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Showing posts from February, 2020

Pre - Market Report (28 Feb 2020)

stockmarketadvisory.in Pre Market Report: Dow ( U.S Markets) fell 1191 Points Yesterday. This is the worst point wise fall ever in the History of Dow. Also Dow fell about 1000 points on Monday, Tuesday and Thursday. Now Dow is down more than 10% this week.This is the fastest 10% fall in the History of Dow ever. We do not know what is in store today as it is a Fresh Expiry Week. The fear may be more ahead of weekend. The Corona Virus inflicting maximum damage to stock markets & Spreading like Wildfire in all Parts of the World. All the Asian markets are Trading Negative. SGX Nifty indicating about 200 point fall in Nifty ( Pre - Open). Last six weeks is one of the worst periods for us too. We have been Underperforming compared to all Global Markets. Nifty from 12400, fell to 11600, then shot up to 12300, then fell to 12000, then shot up to 12250, then fell to 11900, then shot up to 12200, only to fall below 11500. This is nearly 30% swing in Nifty. This time Bank Nifty h...

Pre - Market Report (27 Feb 2020)

stockmarketadvisory.in Pre Market Report: Dow fell Consecutively for the 3rd day Yesterday. Totally Dow has given up more than 2000 points in 3 days. Now Corona Virus has rapidly gained Momentum in US as well. Just after this news, Dow futures fell more than 200 points. So the Corona Virus fear is currently at its peak. All Asian markets are mostly Negative. South Korea Central bank did not cut Interest rates as expected. South Korean markets traded in Green briefly due to rate cut expectation & since the rate cut did not come, markets fell. Our markets were highly volatile yesterday. Crude has fallen due to Global gloom. SGX Nifty is trading around 11675. For the last few days, for Call sellers, it was easy money. I Publicly Announced that im BEARISH on the Markets after the Release of Budget , many did not believe me then as Market recovered sharply after the Budget but now the Expectation seems to be Working. Yesterday around closing time, sold 11800CE. Today's m...

Pre - Market Report (26 Feb 2020)

stockmarketadvisory.in Pre Market Report: US markets fell another 3% Yesterday. On Monday it fell by 3% and Tuesday another 3%, total 6% fall in two days. Last time this has happened only in 2015 and 2008. CDC (Center for Disease Control) warning spooked the markets. Asian markets are down. SGX Nifty is down by about 100 points. FIIs have sold for Rs 2315 crores in Cash market. However they seem to be covering their shorts in F&O. Since there is very little premium in next month contract and markets are near bottom, they may not like to rollover their shorts. They may choose to square up the shorts and that may cushion the fall. Earlier I mentioned (To Clients) if 11900  support is broken, Nifty is likely to take support at 11700. Markets are likely to be highly volatile. DIIs are expected to support the markets at lower levels. Somehow I feel Corona Virus fear is at its peak. The risk reward is not favourable to go short at this time. At the same time, going long i...

Pre - Market Report (25.02.2020)

Pre Market Report: Over the weekend, Corona Virus affected cases reported in Italy, Iran and South Korea. That triggered panic selling across the world. Nifty fell nearly 250 points. All Nifty 50 stocks ended in Red after more than a decade, if I am not wrong. India VIX shot up 24%. Put options shot up but Call options did not fall propertionally. Bank Nifty Feb 31000CE, which is 600 points away, just 3 more days for expiry, closed around Rs 65. This is huge premium. When our markets opened yesterday, Dow futures were down by 300 points. That started falling more and more and at one point it was down 850 points. So our markets came under severe selling pressure after trading around 11900 for most part of the day. When Dow opened, it opened around 1000 point lower. At the lowest point, it was down by 1200 points and then in the last 15 minutes, recovered about 200 points. S&P 500 fell more than 3% only 3 times in every two years since 1950. Whenever it fell more than 3%,...

How to Achieve Financial Freedom?

Independence  is a state in which an individual or household has sufficient wealth to live on without having to depend on income from some form of employment. Many people can not grasp financial independence from a job. There are other ways to make a living besides Employment with a Job. While it is a necessity to have a job to pay bills for most people it does not have to be permanent situation. Jobs are great tools for getting the money to pay necessary bills but do not have to be a way of life forever. All jobs in the private sector come from businesses and there is another side of the table an employee can eventually move to. You can be an investor and buy the stock of publicly traded companies to benefit from the earnings that employees work so hard to achieve. You can also trade stocks to benefit from the price action of trends. You can also start your own business and benefit from the labour of employees. You can create your own job through self employment w...

8 Life Lessons I learnt from Becoming a Trader

stockmarketadvisory.in Although I’ve only been involved in the markets for more than10 years now, looking back, becoming a trader had a huge impact on me, and it profoundly changed me. It changed my way of thinking and looking at things, it challenged many of my previous beliefs and ultimately changed part of my personality. And it had repercussions in many other areas of my life. I’d like to share with you a couple of life lessons Ive learnt from trading.   1- Being wrong is ok We’ve been taught since we were kids that being right is good and being wrong is bad. It makes it very difficult for us to admit when we are wrong. In trading, we are wrong very often. In fact, even the best traders out there are wrong between 30% to 40% of the time. If you can’t keep your ego in check and admit quickly when you are wrong, you’re almost sure to lose all the money you have invested in the markets at some point. There is almost no way that you will make it as a trader unless you change your p...