Wednesday, 28 September 2011

Parents.........U r ideal leaving imprints.........

Little eyes keep watching you….
Little ears keep hearing you……
Little hands eagerly wait to do as you do……..
Little legs love to follow as u walk so…..
You are the world for little ones……
Being watched and observed day and night tons and tons……
U r ideal leaving imprints……           

WHAT WE GET….WE TEND TO GIVE…......

Learning develops as we grow,
If one grows in hostility, fighting spirit begins to show
If one lives in tolerance, patience is what begins to grow
If encouragement is experienced, confidence develops and makes us grow
If equality and fairness is what we live, Justice in our approach will flow
If ridiculous is the environment, shy and introvert will be the person as one grow
If one get praise, appreciation is what he gives when he enter next phase
Excess of criticism if faced, condemn is what one learn as one grow
What we get , we tend to give the same as we grow…………..

Wednesday, 14 September 2011

Trading secrets........

In continuation of secrets to make large profits from trading , I have written three more secrets to ensure higher profits 
Secret 4- When in doubt, Get out
It is better to get out if things are not working according to plan. A trader’s judgment will deteriorate the longer he sticks on a losing position and he might take wrong decision at extremes. There is an old saying
‘It is prudent enough not to stand in middle of railroad tracks while decision is being taken that train coming is freight train or illusion’
Secret 5- Diversify
Risk should always be distributed among variety of trade and markets. Capital should be divided into tenths and risk should not be more than 10 percent on one trade.
Secret 6- Correctly pyramid
In a trending market, pyramiding good position can make big money. Pyramid should never be reverse one i.e. add greater number of contracts than initial position as market moves their way. It is advisable to decrease size of position through the journey and not increase it. Follow following rules to gain from pyramiding-
·         After long advance or decline, never try and make pyramid.
·         Use technical indicators to pyramid.
·         Pyramid should be made when trend first turns up or down after move down.
·         It is safer to pyramid after market moves out of accumulation or distribution.

Monday, 12 September 2011

Some Trading Secrets..........


Technology changes but human nature never changes. Mistakes made years ago continue even today. Markets are our best teachers. Here are some trading secrets for sure shot success. One may not use all the secrets but can absorb just a portion and prevent oneself from getting lost in financial desert.
Some Trading Secrets
1.     The trend is your friend
Major trend must be determined first and one must go with the wind.
When one is in bear market and trend is down, the plan should be to wait for rallies and sell short and not to pick the bottom. This is due to the fact that one might miss the bottom several times on the way down and end in losing money. The same applies in bull market (in reverse).
In any major move, however, there will be corrective moves against the trend. Sometimes sharp correction will be seen because of sudden news but it will be followed by major trend after few days. News may tempt persons to liquidate prematurely. Here
·        Temptations must be avoided.
·        Listen to only market.
·        Never set a fixed price in mind as profit objective( it is bad habit based on hope)
·        Never set fixed time to liquidate either( this way amateurs deal)
Condition do not change, one must learn to change his mind when they do. A wise man changes his mind but a fool never. There is no way one can know exactly in advance how much profit to expect. It is determined by market. The mission is to determine the trend, hope on for the ride and stay on until indicators suggest change in trend and not before.
Always go with tide, never buck it………….

Secret 2-There is probably a reason behind market behind market being cheap or expensive
It moves parallel to ‘don’t buck the trend’ Money can be earned by selling short low priced markets which are public’s favorites and in which large long interest had developed. Alternatively, cash in on expensive markets when everyone is bailing out because of feeling in market of it being high enough for healthy reaction.

It is not the price that is important but the market action.

Secret 3- Quote machine ( tape) will trick you
Watching tape whole day will make trader keep on changing his mind constantly and increases chances of being wrong. Prices tend to look weakest at strongest time and vice versa. It is impossible to stand in front of ‘The tricker’ and identify big moves before they starts. This tricker tape will fool one when accumulation takes place in market.

The tape moves in mysterious ways, the multitude to deceive.
                                               

Sunday, 11 September 2011

Life goes on………..has terrorism ended??


