in continuation to my earlier mail disclaimer. Investors should understand that correction is a part of market and it has to happen
I am holding nifty . my purchase is at an average of 4815. i am heged this against put option march 4500. As the market goes up my put may expire worthless. but if it goes down , the put may give some protection/ profit.
I am also keeping enough cash with me till the nifty reaches 3700. and wil continue holding it til it reaches 5700, then judge what has to be done.
I know anything is possible in the market. so i am prepared for all eventualities.
so instead of avoiding F&O, i wud suggest use it with care. and understand that when u take a position, you are actually exposing ur self not to the ammount of margin but the whole amount of 3 to 7 laks as the case may be. dont buy a nifty unless you have the capacity to hold on to it through the ups and downs,
OVER LEVERAGING IS THE PROBLEM
To: sharetrading@
From: sunil_rola@yahoo.
Date: Thu, 28 Jan 2010 23:36:21 +0530
Subject: Re: [sharetrading] A.K.Prabhakar`
From: sharetrading.
To: sharetrading@
Sent: Thu, 28 January, 2010 11:33:40 AM
Subject: [sharetrading] A.K.Prabhakar`
Instead of buying in euphoria always buy when everyone is a seller
In market we can never judge the low & high of the index or stock perfectly but systematic investment makes a big difference.
Buy in small quantity on a regular basis and only in cash.
Only in cash
Many don't understand importance of this
90% of leveraged traders lose money to 10% of the brilliant traders
If you notice people doing derivatives( F&O or Futures) make fast money to lose it even faster in the slightest mistake or wrong trade. Why lose good (Hard earned) money on a trade?
Always avoid F&O/Margin Funding and other leveraged trades if you want to make real money in this market.
A.K.Prabhakar
Equity Analyst
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