NOVEMBER TRADING STRATEGY FOR INVESTORS
My dear investors do no worry on F&O lot size increase. Change is the rule of world. Adjust to survive or perish. Now the million dollar question is how to trade in such changed scenario ?
The best possible trading strategy is : OPTION TRADING.
Ahead of Bihar election results we expect unpredictable volatile times. So risk management is the most important. But one thing is certain there are always investing opportunity in all market conditions.
One better way to change the way you trade. Option trading will be one tool to play safe. But small investors’ do not understand the pros and cons of option trading. Sometime their bad past experience in option trading make them think against this.
If you believe in my little wisdom gained over past 25 years, small investors can make huge money in option trading. Our many recent calls tripled our subscriber’s money.But one has to learn the golden rules of option trading.
•Generally a small investor buys a option suppose at 5 ,when it becomes 6 or 7 he immediately sells it, but never sells when it becomes 3, even wait for last minutes on the expiry day hoping some miracle to happen, thereby losing his entire investment.
•Normal stop-loss theory will not work in case of option. It depends on the value of underlying and the days left in expiry.
•Buying and selling options at right price is very important as there is no much liquidity in most of time, so premiums are arbitrary, generally fixed to take small investors for a ride.
•Never buy options when News broke by so called BREAKING NEWS on television, as premiums are jacked up much before releasing the news.
•Never invest your whole investible fund in one option call hoping to multiply your capital overnight, as risk is equally high.
•Make disciplined investment in options at regular intervals with a little diversification.
Hence the moral of the story: big money can be made with small capital in safest way of option trading.