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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 11 July 2016

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.

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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

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

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.

🙂

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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.

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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:

WhatsApp Testimonial 24 June 2016

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

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.

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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.

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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.

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I got a lot of questions on what to trade during Brexit. So here is the article you have been waiting for.

First a small note – What is Brexit?

Brexit word is derived from “Britain” and “exit“. After the World War II in 1975 there was a voting in Britain (United Kingdom) to enter the European Union or not. 67% of people voted “Yes”, means they wanted to join the European Union. After that we all know that Britain has gone through a lot of development and changes. So a lot of political parties and people there want to leave the European Union.

Why?

Because Britain has to pay £350 million – that is about $440 million – per week to the European Union. A lot of money about 50% of it comes back in the form of aid, but the problem is European Union decides where that money needs to be spend in UK. People are not happy with this as they think their government can use this money for better purposes like education and health care.

What about Big Business Owners?

Strangely most big business owners are in favor of Britain staying in the EU. Why? Because it makes it easier for them to move money, people and products around the world especially the European Union which consists of very wealthy and highly educated youth who can be recruited for job from 28 member countries. If Britain exits the EU then the government may change the rules of recruiting people from other European countries and giving preferences to people of their own country so this can create a huge problem as far as human resource is concerned.

When will the voting be held and results declared?

A referendum is being held on Thursday, 23 June 2016, to decide whether Britain should leave or remain in the European Union. Anyone who is above 18 is eligible to vote. Whichever side gets more than 50% of votes, that side will be declared the winner and the British government will go that way.

The final results can be known at around 4 am Britain time. Which means 4+4.3 = 8.30 am India time on Friday, 24 June 2016 – just before our market opens for trading.

What will happen to Nifty?

It’s obvious whatever has to happen it will already happen before the markets open for trading. So either Nifty will open Gap down or up.

If the results are “Yes” – it means Britain will leave the European Union and it will be a big jolt to the markets around the world. Not a good news – Gap Down Opening.

If the results are “No” – it means Britain will stay with the European Union and it will be a big thumbs up to the markets around the world. A very good news – Gap Up Opening – though not very high opening since technically only fear will go everything else remains same.

So what you can trade?

First for people who have done my conservative trading course:

Remember we are properly hedged so our tension is ZERO. Let speculators do whatever they want – over a long time they will never win – we will.

Lets see what will happen to VIX first?

Today India VIX closed at 18.18, 5.33% up than previous close. This was well known that VIX will be very high today as results will be known only on Friday. I think VIX will slightly increase tomorrow as well, and will start decreasing from Friday onward.

So go for strategy 1 tomorrow. We are least bothered about direction – that’s the headache of speculators not us. Remember they are gambling we are not – we are trading and trading properly.

How many gamblers in this world have made a great fortune? None. Let them travel that path – we won’t.

VIX will drop and we will start making profits soon. But do follow rules of Strategy 1 – do not alter profit booking or taking the stop loss rules. For every trading it remains same.

If you are already in Strategy 1 – I suggest close it tomorrow whatever profit you get and enter into a new and better looking Strategy 1.

Traders willing to take more risk can also try the Directional strategy of my course.

Now for traders who have not done my course:

Some people asked me if they can try Long Strangle. Remember VIX is high so pricing of options is very high. So you have to take a huge risk to make small money. But on Friday VIX will fall so gap opening will still not benefit you much. And moreover you will not be able to sleep well on Thursday night – is that the correct way of making money?

Let us see the risk reward of long strangle:

Britain may or may not stay with EU: 50%
If it stays with EU – VIX falls and Nifty opens slightly Gap up: Loss
If it does not stays with EU – VIX falls and Nifty opens Gap down: very small profit depending on how far it opens gap down.

So I give 25%. Risk reward is 75% loss and 25% profit. Not good. But the choice is yours. Do whatever you want to do.

Short Strangle?

Unlimited risk! Really are you willing to trade unlimited risk to make limited money? If you win may be you will make a few thousand rupees but if you lose it will make you down by lakhs. So avoid it.

Please understand that its much better to make small money but without tension and stress rather try to make too much money with stress and fail and in few years and lose lakhs. Results? Time lost, money lost, Ego got hurt and health also degraded.

Choice is yours.

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Yesterday Nifty closed almost 1% up totally ignoring what market pundits were saying on Raghuram Rajan retirement. Not only it did not close in the red but close almost 1% up. This clearly proves do not listen to what others say on the markets just concentrate on your job and trade. One day of trading will not make you rich anyway so why bother? And mind it you can also lose money – and since on these days you trade heavily if you are wrong the losses are also big.

Hope those who shorted Nifty yesterday or sold calls learned a lesson to avoid speculating. Speculations never make money in the long term – its only knowledge, discipline trading, patience, greed control and proper risk management that makes money over the long term not what’s happening in the world.

