≡ Menu

Warning Huge Gap Down Opening in Nifty

Fill this Form to Get 5 Day Free Course on Option & Download Option Greeks PDF File - Download Link Will Be Sent To Your Email

Option & Future Conservative Hedging Courses
Nifty | Banknifty | Testimonials | Course Fees
Must Read Pages
About Me | Mistakes To Avoid In Trading | 3% A Month Is Not Less

Note: This is text of my newsletter sent to my email subscribers on 11-Oct-2018 before the stock markets opened.

By the time this email reaches you, you will see that the damage has been done to all Future/Call long traders yesterday. I hope it is not you.

Today Nifty will gap down open by almost 300 points. Just see what the damage a gap up or down can do to a naked option or future trader.

This is the loss of a naked (UN-hedged) future trader in SINGLE LOT ONLY:

300 (points) * 75 (lot size) = Rs.22,500/-. Loss of a greedy trader trading 10 lots = Rs.2,25,000/- gone in a single day. 🙁

Yesterday (10-Oct-18) Nifty was in huge bull mode – closed up by 160 points from the previous day (09-Oct-18).

If you are a technical trader or even if not – I am sure you can easily guess that all technical indicators must have given a strong buy signal before yesterdays close. Not a single technical software or technical theories in the world must have given a sell signal indicating a sell off. This is the reason I do not believe much in technical analysis.

Stocks are not a living thing that they will respect or obey technical signals. They will move as per people trade. And its a fact that less than 99.9% of people who buy stocks don’t know technical. Then why technical will work??

Here is some proof – this is not just another blog – it is a research paper:

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2401230

Copied from above URL:

We find that individual investors who use technical analysis and trade options frequently make poor portfolio decisions, resulting in dramatically lower returns than other investors. The data on which this claim is based consists of transaction records and matched survey responses of a sample of Dutch discount brokerage clients for the period 2000-2006. Overall, our results indicate that individual investors who report using technical analysis are disproportionately prone to have speculation on short-term stock-market developments as their primary investment objective, hold more concentrated portfolios which they turn over at a higher rate, are less inclined to bet on reversals, choose risk exposures featuring a higher ratio of nonsystematic risk to total risk, engage in more options trading, and earn lower returns.

Conclusion:

  • If you want to save your money – your hard earned money just hedge your position and go for non-directional trading. Saving your money should be first thing in your mind – making money should be secondary. If you make sure you do not lose your money then it is obvious that over a period of time you will make money trading.
  • Compare making 25-35% a year which includes small profits and small losses to making 70% a year and losing 80% in 20% of the trades.
  • Please be realistic on trading and do not believe what telegram channels says or what is shown on YouTube videos that anyone can upload.
  • How much ever hard you try you cannot make more than 35% a year consistently over the years till you retire. Be happy with that percentage. My courses will help you achieve that without much risk and absolutely ZERO stress.


    Fill this Form to Get 5 Day Free Course on Options & Download Option Greeks PDF File - Download Link Will Be Sent To Your Email

    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.

    Testimonials

    What Traders Say About My Course

    Course fees: Click here to know the course fees.

    Here is complete process of my course

    1. Once you pay I will send you the course materials for studying to your email.
    2. You read and ask me questions via phone/whatsapp/email to clear doubts.
    3. Then you start paper trading and still can ask me questions.
    4. After about one month you can start trading.
    5. Since doubts can come anytime the support will be there for one year.

    Within one month you can start trading on your own. No need to depend on anyone once you are on your own.

    If you have any question you can contact me.

    You can read about me here and my trading mistakes here.

    TheOptionCourse.com Copyright @ All Rights Reserved
    Dilip Shaw, Founder

    Copyright Infringement: Any act of copying, reproducing or distributing any content in the site or newsletters, whether wholly or in part, for any purpose without my permission is strictly prohibited and shall be deemed to be copyright infringement.

    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.

    Volatility is Average But India VIX Still High
    Life Time Savings Gone in Stock Trading
  • 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.

    { 0 comments… add one }

    Leave a Comment

    Menu