SEBI's new move to cut retailers participation in F&O!

[Riskyman]

@nurav Ji I am not able to concentrate on trading for last two weeks after reading all these in Social Media, Online Articles, etc. The guy inside me is nagging me every moment - I am no longer able to keep my cool - so avoiding trading. I have put in all my efforts, day & night in building strategies / backtesting, improvising for couple of years now. The very thought that I will not be able to participate based on Networth despite of procuring the required margin is thoroughly disturbing me.

I am learning the risks in F&O and a student of the markets, but, SEBI's recent stance is so discouraging.

On a very serious note, I don't think you need to get worked up and lose sleep over this issue. What has to happen will happen. Maybe, it will end up well in the future for us. Who knows? At the moment, just focus on trading. Have a back up plan (alternate career choice) in place should SEBI restrictions completely prohibit you from trading.

I appreciate you have worked hard on your strategies and spent precious time at it. But is there anything YOU can do to change the situation??
Karm karo. Phal ki chinta mat karo.

 

[Vitthala]

Well.. The grass is always greener on the other side. When I go home to my farm, people there say " you are living it in mumbai man". They think its all about AC work space, Ac car, high rise buildings etc. Little do they know

Farming is fulfilling at a certain level. But the returns are paltry if its a small holding. You can be self sufficient in many ways with respect to food grains, vegetable etc. But it doesn't leave a lot of cash in hand for kids education, health care etc etc. You need to have at least 5-7 acres of land holding to make any sense from farming.

yes,the definition of Vikas(Success) varies from person to person.We cant label which way is right.If the person is happy with whatever he's doing then all is fine.
few friends of mine have 20 acres of farm and they are working as software programmers,living in Blore in small flat and calling it a Vikas..well,its fine,its working for them

and few friends still happy doing farming in just 5acres land,its working for them.

we have to figure out what work for us.

 

[afin]

Very true! All occupations have their own hazards. We gotta live it. Maybe why our parents said " acchi padayi-likayi karo aur government job mein lag jao". Should have listened to them



Well.. The grass is always greener on the other side. When I go home to my farm, people there say " you are living it in mumbai man". They think its all about AC work space, Ac car, high rise buildings etc. Little do they know

Farming is fulfilling at a certain level. But the returns are paltry if its a small holding. You can be self sufficient in many ways with respect to food grains, vegetable etc. But it doesn't leave a lot of cash in hand for kids education, health care etc etc. You need to have at least 5-7 acres of land holding to make any sense from farming.

I hope someday you can fulfill your dream of owning a farm. Good luck to you!!

thank you for the kind words!

 

[headstrong007]

I know most of the members are losing concentration in trading due to THE fear or restriction of SEBI.
I request please concentrate on trading now until SEBI come with such regulation.

Our trading performance for next 4-6 month before any of such restriction may be an alternate escape route.
If we can show our ledger as a proof that we are making money consistently and we are maintaining the risk as a professional F&O trader we may skip some strict regulation.
In future court may direct SEBI that they can't neglect the past performance of the traders and can't stop traders who are earning their livelihood from trading.

So try your best now, concentrate on your trading. Try to post here aftermarket or when you are free. Use your maximum potential trading time. Try to build up the protest only after trading time, don't lose concentration during the trading time.

******************

What has to happen will happen. We are used to react quickly according to the changing conditions.

Read below inspiring quote from,

Sophia Loren


When I got enough confidence, the stage was gone…..
When I was sure of Losing, I won…….
When I needed People the most, they Left me…….
When I learnt to dry my Tears, I found a shoulder to Cry on……
When I mastered the Skill of Hating, Someone started Loving me from the core of the Heart……
And, while waiting for Light for Hours when I fell asleep, the Sun came out…..

That’s LIFE!!
No matter what you Plan, you never know what Life has Planned for you……

Success introduces you to the World……. But Failure introduces the World to you……. ……
Always be Happy!!

Often when we lose Hope and think this is the end…

God smiles from above and says, “Relax Sweetheart; It’s just a Bend, not the End..!"


*****************

Don't lose your hope. It's time to produce peak performance in next 3-4 month so that we can produce our ledger as a proof that we are suitable for the product F&O.
Only Capital may not be the sole criteria for product suitability if such draconian rule is challenged in the Court. Let's trade peacefully to maximum potential now.

 

[monkeybusiness]

I know most of the members are losing concentration in trading due to THE fear or restriction of SEBI.
I request please concentrate on trading now until SEBI come with such regulation.

Our trading performance for next 4-6 month before any of such restriction may be an alternate escape route.
If we can show our ledger as a proof that we Th making money consistently and we are maintaining the risk as a professional F&O trader we may skip some strict regulation.
In future court may direct SEBI that they can't neglect the past performance of the traders and can't stop traders who are earning their livelihood from trading. Bu.

