifty was up by almost 80 points and today by the time I am writing this it is down by 102.25 points. I am sure many future traders must be long in Nifty futures after seeing a strong bull trend in Nifty yesterday, and today they are down by more than 7000 rupees. In one day 7k gone just because they are trying to chase direction.
But if the position is hedged traders can wait for the tide to turn in their favor.
Look at how hedging helps traders. Both mom and son in profits in future trading one long and at the same time one traded short:
This is why hedging your traders and trading with proper risk management is very important in trading else it’s easy to lose all the money you earn in your entire life in stock markets.
Note: My Nifty Conservative Course and Bank Nifty Weekly Options Course will help you to earn monthly income without giving too much time to stock markets. Please note that they are non-directional strategies which means unlike stocks which can make a profit only if they go up – these strategies does not need a direction. These trades will make money irrespective of Nifty going down or up – month after month.
Look at a good stock like Tata motors – it’s going down since last one year.
An investor must be losing a lot in this stock – however unlike this with my strategies even if Nifty after one year will be at 9800 – you will still be in profit – and if it comes back again to 10800 you will still be in profit. This is non-directional trading. This is possible only with hedging.
If interested to learn the strategies (5 in Nifty course and 2 in bank nifty weekly options course) click here to pay the course fees. Please note that support of one year is also included in the fees. The support is also very important because when you chat with me I may tell you things that are good for your knowledge and way beyond the strategies in the course which itself is worth 10k.
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Dilip Shaw, Founder
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