Thanks a lot to more than 200 of my customers who sent me “Happy Friendship Day” messages on WhatsApp and Email. Here are a few of them hope you understand its not possible to upload all 200+ messages here.

Happy Friendship Day 1

Happy Friendship Day 2

Happy Friendship Day 3

Happy Friendship Day 4

These things makes me very happy as you all trust me and like me as your option teacher. I do not think any other course provider in India is loved the way I get from my customers. How many business owners in this world get a “Happy Friendship Day” message from their customers? I do not think many. So Thank You All once again. Other stock option course providers may be making more money than me but frankly I do not care. I do not tell a lie to take your hard earned money. I tell the truth on what is possible after doing my course. Some people think 3% a month is just too less and keep their phone down. I am ok as I am only interested in people who want to acquire knowledge and trade on their own not greedy people who have no respect for knowledge and still think making 10% per month is easy from stock markets. Let me tell you not a single person on this Earth has been able to achieve this figure month after month for many months. And I am sure not a single person will ever achieve this even in future. If you think you can enter the investment history books please try but sorry to say this – its an impossible path. You will learn only after losing a lot of money. Well this is the story of almost all traders. Everyone enters the markets with great hope – but realize after years of trading and wasting money that its really not possible to make 10% a month every month. But some people still keep trading thinking one day will come when they will recover whatever they have lost in just one trade. Unfortunately that one trade never comes.

No it’s not an uncommon story. I get phone calls from retired people too who said they have lost all their retirement money in trading. Just imagine the situation – I mean after 50 also if you cannot control greed then when will you control – after destroying your full wealth? For God sake, learn to control greed first then trade. Greedy people never make money – forget the stock markets they do not make money in any business. Its only people who work hard, get education, have patience and are willing to take calculated risk make money. In stock trading calculated risk is hedging. Dangerous risk is trading naked. Now chose your path.

Believe me I also want my customers to succeed and you know very well that I help you as much as possible. And when you send me these messages or call me to say Thank You, and send testimonials of success I feel happy and proud. 🙂

There are a few of my clients who are doing even better than me and it does not makes me jealous or greedy at all. I mean there are thousands of students in this world who perform and do better than their teachers in life. Do their teachers feel proud or sad? Of course happy and proud. Same with me.

Is Ravi still doing good? Yes he is and we are still in touch. But he has told me not to upload his any more testimonials on the site. As I am an honest person I cannot. But am so happy that he is now doing even better. Keep doing great Ravi my best wishes are with you.

My Idea of Finance

My idea of finance is very simple – just set your financial goals in life. Earn slightly more than the requirements as per the goals in life. If you are on path and meeting your goals financially you need not worry about money at least. I do not live in a virtual world where most people in this world think more money means more happiness. Really? Then why even some of the most richest persons on this Earth are deeply depressed? I mean they should be the happiest people in the world isn’t it as they are very rich? But my friend except the luxuries of life their quality of life is almost same as a middle class not so rich man. The ratio of rich and happy to not-so-rich and happy does not differ at all. Conclusion is happiness is not directly proportional to the money you have. Neither its indirectly proportional. Happiness has nothing to do with money. Do you think poor people in this world are not happy at all because they do not have money? No its not correct some are very happy some are not, the ratio is similar to rich people.

But that does not mean that money is not important at all. It is very important thing in life. After health and relationships, money comes in. So you should have at least so much that you do not worry about it. That’s the reason you must trade with proper risk management so that it increases your net-worth over time and you are able to meet your financial goals. Your savings must defeat inflation and that’s the only money you make. Currently the inflation is around 7%. So even if you make 20% return a year from trading, your money is growing by 20-7 = 13% a year. Compounded this is a great income that you can create over the years.

Thanks to God I am happy and it does not matter how much money I have. I am happy and meeting my financial goes. Two most important things in life achieved what more do I want? Yes another most important thing in life is health. After my accident I have taken mine and my family’s health very seriously. We now rarely eat outside our home. We only eat home cooked food and buy organic food as its much healthier than normal processed food. For your information organic food does not have any chemicals in it so it’s much safer for our body. However it’s a bit costly but not something that you cannot afford. And yes thanks to Internet we can do research on good healthy food for free and start eating that. Don’t you think instead of spending lakhs in treatment of diseases in hospitals it’s better to spend just 10% of it on our daily food items and avoid that situation as much as possible? Over a period you will actually save money. Remember money saved is money made.

