Today Nifty is up 100 points but Strategy 1 is still making profits. I am sure a lot of naked traders would have been short Future on Nifty (Greed taking over) and will be suffering huge loss now. To be frank please do not mind this but no one on Earth can predict Nifty direction the very next day. Yes we are absolutely certain that within 1 year Nifty will certainly see 9000+ but exact date cannot be told by anyone even those who are the biggest Technical Analyst in India, then what makes you think what you think is going to happen?

Those who bought futures may be in huge profits and must be thinking they are great traders. I am sorry to say you are not, you just took a gamble and it worked. I guarantee that this will not happen always and you will lose money over one year. If you are trading for fun, better stop trading and go out and watch a movie and eat in a restaurant it will give more fun then just watching Nifty every day. I do not get fun watching Nifty for hours everyday. I get fun making profits. Watching Nifty and forcing yourself to trade will not make money.

It is your knowledge and proper plan that makes money. Not watching Nifty. That even a 2 year old kid can do. 🙂

Anyways good to see traders who have done my course thanking me every day as they keep making money. Fact is I still have some 150+ testimonials to be uploaded to the site but I am just not getting time.

To me customer service is more important than how much testimonials I put in site.

So those who have done my course keep trading Strategy 1 and go to Strategy 2 if stop loss hit. And yes work hard on your job as well. Let both stock markets and your job or business make money for you over time, and let compounding do its magic on your wealth.

Do not forget to spend time with your family in the evening too.

Those who traded the stock option strategy, if in profit as stocks have risen you can take them away as almost Rs. 15,000 is made in three days – look at the speed of making money in percent terms time wise not how much you made. Let’s not get greedy and take out our profits here.

There is no way to earn lakhs in just few days. Read to know it is a huge myth in stock markets. You can earn a lot of money but it will take time.

Tips for Paid Subscribers: [Hidden from free subscribers and website visitors, if you want to read this enroll for my course.]

Now Free For All Content:

Whenever I go through writers mental block (a situation where a writer does not know what to write next), I get a strange or great email from one of my website visitors who gives me an idea to write and help everyone reading my newsletters or blog.
I do not know how this person reached my site, it could either be by searching on the net or referral though a friend (yes my subscribers do refer their friends to my site. I am really thankful to them for supporting an honest man and not giving support to those greedy people who take money away from people and give loss making tips.)

His question was How Can I Earn Lakhs In Just Few Days From the Stock Markets?

Here is the screenshot of his email I received today morning while going through writers block:

His email was: I want to make money in crores over a year because I want to study abroad in hospitality sector tell me the basics first.

Amazing isn’t it what people think about the stock markets. The perception of the stock markets itself is WRONG. Yes some people do make amazing wealth from the stock markets but only those make who have proper knowledge and understanding of how stock markets work.

As you can guess from his email that he does not even know the basics of stock markets. And if he actually learns how to make crores from the stock markets in one year then why study abroad in hospitality sector to make just a few lakhs in a year? Why not keep making those crores every year from the stock markets?

I do not understand how can an educated person ask a question which does not have a plain logic? Isn’t it really silly to think to first learn how to make crores (not crore, but crores), and then work hard to make just a few lakhs? I find it very strange that educated people think this way. Tips providers look for exactly these kinds of people. And what I will do? After sending this email to you just delete his email.

I do not need money of a greedy person who does not even understand even simple logic of how this world works. You will NEVER achieve success without hard work. If you think hard work is not required to make money from stock markets then I am sorry your basic thinking is wrong.

You only know that Warren Buffett made a lot of money from the stock markets by investing and you become greedy thinking even you can do it. You do not want to know how he made it, this is where is the problem. When I see a kid going to play Cricket, I ask him – what you want to become? He says Sachin Tendulkar. I then ask, do you know how many hours he used to practice when he was of your age? The kid then replies by smiling – I do not know.

