Historically there is huge volatility during earning result season. Companies report their performances every quarter. This is the time even stocks see good liquidity in options and futures trading.

Note: In India compared to developed countries liquidity in stock options and futures is very low. Therefore is is recommended to trade only popular stocks during results season as volume spikes during this time. It is also highly recommended to hedge your future or option position to avoid huge loss in a highly volatile market. You can learn hedging options and futures by doing my course.

During result season there is a sudden spike in volume because every type of trader with jump into trading to make quick money. Whether they are positional, intraday, swing traders, long term investors also for the time being become traders, HNIs etc, everyone will try to make a quick buck trading.

In this article you will read some tips to Intraday (day trade) stocks during earning season:

Do Not Start Trading As Soon As Market Opens – Wait For The Trend to Form

The first ten minutes the stock whose results were out yesterday will be very volatile – within minutes the stock will go up and down by a few points – it will hard to know what the final trend will be. So it is recommended to wait at least 15-20 minutes to follow the trend.

Ignore Gap Up or Gap Down Openings

Gap up may lure you to go long and gap down opening will lure you to short the stock – do not do this mistake. Gap up and down are just reaction to the news – the final trend does not depend on it. Di not get lured by gap up or down of a stock.

On this day you will see that some stocks will gap up and then go down, some stocks will gap down and then go up. If you do not want to ignore this its better to check daily chart of the past couple years on that stock. You must see what happens to the stock after gap up or down. If in more than 60% of the days it usually follow through the opening then you can follow the Gap up or down opening, else ignore.

High Volume in Call and Puts May Confuse You

Next day to earning day the stock will see higher than average volume, this is usual and must be ignored. You may see more open interest in the CE (Call) side and less in PE side and you may think the stock is headed up, well that may not be the case. Similarly more open interest more in the PE (Put) side does not mean the stock is headed lower.

Trend on this day is most important that any other factor.

Do Not Book Profit In Full Trade

It is seen that the earnings usually keeps the trend for about a week. So if you have decided to trade a stock, try to book partial profits on the same day and leave some stocks for the rest move for a move well beyond it’s average true range. You can then exit with bigger profits within a week. Keep a trailing stop loss to your buy position for the rest of the stock, so that you do not make a loss in the trade.

What You Can Do If You Want to Trade Stock Futures With Hedging

In my conservative options and future course there are two strategies that deal with how to trade futures with low risk with hedging and unlimited gain. This will make sure you lose less and make more over time making sure your trades results in more profits than losses.

We start dreaming big as soon as we open a demat and trading account. Demat account is different than a trading account. Demat account is like a bank account where we keep our money to buy shares or trade options/futures. Trading account is where we are allowed to buy shares, or trade options/futures.

The problem with novice traders is that as soon as they open a trading account they start dreaming big, bring lots of money to their demat account and start trading first “whatever they feel like”, then what their brokers or friends say, then whatever they see or read in any website or magazine, and then when nothing of the above works – they go for tips providers.

When all of the above fail they either stop trading or start learning – reading books, doing a course, self research etc.

Please notice that the most important part which is educating themselves they try last. Before that they have already lost a lot of money. Hell even I am one of them. This is human nature – when it comes to doing hard work we humans try to avoid and try to take a short-cut not realizing that the first thing we learned to achieve success is:

THERE IS NO SHORT CUT TO SUCCESS.

But we forget it and try to take short cut and who fills that gap? Tips Providers – resulting in more loses.

Back to 2008 almost one year after I started trading I remember that I thought to myself that I cannot do it alone I need help let me try “experts tip providers”. Hell my major losses where because of tip providers. 🙁

By 2010 I reached the last stage – SELF LEARNING and RESEARCH.

By 2012 life changed.

Which stage you are?

A lot of us believe that our brokers know a lot therefore they are brokers. Fact is share brokering is a business where they get paid for a service. It does not in anyway mean that they have all the knowledge of share market. This is independent of whether a broker has any knowledge of share market or not. Getting knowledge in share trading is neither limited to brokers or limited to any person.

Getting knowledge in share trading is open to all – its your will which is required to learn share trading.

So before your broker asks you to buy a stock make sure to do your own research – DO NOT follow them blindly. They ask you to trade because they make a living out of brokerage they get of your trading.

Traditional brokers give tips to their clients – Low cost (discount) brokers do not give. There is nothing wrong in giving free tips – but there is huge mistake to follow it blindly and invest your money. As soon as they ask you to buy a stock do your own fundamental research on them. Try to study their balance sheets of last three or four quarters, see their last one year performance, read news about the company. If everything looks good you can invest or ignore.

