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Note: Newsletter sent to my subscribers on 28-Sep-2015. Please subscribe now at the end of the page if you have not subscribed.

Read to know what to trade tomorrow.

Tomorrow at 11 am RBI will announce their policy. Markets expects a 25 basis point cut in the repo rate. Looks like this will happen.

When markets expect something and the same thing happens, unless it isn’t something major, markets do not react OR react on just the same day. From day after tomorrow they will react to global news.

Which means the movement to the news will be restricted to trading day tomorrow if 25 basis point cut in the repo rate is announced.

Intraday traders some free trade for you. 🙂

Disclosures: I don’t trade Intraday. People who have taken my course know why. I am a very conservative positional trader happy with the 2-3% I make. I am not looking for a home run. I want capital appreciation slowly over time. Taking a loss is ok, but taking a big loss is not at all ok and at the same time I do not even look for huge profits. 🙂

So please trade this at your own risk.

VIX will fall after 11. It will be high till that time.
If you are buyer of Intraday options buy at 9.15 am and close before 11 am. Buy both sides. 🙂

Take this trade after 11 am – preferably around 11.30 to 12. Let it take direction – go with the flow.

We are least bothered how markets will behave – we just want to go with the flow.

If Nifty is going south (down) – Sell ATM Call & buy OTM Call (decide your own strike based on risk tolerance). People who have taken my course know which strike to choose – stick to that.

If Nifty going north (up) – Sell ATM Put and buy OTM Put (again decide your own strike based on risk tolerance)

When to close in profits?

2 ways:

1. After some time if the trade is in 5-7 points profit, increase your stop loss by 3-5 points until Nifty breaches it. Close the other (buy trade) as well. This will give you the maximum profit for the day. (Best method)

2. Set a target of 5-7 points and get out.

When to take a Stop Loss?

Since the trade is hedged – just close it at 3.15 pm (If its MIS the risk management software will close it anyway at 3.15 pm). No major loss is guaranteed.

If there is no movement there is no trade.

VERY IMPORTANT: I am helping you for free. Please do not WhatsApp me and tell your trades. I may not reply. You are getting more than what you pay to tips providers for free, so please respect my time.

I get too many messages on WhatsApp ON what to trade tomorrow. I am sorry but I do not trade for few hours. I know one day’s trade will not make me rich. But a few trades over the years will.

All the Best Traders.

Let me know the results in comments.

Thanks.

Learn Conservative Trading Today.

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Note: Newsletter sent on 24th of September 2015 to my subscribers. If you would like to receive such newsletters please subscribe at the bottom of this page.

Today is 24th of September 2015. It is expiry day for all derivative trades done for the September 2015 expiry.

This email is a reminder that please DO NOT forget to close all Futures & Options contracts that will expire today by 3.15 pm.

Out of the money options that are sure to expire worthless need not be closed as they are worthless. But all Futures contracts and In The Money Options (ITM) needs to be closed. If you will not do it then your broker will close it anyway at market price, so its better that you close it and get the best possible price. If you do not close and your broker also does not close then the exchanges will close them at closing prices and they may fine the traders. On top of that you will know the rates only when the contract note is sent to you. This situation must be avoided. To avoid this kind of uncomfortable situation its always better that you close the trade yourself or ask your broker to close it and confirm that its closed before market closes for trading that day.

Put Credit Spread in Profit

Though I asked to book profits in the put credit spread advised on September 10, 2015 as these are uncertain times because the China issue is still lingering, I am sure some people did not. Well that put credit spread will expire worthless today giving a return of 3.7% (37 points) in 14 days. Those who closed earlier don’t feel bad, we made a profit that is it. Markets will give us another opportunity.

Free Trades

Yesterday someone called me and said that the free trades that I recommend through newsletters make more than 3% a month, so why would someone buy my course that only promises 3% a month?

My response was – what if I stopped giving free advice? Do you want to depend on my free tips for your whole life? Do you really want to trade like this?

The whole idea of this website and my course is that you DO NOT become a puppet in the hands of anyone including me.

Its your money – learn to manage it yourself. Learn to trade yourself.

