Of the biggest mistakes in derivatives trading, a lack of discipline is the most difficult mistake to avoid. You can lay out every step of your trading program down to the last detail. But then you must pull the trigger.
If you were going to engage in some highly risky activity other than derivatives trading, you would likely spend a fair amount of time planning out how to avoid the associated pitfalls. For instance, if you were going to go
Among the general public derivatives trading is generally considered to be a wildly speculative activity. Most people have little trepidation about moving money into stocks or bonds or mutual funds. But ask them if they have
considered trading derivatives and
First the bad news: best estimates suggest that 90% of individuals who trade derivatives lose money doing so. Now for the worse news: This estimate may be too low. The sad fact is that somewhere along the way the majority
Budget 2020 did disappoint investors, but slowly and steadily consolation set in as there were no negatives if not any significant positives. However, the monetary policy declared by RBI on 6th February has changed the scene for better. The policy
Budget 2020 was presented on Saturday, 1st February. There have been lot of deliberations around it, whether it was a good, bad or an average budget. But such discussions initially create more heat and less light. It is only in
Recently, Futures Industry Association (FIA) came out with its publication on volumes at various exchanges. FIA is the leading global trade organization for the futures, options and exchange cleared derivatives markets, with offices in Brussels, London, Singapore and Washington, D.C.
When lunatics run the asylum, things can and often get out of hand. But when important functionaries, put in place to manage the nuts and bolts of the economy, begin to give up on rational thought, we run the risk
Intraday trading has become a significant product over last few years. Not only have there been strategies and products built around it over last few years also there have been a large number of people who have given up their
A question that I am asked time and again by amateur traders is whether trading can actually be taught or is it a God gift. According to me it is a science and not an art, so it “Can Be
The last half hour of the trading session has more than often changed the whole structure of Nifty price movement. From a good rising market to a sudden jolt of weakness in the first few minutes post 3.00PM followed by
Is trading worthwhile? This is a question a lot of people ponder about. They do so because trading, somehow, seems a lot more attractive, glamorous, when compared with investing. The latter appears dour, uninteresting, almost drab!
Trading connotes impressions of
It’s been a while that I have been writing to you about different topics relating to stock market and options in particular. But in the process of being more relevant to markets I probably missed out one important basic point
In stock markets we tend to hear and say the term “Bulls” and “Bears” so much and so often that sometimes I fear that I will forget that these are animals as well. Probably, some day when my kid would
Certain words by the way they get tainted and taken in bad light. While some of them are so, few are not. A simple example of it is the term “speculation”. While in general parlance it is treated negatively, but
Indian exchanges have been struggling against other exchanges which offer Indian indices or stocks on derivatives to trade. While the Indian exchanges took steps like increasing market timings, stopping them from offering Indian products and so on, the impact was
Being a “Bania” by birth and even by heart, “interest” is something which intrigues me a lot. Because of that it becomes very important to understand macroeconomic indicators. This in turn helps in building a market view from a very
As we enter Vikram Samvat 2076, the memories of last year still seem to be very fresh in our minds. A year of extreme volatility, events that shook the global and local economic corridors, a big concern that we faced
Pure is what we all always look out for. So is in the case of stock markets. Investors talk about pure plays, which can be consumption, banking or any other such themes. So, would traders talk about, pure data, pure
Greeks are the most important part of options trading. It is very crucial to understand them and their inter linkages before you start trading options. As overwhelming they seem in the beginning they become equally interesting once a trader understands