7 strategies plus patience to make you profit from share market
There are two type of investors/traders:
a) Highly optimistic
b) Sunk cases.(vow to never come back)
No matter in which category you are you will have to take care of some points and these strategies ate going to make you money.Most important thing is to control your greed and fear. Greed which never let you to book profits as you want more and fear that never let you invest at the right time.
- Buy a Nifty future every time Nifty hit an all time low: This will be a long term position and you will have to hold it may be for months.You must be aware that on the last Thursday of every month future and option contracts for that month are closed. You will have to do roll over of your position till it makes a profit of at least 50% of your investment.
- Sell a Nifty Future every time Nifty hits an all time high: Same logic applies here also. Every time nifty touches an all time high it is bound to make correction. Once correction will start it will have follow up correction because investors in profit will try to book their profits.It has never happen in history that market move only upward or downward.
- Sell Nifty calls when it touches an all time high. When nifty will be consistently up then premium on its call options should be high. At the time of rally all investors wants to make more and more profit and this demand increases the premium on options. But as we know after touching a high there are chances for a correction. If this high is touched at very beginning of month you can keep a gap of 100-150 points in current level and strike price of call you sell
- Sell Nifty put when it touches a low: No need to say same strategy will work here. Again if it is the starting of month then keep a gap of 100-150 points.
- When market touched high and start correction start an SIP from 20% of monthly savings.Keep the balance in liquid funds. On fall of every 7%-8% double your SIP and wait for 6 months. If fall is before six months then you can add 20% per month in SIP.After the correction when market will get the  upward momentum you are going to make good profits. This cycle will take more than a year and most of your profits will be long term so will be exempt from capital gain tax.
- Sell a a call and put of current level plus/minus 200 points when market has completed a bull run or near run. When market completes a run it takes a little time to pick a momentum again. It don’t move much up or down.
- Buy a call and put of current level plus 100-150 points (or may be of same strike price)when there is a sensitive event or news about to come.It may move market in up or down but you know that move will be deep. Like Brixit was one of those events.Still you will have to see the amount of premium . If it is already (for both call and put) more than 3% then this strategy won’t work.
These strategies are only for the people who have at least some experience in market. It will be better if you will discuss them with your financial adviser and fist practice them under his guidance first.
Investment in mutual funds are less risky but trading in future and options is risky. Please enter into them only if you have adequate back up to hold your positions and basic knowledge how these products work.
CA Shafaly Girdharwal
CA
New Delhi, India
CA Shaifaly Girdharwal is a GST consultant, Author, Trainer and a famous You tuber. She has taken many seminars on various topics of GST. She is Partner at Ashu Dalmia & Associates and heading the Indirect Tax department. She has authored a book on GST published by Taxmann.