This is where the problem is. Average people living an average life only see the ends. They are not interested to know or learn what means were used to reach that ends. All they are interested is in ends. If you do not know Sachin Tendulkar used to get up at 4 am and was there in the field practicing cricket at 5 am almost everyday including Sundays and holidays since childhood. Do you think he was born with these skills? No. He was just born as a normal kid, got interested in Cricket but the way he practiced differed a lot from the way other kids of his age did. The results are in front of you.

Now here is some important information on what made Warren Buffet the best investor in the history of Stock Markets all over the world.

1. He started an insurance business with a partner which did very well.

2. With the money he saved he bought stocks just like anybody else does, like tips from brokers or advice from friends and he lost money just like we do.

3. Quickly he understood that this is NOT the correct way to invest in a stock. The first lesson he learned was to control greed.

4. Whatever was happening he did not lose interest in his insurance business. It kept on growing at a rapid rate.

5. He now started studying about companies that he wanted to invest in. Basically he was interested in the stock of the companies with good economic MOAT.

According to Investopedia:

The term economic moat, coined and popularized by Warren Buffett, refers to a business’ ability to maintain competitive advantages over its competitors in order to protect its long-term profits and market share from competing firms. Remember that a competitive advantage is essentially any factor that allows a company to provide a good or service that is similar to those offered by its competitors and, at the same time, outperform those competitors in profits. A good example of a competitive advantage would be a low-cost advantage, such as cheap access to raw materials. Very successful investors such as Buffett have been very adept at finding companies with solid economic moats but relatively low share prices.

A great example in India of a company with great economic MOAT is PATANJALI. In 5 years a company which had a turnover of just 1000 crore in a year has now reached 5000 crores in 5 years. Now they are planning to reach 10,000 crores by the end of this financial year. 100% growth in one year.
How many companies can even imagine that.

Here is a short description of Baba Ramdev’s company PATANJALI from The Telegraph:

Ramdev, whose Patanjali brand had more than 800 products ranging from herbal toothpastes to noodles to health drinks, became a household name in several parts of the country through yoga shows on his 24-hour television channel, Aastha. After a brief association with an anti-corruption movement, Ramdev has settled down to develop his herbal medicines and toiletries business, expanding into fast-moving consumer goods.

A mix of prices lower than that of the rivals, a sales pitch based on “Ayurveda, natural and healthy products” and point-of-purchase advertising seems to have clicked with the masses.

His toothpaste brand, Dant Kanti, has snapped up a 5 per cent share of the market, eating into the share of a multinational company.

A controversy over additives to Nestle’s popular Maggi brand of noodles last year, which led to its temporary withdrawal from the market, saw Ramdev picking on the opportunity to launch his own brand of “healthy noodles”. (See how he caught an opportunity and used it to maximum gains.)

Last year, Patanjali reported a turnover of Rs 5,000 crore. Ramdev, who lives in a secluded, high-walled compound on the Patanjali campus, said the turnover was expected to touch Rs 10,000 crore by the end of the current financial year.

Market research firm IIFL said in a report that Patanjali was poised to grow to be a threat to existing market leaders in most categories it has entered.

“Our analysis suggests that by 2020, Patanjali will have high market shares in categories such as Honey (35 per cent), Ayurvedic Medicine (35 per cent) and Ghee (33 per cent),” the research firm’s report predicted.

They are now planning to launch an apparel brand, called Paridhaan. I am sure many multinational companies must be shaking in fear as this company is sure to eat into its share of profits.

This is called great economy moat. Unfortunately Patanjali does not have shares. Else I would have been the first person to buy its shares.

So What Worked for Patanjali?

1. Low cost advertisements.
2. Hence low cost of products so entering into the middle calls and lower earning class makes it easier.
3. Image of Baba Ramdev who is his own companies’ brand ambassador.
4. Showing its factories in advertisements.
5. Dant Kanti recently got an award for the best toothpaste in the country.

So these type of companies with great economy MOAT will keep performing well.

Ok coming back to Warren Buffett.