For 14 days I was in hospital and the bill was more than 2 lakhs. Thanks to my health insurance which saved me a lot of money. By the way if you do not have a Team Insurance AND a Health Insurance buy one today. Try to buy it online as its much cheaper than buying it through a broker. Research all companies very well before buying one.

Free Basic Option Course

Refer my last email sent to you on Saturday for free basic option course links. Looks like Indians love free items. 🙂 More than 400 emails received. As you know I do not have any employees I will have to do all the job – so please give me some time as it is impossible to send everyone in a single day.

Some people sent me SMS and some sent me WhatsApp messages. Please note that I asked you to send an email to me telling your name, mobile number and email, not any other thing. So those SMS and WhatsApp will not be answered. Please send me an email if you sent me SMS or WhatsApp I have already deleted them.

Thanks for reading.

In this post you will learn: GST Bill Passed and for sure biggest tax and markets reforms to follow. Read to know what you can trade now.

As said yesterday in my email (not updated in my website) there is a high chance that GST (Goods and Services Tax) Bill will be passed and is now passed yesterday by Rajya Sabha members with not even a single member of parliament voting against it. So now within months it will become a law. Since the GST bill is now passed biggest tax and markets reforms will follow.

People who know me well know that I am highly patient and not looking for or either believe in overnight or instant results. Whether it is trading or anything else. Those who believe in overnight or instant results are big losers especially in stock markets. So the effect of it will be seen in at least a couple of years from now, not tomorrow or 3-4 months later. A lot of feedback and improvements on the way will follow and then results will be seen even on the streets of India.

Remember the reforms done by PV Narasimha Rao and Manmohan Singh in the year 1991? What happened to stock markets did it zoomed the next day? No it took 2-3 years for markets to give exceptional returns. Why? Because you see markets move up only after traders and investors invest their money in it. If only 1 or 2% people invest a lot of money it will not move up 10% the next day. It depends on majority’s views.

For example today at the time of writing Indian bank is up by 13.88%, but Sensex (BSE) is up by only 0.26%. Does one or two stocks have any major impact on BSE? No. Same with the markets.

I think as the GST bill passing is a positive news, all investors and traders are waiting for the real impact which will take some time to come. Then they will start investing. But here comes the difference between great investors like Warren Buffett and other opportunity seeking traders. Investors like Warren Buffett will invest today, not wait for the markets to go up and then invest. By that time most retail traders would have already lost the opportunity to participate in the rally, so they rue their decision not to invest. While by that time investors like Warren Buffett would have already multiplied their wealth by multiple times and will think of selling and booking profits – while the greedy retail trader is willing to buy.

What happens then?

Yes you guessed it right. The intelligent traders made money and the greedy traders lose. And believe me this continues for ever – as there is no end to greedy traders looking to become rich overnight entering daily into markets.

Intelligent traders who have patience and knowledge are rare. These people make money and the rest lose.

This will continue forever. Which kind of trader you are? Answer yourself honestly.

So what you can do now?

Those who can afford to research good stocks that can benefit from the GST bill and buy these good stocks must start collecting these stocks in phases as you keep getting your salary every month. Choose at least 4-5 good stocks no more and invest the same amount in all without any bias.

Why? Because 2-3 out of these will perform very well, the rest may not. But overall results will be great.

Please do not ask me which stocks to buy as this involves a lot of research and time and there is no guarantee that the stocks that I choose for my portfolio will perform. I am not like other companies telling lies that look I am a genius trader and can help you get amazing results. I just say the truth, whether you enroll for my course or not its your choice but I cannot lie to take your money. But I am so happy to see the results of people who did my course. The real reason is there is strong logic behind my strategies no magic – just knowledge and hedging and it works.

I am just giving you the basic knowledge and very important knowledge of what you should do now as a great opportunity has come in Indian markets.

But the research work should be done by you as depending on anyone for everything is not good. The idea of opening this website and writing my views here is to give the correct knowledge to my subscribers and readers about the stock markets in general and Indian stock markets in particular. Some believe and some do not and there is nothing I can do, as believing in anyone is your choice. I am just doing my duty honestly and am happy about it.

So please I plead you to start hard work now, there is no easy way and short cut to success. Nobody including the best investor of our times – Warren Buffett became rich overnight. It took him 25 years to become the richest man on Earth. If you think you are better than Warren Buffett please try. But I do not think we will ever find a man like him.

