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About Chief Technical Analyst
Proprietor : Dr.Nikhil D. Baljekar
Owner & Chief Analyst at REAL STOCK IDEAS. Real Stock Ideas is a professionals consultancy services firm managed by persons having experience of over 26 years in the stock market.
Degree & Honors :
MS.(Bom.),F.C.P.S(Bom.),MRCS(Edinburgh),Dip.InUrology(Israel) Surgeon & Urologist since 1987 & Independent Technical & Financial Analyst. NSE Certified Market Professional, Member of AMFI, IRDA License holder. NISM Investment Advisor Certification. 2015. Trainer in Technical Analysis Courses since 2007. Runner -Up in National level competition on Zee Business India’s Smart Investor in 2012. Finalist in National level competition Sensex Ka Sultan on derivative trading in 2013. DR. NIKHIL DAYANAND BALJEKAR (SEBI Registered Investment Advisor- Registration No INA200004359 ), the owner of realstockideas.in website.
Those what all advice I give, I may be having personal positions in stocks.
I have been actively trading on the advice of RSI since last 2 weeks , the stock positional tips are very good , plus the support from the team is fabulous. Keep up good work
Just renewed my subscription with Real Stock Ideas, because they having been making daily trades safe and a profitable business , won’t mind giving you more references.
SOME IMPORTANT INFORMATION WHICH IS NECESSARY TO UNDERSTAND THE INVESTMENT ADVICE AND HOW TO MAKE PROFITS WHILE PRESERVING YOUR TRADING OR INVESTING CAPITAL –
- ‘Day Trading’ by definition is to close the trade taken at the end of that day. It is not ‘Daily’ Trading. Please remember it is not necessary to trade daily in-fact you must trade less frequently but when you trade the probability of a profitable trade should be heavily in your favour.
- It is more important to trade less number of times bur get most of those correct than to trade everyday even when there is less chance of success and hence lose capital.
- ‘Short Term Trades’ are basically Trades for that week usually from 1- 5 days.
- ‘Positional Trades ‘ are for that month ie till the futures expiry.
- For Trading in ‘Derivatives or Futures and Options the month is from the last Friday of the previous calendar month to the last Thursday of the next Calendar
- ‘Delivery Trades’ are for any period longer than Positional Trade it could be 6 weeks to 1 year.
- When we refer to a ‘BULL MARKET’ we mean a market that is going ‘UP’. It is characterized by an ’UPWARD TREND’ by a series of Higher Lows and Higher Highs.
- Bull Market is when one can profit by buying at Lower Prices and selling when the Stock or Index goes ‘UP’ and profit from the difference. This is also called going ‘LONG’.
- When we refer to a ‘BEAR MARKET’ or a ‘DOWNWARD TREND’ means market is falling or correcting.
- Usually a Bear Market will follow a Bull Market and bring prices of Stocks and Indices to a Lower Level. This is characterized by a series of Lower Highs and Lower Lows.
- Bear Market is when one can profit by Selling at a Higher Level then buying back after the Stock or Index falls and make profit on the difference.
- The process of Selling first also called going ‘SHORT’ then buying back is also referred to as ‘SHORT SELLING’ and ‘SHORT COVERING’.
- An ‘OPTION’ is a derivative available for trading in the derivative market. It allows us to take a large position at a much lower amount of Investment. This is also called a ‘LEVERAGED POSITION’
Every Option has the following –
- Nature of Option– ‘CALL’ or ‘PUT’. Call Option is to be bought when trading ‘LONG.’ ‘Put Option is to be bought when trading ‘SHORT’.
- Premium – this is the amount you pay to hold the Option for a maximum period of a futures month.
- Period for which Option is active From the last Friday of the previous calendar month to last Thursday of next calendar month.
- Time Decay – this is unique to only an Option not to Futures Contract. The premium at the start of the future month is more than at the middle or end of month Ie. The value of the Option Premium keeps falling as the days to expiry reduce.
- This very important to understand as even if the Stock or Index does not fall or Go up much the Option will lose its value.
- Hence when trading Options ideally one should try and close the position as soon as possible generally within 1-3 days.
- ‘LOT SIZE’ when trading in Futures & Options you have to buy or sell minimum one lot of shares of a stock or Index unlike in Cash Market where you can buy minimum 1 share to any quantity, the number of shares in a lot will depend upon the price of the stock or index stock to bring the value of the contract to somewhere around 10 lakhs . So Nifty is in a lot of 75 at present but from next month -June 2021 it will be 50. Bank Nifty is in lot size of 25.