Tips Providers Have Not Made A Single Person Rich

Name a single person on this Earth in history who has made a lot of money with the help of tip providers. You cannot name anyone, because they do not exist.

Now name a few people who made a lot of money in stock markets by investing it themselves through their knowledge and skills. Now you can name a lot of people. 🙂

When history is proof, why you want to believe that you are the person who will change history and become rich by tips providers?

There are thousands of tips providers out there and I bet you will keep changing them every month in the hope you get to the best one soon. I get many calls and almost all of them are still searching for that one good tip provider. Some are searching since the last 15 years. Not to mention the money lost. If you go with them, you lose money from two fronts – one by paying them – other by trading their tips. And the worst part is you also waste your precious time.

If you do not want to take my course. I am OK. But please do some good course somewhere or invest your money in books. Do not waste them on tips providers.

Basically invest your money in seeking knowledge, not on taking blind orders from someone you do not know. I know taking orders is easy, but learning is not. But which easy path has ever made money?

If you think you want to know more about my course then contact me.

I read and reply every email.

Many Thanks for being my subscriber.

Learn Conservative Trading Today.

Here is what traders have to tell about my course.

You can pay online here and start learning today.

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How To Profit Both Sides

Part of newsletter send on 23-Sep-2015 to my subscribers. Please subscribe at the bottom of this page.

I have never experienced Nifty dancing so much in such a narrow range for so long. Its almost a month now.

I am truly dedicated to help people who paid for my services and had and faith in me.

How To Profit Both Sides In a Trade?

If you have done my course, you must have got a lot of knowledge in hedging. Now why not implement that knowledge in real trading?

So this is what you can do – if it works returns can be amazing like 20-40% in one month and if it doesn’t the losses are limited. So free some cash and trade in less no of lots depending on your trading account.

See when rewards exceed risk – you must try and trade.

Nifty moving one day 1-2% up next day 1-2% down.

So open the directional BONUS strategy of Mr.Inder of my course.

There are two trades.

Read the FIRST one – NOT the second.

See how he took slight risk to deviate from the strategy and made a return of almost 17% in 10 days.

Try that. Use your brains and take calculated risk.

That risk works best when Nifty goes up and down in a few days with speed.

Which is happening now.

Take profits both side and enjoy.

Again DO NOT GET greedy. I told you to try on a small percent of your trading account NOT all. Stick to it.

For the rest keep trading strategy 1 and 2 if SL hit.

Also again a great opportunity to trade the conservative stock option. If you have cash I would suggest again ICICI bank. We already made some money on it last time – we will make it again.

I Have Not Taken Your Course Please Tell Me How To Profit Both Sides

See I cannot reveal the directional trade, but basically its hedging Futures with Options. When you make a hedge the Future trade is no more naked – so the stress is now out of the trade. You know that its now a limited loss trade. Now lets suppose Future made a huge profit. You can always book profit in Futures and hedge your options for further loss.

If Nifty reverses, the options can also profit and you can exit with making profits both sides. One good trade can bring great returns.

But to do this you must have knowledge of proper hedging. If you do not have hedging knowledge the trade can be disastrous. Its better to first learn hedging and try this method.

Mr. Inder got a return of more than 30% in one month because he took profits both sides, otherwise such a return may be impossible. If you do my course you will get his trades to learn how he hedged and made profits both in the Futures and Options of the trade.

More information of my course is here.

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Nifty Lot Size to be 75

So its official.

From November 2015, the lot size of many stocks and all Indexes are increasing.

NSE is increasing lot size of Nifty from 25 to 75.

Here is the official link:

http://nseindia.com/content/circulars/FAOP30449.pdf

What does it mean?

It means that now you will have to keep more money in your trading account if you want to short options or buy or sell futures.

For stocks I think minimum amount required will be Rs.50,000 or more for selling one lot option or buying/selling Futures.

Unfortunately for Nifty too you will need 3X more. It means to short a Nifty Option you may need Rs.45,000 from November. Currently its just 15,000.

What does it mean for my course subscribers? More money. Because the return remains same i.e. 3%. 🙂

Why SEBI did this?