6. Once a company with great economy MOAT was found, Buffett would fix an appointment with its owners or managers just to get their point of view and know the reality of how the company worked. The management, its factories, infrastructure etc.

7. Since he could not afford to go by plane he used to take a train and have a talk with management. Once a company passed all these exams he would discuss with his business partner and buy its shares for years. Yes NOT intraday, like most of India traders are interested in, or one month – he wanted to keep it for years. I am taking about 10 years at least, until it had no more great economy MOAT. It is obvious that once the great economy MOAT gets vanished from that company the shares would certainly fall. The he used to sell and book profits.

Once in an interview someone asked him – when is the best time to sell a share. His answer was NEVER.

Choosing companies with great economy MOAT made him the best investor of all times in the history of stock markets. For three years in a row he was the richest man in the world.

Did you see that the process is more important than the end results? Those who study the process of success perform well in life. Those who see the results and go and have a beer party keep doing that for life.

So if you really want to make money in stock markets first get your logics clear, kick greed out of your system, learn to be patient, have a proper risk management, get education and then start trading.

If you follow the above, results will follow. Else only losses will follow.

Rest it’s your choice.

FED policy making committee will meet next week and may raise interest rates but it will be very small.

Which Strategy to Trade for Paid Subscribers: [Hidden from free subscribers and all website visitors.]

Now free for all content:

There is too much anticipation the world over whether The Federal Reserve will increase rates or not. Interestingly 50% of the committee members wants an increase in rates, and 50% do not want a raise. Both the parties have some valid points to say.

Those who are against increase in rates say, let the American economy recover fully then increase rates, the other half that favors rate increase says the economy is getting stagnant due to not increasing rates for years and investors are investing money in more attractive and developing markets like India.

To give you an example if they just invest in any good debt fund in India they will get a return of almost 9% a year with ZERO risk. Compare this to 0% return there in America. If you had a lot of money where you would have invested? Of course India.

They are saying if FED increases rates at least some money will be invested in their economy and not go out to countries like India and China.

To some extend it may be true, but I personally feel comparing 1% to 9% is no comparison at all. Agreed they do not get all that 9%, there is some fees and brokerages involved, but still even if they are making 6% a year it is much more than 1% a year. So even if FED increases rates I do not think the investments in Indian markets by Foreign Institutional Investors (FII) will go down. It may go down by 5-10%, but this small dip will not have any effect on Indian markets at all.

So those who have done my course please do not panic. We are least bothered about direction of markets neither our capital is going to be eroded as our capital is heavily protected by hedge. Whenever there is a small 2% loss those who are trading naked will pay for our losses and we will escape a huge loss. Let those greedy aggressive traders lose money while we keep making money. 🙂

Please remember that FED policy making committee is meeting next week and may possibly increase rates as they are too much in pressure to raise rates. Since this is almost known to all markets in the world we are not seeing a huge correction in any stock market in the world. There is just a small dip because of traders who always love to trade in panic. I do not know why educated smart people trade naked and in panic and are willing to erode their wealth for no other reason but greed. These people will come and go, only those who follow the correct path to making money will keep making money. This is how any business works including the stock markets. I fail to understand why they do not understand this for years and by that time lakhs of rupees they have already lost.

Anyway till now due to fear of FED increasing rates, no market in the world has at least till now priced in a rate increase which is almost certain. Which means there is nothing to worry.

Note For Paid Subscribers: Those who were either long or short in the directional strategy may have made great profits. It is advisable to exit now and book profits.
Due to great fall INDIA VIX surged today by 13.53%. It is currently at 15.02 or 1.79 points above last close. So which Strategy to Trade?

[Hidden from free subscribers which strategy to trade is according to the paid course so this part sent to paid subscribers only.]

Now free for all content:

Nifty has fallen down today but there is no need to panic as this is a temporary fall. Within weeks Nifty will recover.

S&P BSE Sensex is currently at: 28,388.89 which is -408.36 or down -1.42% from previous close.

