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Risk Management And Small Returns Can Make You Rich Over Long Term

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Yesterday Nifty closed almost 1% up totally ignoring what market pundits were saying on Raghuram Rajan retirement. Not only it did not close in the red but close almost 1% up. This clearly proves do not listen to what others say on the markets just concentrate on your job and trade. One day of trading will not make you rich anyway so why bother? And mind it you can also lose money – and since on these days you trade heavily if you are wrong the losses are also big.

Hope those who shorted Nifty yesterday or sold calls learned a lesson to avoid speculating. Speculations never make money in the long term – its only knowledge, discipline trading, patience, greed control and proper risk management that makes money over the long term not what’s happening in the world.

Even the best stock investor in the world Warren Buffet did not invest all the money he had in one stock – based on his research findings he used to allocate a percentage of his net worth in that stock. If the research was very positive he invested more, if it was somewhat balanced he invested less. This brilliant money management skills and control over greed made him richest stock investor in the world. Please also note that a lot of hard work was required to this. He used to visit factories and personally see manufacturing process and marketing techniques of the companies he wanted to invest in. He also used to talk to the owner of the company and the management. Unlike most of us, he just did not see profit and loss statements or took tips and invested in a stock.

His minimum time frame was also at least 10 years to stay invested in that stock once he decided to invest. In an interview he said that the best time to sell a stock is NEVER. Basically he meant was do not sell the stock until you need the money.

Please also note that to become the richest man in the world it took him some 25 years to get that crown. Also he had other businesses – most of the money was coming from an investment business that was generating millions. Therefore he had that privilege to invest a lot of money in the stock markets without worrying much about quick returns.

Also note that the average return of his whole portfolio since the last 25 years is only some 2%+ a month. When the best stock investor of our times was able to make only 2%+ a month – you need to have more knowledge than him to get better returns than him for the next 25 years.

One month return of 10% and next month return of -15% will not make you rich in fact will make you poor.

Do not fall for something that’s just not possible. Be happy with small returns but consistent returns and compounding your money – those small returns over the years will definitely make you rich. So plan and execute your trades well and be patient.

What you should do now

1. If you have still not subscribed for my free 5 days course you can do by filling the form above. You will learn a lot about option trading.

2. If you are a new option trader, not much experienced and are making losses you can do my paid course. I recommend Nifty Conservative Option Course for beginners because it is easy to understand and easy to trade. Even a 18 year old young trader or a housewife can learn it and start trading from next day. It will help you to earn consistent monthly income without any software or speculation or stress or big risk. You will learn proper hedging strategies that works in any market condition.

3. If you are banknifty weekly options trader you can do my Bank Nifty Weekly Options & Futures Strategy Course. You will learn future and option hedging strategies that works in volatile market condition.


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1. Once you pay I will send you the course materials for studying to your email.
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Within one month you can start trading on your own. No need to depend on anyone once you are on your own.

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INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However every trade depends on the trader and his level of risk taking capability, knowledge and experience. Moreover stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website. Please note that I DO NOT give tips or advisory services by SMS, Email, or WhatsApp or any other form of social media. I strictly adhere to laws of my country. I only offer education on finance, investments on stock markets in the best possible way as much as I can through this website. Still, you must consult an authorized advisor or do thorough research before investing in any stock or derivative before trading any strategy given in this website. I am not responsible for any investment decision you take after reading any article given in this website. Knowledge is the only way to get success in stock markets. I try my best to give stock market investing and trading knowledge through the articles posted in this website. Thanks for visiting my website.

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About the author: I started trading stock markets since 2007. However my first 3 years were losses. Then I dedicated almost 1 year on studying, researching, paper trading options and learned a lot in that time. Since 2011 I am trading Nifty options profitably. Call me if you need any help trading options on 9051143004.

{ 4 comments… add one }
  • marina s rao

    Dilip ji,


    Learning points from this post :

    Do not listen to what others say on the markets just concentrate on your job and trade.

    Do not sell the stock until you need the money.

    Do not fall for something that’s just not possible.

    Plz correct the following line :

    In 3rd para from the start :

    ‘ This is brilliant money management skills and control over greed that made him richest stock investor in the world. ‘


    ‘ This brilliant money management skills and control over greed made him richest stock investor in the world. ‘


    M S Rao

  • Gaurav

    श्रीमान जी! सादर स्नेह What about a person if he wants to depend on intraday trading at stock market to earn his bread and butter or to fulfill his daily needs. Do you support such trading policies or long term only? I wish to know your valuable opinion regarding such daily basis trading strategies. As you know many people are offering paid services providing calls to reach targets and obviously they do. Please do guide. Thank you. शुभेच्छा

    • Gaurav, I do not support intraday trading as it has a lot of stress. Moreover it is very hard to compound. Long term strategies can be compounded and are stress free. On top if that positional strategies can be hedged, but intraday strategies needs constant monitoring. If profits can be made stress-free than why trade intraday?

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