Sunday, October 30, 2011

Nifty Options -The rise of Options

Hello Friends,
                     After 3 years of experience in stock markets i am able to say now I am starting getting a grip of markets.I started with trading in Equities-Day trading,then moved on some time to Delivery based trading on equities.But equities trading requires constant monitoring of stocks day in day out.I dont know people keep talking about time frames trend lines,indicators,Monthly,daily,weekly charts.But at the end of day its of no use becos one bad trade can wipe u out of months earnings.I have did the same and i know how boring it feels.


                     Traditional investors say buy stocks and sleep for years and wake up one day with ur money increased two folds ,five folds.But i used to hate this waiting period.Why should investors worry about company profits ,P/E ratio ?Who is responsible if company ends up in wrong business and stocks don't rise of years together?.I have seen people frustrated and getting out at wrong times.Operators screwing people.


                     So equities if u see are not a good tool to earn money unless we have big recession of 2008 where stocks fell almost 80% and sensex fell from 21000 to 8000 and i will say at tht time when sensex was at 8k it was surely a good buy point.But on normal days and normal years we don't get such huge correction this limiting our earnings capacity.Thus during normal times people just keep on getting bottoms and tops and realize they are getting nowhere.Some succeed in picking the tops and Bottoms,others loose badly.


                     Equities are really not a instrument of earn money.Equities are manipulated 80% of times.Mostly by mutual fund houses,promoters,Operators leaving common investor at mercy of god.


                      So i scrapped the idea to trade on equities and started looking for a good TRADING instrument Then suddenly i got acquainted with derivatives markets.I started studying about derivatives markets day in and out.


                      Derivatives markets in India comprise of Options and Futures.Derivatives i call them as weapons of mass destruction.People don't realise but half of the recession fall was caused by derivatives markets.But after studying and back testing few things i realized its not a market ,its a casino.Literally I mean its a CASINO.If ur bet is right u are a millionaire,if u are trapped on wrong side markets will beat u so badly it will wipe u out of trading for lifetime.Its a Addiction.


                       So I am pursuing this addiction since 2 years there were severe ups and downs but i have prevailed.I started with Futures but Futures carry a lot of margin risk putting u in great danger if u r on wrong side.

       Then I entered the beautiful world of OPTIONS.and from that I work on OPTIONS OPTIONS OPTIONS!!!!!!!!!.


I am gonna make you people life easier.


If u have any suggestions drop a comment.





                 

 

                


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