NIFTY is at: 8,736.10 which is -130.60 or down -1.47% from previous close.

Please Do Not Panic This Is a Temporary Fall – Let Us Discuss Some trading Ideas

Banking stocks are seeing major fall. ICICI Bank, Axis Bank, HDFC and SBI. The big banks which constitute major portion of Bank Nifty have fallen.

There is nothing to worry as these banks are quite strong. It is advisable to start collecting shares of these banks over the next few months via the systematic investment plan mode. Please do not trade Futures as there can be more fall in these stocks.

I also see that among other major stocks Tata Motors, ITC and L&T also fell. Out of these ITC and L&T are also good stocks and you can invest in them as well via the systematic investment mode.

Please invest only that much with money which you are comfortable with. Do not let your greed take a decision. You have earned the money so the decision is entirely yours.

Shares price of Lanco Infratech, Siyaram Silk Mills, Jaiprakash Associates and Man Industries have also declined 4-11 percent. I do not advise to collect these shares as the results declared by these companies are not good. If the companies performance is not good it is better to avoid investing in these companies.

How Long Will This Fall Continue?

If feel this week Nifty is going to be weak. So there can either be stabilization or small fall at least this week. Then from next Monday onward people will be out of this sudden shock and start looking positive and start buying shares pushing Nifty up. Fall can be little more 200 odd points and then Nifty will start moving up.

Indian Stocks Still Looking Positive

Globally almost all stock markets are looking positive. This fall looks like traders in India thought resistance has come so pulled back their money. Rest will also follow in the following days. Then these same traders will invest their money back in stocks when they see some kind of support. Nifty will rise again.

Conservative traders like us take full benefit of these short term traders who make nothing at the end of the year while we end up making good profits because we use our brains, not trade with speculations.

When Nifty moves we make profits, when it doesn’t we still make profits. 🙂

July and August 2016 saw amazing investments in Indian markets by the foreign investors. This is mostly to do with domestic factors. GST Bill getting passed, good monsoon and good governance. All these are positive signs for the future of our economy.

In this year itself foreign investors have invested Rs 40,297 crore in both equity and debt. I do not have data of how much has gone into debt and how much into equity. But I am sure a lot has gone into equities as we saw a recent rally which is clear proof that they invested a large amount in Indian Equities.

Like I have said before even if the Fed increases rates it is going to be very small and will not have much impact on global markets including India. So there is nothing top worry.

I hope you do not trade in panic. This is the main objective of this blog.

Disclaimer: This is an educational site. Investment ideas are written above so that you get an idea of what may happen. If you want to invest please do your own research before taking any investment decision. Stock markets investments are subject to market risks and I am sure you know the risks involved.

Thank You For Reading.

Part of my Newsletter sent on 09-Sep-2016.

Tip for my paid subscribers: [Hidden from free for all content. This part is sent only to my paid customers.]

Refer my yesterday’s email Looks Like Nifty Has Reached Its Resistance.

Today as of now NSE is at 8,887.10 which is -65.40 or 0.73% below yesterday’s close.

So Was This Some Kind of Technical Analysis Dilip?

This is what most of you must be thinking. I have said this many times and I say this again – I do not even know even “A” of TA (Technical Analysis).

So How I Came To The Conclusion That Nifty May Fall?

This is plain experience. The problem is experience cannot me written in words it comes only through hard work and knowledge. A huge run of almost 10% in 2 months and its clear that somewhere those who are short term traders will start taking out profits and I felt this is a great time to take out profits as psychology wise there is a huge difference between 8900 and 9000.

But there is not much difference between 7900 and 8000 as Nifty was above 8000 for a long time. Traders psychology plays a huge role here. Most of them remembered that Nifty had a great fall from 9000 levels to 7600 levels. So its apparent that crossing 9000 is a bit difficult and it’s obvious that 80% of traders will book their profits once Nifty will reach 8900.