This is the problem, they know lot of retail has turned profitable, eating their cake and pie. Hence the move to throw out retail.

 

[headstrong007]

This is the problem, they know lot of retail has turned profitable, eating their cake and pie. Hence the move to throw out retail.

Yes, somewhere I read, big mutual fund and hedge fund can use F&O only for hedging and not for trading. Biggies can use only 2X leverage.
Many small retailers are probably eating their cake and pie using high leverage.

I saw excellent free demo trading terminal NSE PATHSHALA also stopped! Many traders learned risk-free paper trading in live market using this terminal.

 

[avp300]

I know most of the members are losing concentration in trading due to THE fear or restriction of SEBI.
I request please concentrate on trading now until SEBI come with such regulation.

Our trading performance for next 4-6 month before any of such restriction may be an alternate escape route.
If we can show our ledger as a proof that we are making money consistently and we are maintaining the risk as a professional F&O trader we may skip some strict regulation.
In future court may direct SEBI that they can't neglect the past performance of the traders and can't stop traders who are earning their livelihood from trading.

So try your best now, concentrate on your trading. Try to post here aftermarket or when you are free. Use your maximum potential trading time. Try to build up the protest only after trading time, don't lose concentration during the trading time.

******************

What has to happen will happen. We are used to react quickly according to the changing conditions.

Read below inspiring quote from,

Sophia Loren


When I got enough confidence, the stage was gone…..
When I was sure of Losing, I won…….
When I needed People the most, they Left me…….
When I learnt to dry my Tears, I found a shoulder to Cry on……
When I mastered the Skill of Hating, Someone started Loving me from the core of the Heart……
And, while waiting for Light for Hours when I fell asleep, the Sun came out…..

That’s LIFE!!
No matter what you Plan, you never know what Life has Planned for you……

Success introduces you to the World……. But Failure introduces the World to you……. ……
Always be Happy!!

Often when we lose Hope and think this is the end…

God smiles from above and says, “Relax Sweetheart; It’s just a Bend, not the End..!"


*****************

Don't lose your hope. It's time to produce peak performance in next 3-4 month so that we can produce our ledger as a proof that we are suitable for the product F&O.
Only Capital may not be the sole criteria for product suitability if such draconian rule is challenged in the Court. Let's trade peacefully to maximum potential now.

Success introduces you to the World……. But Failure introduces the World to you……. ……
Always be Happy!!……………………………….. What a great Quote , ALL TJ members Should Focus their attention on this particular line ………..

 

[Smart_trade]

Yes, somewhere I read, big mutual fund and hedge fund can use F&O only for hedging and not for trading. Biggies can use only 2X leverage.
Many small retailers are probably eating their cake and pie using high leverage.

I saw excellent free demo trading terminal NSE PATHSHALA also stopped! Many traders learned risk-free paper trading in live market using this terminal.

Wrong logic....mutual funds are not allowed to trade in derivative instruments . They are making returns on their stock investments and use derivatives only for hedging in uncertain environments. So they are in no way competing with small traders and ( even assuming that more than 10 % of small traders are making profits ) and whether small traders use excessive leverage and make large returns or go burst due to high leverage makes absolutely no difference to profitability of mutual funds. So no question of small retailers " eating their cake and pie".By throwing out retail traders how will profitability of mutual funds increase ?? On the contrary if retail traders go out of cash markets also, mutual funds will suffer by increasing their impact cost while buying and selling shares which is disadvantageous to the mutual funds.

Smart_trade

 

[Vitthala]

Wrong logic....mutual funds are not allowed to trade in derivative instruments . They are making returns on their stock investments and use derivatives only for hedging in uncertain environments. So they are in no way competing with small traders and ( even assuming that more than 10 % of small traders are making profits ) and whether small traders use excessive leverage and make large returns or go burst due to high leverage makes absolutely no difference to profitability of mutual funds. So no question of small retailers " eating their cake and pie".By throwing out retail traders how will profitability of mutual funds increase ?? On the contrary if retail traders go out of cash markets also, mutual funds will suffer by increasing their impact cost while buying and selling shares which is disadvantageous to the mutual funds.

Smart_trade

Dada,that means sebi will only higher the margin for futures and options so that small traders wont be able to enter it.Just like they increased contract from 2L to 5L.now they will raise it to 15L.

But Equity cash market intraday speculation will be there always.May be 5X leverage will be provided?

 

[Smart_trade]

Your point about stopping NSE pathsala is valid...many new traders used it for learning stock markets and also for paper trading.....so I was also surprised when it was discontinues. It is NSE's decision and we dont know why it was stopped when SEBI and Stock Exchanges are encouraging investor education initiatives and spending lots of money on it.

Smart_trade