At least follow his foot path of hard work, research, patience and risk management, I am sure you will start seeing success. Isn’t even small success better than losing money in stock markets?

What is your view in this? Please let me know in the comments section.

Thanks.

Today is July 16 expiry day for all Options and Futures trades that are for the month of July 2016. They will expire today at 3.30 pm.

It is advised that you close all your July 16 expiry Options which are In The Money (ITM) – you can leave Out of Money (OTM) Options to expire worthless, and ALL Futures trades today before 3.15 pm, in fact if possible before 3.00 pm as after 3.15 pm your broker’s risk management team will close it at market rates and you will have to accept whatever the rates you get. Some of the brokers have automated this system which starts at 3.15 pm.

It is therefore better that you close it yourself. Please note that the Options and Futures derivatives for next month or any other month in future will not be closed. Only those which are July 16 derivatives will be closed today.

So the rest you close if you wish, but derivatives expiring July 16 cannot be traded from tomorrow so they will be forcibly closed if open at 3.15 pm today.

It’s better to avoid this situation so close them yourself to know the results of the trades.

Learn Conservative Option Course which you can do at your home.

Yesterday I was very happy to receive a testimonial of my option course within 2 hours of sending it to a trader.
See this:

Harish Testimonial – Results may vary for users

Within 2 hours of sending this person the strategies he replied this:

Sir,
Thank You for sending the strategy.
Strategies are wonderful.
Read all the strategies and have no doubt as a trader. I know this is going to make money.
The strategy 1 is best of all.
Strategy 3 is pure use of intelligence.
Q1: I want to know in how many days on average the Strategy1 are exited in normal market condition?
Q2: Strategy1 can be traded today at current VIX?
Thank You

Usually I get testimonials from my customers after one or two months that is only after they recovered the cost of the course. Let me tell you again that it takes at most 2-3 trades of Strategy 1 only to recover the cost of the course.

And on an average this can be done anywhere in one or two months if you are trading with one lot only. If you trade with more lots it will be recovered in 15 days.

But what made me more happy was that it looks like this person is a hard working man. Believe me people who believe in hard work are the ones who will surely succeed. Those who think there is a short cut and easy way to success let me tell you one thing – there was a time I used to think the same and lost 100% of my savings by speculative and tips taking trading. That was Rs. 7 lakhs from 2007-2010. This loss changed my life and now I work hard not just as a trader but in any work I undertake. This gave me immense experience and knowledge – the result is in front of you. This very site.

Do not forget that I also trade mutual funds and stocks (for medium term) and rarely lose money at least in mutual fund trading. As far as options trading is concerned some of my customers are actually doing better than me – but I do not care. Fact is I hate keep looking at Nifty or a stock movement from 9.15 am to 3.30 pm. I do not think we were born to keep looking at stocks move from 9 to 4. I do not call that a life – I call that time pass. It does not matter if you make money more than me or less but I want to control my time and not let anyone else that includes money to control my time and life. To hell with that money which takes away my peace. My goals are long term and not short term and am pretty happy with the performance. So I want to enjoy my life as well. After all I am making money to enjoy my life not keep looking at Nifty half a day. That’s the reason I never ask those doing better than me to tell their trades.

Money is the means to get an end. I am already getting the ends then why should I care about money? To give you an example if me and my wife plan to see a movie we usually see the 9-9.30 am show (Monday to Friday) in a multiplex near my home. Why? Because our kids are in school doing their job – getting education and we get an opportunity to do what we want and some privacy and time to spend together. This not only keeps our family bonding good and healthy but also saves a lot of money. For example we need to pay just Rs.50-100 for one ticket for the best seat in movie theater which usually costs Rs.200-250 in weekends. Money saved, same great experience of watching a good movie and more importantly my life is in MY CONTROL not in some useless trading control.

Do not forget that my trades are still doing their job – making money as time passes. So why am I not worried? Because I have hedged them 100% why unnecessary keep looking at them or be always in panic? When there is an insurance of my trading capital why should I bother about it at all. Those who have done my course know that.