Now see how it worked. 🙂

Was any Technical Knowledge involved? No. Only logic and human psychology and the way they behave made me to reach the conclusion that at least for now resistance has come.

It does not mean that 9500 will never be reached. One day or the other it will be there, but right now that great fall from 9000 to 7600 levels is still fresh in most traders mind. As time passes and new traders join in the mindset will change. These new traders will not remember much the fall from 9000 to 7600 levels and keep buying even at 9000 levels. This is how stock markets work all over the world. It depends more on traders psychology rather than economy of a country.

India has improved a lot in terms of economy and quality of life since the last 2 years still Stock Markets are there in the same place as they were two years ago. Technically isn’t the Stock Markets should have also been at least 5% higher since 2014? No, its just because traders have a role to play here not economists. Stock Markets is a cash exchange business not a real business that gives any service or products. Yes the companies listed here do give either service or products, but stock markets have an indirect role to play, not direct.

So Why Don’t I Trade Nifty Futures With This Knowledge?

After losing my entire savings a few years back I went into a shock. I promised to myself and my wife that if I ever trade I will try to make the least possible profits and will try my best to protect the losses. That’s the reason hedging knowledge attracted me a lot. Most of you look at 10% profit a month not realizing that not a single trader in the world in the history of derivative trading or even equity trading has ever clocked that returns. So if you do it, you will enter into the record books like Warren Buffett has done. All the media persons will make you a star and take your interview everyday and you will be shown in TV channels every day. But remember one month return will not make you a star. It has to be done for at least 10 years. So 120% return or more continuously for 10 years. Do you this its possible? If you think it’s possible go ahead and try but remember that those 95% of traders who lose money trading stock markets are exactly those who are trying to make 10% return a month. Result? They lose money big time. So it’s your call.

That’s the reason since I became a conservative trader I am happy even with 1% return a month. At least I am not losing money I am growing it. You are trying to make 10% a month and lose 5%, and I am trying to make 3% a month and made 1%. Technically who is a better trader?

So How Do You Use This Knowledge Dilip?

Hey there is another way to trade stock markets even more peacefully. Mutual fund trading. Yes you may not have heard about it but if you have knowledge you can even trade mutual funds. Remember there is no expiry there so there is ZERO tension trading them. In fact now my mutual fund portfolio has become bigger than derivative trading portfolio. I still trade options but I am taking mutual fund trading very seriously now. Those who are my old newsletter subscribers may remember that when I met with an accident in April 2016 and was in hospital for 15 days and in bed rest for next 15 days I was not even able to see where Nifty is. In that month I still made almost 2.5% return while lying in hospital. I am sure many aggressive traders may have lost money working from 9 am to 3.30 pm. I was in hospital battling for life and made a better return. This impressed me a lot. From May 2016 I have taken mutual fund trading very seriously. In the last 10 days itself I booked a profit of more than a lakh. And what I did. Nothing I just decided to book the profits that’s all. I logged in my account online and clicked the switch button and switched the money to a liquid fund. How simple is that? That liquid fund too is making 9.7% return a year. What more does a non-greedy conservative trader want? For people like us returns of more than inflation itself is a great return.

Hope in this article you got some idea of how traders psychology effects the movement of stock markets.

Part of my newsletter sent to my email subscribers.

As you can see after the storm Nifty has stabilized. Time for my paid course members to keep making money. Those who have taken this course at least 3 months back I mean before 08-June-2016 it’s now time to increase your trading amount. I am sure as told by me you may be trading with the least amount of money, now it’s time to increase the lot size.

From the next trade onward increase your lot size by 2 or 4 depending on your capital and risk taking abilities. Idea is – lets make more money. I am sure by this time the money you paid for the course you would have already got back.

This is the feedback I am getting from my paid customers. So happy and relieved that you got back what you paid. 🙂

Experienced traders, please do not take the directional strategy now it is not the time as there is no guarantee of a huge move. Any major news comes I will inform. Direction as you know is not important but movement is. Wait for my email.

