Monthly Archives: July 2015


Why you should avoid Tea and Coffee during trading hours

Never take Tea/ Coffee while your trading or before trading. Yes you are right no tea no coffee in trading hours. why?

Every thing I am telling you has a scientific reason. Taking these beverages increases your heart beat rate. Your increased heart beat rate requires more oxygen to burn for its increased rate, as a reason the oxygen which was supposed to go towards your brain (mainly frontal lobe, used for decision making) ,gets disrupted.

This low oxygen supply to brain results in the state of doubtfulness and indecisive state of mind and hence results in entering in wrong trade or not able to think properly, while you are in the trade.

Hope you are able to able to link it some of your past experiences. Our Broker Friends don’t know this and they serve clients with 2 or 3 times tea or coffee while trading hours. You can replace tea with some other healthy thing like nuts, peanuts, Jamun, or other small time pass healthy fruits that don’t affect the trading decisions adversely


Nifty Future and Option Money Managament

When a trader trades in a Nifty Future with Rs 17,000- 20,000 margin and he has to bring in extra money if some loss occurs. Compare this with a deep in the money Option which is around Rs 400. It will cost you 400*25= Rs 10,000.

 

Count the Advantages now

 

1. Even in the beginning of the month there will be very little time value premium very much equal to futures. so same benefits as in future.
2. Margin will be limited to option value, meaning limited risk.
3. You can sleep well in night
4. In second or third week you can even switch to Rs 200-300 option.
5. In the last week still you can trade in Rs 100 “In the Money” options that will have very little time value.
6. Rs 20,000 Vs 10,000 is a good deal.

 

Disadvantages
1. The liquidity in Deep in the Money options may be less than Futures, However if you are doing a swing trade you should not be bothered.
2. If you were trading in 1 lot of nifty future, keep trading in 1 lot only and save your left over margin to fulfill the next trade, because in case of a loss your capital will reduce and you can make up for next trade with the extra margin.


Trick to learn sequence of Zodiac Signs

Those who face problem in learning the sequence of Zodiacs here is a mental movie which you need to Visualize.

Aries (goat, mesh) goes to Taurus (bull, vrish) since both of them look similar they are know as Gemini (twins, mithun). when their powers become one they become Cancer (crab, cark). This crab goes to Leo (lion, singh) and gives him a message to go to Virgo (a girl, kanya). virgo takes out the Libra, (tula, beam balance) on this beam balance there is sitting a Scorpio (Scorpion, vrishchik) and he has a Sagittarius (bow and a arrow, dhanu) in his hand, which he shoots at Capricorn (crocodile, makar), and Capricorn run towards the Aquarius,(water, kubbh) to save his life. Aquarius (water) is the place where Pieces (fish, meen) live.

Hope now you can remember the sequence in the form of this story.

If you had already known what picture represented what zodiac sign it will be easier for you.

Once you learn these, we can move ahead with your learning.