I hope you are understanding what I am trying to say. Let’s assume you are making 1 lakh a month from trading. Intraday or positional whatever. But you keep sitting in front of your monitor and keep watching your trades to book profits or take a stop loss. So from 9.15 am to 3.30 pm (more for people who trade in commodities I think it’s open till 10 pm. Please correct me if I am wrong as I do not trade commodities and have no interest in doing so.) So whose life is better – a trader who makes around Rs.50-75000 per month but can go out anytime he wants and enjoy his life or this full time trader who is in a panic state of mind most of the day making almost double than the previous trader? Obviously life of the first trader is better.

I am willing to make less – but I will not allow money or the stock markets to take away my precious time which will never come back from me. Let me tell you a simple fact – if I want I can increase my trading capital and make more – but I am not interested. My risk management does not allow that. Money management for me comes first than comes how to make money.

Interestingly most traders have lots of money but they want to make more money. If you ask them why? They will have no answer. My point is if you do not know why you want to make more money then why run after something that you will not use in your life at all? You must know how much money you want and when and work towards achieving your goals. That is it. Anything more will only bring more stress.

That is one of the biggest advantage of my course. You start making money slowly – agreed its small (but 3% a month if compounded is not small believe me – I am an example) – but most importantly you will feel stress free and tension free when you start trading the strategies written in my course. If you are happy with small profits without taking any tension please do buy my course. But if you are looking for extraordinary profits from stock markets every month then let me tell you that its a virtual dream.

Stock markets are there since the 1950’s – so some 70 years of its existence NOT A SINGLE person achieved even 10% return every month for even 10 months consistently. Those trying to make this money actually end up losing 10% every month and within a year all their trading capital is lost. Still they do not learn, bring more money and lose again.

For example this person lost 2 crores trading the stock markets – can you imagine? A fixed deposit in a bank giving 7.5% return a year a good enough to live a lovely life just by enjoying the money earned in interests. But he just could not control his greed and lost a life time amount which many people are unable to save their whole life even with a great salary.

If you are one of those who is losing money trading the stock markets in hope that you will make a lot of money one day let me warn you – nobody in the history has ever done that. Even the best investor and trader in the world Warren Buffett was able to make only 2% per month but he kept on compounding it for 25 years and made a lot of money.

Lots of people do not know that he had an insurance business as well which was making an amazing income. He was dependent on profits coming from this insurance business not money made in stock markets. Hope you get the point – the right mindset gives the right results – wrong mindset will give wrong results.

My course is perfect for the right mindset people. Please do not waste your time and money enroll today.

For my paid customers:

VIX is low you can wait for it to increase a bit or if you still want to trade, then reduce the trading capital. One day when VIX spikes more than 4% enter with rest of the money.

My new client who never traded options made a profit of Rs. 1.1 Lakh in June 2016.

See his email: (Note that his personal details have been hidden to ensure his confidentiality and identity)

Ajay Testimonial 1 July 2016 – Results may vary for users – Click on image to enlarge

Within a few seconds I replied back with a Congratulations message. This makes me more happy than if someones enrolls for my course. Because I want my customers to make money after doing my course. Their welfare and happiness is more important to me than anything else. After all this is exact purpose of my website. You know what he made more than me in June 2016, still my happiness knows no bounds. I don’t care if my customers are making more than me paying me only a fraction of what some of them make in their first month itself – because it is achievement and achievement cannot be measured in rupees. I am very happy for you Ajay. 🙂

Ajay Testimonial 1 July 2016 My Reply – Results may vary for users – Click on image to enlarge

Thank You All for being my email subscribers and also to all those who have done my course. My best wishes are with you. Enjoy the journey.

Yesterday my email subscribers list touched 10,000+. Email subscribers only not those who have done my course.

Though this was a good news it was followed by a bad news. An email came from my email list managing company that my per month fees will increase to Rs. 7,000/- just to keep sending these emails to 10,000+ people. Which means 7000 * 12 = Rs. 84,000/- per year just to send emails to these people. 🙁

This is just too much. I know very well that a lot of people DO NOT read my emails and just press the delete button or do not open them to read. It is quite obvious that there is no point in sending emails to these people as they are not interested. So I logged in my account and searched for those subscribers who did not read or did not open a single email since my last 50 emails sent to them. To my surprise there were more than 3000 people who did not open even a single email of these last 50 emails sent to them.

Why should I keep them in my list and pay the price for it? Isn’t it wasting money for no reason?

Therefore it did not take me even a second to decide I will delete these emails from my list. And of course I pressed the delete button.

Do not worry if you are reading this email you are still in the list and will keep getting my emails. The reason is simple you read my emails. Thanks a lot for that.

