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.

Gujrat 2017 election result has come as expected, but what was not expected has also happened. BJP was suppose to win more than last state election held in 2012 due to its CM becoming PM of India – but that did not happen.

Congress is leading in major cities and even towns. This was unexpected by BJP, Congress and even the stock markets.

That is the reason today Markets opened HUGE GAP down and then swiftly recovered once it was confirmed that BJP will win Gujrat.

Hope you saw the volatility and market drama today.

This is why I say its important to keep money safe.

See today’s (18-Dec-2017 at 11.08 am) Nifty Graph – an amazing recovery.

Nifty on 18-Dec-2017 at 11.08 am

At 9.16 am Nifty was 10,121.90 – and at 11.08 am when it was clear that BJP will win Nifty was at 10,423.30.

That’s a difference of 301.4 or 3% move intraday within 2 hours of opening.

I do not know about you but I am sure many future traders must have had a sleepless night yesterday.

Those who were Future buy would have lost huge today and would have exited the market by 9.30 am only to realize that had they waited 2 hours more they could have made a profit.

Same would have happened with Call buyers.

IF YOU DO NOT HEDGE YOUR POSITION YOU WILL NEVER MAKE MONEY TRADING THE STOCK MARKETS.

This is why I have been advocating to learn hedging since the start of this blog in 2015.

And those who did my course in 2015/16/17 are happy today.

See this WhatsApp message I got early morning today:

Future in loss yet trade in profit – Results may vary

See the image clearly – this client was long future yet made a profit when Sensex, Nifty, Bank Nifty were all down heavily.

He couldn’t book profit in time else he would have taken home 10k in a single trade for a 5k course.

This is what good education can do to your trading account.

Do Not Take Tips, Do Not Speculate The Markets, Do Not Listen To Your Brokers – Just Learn To Trade Well Yourself, Stand On Your Own Feet And Make Money Trading Options & Futures For YOUR LIFE.

Option Course Details to make a monthly income trading options is here

Testimonials

5000 (email support)/6000 (whatsapp support) Fees cane be paid by credit card here.

Learn Today And Stop Speculating The Markets From Tomorrow.

Traders who want to trade direction wait for the earnings season to make money trading stocks that open gap up or down.

Usually when a stock gaps up or down they continue the trend for quite some time. Traders want to trade that direction either through equities, futures or options.

One of the best ways to trade earning season is to trade gap up or down. To do that a trader must enter the trade one day before the stock’s earnings are out to take benefit or gap up or down.

There are some stocks with a history or opening after the result season with a huge gap or down.

In this article I will teach you how to find the right earnings gap up or down stocks.

This is the step by step guide.

Note: There is a chance that traders take a wrong direction is futures and suffer heavily once the stocks gaps up/down in another direction. In my future and option course you will learn a future with option hedging strategy where even if you are wrong in future direction you will end up making money. The course not only teaches conservative options strategies but future hedging strategies as well.

Almost all stocks report quarterly earnings so how to select the best stocks for trading that can explode?

Here are some guidelines to find the stocks to trade in the earning season.

1. Daily Volatility & Liquidity are Important

You can get a daily chart from investing.com. If the stock gaps down or up during earnings season historically its worth trading. My Futures and Option course has a good aggressive volatile non-directional strategy for future traders. You can do the course and trade the directional strategy in these kinds of stocks to make money during earnings season.

You must also make sure that the stock has good liquidity else you may be able to get in but find it difficult to get out of a trade.

As soon as you see a profit you must be able to get out.

Once you find these stocks just keep a watch on them and trade them on earnings season.

2. Market Forecasts are Not Wrong

Usually before quarterly report you will find many online business website like MoneyControl write what the market experts expect results from a company. They may not be exactly right but they are right in their approx projections. If quarterly results projection forecast is good, go for long, else go for short. Most of the times you will be right. But make sure you hedge your position. If you are wrong even once you may lose what you earned in last 7-8 trades. You will learn good hedging techniques in my course.

3. Stock’s Daily Range Is Important

Some stocks move 1% a day but some move average of 3%. More move means more money. These kinds of stocks you should trade not the low move stocks. Stocks that move 3-4% average daily will surly move 9-10% during earnings season. Trade them you will make more.

4. Trade Small Floating Stocks

Float is the number of shares available for trading of a particular stock. Floating stocks are stocks that retail investors can trade not the one that are held by the management or by the owners.

Opposite of Floating Stocks is Closely-held Stocks. Closely-held Stocks are owned by insiders, major shareholders (management) and employees.

A stock with a small float will generally be more volatile than a stock with a large float. They will have small liquidity and wider bid-ask spread. However during earning season these stocks will find good liquidity.

Low float stocks will move big during earning result day. They will most probably break their usual support and resistance levels.

5. Wait for the Right Setup

Once you find the right stock to trade chances are that it may have already factored in the market experts view in their pricing, but they will not try to break the support and resistance levels. Once the result is out they will do. So do not worry about small volatility before the earning day, as this is natural. One day before its result will come out you can take the position in the direction with a hedge market pundits are predicting.

What You Can Do Now?

If you are an aggressive Future trader you can do my course to learn how to hedge Futures with Options to make sure the losses are limited and profits are unlimited in correct way. After learning the strategy you will not fear trading futures as you will know if wrong your losses will not be unlimited. Fees can be paid here.

Experienced traders usually do not do Intraday trading they want to hold the stock up-to a certain time and sell. This is swing trading. There is no definite difference between swing trading and investment. However a stock held for less than two-months is swing trading and above that becomes investment. Some people have the habit of swing trading with futures, in that case even if they keep rolling the future for months it is still swing trading. In fact all futures trading is swing trading whether intraday futures trading or keeping the positional futures until expiry. However Option trading is not swing trading whether you buy or sell options, positional or intraday. Option trading is pure trading.

In this article we will learn Swing Trading Rules.

This article explains how to trade momentum stocks for beginners and experienced traders.

Benefit of Trading Momentum Stocks

If you can find good entries in momentum stocks manage your risk and stick to a good plan you can always trade momentum stocks very well.

However it is very important to first have some idea on how to trade the momentum stocks.

In this article I will tell you a few guides and rules you can follow to trade the momentum stocks.

Breakouts of Daily Charts Are Very Important Signal

If Nifty is rising there is a high chance that 80% of the Nifty 50 stocks will rise.

What You Can Do

Look out for stocks that had seen long period of consolidation. Stocks with good moat and market cap. If they were stagnant for a long time there is almost a certainty that they will move up along with Nifty. You can go long in these shares. It is always better to have some ideas on Candle sticks. For longer term holdings you can go for 50 days moving averages. The longer a stock is trading within a support and resistance, the more powerful the move will be when it breaks major resistance or support.

Breakdowns of Daily Charts Are Also Very Important Signal

Breakdowns is same as Breakouts except its to the downside. A mid-cap stock not doing well still trading range-bound for last 3-4 months will break its support and move down fast if overall the market condition is negative. However you may have to use derivative trading to short a stock. If you use futures or options to short a stock you must learn hedging. 50 days moving averages is also very important here.

Lookout for Pullbacks

Most stocks do not go straight up or down forever. Some stocks make a strong move up or down in matter of days but after certain percentage move a pull-back occurs. Moving averages can come at help here. When new moving average is created look for new support and resistance levels. 20 day moving average a good to know short term trend, 50 day is best for a medium term especially for mid-cap stocks. If you are looking for more profits and can give time then 200 day moving average is a good indicator.

Points to Remember To Trade Momentum Stocks