They wanted the retail traders especially the ones who enter markets to have fun to stop speculating. Shorting options by retail traders recently increased a lot and since unlike their US counterparts, Indians fail to hedge options – it became major concern for SEBI.

Shorting options can make a lot of money, but once a while may lose a lot of money. Unfortunately at that time an un-hedged position means unlimited losses – especially on the call side as virtually a stock can rise to infinity.

Leveraged product means losses multiply five times.

Will this ensure small traders stay out of markets?

I really do not think so. May be a few college students will stop trading, but most people will bring more money into their trading accounts and continue trading.

Yes liquidity in stock options will surely take a hit. Its already pathetic and am sure liquidity will fall further. That is not a good news as the gap in the bidding prices will increase.

However liquidity in Nifty and Bank Nifty will still be good. But frankly no one knows. It will be known only when trading in November series begins.

I will also rethink pricing my service as from November people who take my course should have at least 1 lakh in their trading account and will make more as well. This means only traders with a lot of money will take my course. For both these reasons, they should pay more. Justified isn’t it? Let me see.

Thursday is expiry. If you still have naked positions I highly recommend hedge it with options. Sellers are at unlimited loss and buyers are siting on a ball of Fire – if the option expires worthless they will see their money disappear. Similarly margin call for sellers must be avoided. Money disappearing or getting a margin call is the worst situation to be in for any trader.

Hedge it and avoid both.

My course teaches proper hedging methods. Whether you want to learn or not is up to you.

The Option Course:
http://www.theoptioncourse.com/learn-how-to-trade-options-for-monthly-income/

Pay for Online for Course here:
http://www.theoptioncourse.com/bank-details/

Thanks & All the best.

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What to Trade on 18 Sep 2015

Note: This is part of my newsletter that I sent to my subscribers on 18th of September, 2015. If you are interested to receive such newsletters please subscribe now at the bottom of this page.

Refer my last email sent yesterday. I said “One thing will SURLY happen tomorrow. VIX will fall. Currently at 22.00.”

INDIA VIX is currently at 18.16 which is -3.84 since previous close and is down by -17.45%. 🙂

And I am sure many of you would have traded the – “If moving up: Sell ATM Put and buy 100 points below put.”

And it should be in profit now. Please close it if your plan was to trade Intraday (day trade).

Now for people who have taken my option trading course.

VIX may fall further, up to 17 or something.

Since still we cannot say stability has come I would suggest trade strategy 1 only as I believe non-directional is best right now as tomorrow, that is on Monday, people will not know what to trade.

When there is no trade for few days its always best to trade the non-directional trade.

If you want to be aggressive you can directly trade strategy 2 but on the PUT side with more lots and Call side with less lots.

There are a lot of other trades we took this month.

Almost all of them are in profits, including the mutual fund one, the Put Credit Spread and ICICI Bank – hope you remember.

Will send another email later which will cover all those.

As you can see, slow and steady will always win – hurry to make money and you fall face down first.

Hope you are learning as am I.

Call for option course: 90511 43004

Learn Option Course and benefit life long from the knowledge of conservative trading:

http://www.theoptioncourse.com/learn-how-to-trade-options-for-monthly-income/

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What To Trade After FED Meeting

Thank You All for Ganesh Chaturthi 2015 wishes on my mobile. It is is a blessing to be blessed from people whom you do not know personally.

I feel very fortunate that you all trust me and wish me good luck on almost every festival.

A VERY HAPPY GANESH CHATURTHI to You & Your Family wherever you are.

Now coming to our business. 🙂

FED meeting has began and results will be announced Thursday at 2 p.m. (1800 GMT). So in India it will be around 12 tonight.

One thing will SURLY happen tomorrow. VIX will fall. It is currently at 22.00.

Why? Because all the speculations on what the FED will do will come to an end.

Fear factor will go out. So VIX must decrease. So will the option prices.

What else will happen?

One out of the following 3 things will happen, but mostly a copy of how US markets behave:

1. Nifty may move up taking the result as a good move.
2. Nifty may move in a 30-50 point range, ignoring the results.
3. Nifty may move down, taking is at a negative sign.