Still the price to keep these 7,000 emails is around Rs. 4,000/- per month but I cannot delete emails of those people who read my emails. I request you to keep reading my emails else to save costs I have no option but to delete your email. Hope you understand that what I have done is correct.

Also if you have subscribed to receive my newsletters from two or more emails I suggest unsubscribe from that email which you do not open as it costs me a lot to keep them in list and you still get my email on the one you read. There is no point in subscribing from two emails to receive the same email. Thanks a lot.

You know very well that the objective of my blog is to give correct stock market education to retail traders in India so I request you to help me here. Please like my website’s FaceBook page and share it among your friends so that they also learn a lot from the site. Let them decide if they want to do my course or not. It’s their choice but at least they will learn a lot from the site. That will make me happy. 🙂

Here is the link of my website’s FaceBook page:
https://www.facebook.com/theoptioncourse

Please like it and share it.

Those who are on LinkedIn can also connect to me via this link:
https://in.linkedin.com/in/dilip-shaw-48960b106

A note for those who are my email subscriber since last 6 months or more and are still planning to do my course. If you are making good money great, congratulations. But if you are losing money trading what is stopping you to do my course? Do you think making 3% a month is not better than losing money? Or do you think 3% a month is less? Imagine the time you have wasted, frustration you go have gone through all these months or years and money you have lost just to save Rs.5000 on my course fee. Is it really justified?

There is a lot to learn in the course. Please understand that its only knowledge, hard work and experience that makes money. Speculations in any business except lottery buying does not make money. Stock trading is also a business. Just because you have a trading account does not mean you will make money – its only those who are trading wisely make money not speculators. In fact wise traders must be thanking you every day because you are gifting them your hard earned money. Someone has to lose for someone to win.

But the decision is entirely yours. You have already lost a lot of time and lot of money and still if you think suddenly you will start making money, I ask you a simple question – HOW and from WHEN? To become a great footballer or cricketer you have to get good training isn’t it? Otherwise how you will ever learn the game? The same rules apply in businesses as well, even in stock trading business.

Here are the details of my course. And here are real testimonials from over 100 clients who are making money trading my strategies and the best part is they are also happy trading these conservative strategies. Once you know the losses are capped you will obviously not fear trading these strategies isn’t it? You can pay here online in less than 1 minute.

Please remember that you can do this course from your home there is absolutely no need to meet me as the course is done through emails. Now the choice is yours.

If your traders are properly hedged you will trade without fear so please learn hedging.

A lot of you must have had a lot of fear trading on the Brexit Day. Some made good money some may a lost a huge. But I am sure you agree with me that most traders lost that day than the traders who won.

In fact this is true on all trading days – normal or heavy volatility days.

That’s the reason why I give importance to hedging. At least it lets you sleep in the night and not worry about the trades you have taken. If you have nothing to lose why should you be worried all the day?

I frankly do not like a life full of worries. I want to work peacefully. This also includes trading.

Here are a couple of my customers who gave me feedback of what happened on the Brexit day trading:

After Brexit Day – WhatsApp Testimonial 24 June 2016 – Results may vary for users – Click on image to enlarge

After Brexit Day – WhatsApp Testimonial 24 June 2016 – Results may vary for users – Click on image to enlarge

One lost very small amount but had no fear and one made small money – but one thing is common in both of them – they were trading without any fear or greed that day when most of the traders may not have even taken a bath or eaten their breakfast at least until 3.30 pm.

That’s the main reason why you should do my course. The best part is worry will go away while trading and you will start making small profits. Agreed small profits but isn’t it better than a life full of worries + money lost + time lost?

Take your call.

Learn Conservative and Peaceful Option Trading Strategies which you can do at your Home.

Here are some testimonials.

Note for my paid subscribers: India VIX has dropped rapidly as I said in the Brexit day post.

Can you see I guess NOT what will happen the next day but over the due course of time. Some people had asked why VIX did not fall. Who is bothered when our traders are properly hedged?

Nifty looking stable and entered positive zone. So keep trading comfortably my strategies.

Today is June 2016 Derivative Expiry Day Please Close All Futures and Options Trades.

All Futures and Options trades must be closed on the expiry day. Today is June 2016 Derivative Expiry Day please close all Futures and Options trades.

