Saturday, September 17, 2011

why i prefer trading in bank nifty - II


a 10 rupee out-of-money option can attain 270 value on 1000 move in bank nifty in a month.

this happens 8 times in 12 months on an average.

for 500 point move, it becomes 70.

any new comer can afford a risk of 2000 bucks (including costs) for a 10rupee option.
accuracy of his or her technical ability will be tested to the full.
this will either reward new traders exremely handsomely or will expose them to themselves regarding the gap in their technical learning.

this is the best and wise way to step into trading world rather than blowing away money and peace of mind and future.

pity that some traders focus on size or extent of dare of the trade instead of focusing of technique. no amount of smartness or money power can make up for the deficiency of technicals.

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