Depending on how it moves one trade can be done tomorrow.

If moving up: Sell ATM Put and buy 100 points below put.
If moving down: Buy ATM Put and sell 100 points below put.

You may close it tomorrow itself if making more that 10 points profit that is 1% return or close it if you lose 10 points. That is it. Calculated risks often work. Intraday 1% return is excellent.

Because VIX will fall continuously, taking just the buy call option will get very difficult. Options premium will depreciate fast. Even with the move in Nifty upwards, they will not move much and you will get disappointed. So the trade is Sell ATM Put and buy 100 points below put.

However when Nifty falls, VIX will NOT fall as steep as when Nifty will move up – so the trade – buy ATM Put and sell 100 point below put.

No naked trades please do hedge. Save your money.

People who know me know that I always look far at least 15-20 days, not what may happen tomorrow. Looking at Nifty move I will do strategy 2 of my course directly. And will wait for 15-20 days for my profits.

However tomorrow is also a great day to trade strategy 1 if Nifty fails to move or is moving range bound. If is takes direction – trade strategy 2 directly.

Aggressive directional trade can also be taken, but reduce lot size as losses are small but profits huge. 🙂

Trade Well – Trade with your Brian Not Heart. And be patient.

Keep Learning.

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Note: Part of my newsletter sent to my subscribers sent on September 14, 2015.

Refer my email dated: SEPTEMBER 10, 2015

You can find it here:

http://www.theoptioncourse.com/todays-view-on-nifty/

I had written to take this trade:

For example consider this trade right now:

Sell: 24-Sep-15 PE 7,700.00 at 152.00
Buy: 24-Sep-15 PE 7,600.00 at 115.00

Why? Because INDIA VIX is at 24.88 – which is great for option writers.

Max profit in this trade is if Nifty is above 7700 on 24 September 2015, the expiry day – which will be 152-115 = 37 points and max loss will be 100-37 = 63 points.

So now either you lose 63 or make 37 – there can be no other loss. But what if Nifty goes up tomorrow by 100 points and VIX drops? You will be in 10-15 points profit in one day and close the trade. That’s it – all worries gone and you made a quick profit.

This is what happens when you hedge your positions.

Right now INDIA VIX has fallen to 24.56 and

24-Sep-15 PE 7,700.00 is at 92.00
24-Sep-15 PE 7,600.00 is at 67.90

So the position is making around 13 points profit. 152-92 = 60 and 67.9-115 = -47.1

60-47.1 = 12.9

This is a return of 1.3% in 4 days.

Those who traded, may close the position as this is considered a good return in 4 days itself.

As you can see INDIA VIX was 24.88 and today its 24.56 – so not much of a fall – BUT Delta & Theta made the profit. Nifty moved 100 points up and 4 days passed.

What if Nifty had fallen 100 points?

Depending on VIX, the loss would still be 10-15 points BUT for a naked seller it would be 60 points and thats huge.

He would have stopped out with huge loss in just 4 days with Nifty moving 100 points only. But the hedged trader can wait for Nifty again to go up and take his profits. In any case the max loss is 63 points.

Frankly most of these kind of trades make money.

I hope you understand why my emphasis is on hedging.

Enjoy the profits.

Thanks.

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Note: This is part of newsletter sent on 22-September-2015 to my newsletter subscribers.

Until the China dilemma passes, it looks like VIX is here to stay.

And when VIX stays and is not willing to go down, then 2 things happen:

1. Option prices just DO NOT melt,
2. There is too much movement in markets.

So until VIX is not dropping what can you do?

Well some cash can be used in buying slightly OTM options. But remember – risk management is very important here. You should trade this with less than 1 or 2% of your capital. Option can expire worthless so risk management is very IMPORTANT.

Before you pack your bags from your office and go home read this:

http://www.theoptioncourse.com/out-of-the-money-option-buying-strategy/

Do it for next month though. Give your options some time. 🙂

Why we buy slightly out of the money options during volatile times?

Since VIX is high, the ATM options will be very costly and if VIX drops they can melt away fast. OTM options on the other hand will be cheaper and during volatile times will increase faster in percentage terms than the near the money options. But the most important reason is risk management. Just because the markets are volatile you should not buy ATM (At The Money) options.

