You are on page 1of 1

Approach

Suggestions will be provided on all kind of futures, Options and stock.

I am going to use:

Technical Analysis: Use of graph and charts to predict future price.

Certain analysis need to be carried out before investing:

1) Market Price Performance: I will analyze the price movement of top 50 liquid stock in Nifty. If
the stock prices go up, then this indicates positive sign to buy.
2) Volume Analysis of the market: High volume Intraday trade is a positive sign and vice versa
3) Intraday stock market trend: If majority of top 50 liquid companies have touched the 52 weeks
high, then that indicates a good time to buy and if majority of them have touched 52 weeks low,
then we need to sell.
4) Sector Sentiments: Invest in those sectors which are moving along with the market.

For Option trading we need to suitably check the Strike Price, open Interest and Implied Volatility before
taking any decision on buying option of any strike price.

I will always suggest the investors to keep a diversified portfolio to eliminate any kind of unsystematic
risk.

Must Dos

1) Utilizing Stop Loss for Lower Impact - Stop loss is a trigger that is used to automatically sell the
shares if the price falls below a specified limit. This is beneficial in limiting the potential loss for
investors due to the fall in the stock prices.
2) Don’t Move against the Market: There are times when all technical factors depict a bull market.
However, there may still be a decline. If the market moves against your expectations, it is
important to exit your position to avoid huge losses.

You might also like