Monthly Archives: June 2016


How do I shape my career as a Trader?

My answer to How do I shape my career as a Trader?

Answer by Ruchir Gupta:

You may like to read the following answers given on the similar topic:

Ruchir Gupta's answer to What are higher education options for those interested in Technical Analysis of Financial Markets (Stocks, Forex, Commodities etc.) – India & Abroad?

Ruchir Gupta's answer to How do I pursue my career in Stock Exchange?

  1. Apart from this I would suggest to read books on trading.
  2. Network with successful traders.
  3. Network with Algo trade programmers.
  4. Do real trading for one month and stop it and start Paper Trading, this will help you to understand the difference (mainly Psychological) between the two.
  5. Record your trades real as well as paper trades and analyse your improvement areas and strengths.
  6. Take courses, Seminars on the subject, ( I teach Gann and Elliott Waves , these are the two best methods for timing and targeting the markets)

How do I shape my career as a Trader?


Why do people follow the trades of successful stock traders?

My answer to Why do people follow the trades of successful stock traders?

Answer by Ruchir Gupta:

They follow the trades of successful traders for many reasons like:

  1. People are themselves engaged in full time jobs and dont have time for analysis
  2. Most of these people are financially illiterate, however they want some extra income so they identify some one with good track record and start following him
  3. Some of them always go with some other person’s decision rather than making the decision them selves.

Why do people follow the trades of successful stock traders?


How can I turn 200k into 2M as fast as possible?

My answer to How can I turn 200k into 2M as fast as possible?

Answer by Ruchir Gupta:

You can do that. You need to use all you skills and expertise and you can turn 200,000 into 2,000,000, however also remember to take required measures to safeguard you money.

I would suggest in case you are thinking to do some business, better go and work at some other company and gain experience, this will also ensure your capital safety and also increase your capital via salary and interest earned on previous capital.

2,000,000 could be made even without using 200,000 capital, and even faster, but for that you need to be determined that I will do business only using my brain and not use the hard earned money. There are businesses which could be done with very small capital , you need to find them.

Liked that you asked this question

How can I turn 200k into 2M as fast as possible?


Is it worthy to play puts and calls at the same time in extreme volatility markets?

My answer to Is it worthy to play puts and calls at the same time in extreme volatility markets?

Answer by Ruchir Gupta:

Yes, If you know the target or percentage movement on either side, that is about to come you can go for Buying calls and Puts at the same time.

Studies like Elliott Waves and Gann which are able to give the future targets could be very useful for this purpose.

Is it worthy to play puts and calls at the same time in extreme volatility markets?


I can invest around 1 crore in an year’s time. What are the asset classes I can look for?

My answer to I can invest around 1 crore in an year's time. What are the asset classes I can look for?

Answer by Ruchir Gupta:

Since your time frame is one year , no equity exposure should be taken. Reason I am saying this is You need to understand many things before taking any such decision. even 1% exposure is not recommended not even via Equity Mutual Funds as you dont know what phase the equity market it at, It could go down 30% or may go up 30%.

Equity investment needs lot of care and preparation and tracking, by the time you will learn it one year will pass. You can however start understanding it so that in future you are able to take the benefits of it.

Money Market Debt and liquid funds are safe just like bank Fixed Deposits, you can invest 70% of your capital in that.

Remaining 30% could be invested in buying debentures of companies like Mutooth Finance that give a higher rate of interest than Banks. (buy debentures only if company has long track record atleast 10 years of profit).

I could have suggested buying a Land, however they are not that liquid and one year time frame could be very small for any appreciation and still dont know about the property market of your area.

I can invest around 1 crore in an year's time. What are the asset classes I can look for?


How good is Zerodha for equity trading in comparison to its alternatives?

My answer to How good is Zerodha for equity trading in comparison to its alternatives?

Answer by Ruchir Gupta:

The best part of Zerodha is its 60 days challenge which makes you consistently think about being profits.

Also, trade analytics, which consistently allows you to watch the past trade statistics and improves your future trading.

I dont know any other company offering these 2 things.

How good is Zerodha for equity trading in comparison to its alternatives?


Can one make money from Intra Day Trade in Indian Stock Market?

My answer to Can one make money from Intra Day Trade in Indian Stock Market?

Answer by Ruchir Gupta:

Yes,

In case you want to do intraday , wait till 1.30 pm. and watch the direction of breakout, buy puts or calls to play for that direction.

  1. This strategy is very safe as it helps you buy options in start of the move
  2. Avoids sideways time of 11pm to 1 pm where option premium is eroded.
  3. Helps to ride the confirmed trend
  4. Keeps you sideways from entering in wrong trades
  5. Avoids morning clueless market.

For Positional Trading I use Gann Methods combined with other Technicals.

Can one make money from Intra Day Trade in Indian Stock Market?


Is the state of the stock market correlated with the economy?

My answer to Is the state of the stock market correlated with the economy?

Answer by Ruchir Gupta:

Yes Stock Market is related with Economy, however try to relate the markets with the fundamentals of economy rather than the news flow, which all good results from the econmy just before the slow down about to begin and visa verssa.

So , never rely on economic data and news to correlate with market and visa versa. May be at the time of the worst economic news, stock markets had already made bottoms, while all those thinking markets to go down further may be puzzled.

Ruchir Gupta

Founder: Learn Elliott Waves and Gann

Website: www.Ruchirgupta.co.in

Is the state of the stock market correlated with the economy?


How it is profitable to be full time stock investor/trader?

My answer to How it is profitable to be full time stock investor/trader?

Answer by Ruchir Gupta:

•People often hear about Rakesh Jhunjhunwala, Warren Buffet, WD Gann and think they can also multiply their money from stock market.

•In this anticipation People open accounts and come to the ring of trading without any training or any trading plan or any risk management strategy. They don’t know which time frame suits their temperament.

•Many a times because of this lack of knowledge they end up losing a big money in the markets.

https://www.youtube.com/watch?v=JhVXRDnMW1A

How it is profitable to be full time stock investor/trader?