INDIA VIX also looking stable. So keep trading.

This is for my paid subscribers only:

[Hidden from the free subscribers]

Reminder: Due to increasing work load I have decided to REMOVE Rs. 5000 fees from 19-SEP-2016. I am really sorry for this but as you all know I am alone with ZERO employees, so all workload is mine. I work 15 hours a day so it is not possible to continue it anymore.

On or after 19-SEP-2016 you will have only one option – pay Rs. 6000 and get support for 6 months only. Currently its 1 year from the date of payment.

If interested you can pay online for the course here.

Disclaimer: Nifty Has Reached Its Resistance does not mean that you short Nifty. The above article is for educational purpose only and mainly to help you decide further action of trading. I am working hard to protect your money so please treat this as education not tips.

Regards,
Dilip Shaw

This email is going to only paid customers NOT the free ones or anyone reading this post in this website. So I have deleted the important advice I gave them from this email and article which is for free subscribers and visitors.

As you can see now Nifty is 14 points down. [This part is hidden and sent to paid customers only]

[This part is hidden and sent to paid customers only]

[This part is hidden and sent to paid customers only]

Yesterday night one housewife who has done my course with phone support asked me Sir I had forgotten to take the hedge position now in huge loss of 22,000 what should I do. I replied Madam first control your greed else it will eat you. Exit from that position I cannot help because you did not follow the rules as written in the document. We hedge for this reason only to limit our losses which comes only after 4-5 trades.

So if you are following greed and not following the rules written in the documents you got please do not ask me any questions. You did what your greed told you to do, now in trouble ask your greed what to do. He will not be in a position to reply. I am not a greedy man and I cannot help greedy people.

[This part is hidden and sent to paid customers only]

So it is a request to all those who have still not done my course. The biggest lesson you will learn from my strategies is how to control greed and trade without fear. These are the TWO BIGGEST ENEMIES of traders the world over. Spending 5000 to get rid of these 2 enemies is nothing. If I was in your place I would not have wasted even a second to learn proper hedging strategies and learn to get rid of greed and fear.

Anyway its your call so take your decision.

Just a reminder: From 19-September-2016 I will remove the option to pay Rs. 5000 for the course with email support due to increasing workload. I am alone and I cannot keep working 15 hours a day. It has started effecting my health. Today I am writing this to you after visiting a doctor. He has told me not to work more than 8 hours a day. Right now I am working almost double of that so its not possible.

I am trying to reduce the workload I hope you understand.

Regards,
Dilip Shaw
WhatsApp: 90511 43004
Option Course Details.

Testimonials 2016 (only 25% uploaded due to lack of time).

What Traders Say About This Course.

Testimonials 2015.

What Traders Say About This Course as soon as they read.

You can pay online for the course here.

Nifty is on a roll. India VIX is average at 13.13. The reason is US Job Data that disappointed. It is now assumed that either FED will not increase the rates or the increase will be minimal which may not effect investments in markets.

Of course this is will have a short term effect as you all know these short term traders react to news fast may be for one or two days then all becomes normal.

Now some tips for my paid course members: Hidden from free for all website and newsletter subscribers. This part is sent to my paid members only.

Rest for all:

Nifty is now very close to all time high of 9000 which is just 100 points away. But those who also watch stocks may have noticed that NOT all Nifty stocks are now near all time high. For example Sun Pharmacy which is a hot stock for people interested in the stocks of the Pharmaceutical Industries is currently at 782 whereas its all time high was 1172. So it has still to travel 38% to hit its all time high but currently even when Nifty is at all time high Sun Pharmacy a major stock is still 38% far from all time high. Whereas Nifty has to travel just 1% more to hit all time high.