Note for those who have taken my course: Due to too much volatility why not buy a few extra OTM options – this reduces profits slightly but eventually when a huge movement comes the whole trade can be in profit. And if the movement does not come and VIX drops, we profit anyways. 🙂

Try it – Do not try to make 30 points every month. When times are tough sacrifice some profits to buy extra protection.

Hope it helps during these volatile times.

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Today’s View On Nifty

In this post you will understand that there is no point in trying to have a view on Nifty each and everyday. It is a futile exercise and a waste of time and should be avoided by traders.

What matters is your strategy, plan and discipline, view is secondary to these things. I am not saying that you should not have a view at all, you should have a view, but it should always be a medium to long term view and you should take a positional trade according to that. After all your today’s view on Nifty, even if correct, will not make you rich.

During these volatile times, I am getting a lot of questions on whats my view on the markets.

Frankly, I never have any view – I just do my job with a proper plan, discipline and most importantly hedging my positions. And I do not care what the “EXPERTS” are saying.

Let me tell you that even highly experienced technical analyst views goes for a toss during these kinds of markets.
For example yesterday every analyst declared that Nifty will soon hit 8000.
And today they have changed their view to 7200. 🙂

So my advice is just ignore the noise around and do your job.

And if you are a derivative trader then I request you with folded hands to please “hedge” your trades. You do not know what may happen overnight. Only a good hedge will protect your money.

Hedging reduces your risk drastically and allows you to sleep well.

DO NOT GET GREEDY – The markets are ever ready to eat your money. DO Not let that happen.

During these turbulent times a hedge will act as a great money protector.

For example consider this trade right now:

Sell: 24-Sep-15 PE 7,700.00 at 152.00
Buy: 24-Sep-15 PE 7,600.00 at 115.00

Why? Because INDIA VIX is at 24.88 – which is great for option writers.

Max profit in this trade is if Nifty is above 7700 on 24 September 2015, the expiry day – which will be 152-115 = 37 points and max loss will be 100-37=63 points.

So now either you lose 63 or make 37 – there can be no other loss. But what if Nifty goes up tomorrow by 100 points and VIX drops? You will be in 10-15 points profit in one day and close the trade. That’s it – all worries gone and you made a quick profit.

This is what happens when you hedge your positions.

Compare this with trader who sells naked 7700 PE options. If tomorrow Nifty goes up great, probably he makes 20-25 points. But what if it falls another 100 points? He will stop out with 50 or more points loss, whereas the hedged trader can wait for Nifty to reverse, go up and take profits out. He can wait because he knows that his max loss is only 63 points and that there is no point in hurrying to take the loss. Markets can go up and down. Today if it has fallen down, tomorrow it may rise again.

September 2015 expiry is still 14 days away. Just 1 day rally and a drop in VIX will do its job.

Disclaimer: If you trade the above strategy the risk is yours. Of course the profits is also yours. 🙂 The information is for your study only and is not a recommendation to buy or sell these options. Do let me know if you close the above trade in profits.

So, if you want to be a good trader and enjoy trading and create wealth over the years, please learn to hedge.

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How To Trade Mutual Funds

In this article you will learn how you can trade mutual funds and increase returns, on top of what you already make in mutual funds.

If you invest in stocks markets you should open up and look for opportunities at that time, that may bring profits fast at the level of risk you comfortable with.

If you are narrow minded like, “I trade Futures so whatever happens I will trade only Futures”, Or “I trade options so I will trade only options”, Or “I trade in Nifty so I will trade only in Nifty” etc., then you will miss great opportunities to make money in stock markets.

Well nothing wrong to trade only those indices that you love to trade, but it is all about making money and I believe money is money, the source is not important. If you made a profit it does not matter from where it came – options trading, equity cash, futures, mutual funds, Nifty BeES, whatever. Similarly if you lose, it does not matter from what kind of trading you lost. You made money or you lost – the “means” has no value after the trade is done. It is the “end” that matters.

