KK,
Sorry to interfere in your position. But I assume that you have bought puts……. Strategy is fine, but as of now in my opinion naked positions rule the roost…………….. of shorts…… The reverse position is the correct one. That a short NIFTY and a sell of put of 5000/5100, till market gives consolidation signals where it can be reversed.
Now you are positioned reverse of the trend on a carry over basis.
Presently as the market has tested 4760 near and it held with a whip lash, risk takers may buy if market hold in next week as initial signs are being seen. Carry over for week end continues to be short position.
Abe
From: sharetrading@
Sent: Friday, January 29, 2010 12:46 AM
To: sharetrading@
Subject: RE: [sharetrading] A.K.Prabhakar`
in continuation to my earlier mail disclaimer.
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`
This is a million dollar advise. Many thanks for this posting.
From: sharetrading.
To: sharetrading@
Sent: Thu, 28 January, 2010 11:33:40 AM
Subject: [sharetrading] A.K.Prabhakar`
Investors should understand that correction is a part of market and it has to happen
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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