.: Technical view by Nooresh

Monday, 13 May 2013

Technical view by Nooresh

Posted: 13 May 2013 07:01 AM PDT

Recently met a well paid guy from one of the industry ( dont want to name ) which is doing good , who wanted to quit his current job and get into equity markets as a full time trader because he was frustrated with his job . His experience – A couple of years trading randomnly once in a while and has made some negligible money.

He asked me that - Give me the best strategy to make big money in markets.

What advice should i give in such a case is a very difficult question which i rarely can answer well. I do get many queries on above lines.

Some of the answers i have got from similar conversations earlier to make money are below.

-> I just need to make 20 Nifty points everyday or an average of 60 points a week. Now this is simple right.

60 points a week implies 240 points a month. Now take a trade size of 10 lots which is 500 quantity. Consider you report sick for a couple of days , so you make only 200 points. This implies a monthly gain of 1 lakh rupees.

- > Even if i make 3-5k a day on day trading i can manage to take care of my expenses and then increase my capital with my trading gains. All i need to is buy 1000 shares at 100 and sell it 1 rs higher for 3-4 times in a day.

- > I just need to get a few POSITIONAL SWING trades like Mcdowells, HUL, Bank Nifty or a multibagger like Ajanta Pharma in a few months to make a killing and rest of the time i can just keep researching for those ideas or go fishing.

-> Selling options is a sure shot way to make money with absolutely no risk as markets do not move 10% every month. All i need to do is sell OTM options of Nifty every month and make a clean 2% or more with a little more leverage.

-> If i can just catch one bottom like 5500 or one top like 6100 in 6 months my options can give me 10 times returns. Did you see 5800 call going from 10 to 200. Also i can start with a very small capital of 10k- 1 lakh.

-> I can subscribe to one of advisory services which has 95% accuracy and guaranteed returns. One of the option services call @@ .com gives a 200% return on a capital of only 10k. There are so many of such advisory services which employ the best research.

Would suggest readers to add up some more ways to make money.

Now once that you have known some of the strategies the steps to make BIG MONEY are as follows.

-> Get a residential or a temporary address if your not living in one with your parents or if you dont own one.

-> Make a license/passport or aadhar card to have a residential proof.

-> Now you need to apply for a PAN Card. If you are employed you should have this.

-> Find a good broker which has a good online/mobile trading platform and gives you the most margins. There are many of them and all banks have one.

- > Now comes the most tough part – ( if you dont have the first three steps you better not think of any business in India forget trading). Opening a broking account is not very easy. You need a few passport size photos, Xerox copies of your address proof / PAN Card and now you even need 6 months account statement if you want to trade derivatives.

After doing all this the broker expects you to sign for more than 40 times ( isnt it crazy. Do you remember using the pen so much ) .

-> Now that you are done with equities if you want to even trade commodities or forex you have another few signatures and photographs.

-> Once your trading account and demat account is done all you need to is to do a bank transfer / send a cheque to your broker for your capital. He does not ask for a minimum or maximum balance. But with current market conditions some do call you up to sell Gold/Real estate or even Insurance.

- > The last step is to download the trading platform and start punching a few keys to make MONEY. Oops i forgot you need a computer or a smart phone. You can call and trade.

You need no LICENSE ( even hawkers cant do business in Mumbai without a license nowadays ) , you need no QUALIFICATION ( You dont need to give exams for it , even the Fund Managers dont) , NO TRAINING period ( Doctors need 6 + years, Engineers 4 , MBAs 6 + ) , You need no REAL ESTATE ( anyways its too expensive nowadays ). You need no EMPLOYEES ( Managing a team is such a pain anyways ) , You have no BOSS ( Wow this is Awesome ) , You need no MACHINES ( We dont call computer a machine anymore isnt it )

It is so SIMPLE STUPID. Trading is a very easy Business.

Go ahead and punch in few keys to MONEY.

Would request readers to add more ways to make money in trading.

Meanwhile in all the conversations people do not ask for places to take advice from or any training institute. At times they may ask for our advisory services or training details at Analyse India.

Some of the reasons the few who ask for us do not opt for our services.

-> Our accuracy rate is only 60-75% on a good risk-reward trades. ( We feel we had a great month if we do 70% + )

-> We do not guarantee returns every month ( Rather we get good losses in some weeks many a times)

-> We train people to analyse markets technically to make them independent and not sell a Super Trading Code or Formula which can give buy-sell on a system with back tested results of XYZ percent. ( we also expect our workshop participants to help us in the future with our learning and trade ideas ).

If you have read the full post do post some advice in the comments section for the Best Strategy to make Big Money in Trading.

Happy Trading,

Nooresh Merani

www.analyseindia.com ( For all our services )

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