This is the reason I sent an email on 4-Sep-2015 to buy ICICI bank as relative valuations were looking very attractive. The idea was to diversify risk and trade something other than options from part of the trading cash.

Diversifying risk is very important especially when an opportunity is knocking at door. I also said that do not invest more than 5% of the amount in your trading account.

Why I did not advice to do a bull put credit spread?

1. Markets very turbulent. It may take time to settle down.
2. Put spread will have an expiry or time limit – so that gets risky during this kind of market.
3. Risk reward favored buy and hold in that stock rather do a option trade of put spread.

Remember when the markets are falling everywhere then valuations goes for a toss even in good companies. I can guarantee you this, many tips providers will have given a buy Future call on good stocks that fell because their system generated buy call (200 day moving average broken so buy etc.) – but all their subscribers lost money big time because when markets falls good and bad does not matter. When a good stock falls it looks like it won’t fall further and people do the mistake of buying Futures and unfortunately end up with losses.

And here is the worst part – when it falls they average it out by buying one more lot. If it does not recover just one trade is enough to take out a couple of lakhs from your account. You wanted to make money fast – now pay.

At least put spread is better as it is a limited loss strategy.

But like I said – a loss is a loss and we all hate taking loss, isn’t it?

Therefore I advised you to buy the stock and hold. Even if it makes 10% in 6 months (256+10% = 282) that is a return of 20% in one year, and in my books and that is much better return than making a loss.

A late profit is much better than a quick loss.

On Friday 4th of September, 2015 Indian Stock Markets gave us an excellent opportunity to trade.

1) Nifty was at around 7600 which is 15.50% lower than its March 2015 high of 9000.
2) Some some blue-chip stocks were down by 20-30% than their recent high.
3) All equity mutual funds were also down by 20-30%.

ICICI Bank of course was bought, but then I thought that it was not enough as I have significant exposure to mutual funds as well – why leave a great opportunity to make money from them as well.

I am sure you being an option trader know about the two kinds of Mutual Funds – The Equity Funds (that invests in stocks of companies) and The Debt Funds (that invests in corporate and government bonds, and other fixed income securities).

Best Way to Make Money from Mutual Funds

The best way to make money from mutual funds to invest in 3-4 good equity mutual funds via the SIP (systematic investment plans) route. You decide how much you can invest per month and how much you want to invest in each of the mutual funds and sign the SIP form. That’s it on investment day the money gets out of your bank account and gets invested in mutual fund. You don’t have to do anything. Its all automatic. With time the fund grows big and returns gets compounded and after a few years if the markets and the fund performs you can exit with a lot of money without paying any taxes.

I offer a course on choosing the best mutual funds to invest. You can read about the course here.

Most people use mutual fund investments to plan for their retirement which is a very good thing to do. If you are still not investing, I highly recommend you start investing in them as soon as possible. This course will help you to retire rich with crores.

Now this is a very simple way to make money from mutual funds.

However you can try to actively manage “a part” of your mutual fund portfolio as well. When I say a part it means that here too risk management takes precedence. If you start actively trading the full amount in mutual funds then you will end up making a mess and probably lose money.

How To Trade Mutual Funds

To actively trade mutual funds you must have an online account to manage your mutual funds. Otherwise it gets very difficult to manage them. Signing physical forms and depositing them in the funds house is very tedious and time consuming job and hence not recommended.

If you do not have an online account for your mutual funds its highly recommend that you open an online account.

Instead of Fixed Deposits, I keep extra money in liquid or debt mutual funds. For one they are tax efficient and two, they give slightly better returns than bank fixed deposits. And three, they help me to trade funds as well.

My wife makes some money every-month by doing freelancing work and she only does one thing – Fixed Deposits in nationalized banks. Well I am not against it as I consider her better than 95% of traders who lose money trading. 🙂 And it also helps us to diversify risk on our combined portfolio.

The simple investment via SIP is going in some funds as usual. People who have taken my course know that I hate trading options on cash – its a leveraged product so why trade on cash? You should always trade on collateral against shares, not cash – therefore I give the stock option trade in my course.

So the story is I am held up in ICICI Bank – on 4th September 2015, I bought more – when rally comes the returns are going to be amazing.