Brokers usually do not charge for their tips, but if your broker does do not pay tips.

Today morning at 7.15 am I got a phone call from an unknown person. He told me he wanted to trade India VIX Futures and wanted to know where he can trade. I told him there is no liquidity in India VIX Futures and moreover its very dangerous to trade as the lot size is very high.

Then I asked him why he wanted to trade India VIX? He said because his broker told him that India VIX will be above 100 in one month. I was SHOCKED. Then I asked him whats the reason he thinks so. There was no answer.

Here is the historical graph of India VIX since 03-Mar-2009. As you can see India VIX as highest on Tuesday, 19-May-2009. It was 56.07 up by 7.81%. And after that within three months in August 2009 it dropped below 40 and never went above 40 until now – Jan 2018.

Historical Highest India VIX

Source: http://www.moneycontrol.com/indian-indices/india-vix-36.html

You can read about India VIX future trading here.

It takes less than 5 minutes to know to some extend if the tip you got or your any broker who gave you a tip makes sense or not. If you cannot do any research then do not listen to any tip provider even if he is your broker.

It very important to learn and trade yourself.

If you want to learn options trading in a proper way without doing any kinds of speculations and proper hedge to protect your capital you can do my course.

You can see testimonials here.

Read to know how you can improve your trading skills and become a better trader in 2018.

If you do not plan well you will not succeed in anything that includes everything not just stock market trading. Your first job should be to learn from your mistakes.

1. What mistakes you did in the year 2017?
2. Was your money management skills poor?
3. Did greed overtook you and you traded more than you could afford?
4. Why you did not take the stop loss as planned?
5. Did you take tips? How much you lost on tips?
6. Any research you did on trading? If yes what was the result?

If you answer the above honestly you can improve your trading skills in 2018.

Here are some more ideas.

Do not forget that 95% of traders lose money. Only 5% of traders make money and make a living out of trading. They succeed because they have a plan – a tested plan that they stick on for a long time until it needs a change.

Here are some important things you must do before you start trading in year 2018 to get better results than 2017.

Review Your Top 5 Big Winning and Losing Trades You Took In 2017

If you want to know the big mistakes you need to study the big losers first. Remember that losing trades are your best teachers. Second best teachers are your winning trades. Try to go back to historical rates and analyze why you took those trades and why you lost. Be honest with your review else you will be wasting time.

Reasons can be speculative trade or tip trade etc. If you suddenly increased the lot size then why you did that. You may have fallen for greed but what was major reason for that. Write it down.

You might find common things in the winning trades and losing trades. Focus your research on the common things.

Common things can be like – correct lot size, correct entry time, India VIX was supportive, profit taking at exact pre-decided position, positional or intraday trading, hedge / no-hedge etc.

In 2018 Start To Write Trade Details for Every Trade

Details for every trade will give you insight of whats correct/wrong with your trading. Eliminate the wrong as soon as its confirmed that you are repeating that mistake. A mistake can be due your certain behavior. Learn to control that behavior. Quickly eliminate the destructive patterns of your behavior.

Write Your Trading Goal For Each Month Before You Begin Trading For The Month

To improve your trading skills you need to focus a month not every trade or each day so that you have 30 days to get results. To improve think about the bigger picture not the smaller picture. Trading journal of one month will give you ideas to improve your trading skills next month like it can be not to over trade and wait for opportunity.

Review Your Trades End of Week

Saturday and Sundays are non-trading days. Use weekends to review your trades done in the week and try to know your mistakes or the good thing you did that week in trading. This will help you to review entire month at the end of the month. Write down your trading flaws like indiscipline or any other thing.

Once you can identify the sources of your failures in trading you can figure out what to change to make you a successful trader.

Get Good Training In Trading

There are many people teaching good strategies. But you should chose a good teacher. You should know what you will learn and if their teachings can help you out. Do not forget that trading is very hard not an easy job to master as only 5 out of 100 traders make money in the long run. If you can do it on your own research skills its good, but there is nothing wrong in investing in a course made by people who are already a few steps ahead of you who have to help you become a better trader. A good course helps you to save time and money to do the research yourself. This will shorten your learning curve. This will give you someone to hold yourself accountable everyday, and give you someone to support you on a day you are losing.

