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Showing posts from May, 2018

About the NIFTY Index

A stock market index is created by selecting a group of stocks that are representative of the whole market or a specified sector or segment of the market.  An Index is used to give information about the price movements of products in the financial, commodities or any other markets.

The NIFTY 50 is a diversified 50 stock index accounting for 12 sectors of the economy. It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives and index funds.

Points to Note:

The NIFTY 50 Index represents about 62.9% of the free float market capitalization of the stocks listed on NSE as on March 31, 2017.NIFTY 50 is ideal for derivatives trading.

Trading Diary 28-05-18 - I earned my first Rs.3200

Today was my first day in real time trading (after weeks of practice).

My father and I have decided we will trade in NIFTY only (specifically in options). We will not be trading in stocks.

We are mentally prepared for a loss of Rs. 5000 per trade. Not all trades will be profitable so the focus is on keeping the loss small and letting the profits run as long as possible.

Today I was long in the morning and bought 10700 NIFTY call options. Position was squared off by 2 pm giving a net profit of Rs.3200.

Given my trade size, the profit is not much. 

This is the 5 minute chart of NIFTY Future. I was long in the second bar. 



Started trading in NIFTY Options

Currently I'm learning trading  NIFTY Options.  We prefer NIFTY Options as it helps us focus only on the index and there is no need to track multiple stocks/signals.

Positions will be squared off by 3:30 pm.

All trades would be done using 5-minute charts. We already have a charting software and real time data feed. 

This is what an intraday chart of NIFTY futures looks like.




Glossary:
1. Upstox Pro - It is a online brokerage which helps you to trade and analyse the Indian stock markets in real time. They have extremely low rates (Rs.20 per order and Nil for delivery). You can take a demo at Upstox Pro.

2. Day trading - The buying and selling of shares during market hours from 9:15 am to 3:30 pm with the intention of making a profit.

Fuel Prices on a High - Where is the Achche Din ?

And the answer is :


Power of Compounding - What it actually means

Compounding is the first step towards long-term wealth creation. Compounding allows you to earn interest on your principal and on the interest that you reinvest. It helps you build a large corpus over time with the smallest of initial investment.
For example: Suppose you invest Rs.1,00,000 today for a period of 30 years, this is what you would earn under various rate of returns:

Here is decoding it for you:

96 students have the same best friend

2 - 3 people having the same best friend is acceptable. But 96 ? Seems next to impossible. But our new generation of students have proven that impossible is the new trend.

The Gujarat Secondary and Higher Secondary Education Board (GSHSEB) has caught 96 copycats from an exam centre for mass copying in the English paper SSC exam held recently. Interestingly, it was their collective best friend 'Vikram' who spilled the beans as all 96 students had written a photocopy essay on 'My Best Friend' without changing the name and basic traits of their khaas dost.  

This same thing happened when I was in first year. Our class had just gone on a Industrial Visit and each of the 65 FY students were expected to submit a detailed report. Since I was incharge of collecting all 65 word docs, I told them to write their name and roll number as the heading of the document as well as the subject of the email. What I got was around 20 - 25 word docs with different subjects on the email but on…

Fun Laws they should teach you in School

01. LORENZ'S LAW OF MECHANICAL REPAIR:

Once  your hands become coated with grease, your nose will begin to itch. (More like when you're on the bike for once with your helmet on and the visor down, your ear will start to itch). Call it perfect timing.

02. ANTHONY'S LAW OF THE WORKSHOP:

Any tool, when dropped, will roll to the least accessible corner. (Mostly under the table)

03. KOVAC'S CONUNDRUM:

When you dial a wrong number, you never get an engaged tone.

04. CANNON'S KARMIC LAW:

If you tell the boss you were late for work because you had a flat tyre, the next morning you will have a flat tyre.

05 O'BRIEN'S VARIATION LAW:

If you change queues, the one you have left will start to move faster than the one you are in now. (Always happens at the toll naka. Tip: Never go in the all car line. The trucks line moves faster even though it looks longer. Logic: Each truck is the size of approx. 2 cars).

What is Cognitive Dissonance ?

Happened with me a hundred times. You fight for something you strongly believe in even though all the evidence points out to your theory being wrong. Possibilities of there being a different perspective to the same situation is kinda hard to accept. No wonder people always say, gaining knowledge has no age. 

There is my truth and then there is your truth. As for the Universal truth, it does not exist.

Why to keep your phone "Partially-Unlocked"

Your phone is either locked or unlocked. There used to be no in between option. But now, there is. Passwords are kept for security. Har ghar ki ek hi kahani hai. Some brainy kids may be even more advanced.


As teenagers we keep passwords mainly because we don't want our parents to know what plans are being made, where and with whom. Certain manual safety measures are putting the mobile data off when giving the phone to parents so that they don't see incoming notifications, putting a password lock for all social media sites, keeping another safe app open in the background so that you can quickly switch, keeping one ear open incase any ghost who walks comes in your room late at night etc.  But apparently, the best security your phone and most importantly YOU can get is by keeping it "partially unlocked". How so?

This method will defeat the entire purpose of mummy daddy se chats aur photos chupane hai until and unless you have a secret vault/ Applock/ CM Lock or something.…