Read this carefully – Nifty is an index collection of 50 top stocks. Here is the list of those companies:
http://www.moneycontrol.com/terminal/index_v1.php?index=9

Obviously if Nifty is down, these large companies are down as well. Which means when Nifty goes up these large companies will also go up. That also means the rise is going to bring most profits to large cap mutual funds rather than small or a mid-cap funds. Well they will also gain – some more than large caps – but here we are taking a calculated risk – not a speculation. So I had to select a large cap fund.

Instead of doing FDs, I park extra cash in liquid funds. This invest well course will help you to chose the best liquid or debt funds.

Now comes the part on how to trade mutual funds.

It is very important that your risk is diversified. Some of your savings must go into liquid funds and some in equity funds.

If you are keeping all money in only a single fund you are doing a mistake.

I have said this earlier. Proper Risk Management Is Very Important.

How to properly diversify your risk in Fixed Deposits, Mutual Finds and Stocks is described well in my how to invest well and retire rich course.

With liquid funds you can decide how much you want to withdraw. In a FD you will have to close the whole account, that’s another benefit of liquid funds.

A lot of traders do this mistake of jumping the next big opportunity full force with ALL the cash they can bring to the table. This is a huge mistake. If that trade fails you lose a lot of money. Therefore Risk Management is VERY Important.

You should take a calculated risk with a calculated amount of money – BOTH are important.

Will Proper Risk Management Work Every time?

No. But overall the results over long term 5-10 years will be better than not managing the risk.

I keep booking profits at regular intervals in equity mutual funds, just like people do in stocks. But not every equity mutual find performs well. It is just 10% of equity mutual funds that perform better than Nifty. Therefore if you want to trade equity mutual funds well it is very important you choose the right equity mutual fund. My invest well course will help you to choose the top mutual funds to get great returns over years.

I keep booking profits if Nifty kept rallying. Overall my portfolio is doing well. There was a time I had no idea to choose good funds and even if there was a rally, my mutual fund portfolio did not perform well. I used to be sad. But no more. I know if a rally comes I will be in good profit.

While trading funds, SIP investment is important, because if you try to time the markets with all your money you will be proved wrong over time – but if you do SIP its a calculated risk – you will see that it is working. And if there is a sudden rally, you still participate.

Does This Opportunity Come Every Year?

Yes almost every year. A 10% fall is common, and a 10% rise too. If you cannot identify stocks to buy or if you cannot identify good mutual funds to invest you can do my course. It costs less than what you miss in a small rally every year.

Here is the link to the Invest Well Course To Identify Good Stocks to Invest and Good Mutual Funds to invest for the long term:

https://www.theoptioncourse.com/how-to-invest-well-and-retire-rich/

Over a period of 10 years imagine the kind of wealth you can create if you invest in good stocks and mutual funds.

Why Not Invest ALL Money in Equity Mutual Funds, Why Liquid Funds?

Pretty bad idea really. There is some cash that you may require urgently, may be tomorrow – who knows. Since the stock markets are highly volatile – the equity funds may be in the negative when you need funds and you may have to book loss to redeem your money. This urgently needed cash should be kept in liquid funds rather than your bank savings account. With time it will grow.

If you really want to make money from stock markets then you have to broaden your way of thinking. Keeping all your eggs in one basket is a bad idea. The day the basket falls you may lose a lot of money.

To help you become a better stock and mutual fund investor I offer this course:

https://www.theoptioncourse.com/how-to-invest-well-and-retire-rich/

To help you become a better option and future trader I offer this course:

https://www.theoptioncourse.com/learn-how-to-trade-options-for-monthly-income/

In fact even in options trading if I see a better opportunity and I don’t have cash, I close a few lots of my current trade to free cash and get into a better looking trade. Since all my trades are always hedged I can close them at my will with a small profit or loss and get into a better trade.

I do the same with stocks and mutual funds.

This is how I trade stocks, mutual funds and options & futures.

My portfolio is well divided and the risk is well managed. I am not worried if there is a great fall in stock markets.

If you open up there are a lot of opportunities to make money from the stock investing, mutual funds, option & future trading.

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