For contradictory traders here is a piece of advice:

Do not start guessing that now Nifty will see a huge fall. Guessing direction of markets or Nifty is dangerous. Here is a real example: A couple of years back when Nifty was going high and higher, I got a call at around 11 pm in the night from a trader in Andhra Pradesh (forgot the city) who was sitting at a loss of nearly 1 crore. When I asked him why, he said he is a contradictory trader and trades in Nifty Futures. He takes contradictory bets. He used to average out in just Nifty futures and most of the times he made money. In fact he doubled 25 lakhs in 6 months. Now this just one contradictory bet which went wrong took away all his profits and now he was sitting at a loss of Rs. 75 lakhs. He was almost crying while speaking to me. I told him, had he done my course just a few months back his loss would have been either a huge profit or such a small loss that he would have not contacted me at all.

He wanted to pay immediately for the course. At that time there was no online payment facility available in the site, but he was eager to pay. I told him you can pay the next day, after all one day cannot change his future. But he said there is an option of paying from debit card to debit card in SBI ATM which makes instant transfer. I was surprised as I heard this for the first time. I had no idea about this. He asked me my debit card number. Initially I was hesitant to give as I thought this to be a fake call. But in 5 minutes I researched the net and found out debit card frauds are not possible online without the OTP (one time password) sent to the registered mobile phones. Or directly swiping the card on the POS (point of sale) in the merchant’s shop. So I gave him the number.

Looks like he was standing just outside the SBI ATM. In 5 minutes I got his call. He said check your bank the money is transferred. Yes I checked online and saw the cash credited in my bank account. This was quite hectic 1 hour for me. All this took time from 11 pm from his call to 12 am till the transaction was done.

I thought this may happen again. So to save myself from the hectic situation again I started taking online payments on my site. What a relief.

Anyway what I am trying to say is please DO NOT take a contradictory bet in Nifty. Like him you may lose all your money. I am not saying that there is no chance of Nifty falling. It may or it may not but, assuming direction of the market is equal to gambling. Please avoid that.

Why do you think people who have done my course are making money almost every month? The reason is pretty simple. We do not predict market direction. We take a non-directional bet. A non-directional bet is when the trader is least bothered about the markets, nifty or a stock. On top of that we have the best place to stop our losses. We are disciplined trader – we do not trade on hope or assume things or sit till profits comes. If we see there is a problem we exit at a defined place. It is written in the course. On top of that hedging makes sure losses are reduced to max 2-3%.

No emotions or technical analysis is involved. We make money that is the end result and we achieve it. Whether we are assuming Nifty direction or not assuming direction is not important – we make money that is important.

Egos do not make money. Financial and trade management does.

Anyway today’s lesson is do not assume market direction. You may make money in the short run. But one wrong bet may take away your months of profits.

I am forgetting name of the company. This company is a US based company. For 17 years it made a profit of 17 million dollars. One wrong bet took them down by 3 million dollars. One wrong trade took away 20 million dollars. 17 years of hard work and profits gone. The company declared bankruptcy and closed.

I know a lot of you are directional traders. My job is to educated you and tell you the truth. But after all it is your money so the final call is yours.

In fact even if 99% sure of the direction, I hedge my trades and trade. I will not let greed take control of me. Yes agreed if right I do not get all the profits – some of it is taken away by the hedged trade. But when I lose money the hedged trade makes sure the losses are limited to 2-3% not more.

Results? I trade without panic. In fact I am writing this after watching today’s morning 9.10 am show of Akira. While most of you were watching Nifty, I was watching a movie because I love to watch good movies. 9 am is the best show time for me and my wife because our kids are in school and we get our privacy and fun. Compare this to short term or Intraday traders who were watching Nifty and were in Panic and away from their families.

Yes my trades too were on, but who cares when there a hedge to protect my trades. Why bother when I am 100% sure the losses can never be more than 2-3%? Yes I will do what I feel like doing and whenever I feel like doing. Who is Nifty or stock markets to control my life? I pity Intraday traders whose only job is to see markets from 9 am to 3.30 pm. Think about this – did your parents sent you to school to only watch Nifty when you grew up? When you can still trade and make money what is the reason to see something from morning till 3.30 pm on which you have no control at all?

