Please dont risk your capital for 15-20% return yoy

[dhariawad]

I have come across various posts, threads stating the right/maximum return in stock trading and most of the times 15-20% is considered as ranked as appropriate. Though its not first time i am hearing this figure, may be i can understand that the western authors have inducted us the most of accepting this return, you will find them telling ready to give their tooth for a 18% annual return.
Facts should be reconsidered as per indian economy and atmosphere, for instance if you only look forward for a 18% return just start micro financing at your personal level and you will stand around 24%.
Even if you are in love with stock market then why dont you opt mutual funds which produced whooping 40% including the break down years. they will also accept your investment as low as Rs. 500




Its okay for them to compromise with that amount of return due to lower rate of inflation and lower interest rates. If you are stressing your self while starring at technical data still expecting a 18% return on a long run. Its time to relax my friends. Stay away of this aging causing method of getting rich and better to switch some other instruments.

OR

Its time to think different which I will disclose in my over coming threads. Thanks.

 

[dhariawad]

Investing or swing trading!!!

:clap: "even a stopped clock gives the right time twice a day but incorrect clock never ever gives right time" :clap:

When it comes to making money through stock market you might encounter another serious but use less debate whether to be a swing/day trader or an investor. Friends there is no need to indulge in the debate its simple go along with property or mutual funds if you look forward to become an investor as i mentioned in my previous there are mutual fund housed in india which produce more than 40% return since inception/last 5 years. Due to restriction i can not add a link here but you can google yourself.

If any body have the idea of "Cash Flow Quadrant" by Robert T Kiyosoki who i think a genius of our time already stated the recession in his work. Becoming an investor comes in fourth and the most advance quadrant, which means let your money earn money for you. But being short of money you need team yourself up with your money to make more money to free you someday. In that case your role will be as professional, who earns through his skills like doctors, actors etc where their presence is required in order to make money. So i believe its your skill that makes you a professional trader.

Since a stopped clock gives correct time twice a day still you are not allowed to place random trade. If you consider yourself as a clock you need to adjust your time with market in order to be in sync. As long as both clocks are synced you are reported correct time but once the time is incorrect its time to sync yourself because you are "read only" privileged with market. That's the time when your system start producing whipsaw every. So friend to sync again rather than arguing.

So my friend we can assume that if you are short of capital leave investing for big brothers. Caution: since saving is not investing so keep saving any amount in any instrument as its a good habit.

Being "Out of the Money" right now we expect to be "At the money, In the money and Deep in the money" as the thread progresses.

ALL THE BEST

 

[dhariawad]

Inspired by greed protected by fear

:clap:INSPIRED BY GREED
PROTECTED BY FEAR

No matter how villainous image these two bear, they still are essentials of markets. Avoiding greed and fear like talking about a car without accelerator and breaks.

Peak Performance researchers have studied the mindset of successful traders and discovered something really interesting: winning traders are not geniuses! Nevertheless, they seem to have a natural immunity to "Self-Sabotage Syndrome."The symptoms of the syndrome are widespread among struggling and breakeven traders:

So how these greed and fear affect you:::

You hesitate to enter, due to a paralysis of analysis
You chase trades, causing you to buy high and sell low
You get out of trades too early, instead of letting winners run
You let winners turn into losers and you hold the losers too long
Your emotions get the better of you at the worst possible times

Don't worry if you find them within. We all have these things in common. Still we will conquer.

 

[dhariawad]

The vote of thanks

:clap:Limited Loss and Unlimited Profit:clap:


Thanks praveen for appreciating me, and yes a little vote of thanks for the traderji forum. I really appreciate the dedication of the moderators and senior members for lightning the another candle, I wish i had came across here a little earlier in order to improve my learning curve. I would like to thank Saint, amitb, saventgrade, praveen, kkleskar, dheeraj and linkon (though i dont understand why he trades Spread in day trading) you guys not only deserve this appreciation but also inspired me to share my little knowledge with the forum. Sorry if i forgot some...

Now lets get back to main route



After having major set back in 2008 I kept googling about limiting the loss. Actually protecting your money is the key to your success, well I not gotta preach about that but there I came across George Fontanills Optionatics The best thing i learned there was to to limit your loss for unlimited profit.
While shorting stocks and futures you always expose yourself for unlimited loss, which really is the worst nightmare a trader can have. Since there are a lots of thread teaching the ABC of options so lets not divert about what they are. The best thing i like them about is the leverage and the worst thing the time (as i always want myself and you as the buyer of call and put)
Though he teaches about all major strategies about options but i like his cautions the most. Though all the strategies including spreads, straddle, strangles, butterflies etc are good and low risk still i found them less useful for day trading. Because once you are having a tight stop loss why would you sell a strike to keep margin money and limit your loss, I would rather call them limited loss and limited profit strategy. They seem good for those who are positional trader or synthetic call/put trader or for those who engage their money till expiry. Though i once used straddle just before the election result 2009 declared and made a good money of it, but they occur very seldom.
So dear its quite good to be stuck with
options
buying options

see you soon....

 

[TraderRavi]

...not updating..Mr. Rao....