My conservative option course has helped many traders trade successfully Nifty Index options and make a monthly income month after month since 2015. Its peaceful trading where lot of research is not required. Trade set up does not even need a lot of time. You can do the course by paying a small fee which is nothing compared to the losses you suffered last year.

Nifty (my favorite trading index) is dangling near 10500.

NIFTY 25-Jan-18 CE 10,600.00 has the Highest Open Interest – 13% increase.

Its quite strange that NIFTY 25-Jan-18 PE 9,000.00 has the Highest Open Interest in Nifty Puts.

Most High Open Interest are in Nifty Calls only.

Traders have a strong view of Bullish Markets.

It looks like buyers think Nifty will break out 10600, and sellers think it will not. Therefore 10600 has the highest Open Interest.

What does it mean?

It means – (will be told to my paid subscribers only of my option course). Free subscribers DO NOT get emails sent to my paid subscribers.

Trust me I am not one of those who will not pick your phone or reply to your whatsapp/emails after you pay. Once you pay its MY JOB to make sure you get 100 times more than what you pay me else I will NOT BE happy with myself.

Course fee details are here.

Look at this SMS I got yesterday:

Do Not Believe In Huge Profit SMS

Do you think what the person who sent this SMS is telling the truth.

1 Lakh to 5 Lakh in one day. Here is some compounding for you. In one year there are 250 trading days approx. Forget that lets take average of just 22 trading days in a month. Lets forgte that also – lets see what one lakh becomes in just 10 trading days:

= 1 –> 5 –> 25 –> 125 –> 625 –> 3125 –> 15625 –> 78125 –> 390625 –> 1953125 –> 9765625

Rs. 97,65,625.00 Lakhs or 9765625*100000 = Rs. 97,65,62,500,000.00

That’s Billions of Rupees in 10 trading days only. This will make him the RICHEST PERSON ON EARTH IN 10 DAYS.

Then what is the need to send this SMS to me?

I hope you are educated enough to understand that its better to DELETE such SMS. Do not fall prey to such unsolicited SMS or calls.

What to do if you get such unsolicited SMS or calls

SMS – Do not even waste time in reading – just delete such SMS.

Calls – This is what I do. They ask me if I do stock market trading. My reply – WHAT IS STOCK MARKET TRADING? Next second they keep the phone down. If they do not keep their phone down I also do not and make sure their telephone bills escalates. After 2-3 minutes of marketing when they do not get a reply from me they have no other option but to keep their phone down.

What is possible in stock markets?

Your first target should be to BEAT INFLATION & MUTUAL FUNDS RETURNS AFTER PAYING TAXES and compound your profits. Average mutual fund return is 15% a year. So if you make more than 20% a year (1.6% a month) – you are a good trader. Above 25% a year – excellent trader, 20% to 10% a year – average trader, less than 10% a year – STOP TRADING and learn. Making losses in trading – YOU ARE KILLING YOUR FUTURE AND FUTURE OF YOUR KIDS.

What is possible in stock markets?

Warren Buffett – Goes on to become the richest man on earth.
Rakesh Jhunjhunwala – One of the richest stock trader in India.

I agree we all cannot become like them but AT LEAST WE CAN MAKE A GOOD AMOUNT OF MONEY TRADING IN TEN YEARS.

And this is possible with 2-3% a month. Read what 3% a month can do your your trading account.

Nifty is not going down at all for reasons back to back win of BJP in Gujrat and HP.

But to move further up money is required. Who will invest on top?

This is the reason traders are not investing huge and Nifty not able to move up swiftly.

Nifty 27-12-2017 @ 1.55 pm

So direction is unclear.

Those who trade direction its very though time for them.

Those who do not trade direction keep making money most of the times.

What is Not Trading Direction?

Traders buy Call (CE) thinking that a stock will go up and they buy Put (PE) if they think the stock will go down. Most of the times their view is wrong and they lose money. According to data 95% of option traders lose money.

But there is a way to trade options where the direction DOES NOT matter. It means wherever the stock goes you can make money even if your view is WRONG. This is called non-directional trading.

If you want to become a non directional trader and enjoy profits trade after trade, month after month for the rest of your life, you can do my course.

Note: This Post is part of my free newsletter. Register your email to get free newsletters for life.

Date: 26-12-2017

Nifty touched 10500 today its Lifetime High for Nifty.

This is a strong resistance.

As you can see in morning it crossed 10500 and now falling.

Please check my earlier emails I had said that 10500 is strong resistance.

But one day or the other is will be broken.

However for the time being 10500 is resistance and 10000 is support.

