Monday, April 7, 2014

Share market & The art of money making


Do Option when you trade in equity (11)
 Whenever you trade in equity segment whether it is an intraday trading or a positional trading make a combination with an option segment.
 If you go Long in equity on delivery basis,buy a put option of that particular stock,if that stock is not available in option segment,buy a put option in Nifty.
 When the price of the stock goes down,your put option will rise in price and compensate your loss and trim your profit too. If you are doing intraday Long,do the same method.If you are doing intraday shortselling,buy a call option as in the above manner.
 This is the way of trimming the profit.This is not hedging as the trading folks say,it will be beyond that  if you apply some special methods in option strategies.
Go ahead!

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