- STRIKE PRICE each stock or index will have strike prices at a certain predetermined gap eg Nifty is at a gap of 50 points Bank Nifty is at a gap of 100 points. So Strike Prices on Nifty will be 10000,10050,10100,10150,10200 etc. Same for individual stocks as well. The Strike Price will also determine the Price of the Option.
- So the Total Investment to buy 1 Option Contract is = Premium x Lot Size . If premium of an option of Nifty say is 200 then the premium will be 50 x 500 = 25,000/-for this investment you can hold one lot of Nifty (50 shares for 1 month.)
- LEVERAGE now we need to understand that for a small amount we are able to hold a position of a much larger value Eg. One lot of NIFTY would be valued at 50 x 15000 = 7,50,000/- ie if we were to actually buy 50 shares of Nifty but by only paying 25,000/- we are able to hold 50 shares of Nifty for a month.
- The Ratio to our investment to amount we hold is 25,000 : 7,50,000. Ie. 1:30. In this example.
This hence exaggerates both Profits and Losses by the same ratio ie it will exaggerate profits by 30 times and losses by 30 times.
- Profit or Loss in Option Trading is by the increase or decrease in the premium of the Option due to the rise and fall in the Stock or Index if the move is in your favour you will make profit if the move is against then you will lose money.
- STOP LOSS – This is a Fundamental method of Risk Management / Capital Preservation when Trading or Investing. This is a level at which you need to exit form a Trade or Investment which has gone against you.
- The Stop Loss basically allows you to exit trade with a small loss to avoid a much larger loss which can wipe out your entire capital.
- It is compulsory to Trade / Invest always with a Stop Loss in place.
- MONEY MANAGEMENT – This is another Fundamental Concept which is very important.
- Use only 30% of your Trading Capital or Investment Fund for a Single Trade.
Eg. if you have 100,000/- then not more than 30,000/- should be used for a trade.
So if in 30000/- you get only one lot then trade one lot if you can get two then trade two.
- SIZE of a Trade even if you can afford it please don’t trade large quantities until you have at least 1-2 years of trading with consistent profits.
- Larger Lot Sizes means Larger Profits but even more Larger Losses.
Dr. NIKHIL D. BALJEKAR.
Investment Advisor , Real Stock Ideas.
To Trade or Not To Trade
You are reading the newspaper sipping your cup of coffee. Right then you get a text message on your phone from Real Stock Ideas about the best stock to invest in today. You open your laptop, login to Real Stock Ideas to look at the charts for some share market trading tips. Things look good. You feel like setting the trade up. But just before you pull the trigger, you change your mind.
Have you been in this scenario before?
It’s not just you; many have been here.
It is not so easy to answer the question – to trade or not to trade.
There is no way you can win every trade. Even professional traders end up losing about 40 to 50% of their trades. However, they compensate their losses using the power of risk reward. It might take a while for you to start using this power successfully. But here are a few things you may want to consider if you want to answer that pressing question – to trade or not to trade:
The market condition
The first thing you need to check for before getting into a trade is the condition of the stock market. See whether the market is trending or ranging. If it is a trending market, the prices will be trending either upwards or downwards. An upward trending market will have higher highs and higher lows; and the highs and lows will always be low in a downward trending market. In case of a ranging market, the prices will be moving only within a particular range. There will always be a maximum and a minimum price zone, although the levels may not be clear.
The condition of the sector
If you have identified the stock you want to trade in, you may also want to know how the specific sector is doing in the market. The economic and financial conditions of that sector will give you an idea how well the companies in that particular sector would be expected to perform.
There are many more such factors that will tell you whether you have to trade or not. But if you have difficulty analyzing them, you can sign up for Real Stock Ideas and let their experts do it for you. You can totally rely on the share market trading tips that the experts at real stock ideas offer you. Apart from the share trading tips that they provide after a thorough analysis of the stock market, they also offer all the relevant information that you may need to make some unbelievable profits in trading. Sign up on Real Stock Ideas right away and get your Intraday Tips for Today. “Share Market Trading Tips”
Here you can get NSE Trading Tips, Stock Market Tips, Intraday Trading Tips, Nifty Future Tips, Stock market tips provider, Stock Option Tips, Share Market Tips, Intraday Trading Tips for Today from our SEBI Registered Investment Advisor in India.
Golden Rules – Things You Need to Know About Intraday Trading Tips:
- Pick only the stocks that are best suited for day trading.
- Set your Entry, Exit and Stop Prices.
- Use the Money that you can afford to lose.
- Use limit orders instead of market orders.
- Always perform your research and analysis.
- Refrain from trading daily.
- Use only few scripts at one time Equity Intraday Tips.
- Always make use of strict stop loss orders.
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