≡ Menu

Why Nifty Moves Up and Down


About Me | My Trading mistakes | Learning Zone | Courses | Testimonials | Course Fees | Contact Me | WhatsApp me

Read to know why Nifty or any stock market in the world moves up and down.

As you can see today (16-Nov-2016 at 11.23 am) Nifty is at 8156.20 just 47 points up or 0.59% up from yesterday’s close.

This is the beginning of stability. Please refer my yesterday’s post where I had written not to panic as Nifty will soon get stable. As you can see sign of stability has arrived.

You see a simple thing called Human Psychology working here. People who wanted to go short have given their best. There is something called as risk management. You can’t sell your home and short Nifty right? That limit for maximum people if arrived then stability will come, then these same people will start booking profits.

How do traders who have gone short on markets book profits? They need to buy back what they have sold. Which directly means to invest money in stock markets.

For example those who have sold Calls may be in profits but those who have sold Puts may be in huge loss. Now they must be getting phone calls from their brokers to invest money as their trade is in loss and margin blocked over. Some will infuse more money in their demat account in hope of a recovery, some will not, and their broker will close their positions as soon as max margin block gets close to nil as a risk management measure.

Which means infusing or investing money into the stock markets. Many ask for collateral from their brokers to trade derivatives. These people will buy more stocks to increase their collateral margins so that brokers do not sell their shares at a loss to cover the damage as a risk control measure.

Similarly those who bought Calls will be in huge loss, and those who bought Puts will be in huge profits. They will see their Puts to take out profits and who pays them money? The traders who sold Puts.

If no shares were bought money is not invested in stock markets. just derivative trading is done. But if stocks bought to increase collateral or just to make a profit then yes money invested in stock markets and Nifty will rise if money invested is more than money withdrawn that time.

If everyone starts selling shares – the Nifty 50 stocks, Nifty will fall down fast. And if everyone starts investing in shares – the Nifty 50 stocks, Nifty will start to rise. If both buy and sell are almost same, stock markets will be stable that day. This happens 80% of the days. Please remember that this is applicable to all stock markets in the world not just in India.

Hope the logic of why stability comes in markets and why stock markets goes up and down is clear.

Please ask me questions or leave a comment below if you have any doubts.

If you do not know basic options please fill the form here. I will help for free:

http://www.theoptioncourse.com/beginners-get-option-beginners-course-free/

Please like & share my blog with your friends:

Links to my course testimonials pages:
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
What Others Charge for Courses
Bank Nifty Course Testimonials

To know more Call/SMS/WhatsApp me on 9051143004 or email me now. I know English and Hindi.

Privacy Policy | Disclaimer

WhatsApp or Call me: 9051143004

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.

DISCLAIMER: I am NOT an Investment Adviser (IA). I am an Authorized Person (AP) of a Stock Broker. In other words I am a sub-broker. I DO NOT give tips or advisory services by SMS, Email, or WhatsApp or any other forms of social media. I strictly adhere to laws of my country. I only offer education for free on finance, risk management & investments in stock markets through the articles in this website. You must consult an authorized Investment Adviser (IA) or do thorough research before investing in any stock or derivative using any strategy given in this website. I am not responsible for any investment decision you take after reading any article in this website. Click here to read the disclaimer in full.

Why Markets are Taking Time To Recover
500-1000 Notes Gone What Will Happen To Stock Markets Now

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

Social Share Buttons and Icons powered by Ultimatelysocial