Even the best stock investor in the world Warren Buffet did not invest all the money he had in one stock – based on his research findings he used to allocate a percentage of his net worth in that stock. If the research was very positive he invested more, if it was somewhat balanced he invested less. This brilliant money management skills and control over greed made him richest stock investor in the world. Please also note that a lot of hard work was required to this. He used to visit factories and personally see manufacturing process and marketing techniques of the companies he wanted to invest in. He also used to talk to the owner of the company and the management. Unlike most of us, he just did not see profit and loss statements or took tips and invested in a stock.

His minimum time frame was also at least 10 years to stay invested in that stock once he decided to invest. In an interview he said that the best time to sell a stock is NEVER. Basically he meant was do not sell the stock until you need the money.

Please also note that to become the richest man in the world it took him some 25 years to get that crown. Also he had other businesses – most of the money was coming from an investment business that was generating millions. Therefore he had that privilege to invest a lot of money in the stock markets without worrying much about quick returns.

Also note that the average return of his whole portfolio since the last 25 years is only some 2%+ a month. When the best stock investor of our times was able to make only 2%+ a month – you need to have more knowledge than him to get better returns than him for the next 25 years.

One month return of 10% and next month return of -15% will not make you rich in fact will make you poor.

Do not fall for something that’s just not possible. Be happy with small returns but consistent returns and compounding your money – those small returns over the years will definitely make you rich. So plan and execute your trades well and be patient.

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Hope you know that our RBI governor Mr. Raghuram Rajan on Saturday 18th of June 2016 said that he will not continue as RBI governor when his tenure ends on 3rd of September 2016. Hope you also must have seen how all market pundits jumped into conclusion that on Monday Stock Markets will see a major fall because of his exit news.

This was in fact printed in all leading newspapers also the very next day. Because of this reason I was also flooded with emails and WhatsApp messages by my clients on what to trade on Monday.

You know what I wrote them? Stick to the rules of trading as written in the document. Markets do not work on somebody retiring from their job. Let markets do what they want to do. If Stop Loss is hit exit, else stay on. Do not worry on silly news of somebody joining or resigning from their jobs. The world does not care for one persons’ job.

Let us see what exactly happened:

Nifty did open in the red today but recovered very fast. Right now at the time of writing this post at 10.19 am Nifty is in fact 20 points up from previous close at 8190.

But didn’t the so called Market Pundits said on Saturday that Markets will open in negative and will see a sharp downfall? Yes they said. But what happened in reality? It did open in red but proved them all wrong by going pretty fast up. I am sure many Future traders must have sold Nifty Futures at 9.15 am today as soon as markets opened for trading and were dreaming of making millions in one day. The result? All of them lost money. 100% of them. Because of whom? All those speculators’ who show that they are great Market Pundits.

So what you want to say Dilip?

I want to say that make rules of trading on what works for you best and stick to discipline and risk management rules in spite of what’s being told by speculators.

I also could have written an email about this on Sunday and made some quick money by selling some ideas. But like I said my integrity, peace and my jest of teaching you all to control greed and trade well with proper risk management comes first. Money comes later. A printed paper with ones and zeros printed on it me does not inspire me. I am teaching you the right thing and getting a thank you from you inspires me more than money. I do not care for people who live and die for money. Its not that I am not making money but for me peace and happy living comes first, money is secondary.

When every market pundit said on Saturday and Sunday, “Market would see sharp downfall on Monday on Raghuram Rajan’s retirement news” – I did not care for this news neither was thinking on what to trade on Monday to make more money.

I have said this and will repeat again – I am a positional conservative trader and just stick to my rules and do not care what others say about the markets movement. When I used to listen to them I lost money. When I got the knowledge to trade and was happy with even 1 or 2% a month I started making money. 🙂

So what I want to say is do not fall for greed because of some news. And even if you make money in one day of trading will that make you very rich? I mean will that make 10 lakhs or more? No, maybe you end up with 5000 profit. Next news trading will take you down by 10000. So there is no benefit in trading according to news. Yes you may get some fun and excitement but you must never trade for fun. It comes at a huge cost.

Some people might tell me that VIX increased. But let me tell you that VIX is increasing due to focus on the June 23, 2016 Brexit voting in Britain. After that whatever the results VIX will surely fall. I will write an email later on Brexit voting.

VIX has nothing to do with Raghuram Rajan Retirement News. One person vs a country. Its obvious markets will give more importance to a country than just one person’s job.

Did you notice that people who are too excited to make money because of news and Intraday trading actually end up giving their peace and money. And people who are disciplined traders and are happy with small profits live in peace and make money too.

Now it’s your choice what you want to do? I will always walk on the path which is peaceful and makes money too although slowly, not a path with full of surprises, no peace and speed of losing money far exceeds speed of making money.

