nifty analasys

--Nifty May future discount converted to premium of 2 points so cost of carry increased.
--Nifty open interest decreased by 1.3 lacs suggests short covering. (Total OI now at 3.89 cr)
--3600 puts had open interest of 32 lacs and 3800 calls had open interest of 36 lacs, so 3600 and 3800 will be important levels to watch for.
--India VIX closed at 57.02, increased by 4% suggests instability and uncertainity.
--US markets closed in green.

--Positional strategy for nifty—
---IDEAL STRATEGY—LONG.
---CLOSING STOPLOSS FOR LONG—3603.
---CLOSING STOPLOSS FOR SHORT—3707.

Common Mistakes

Here we will discuss in short about the common mistakes done by the Day Traders. Generally most of the investors loses money in the Day Trading due to the following facts: Investors does not know the correct rate of buying or selling or the exact time of entry. Most of investors do not concentrate on Stop Loss Concept which is very important in Day Trading. The investors generally sets their minds (bullish/bearish) for shares they are trading and will not follow the Stop Loss Concept and losses their money. The investors normally takes delivery of the shares in case if the price falls thinking that they will be able to sell at profit on the next day or two which actually may or may not work out. In which case they will be blocking their money in the market and also increases their loss.
Donot run behind daily up down. Do trade with concentration with peace of mind.


Donot make your mind & soul like machine. Stop trading some days unless & untill mind relax.

Donot disturb your mind for daily trading.

Donot blame your luck. Do trading in right way with your own decision.

When price is up ,After short selling, Wait for 10 to 15 days.you may get lower price

Donot trade second time before profit getting in first time.

Make charity of 1% & more of profit.

Trade always 2 or 3 good shares long time.

10 WAYS TO MASTER THE TRADE

1. Money management becomes your lifeline, and all your trading strategies start to revolve around its core. Risk control becomes a key aspect of every position you take. You accept that controlling losses has a far-greater impact on your bottom line than chasing gains.
2. You develop your own trading plans and strategies rather than relying on books, gurus or other people's opinions. You notice how you're finding more opportunities than you have time to trade while looking through your charts. You look forward to the trading day with a growing sense of confidence and empowerment.
3. You feel more like a student than a master. You learn new things every day and can't wait to apply them to real-life trading scenarios. You listen closely to everything you hear, trying to pick up hints and concepts that will improve your performance. You expand your studies into everything market-related, including economics, fundamentals and balance sheets.
4. You stop visiting stock boards and chatrooms, because they don't add anything to your trading goals. You realize that everyone in those places has ulterior motives. You develop a healthy skepticism about companies, market-makers and even other traders. You realize that no one is really interested in your success as a trader, except for you.
5. You become more private in your discussions about the market with family and friends. You learn to keep your opinions to yourself, because they're just idle discussion. You never talk about open positions or ask others what to do with them. You recognize that opinions count only when they're backed up by cold, hard cash.
6. Trading starts to feel like any other successful profession. Your average profits get bigger while your losses get smaller. You experience fewer drawdowns that drain your capital and undermine your confidence. Your trading day starts to get a little boring, but you prefer the lack of emotional highs and lows.
7. You grade your performance each day and recognize when your actions did not meet your rising standards. You notice how certain times of the day are particularly dangerous or rewarding for your trading style. You keep a written diary that describes your strengths and weaknesses in stark detail.
8. You never cut corners in your market analysis, no matter how tired or exhilarated you feel at the end of the day. You set aside time to review your daily results, download fresh data and uncover themes for the next session. You don't trade at all when nonmarket matters keep you from finishing your nightly preparation.
9. You watch all types of markets, even those you're not trading at the time. You realize the next opportunity could come from anywhere, and you want to be prepared. You also understand that your trading interests will change over time, so you want to be ready for the next big thing.
10. You keep detailed trading records and update them on a nightly basis. You look at both profits and losses with complete detachment and a keen eye for self-improvement. You don't "conveniently" fail to include those trades you'd rather forget about.

gold investment

The following table tracks gold's performance over the past 8 years in terms of 9 different currencies.


Source: GoldMoney


His thesis is that given these exceptional results, gold prima facie may look like a great 'investment'. But in reality, gold is not appreciating, rather currencies are getting debased.


Source: GoldMoney


The price of crude oil in terms of gold, for example, has basically remained unchanged over the 59 year period since 1950. Thus a gram of gold today buys essentially the same amount of crude oil it did in 1950. So, it there has been no appreciation from owning gold in real terms, but it has nevertheless achieved something very important: preserving purchasing power. Which, after all, is what money is supposed to do, but has failed to do so far because of inflation. After all, governments can keep making new money out of paper, but cannot possibly make new gold.

INVESTMENT

One of the Funny Thing about Stock Markets is that Every Time One Man Buys, Another Sells, And Both Think They Are Astute - Henry Ford
Profoundly exhibiting the predator's instinct of the players.When there is always going to be a Loser , who is to be blamed. While educating the unfortunate one, stock markets operate with the only principle that for every winner there is always a loser and Exchanges are Neutral. This
This primarily applies for secondary market investment. When the capital does not form the core of the business then the investment becomes pure speculation and based on perceptions. So shall be the returns. The values get higher and higher changing hands until it bursts. The cycle continues.


It’s human nature to find patterns where there are none and to find skill where luck is a more likely explanation (particularly if your’re the lucky [mutual fund] manager).” -Bernstein,William


Derivatives are the perfect example and the disappearance of big names in the recent days

The human ego to win at any cost is perfectly exhibited in stock markets.

The price of a scrip oscillating every day and every trading hour of the day in the name of price discovery when the business does not change in a given period. Too much of speculation and participation by media in creating a hysteria of a particular stock and perceptional value driving the price, the new age investor should be prepared for all eventualities of his trading decisions and do it with the clear knowledge that only the laws of the jungle will prevail.