... So anyway
I have got two lines which attract interest of mine...
1. Day trading : -
a.Only I need to learn some good strategies ...
b.Practice them on historical charts
c. Make some consistent profit every day!
...Since this thing makes money anyway while I am watching things and has lot of action so I like it.
2.Option trading: -
This is something of great interest to me ,... I don't know many things here like hedging and some straddle ... still I feel options are going to make a lot of money for me...
For the time being I am going to use simple comman sense strategy ...
Buy at extreme panic and sell at partial or extreme ecstacy!
... My first option Hindalco has been a huge sucess for me ... It gave 200% return to my premium in 5 days ... I think somehow my timing was absolutely perfect ... Actually I was thinking day and night at what price I am going to sell that option ... I had bought it at 40 paisa a share and I had a feeling saying that at least 1.2 Rs. should be good ... and ohh God It sold 1.25Rs. a share ...
1.The major reason for using this method is since I am buying at extreme panic, I have to pay minimum from my pocket
So distance from my premium and zero is very less ...
2.on the other hand the strike price must be "
something achievable" by the stock till the expiry or else I won't get "professional interest" in my option ... So there may be rise in stock price but No buyers to my option
So I have to be "extremely selective" about my option.
3.Thirdly Company needs tobe having some market value ... So I am not going to venture in options of stocks other than nifty fifty, group A stocks, Very well known to me stocks ...
4. Fourthy
option Holding time ... Since I have not enough money
to "exercise" the option I will prefer the least amount of time to hold it ... and also after 20th of date of given month I will out of the option game...Because time remaining is extremely less for my comfort...
I have bought now herohonda 1590 Aug-09 Call at 10.80Rs. a stock, 1 Lot ... It satisfies almost all my conditions ... Only problem is TIME ... comming five days are the LAST five days I can wait for it to rise and remain comfortable in my sit... So this thing is making me bit nervous ...
So lets see whats written on the wall ...