This email is to remind you to close all derivatives trades which are going to expire today – I mean all June 2016 series Futures or Options trades. Otherwise your broker or your RM (relationship manager or risk management team) may close it at will after 3.15 pm or it will be closed by markets itself and you will get any rate. You will have to accept that rate.

Its better that you close them yourself and know your real profit and loss.

I am not very sure about this as I have never left any option or future open on the expiry day, but there can be a fine too by the markets. So instead of experimenting please close them before today’s closing.

Only those options that are expiring worthless may be left – but you must be 100% sure that they will expire out of the money and expire worthless.

Yesterday I got this email on buying OTM – Out of The Money Options, and I thought it’s a good topic to share my thoughts on this. In this post you will learn whether it is a good idea to buy OTM – Out of The Money Options.

This was his email:

Need your analyses regarding Nifty options

Hi Sir,

I am -name deleted – (CA Student) , I am avid reader of your website articles . I started nifty options trading from last 2 months . it’s actually mock trading but with small amount like RS 1000.

I would like to join your course as soon as I started earning and to my best of knowledge all of your articles are very informative and educative.

Thanks a lot, you introduced me to the best broker in India (greatest platform for all kind of traders in India).

Sir, today I came across a situation where my nifty call option didn’t increase but the next call options was increased .
I will explain in detail.

I bought Nifty July 8900 CE at Rs 5 one lot. At that time Nifty July 8900 CE was 3.75 only. At the end of the day my option was at 5.25 and 9000 CE option was at 6.90.

Literally I can’t believe my eyes. Because 8900 option opens at 6.15 and 9000 option at 4.35. But at the end of the day trading, 8900 option is at 5.25 and 9000 option is at 6.15.

How is this possible?

What is this Dilip Sir? I am looking for true answer. I need your analyses because I believe you.

I am attaching you the screen short also for your reference.

Thanks,
— Name Deleted —-

First of all let me tell you why buying deep OTM (Out of The Money) options is a bug trap to lose money buying options.

What are Out Of The Money – OTM Options?

Out of The Money Call Option is any option with a strike price that is above or higher than the current value or price of the stock. For example at the time of writing Nifty is at 8109. So any strike above 8100 is Out of The Money for Call Options. For example 8150, 8200, 8250, 8300 etc are all right now OTM – Out of Money.

Out of The Money Put Option is any option with a strike price that is below or lower than the current value or price of the stock. For example at the time of writing Nifty is at 8109. So any strike below 8100 is Out of The Money for Put Options. For example 8050, 8000, 7950, 7900 etc are all right now OTM – Out of Money Put Options.

What are Deep Out of The Money options?

Those that are pretty far, so far that chances of reaching that option strike for the underlying stock is nearly impossible within the expiry.

In the above example this person – a CA student, has bought a 8900 Call. So to make a reasonable profit Nifty has to move at least 8300+ within next few days for this option to at least double in value. In fact if it goes till 8900 and does not cross 8900 by July expiry then also this option will expire worthless. All money gone.

So what’s the major problem buying Out of The Money Options?

1. You are racing against time therefore taking more risk. Like an option 10% or more away has 90% of chances of expiring worthless. So in other words the chances of falling in this trade is 90% or more. Why take so much of risk to make money when other better ways are there in options trading?

2. Even if correct if a swift move doesn’t come time will not allow these options to move fast. Assuming a 1% move up comes in 3-4 days but do not forget that there is time value in options that keep eating premiums of all options. So that far OTM options may still show negative return or be in the same place they were 3-4 days back.

3. You cannot compound your money with these kind of very risky and dangerous strategies. This person is taking a risk of only 1000 rupees buying that risky option. If he makes a 10% profit he makes a 100 rupees and if it expires worthless he losses 1000. That is it. But ask him to buy this option for 40-50 lakhs. Even after 10 successful trades his mind will tumble before risking 40-50 lakhs buying a deep out of the money option. For me a trade or a strategy is useless if I cannot compound the profits I make with them and grow my wealth. If you cannot risk 10 lakhs in a trade then even if it is a brilliant strategy it’s a waste of time for me. What will I do with 1000 rupees a month if I cannot increase my trading capacity on that trade?

4. Because risk is more your health suffers: For me health happiness and peaceful living is MORE important than just making money. I should know why I am making money and what are my goals.

