Showing posts with label f n o tips. Show all posts
Showing posts with label f n o tips. Show all posts

Thursday 25 July 2013

Gold no longer a safe heaven – A major shift from precious metal to “Just a commodity”

Keep converting your useless physical Gold inventory to different asset classes or just cash
“The mind is its own place, and in itself can make a heaven of hell, a hell of heaven.”Nature created human and human destroying nature, that’s a bitter truth we are all living with . We often see documentaries, news articles, presentations or activities/movements to save nature , or just to spread awareness.“Mount Everest” – highest peak of Himalaya , once unconquered and considered invincible. One gentleman from New Zealand , Sir Edmund Percival Hillary reached the peak for the first time and opened the gate of a new destruction In ancient history, this precious metal , which was far from the reach of common people, was found only in possession of Emperors ....

Friday 12 July 2013

INFY RESULT GOOD OR BAD

No other stock traded on the Indian bourses reacts consistently the way Infosys does. A swing of 8-10% on the result day is normal for the stock.The ‘long strangle’ option strategy (buying an out of the money call and similar number of out of the money puts) is something that most option traders practices on Infosys’ result day. The build of position in the stock is the main reason for the stock movement.
 
This quarter the ‘calls’ have won. Infosys surprised the market by announcing better than expected numbers resulting in the stock shooting over 11%. However, the devil is in the details. While the market has reacted sharply to the numbers, it is the consistency of these numbers that is key for the long term revival of sentiments in the stock....

Wednesday 26 June 2013

OPTION ADJUSTION

Adjusting an option position really is an essential skill for any investor – I would even say it is a mandatory requirement. Properly managing risk by adjusting can help you repair strategies that have gone wrong, limit huge losses or even create additional potential gains As a disclaimer it’s important that you know both HOW to adjust an option trade and that you are aware of the additional broker commissions you will be charged to exit/enter additional contracts. Take your time when adjusting so that you don’t adjust and create an even bigger hole from which to dig out of.
1. What’s the goal?
 Make sure that you are either reducing risk somehow someway or  creating a new strategy that could make you more money.
2. Are you really reducing risk?
Forget for a minute that you are not going to make money if you get into a bad trade.
3. Should you just close out the trade?
This is always one of my 1st considerations. If you’ve made a small profit and things are starting to go south it might be a wise decision to just close out the trade and re-evaluate the market. Don’t let your ego get in the way of making money.
4. How have the market trend  changed?
I’m sure when you entered the trade you had a firm opinion on the market if the trend is changing then is your options strategy structured to profit from the new market Wait to see a medium term change to adjust and remember that 1 day doesn’t make a trend.


Tuesday 14 May 2013

Features of Offline trading:


 1.Call or visit the broking firm and trade.
2.Transfer funds online as well as via cheque
3.Shares can be transferred online if account is with same broker else can deliver   manually too.
4.Trading limits can be flexible depending on the relationship with the broker.
5.Can’t view real time quotes, would have to depend on the dealer.
6.Tele-confirmation of trades.
7.Contract notes can be viewed online as well as can be received offline via courier
8.Accounts, balances, portfolio etc can be viewed online as well as on request can be received via courier.
9.Higher brokerage/commission costs.

Wednesday 3 April 2013

CALCULATION OF PROFIT N LOSS IN OPTION TRADING

While it comes to calculation, there are 2 things we have to learn – how to calculate the break even point of an option and how profits/losses are calculate. Let’s go with an example, nifty to understand better how profits and losses are calculated in options trading. The lot size of nifty is 50 shares in number irrespective of call or put. The profit/loss does not depend on the type of call , expiry or strike price. It directly depends only on premium which trader selects while purchasing the option....