Max Open Interest Put: 10000 and 10400
Max Open Interest Call: 10500 and 10600

Do not forget that DEC 17 expiry is day after tomorrow.

Then Open Interest will change.

I have written a post on open interest you can read it here.

Its is very important for traders to start researching a strategy by paper trading it. But there are some points that should be kept in mind before they start paper trading.

In this article I will discuss what are these points that they should keep in mind before they start paper trading.

What Is Paper Trading?

It is not a real trading. Trades are not taken in a trading account but the trades are written in a piece of paper or an .XLSX file.

In paper trading no real money is involved. So there is no risk involved. However still there is a risk – when paper trading there is no emotion involved plus usually when paper trading traders do not look at liquidity of options.

In this article I will discuss the best ways to paper trade stock strategies.

Try Paper Trade in as Many Strategies as Possible to Save Time

You may read many strategies and find some interesting. Note down the one that you may find interesting and start paper trading. After a few days if you find another good strategy do not waste time paper trading it. Some people have this habit of waiting for one paper trade to finish then start new paper trade a strategy. If you do this you will waste time. Since no money is involved you can paper trade 10 strategies at a time. This will save enormous amount of time and you can get a good strategy soon.

Paper Trade in At Least 10 Lots

Since no emotions are involved it is recommended that you trade with at least 10 lots. When your paper trade will show more profit and loss some emotion will be involved. That said do not forget to write the margin block as well. You should have an idea of how much money will be required if you go on to trade with real money.

Learn TO Manage Risk

If your trade goes against you feel the emotion to save money and try to manage risk. Do not leave the trade as it is just because it is a paper trade. Practicing risk management will help you to manage risk when doing real trading.

Do Not Have Unrealistic Emotions

Trying to be emotional while paper trading is fine. But do not get over emotional. The emotions of trading real money are completely different from paper trading so keep this in mind. If you get success do not be overjoyed and if you lose money in a trade do not write it off as a paper trade. After all you took a trade and made a loss so be realistic and study your mistakes in the trade.

Get Your Order filled at LTP

Do not write the best possible rate when paper trading. Write the LTP – Last Traded Price. LTP is the price at which the last order took place. This is the real price you will get when trading.

Respect Your Trading Plans

Once you have written down a trading plan do not change it in between once you have started the trade. Respect your stop-loss, profit taking plan and risk management plan else you may end up making nothing out of paper trading. All your research will go down the drain.

Conclusion

New novice traders must do research or paper trading any strategy before taking the plunge. But they get too greedy and start real trading without doing proper research and lose money heavily.

However, it should not be done for too long else you may end up only paper trading for years. Once you get a good strategy start with lowest margin block to get a feel of the strategy in real trading.

I did one year paper trading. From mid 2010 to 2011 I only did paper trading to develop some strategies that are very conservative in nature and very capital safe strategies for the long term.

Yes using my course strategies you will not become rich overnight but it will help you generate good monthly income to live a good life a few years from now.

You have to start today else you are just wasting time and money doing speculative trading.

You can pay here for the course.

Since Congress performed well even in a loss, in the most loved and respected BJP state Gujrat traders are confused.

In a state of confusion neither the buyers nor the sellers will be strong and Nifty will travel in a narrow range for sometime until there is some good or bad news.

India VIX is still falling which means right now there is no fear in the markets. When there is no fear it is a clear indication no one is taking or want to take undue risk.

India VIX 20-Dec-2017

HNIs and DIIs are also in a wait and watch mode.

Final votes on US Tax cut legislation news may move the markets. US Senate has already passed the reform, but it will go to the House tomorrow morning (US time) for final vote. If they also pass it becomes a Bill.

Major Tax Reform in the US will surly shake the markets and Indian markets will follow.

These are all speculations. There is nothing wrong in taking news based trading, but for how long?

If you keep speculating you will win sometimes and lose sometimes but overall it will be all loss.

You can do my conservative non-directional non-speculative course and stop speculative trading.

You will start making a monthly income without any kind of speculations in the markets because the trades are all non-directional in nature.

On top of that due to hedge your capital will be protected and you will be able to sleep well in the night not worrying about what will happen the next day. No need to watch the markets continuously also. Just 2 times a day is enough.

If you are unable to make the trade yourself just let me know. I will make the first few trades for you, but its so easy to trade these monthly income strategies that you will be able to make the trade yourself within one week of doing the course. Support will still be there for six months.

You can pay here by credit card using the payumoney link.

Let me know if you pay.