Think about it but the call is yours.

Thanks.

US Jobs data is expected to be out today. India time I think we will know by 10 pm or 11 pm tonight. Whenever something happens in the US markets the whole world markets watches. India is no exception. But I have seen from my experience that at least in Asian stock markets Indian markets are the least affected. Rest fall or rise by 3% or more whereas Nifty will fall or rise by 1% or 2% that’s all. Nifty is more volatile on news that effects India not any other country including Us. In view of the above we can conclude that Nifty is much more stable than the other markets at least in Asia.

Those who have done my course know that for us stability is more important than anything else including direction of Nifty. In fact we are least bothered about the direction of Nifty. The more stable and calm Nifty is the more money we make. No doubts our strategy makes money 80% of the times or 8 out of 10 trades will make money. What more do we want?

For most of us 3% a month is more than enough. However some traders like Ravi are doing extremely well after doing my course, but frankly I am least bothered. Living a happy and peaceful life matters more to me than money itself. Most of the human race runs after money without knowing why. Hell even I was in that race for 3 years from 2007-2010 and lost little more than 7 lakhs which was my entire savings till that time. Then I understood that running a race without any meaning is not worth it. So I calmed down, acquired knowledge and became a very conservative trader. Results are good and I am happy. 🙂

Ravi please do not get me wrong I am not against you or excellent traders like you. It is just that I feel very comfortable growing my savings slowly and peacefully. But it is my choice. You are growing it pretty fast that’s your choice. Our choices are different as our needs are different too. So it does not matter how fast you are growing your wealth. We both are happy in our world that is all that matters – nothing else.

What I am trying to say is if you are making money fast from the stock markets there is nothing wrong in it but you should be making profits not making losses. Losing money just because you want to make money fast is wrong. It is better that you make money slowly than losing money in quest of making money fast.

If you have tried it for 2-3 years are losing money then there is no guarantee that in future you will start making money fast. You are trading the same way, and markets are behaving the same way, so you will lose money the same way. Why do you think it will change some day?

Becoming conservative trader has its own benefits. Agreed you will make money slowly but you will also live a peaceful life as your wealth will grow, not go down with time. Within 3 years the compounding effect will take place and the speed of growth of your wealth will become very fast. So fast that it will surprise you. But yes there is a ladder to reach there. You need to ride that ladder which will of course take time. But you have to start some day. This is your choice. I started climbing that ladder in 2011 and in 5 years I am just happy that I traveled the right path. There is no short cut to success. That’s one major reason I do not try any aggressive trading techniques as I do not want to lose what I have made till date. I do not take any trade without a hedge even if 100% assured of profits.

I have learned to control greed and happy that it is not controlling me I am controlling it. For example today morning someone whatsapped me and said give me Rs. 1000 discount on the course I will pay immediately. I replied Immediately NO and said the course fee is already discounted – it is worth Rs. 10,000 but you are getting for Rs. 5,000. No more discounts possible. He did not contact me neither will I contact him ever. The course + 1 year support on the course for Rs. 5,000 comes to Rs. 416.66 a month. Compare this to what you pay to your servant every month. So your servant gets paid more than me. What more discount do you want? It is not justified.

Ok on the final note – do keep an eye on news tonight and note down what are the results of US Jobs data. The house is estimating the number to come in around 1,60,000 and that is sure to increase the possibility for a rate hike. However still FED will not be in a hurry to hike the rates. Even if they increase it will be a gradual affair. So it will not have a major impact on our markets. Even VIX is a proof of this. In fact at the time of writing at 1.10 pm it is down by 1.65% currently at 13.12. This is a clear proof that our markets are not panicking as they expect that the impact on Monday due to this news will not bother Nifty much and its going to be stable. Still it is recommended that you read the news tomorrow to get an idea of what may happen on Monday.

Note to my paid subscribers: Hidden as this is open to and free for all. This message goes via email to only the paid subscribers of the course.