Life goes on………..has terrorism ended???
It has been a decade since the black day of September 11 2001 which shocked the world and bought everyone to complete silence as World Trade Centre collapsed in heaps of iron and cement and innocent human lives lost under the surreal wreckage of terrorism. The memories of September 11 elicit flood of emotions and even today ten years had passed by, the images of that terrific deadly day still stop us cold. No matter the number of times we watch horrendous footage of airplanes striking the World Trade Center, our stomachs still churn. ‘Terrorist attacks can shake the foundations of our biggest buildings, but they cannot touch the foundation of America. These acts shatter steel, but they cannot dent the steel of American resolve’, said George W .Bush. George W. Bush in Speech at National Cathedral, September 14, 2001 also quoted ,’War has been waged against us by stealth and deceit and murder. This nation is peaceful, but fierce when stirred to anger. This conflict was begun on the timing and terms of others. It will end in a way, and at an hour, of our choosing.’
UK Prime Minister Tony Blair quoted, "Britain must, and I am sure will, stand shoulder-to-shoulder with the United States of America and peaceful nations across the world in deploying every possible resource to bring to justice the people responsible, and make sure terrorism never prevails."
 Much has happened since then like America and Britain had fought wars in Iraq and Afghanistan. London and Madrid have also been the victims of murderous attacks. Security measures like increased airport security, secret wiretapping, tighter scrutiny of foreigners have been absorbed restlessly by Americans that have permanently affected the climate and culture of the Western world. Ten years since the day that forever will be known simply as 9/11, life, in fact, remains very much the same. The response to the 9/11 attacks was effective in diminishing terrorism or has made the situation worse is the real question. Osama bin Laden may be dead and al-Qaeda's capabilities significantly degraded, thanks to the brave efforts of British soldiers in the decade long campaign in Afghanistan but today also there are Islamist terrorists trying to find a way to repeat the slaughter of 2001 or of July 7, 2005. Life goes on……..

Saturday, 10 September 2011

Some Trading Secrets........

Technology changes but human nature never changes. Mistakes made years ago continue even today. Markets are our best teachers. Here are some trading secrets for sure shot success. One may not use all the secrets but can absorb just a portion and prevent oneself from getting lost in financial desert.
Some Trading Secrets
1.     The trend is your friend
Major trend must be determined first and one must go with the wind.
When one is in bear market and trend is down, the plan should be to wait for rallies and sell short and not to pick the bottom. This is due to the fact that one might miss the bottom several times on the way down and end in losing money. The same applies in bull market (in reverse).
In any major move, however, there will be corrective moves against the trend. Sometimes sharp correction will be seen because of sudden news but it will be followed by major trend after few days. News may tempt persons to liquidate prematurely. Here
·        Temptations must be avoided.
·        Listen to only market.
·        Never set a fixed price in mind as profit objective( it is bad habit based on hope)
·        Never set fixed time to liquidate either( this way amateurs deal)
Condition do not change, one must learn to change his mind when they do. A wise man changes his mind but a fool never. There is no way one can know exactly in advance how much profit to expect. It is determined by market. The mission is to determine the trend, hope on for the ride and stay on until indicators suggest change in trend and not before.
Always go with tide, never buck it………….
                                                           to be continued……….


Friday, 9 September 2011

Winning strategies for trading in Options..........


Winning strategies for trading in Options
1.   Stay away from deep in money options
High leverage and limited risk makes options better than the rest but if option is too deep in money, risk increases and leverage for investors goes down. Investor in this case pays more and is prone to lose more. Here the limited risk is also higher. So, deep in money options should be avoided.
2.   Stay  away from deep out of money options
There is an illusion that deep out of money options provide with more leverage. But talking about reality they promote over commitment and limit opportunity for earning profit. One cannot deny the fact of them hitting at times but this game is game of odds which are against the investor if he is buying deep out of money. It may be more realistic to purchase deep out of money option if time frame is big but leverage is reduced as he pays for time.
3.   Know your market and trade slightly out of money, at the money or slightly in the money options
Option writing can bring high profits in dull and flat markets. If wave in market changes, cover fast before that catastrophic loss. If option premiums feel too low to provide adequate cushion of income, common wisdom is to ‘sell flat market’ but this is time to think to buy. Selling should be avoided in period of rising volatility.
4.   Covered call writings is a good strategy for what appears to be a bullish environment and covered put writings is generally good for what looks like a bearish one
In this strategy, both futures and options are used together and it has ability to earn profit on both legs. It works well in modestly bullish and bearish environment as well.
5.   Look for opportunities to backspread
It involves selling a call or put at one strike price and buying greater number of calls at higher strike price or buying greater number of puts at lower strike price. Strategy of this sort has predetermined and limited risk and it is one which can prove to be profitable despite one being dead wrong. The profit is unlimited on major upside or major downside move.
Options are wonderful tools. Although, options are not magic potion but they can offer best in both worlds to a major extent if implemented with proper knowledge.