According to most Technical Analysis Indicators, Nifty is now in a sell zone.
Moving averages for 5, 10 and 20 says STRONG SELL, however 50 and 100 says BUY.
So basically you can go short on Nifty for the short term. Success rate is 50%.
Why am I saying only 50%? Because this is what are Technical Indicators.
Technical Analysis Indicators Change Every Hour Every Day
They may also change EVERY Minute, Hour, Day or in a jerk due to the news.
We are not computers that we will keep automatically checking Technical Indicators every second or read news every minute. We have better jobs to do than to stick to our monitors and keep trading and keep changing our positions.
That’s simply not possible.
Therefore it is always better to be a non-directional trader.
What is non-directional trading?
Well before I explain that let me tell you something. 80% of all directional options trades expire worthless. Rarely anyone buys In The Money Options as it is equivalent to futures trading, except loss is limited but In The Money Options are very costly so most traders buy Out of Money Options. OTM options 80% of them expire worthless.
Hope I am clear now – this means all the money becomes ZERO.
Non directional trading is different.
Irrespective of a directional bias the trader takes a call. He does not know if the stock will go up or down but he still makes money.
Yes this is non directional trading. Whether the stock goes up or down the trader makes money. Since they do not have to take a directional call they are TENSION FREE unlike directional traders who have to take a call based on either tips, TA, speculation or news.
For how long will they make money if only 20% chance is in their favor?
Over the years, I have learned how to exploit this non-directional trend and put the 80% on my side, buying and selling options in different trade structures allowing me to create income streams for my clients regardless of the overall market conditions.
This is called non-directional trading and is meant to profit from the way options are made. Actually for what they were made to profit from and of course hedge them with options.
You can also learn non directional trading and profit 80% of the times irrespective of the direction. In fact even after 100 years if Nifty is between 10000 and 11000 you will still make 3% average a month from these trades.
You can do this course and learn non-directional strategies.
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Nicely explained for simpler methods rather than breaking head on diagram charts which consume extra energy besides trade decision.
Thanks Raj
I love you
Thanks Aditya – but that’s quite a strange comment 🙂