To give you an example last week I got a call from someone in Delhi. He is a very successful businessman worth more than 1 crore. Just 12th pass but having more than 1 crore is quite an achievement. He told me he trades Intraday in stocks with 17 computers in a different room. I asked him who looks at his business then? He said there are people who are paid to take care of his business, but he suffers from 9.15 am to 3.30 pm everyday in that room alone with 17 computers switched on with showing those stocks that he trades every day. My next question was obvious – how much profit you make every day. He said one day I make about 10000, next day I lose the same amount. So made nothing in the last 2 years. Then I asked him are you able to give time to your family? He said no. He has a daughter who complains that he never gives time to her. I told him a straight forward thing – you are doing a SIN. If someday you die your kids will not regret because you never loved them, what’s the point you lived or not? Then he said Sir, you have opened my eyes. Thank You. I will give time to them from now onward. My health is also suffering due to constantly watching the monitors and I have become very irritant also. There is no peace in my life.

My next question was – Ok great to hear that, how much money will make you happy? You already have Rs. 1 crore and a great business how much more do you want?

You know what his answer was? Nothing – he kept silent and was not able to figure out how much money will make him happy. Then I told him did you see you were running after something that you do not even know will make you happy or not and you lost the time which will never come back. He thanked me and instantly bought the course.

I hope you got the point – all those who trade Intraday and sit in front of monitors from 9 am to 4 pm (some more who even trade commodity), ask yourself this simple question – is this the way you want to spend your entire life? People who earn less than you but are living a peaceful life are better than you. Because they are more happy in life than you.

I stopped Intraday trading due to this single reason alone. I hated the stress I was getting from it. What’s the point in making money if you think about it 24 hours a day? Are people around you more important or money more important?

Did you notice I did not promote my product to this person to make 5000. I first told him the truth so that he becomes more happy in life and not even once I asked him to pay for my course – but still he paid instantly.

Actually its the same with everyone. I get lots of calls and Whats App messages every day. If I want I can keep an employee, pay him 10000 a month and ask him to call people to buy my course. But I will NEVER do that.

Whoever is enrolling in my course is enrolling out of his own interest not out some phone call marketing. Did even one of you got a phone call back from me asking to buy my course? Once you call me I talk to you give you an honest answer and forget the call. Never call back ever. If you pay fine, if you do not pay still fine. I cannot sacrifice my peace to get money.

Remember this – Peace cannot be bought by money. It is a big myth that more money means more peace – its not.

5. Buying OTM option is NOT trading its gambling: People buy OTM options because they think it’s cheap , and can easily be doubled if a move comes. What they forget is that move has to come in their direction very fast. Even if 3-4 days goes away forget the profits – you will book your losses and come out.

Let me take an example. Assuming you bought a deep OTM option for 5 worth Rs. 5 lakhs. That night you will not be able to sleep well. Next day that option opened at 4. You are sitting at a loss of 1 lakh. You will surly lose patience and book 1 lakh loss and come out – only to see an hour later that the option is trading at 6. You then hit yourself hard for booking a loss. In frustration you buy that option again for 4 lakhs. But within 1 hour that option is back at 4, you again get frustrated and again book losses. This is life of an OTM option buyer.

Time Lost, Money Lost, Frustration Got.

You do not sleep well, you do not talk to people properly due to frustration and you keep losing whatever you made out of a business or job. Is this the kind of life you are looking for? Let’s assume you are a good trader and making 50k a month buying OTM options. But your life is still full of stress, what’s the point of making that money when one day you will give 50% of what you made to the doctors?

Stop gambling please learn to trade. Trading is a business, gambling is not.

Now coming to his question of why deeper OTM option was trading at a higher value?

Please remember that an out of the money option has no intrinsic value, but only extrinsic or time value. As a result, the value of an out of the money option erodes quickly with time as it gets closer to expiry. If it is still out of the money at expiry, the option will expire worthless.

But other factors also come into play. Like the ask and bid prices. There could be less traders on 9000 Call – this is obvious. In that case may be that option was trading at lower level but the best seller quoted a higher price than what the software was showing. Whether anyone traded it or not, is a different issue – but if that is the best seller all buyers will see that price. Now it depends on the buyer to buy or not but since there are no sellers below that price – the software will show that price confusing the buyers like the one who had written to me.

Obviously if buyers are more and sellers less, the sellers will try to maximize their profits so the asking prices goes up irrespective of the real value of the option.

Hope you have understood. If there are more question please write in the comments section.