Posted at 6:15 PM , on October 12, 2015
What will drive markets from here on?
As the Nifty gets closer to the 8200 mark, the question is whether the rally has further legs from these levels? The answer can be quite tricky. Currently, there are quite a few key factors which need to be addressed before we can have a clear picture on where the markets are headed.
Posted at 7:45 PM , on August 10, 2015
India is becoming a very theme-specific investment story
For the last 7 years since the sub-prime crisis, the Indian market has been a macro play. The markets were driven more by global fund flows and news flows. How the US Fed set interest rates and managed liquidity became important. The crisis in Greece and therefore in Europe, became the staple diet for Indian market analysts. A lot of that could be quietly changing. Within sectors that are stretched, specific companies are making an effort to position themselves differently. And the results are showing in stock prices! But what are these specific themes? Continue reading
Posted at 4:32 PM , on April 27, 2015
The market was ripe for strangles; it probably still is…
First let me enlighten what I am referring to by a strangle. In options trading, when you are not sure of the market direction, you can buy a call option as well as a put option. The result will be that you make money, no matter the markets go up or down. So, a Strangle is that simple really?
Not exactly that simple, though…
A strangle involves buying a higher call option and a lower put option at the same time. If the stock goes up you make money on the call; if the stock goes down you make money on the put. Continue reading
Posted at 2:37 PM , on March 9, 2015
A successful self trader – Rule # 4
We tend to define capital in plain monetary terms. Some may extend this definition to include political capital, social capital and intellectual capital. But for a trader or an investor, what matters most is the Mental Capital. It is the capacity to think clearly, irrespective of the noise in the market. It is a mix of intellectual and psychological capital. The best traders are never short on mental capital! Continue reading