One of my clients yesterday asked me the same thing what to trade on Monday because of this news. I replied I do not care for such news but you can go ahead if you are interested but do not blame me if you lose money. Had he traded he would have lost. See this:

rajan-retirement-news-trade

Humm just in actually he traded, did not listen to me and lost money:

rajan-trade-results

Imagine what must have happened to Future trades. They must be scratching their heads.

I am sure people who were eager to short Nifty on Monday must not have slept well on Saturday, Sunday and since they have lost money on Monday, will not be able to sleep well even today.

Walk on the right path then see how both peace and money will come your way.

Conclusion:

  • Read, research and seek knowledge of trading.
  • Once you find the best trading strategy for you, make your own rules of trading on what works best for you. Then do not listen to others and fall for greed.
  • Be happy with even small profits. Small profits means you are not losing money and are better than 95% of traders who lose money.
  • Lots of people may say a lot of things everyday about markets, but do what your trade rules says. Ignore the noise that’s much better than trading in noise.
  • Read newspaper for knowledge on what’s happening around you but do not try Intraday trading on them.

    I would like to hear from you on do you trade on what others say and have you made money over a long time based on what others say? Please leave your thoughts in the comments section.

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    Read to know this article why it takes time to create wealth in stock markets because it is a business and every business needs time to grow and make money.

    First something for my customers who have done my course: I feel that Nifty is going to be stable for some time now. After a lot of volatility stability comes. This is common logic.

    Those who have done my course please enter the Strategy 1 as VIX also looks quite attractive.
    http://www.moneycontrol.com/indian-indices/india-vix-36.html

    17.36 is great VIX to enter this trade.

    Those who are new and still doing paper trading can enter with one lot at least to learn in real markets how this strategy makes money over time and how there will be ZERO stress in trading.

    I hate making money with lots of stress. What’s the point in making money if it takes too much of stress? I can’t always keep thinking about money I hate that. Ask any Intraday trader – they keep thinking only about money from 9.15 am to 3.30 pm and take a lot of stress to make a lot of money everyday. And whats the results? 99% of them lose money. What is the point in doing such a kind of trading, where stress is more money is less?

    If you have not done my course please think again. I am not someone promising huge returns because making huge returns from markets every month is impossible. If it was possible then many traders would have made more than 10% returns every months since many years. But such a person does not exist because it’s impossible to make 10% return every month from stocks markets.

    Just because you see one option that was selling for 10 going for 90 after a few days does not mean everyone knew when it was 10 that it will go to 90 one day. In fact not a single person on the Earth knew it – those who bought it must have sold it by the time it reached 20. This is pure fluke that’s the reason their very next trade takes away that profit of 10 points or even more. If it was not fluke they would have doubled their money in every trade – that does not happen. So profits are fluke, losses are also fluke. Basically trading without knowledge is pure gambling. It never makes money.

    When that option which was 10 became 90, you knew it only after it happened not before that. But you fell for greed thinking you can convert your 10 lakhs into 90 lakhs every month. Your losses then starts. When you cannot even predict your own future how can you predict the future of an option?

    So the only way to make money trading is to go slow and accumulate wealth over a long time. I guarantee, you cannot do it in a short time. I am saying good wealth that can change your life – something like 1 crore. It will take years to make 1 crore from trading – you cannot make it in months in fact in any business. So why do you think it’s possible in stock markets. Do not run after something that history has proven is the wrong path to make money.

    In any business it takes time to make money and grow business. Stock trading is also a business and it will of course take time to make money. Live in a real world and you will be happy and making money. If you live in a virtual world you will keep losing money in the hope that one day you will make too much of money. Unfortunately that hope will remain always a hope, because that one day will never come. Even if it comes next day will again take away your wealth.

    You can read about my course here and decide for yourself if it is worth it.

    Also I do not have any marketing team like other companies. So if you call me I will talk to you but NEVER ever call you again if you do not buy my course. I am not a gold digger especially for money that comes without hard work. Who in the world gives support for 1 year for a mere 5000 rupees once paid? The reason is I want to see you grow and make money. That make me happy.

    Also I can easily increase the price to 10,000 but am not doing it. The reason? I have full control over my greed and do not allow myself to charge huge amount. I only charge what I feel is correct. How many people think like that in this industry? And my customers love me for that because after years they paid a very small amount for a course that has started making them money.

    Though we make less but at least we make money unlike others who promise to make 17 lakhs in one day from 1 lakh, then take your money and make sure that your 1 lakh also becomes zero. I am not one of them. If you believe me that’s good, if you do not I have no issues because it does not matter what people think about me, because I do not have any control over their thinking. What matters to me is is what I think about myself and what God thinks about me.

    Thank You for reading.

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