Do you know 8th Wonder of the World is within your reach…?

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It’s not an exaggeration that compounding is called the 8th wonder of the world. The only way to become super rich in this world is to let your money grow. Withdrawing your returns every month from your bank account is no better than a fixed income job. People employ different methods to get compounded returns on their investment. Bank fixed deposit is one of the ways, it’s the safest means to multiply your money but the interest rate offered is too low. You may probably pass a generation to see your money actually working for you. Mutual funds SIP and equity investments are other options which offer better ROI. Continue reading

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Profitable Trading strategies for Option Traders — 1

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LONG STRADDLE

This options strategy is when an investor purchases both a call and put option with the same strike price ( Preferably At the money Strike Price), underlying asset and expiration date simultaneously.

This strategy is most useful when we are certain about the price of the underlying assets will moving significantly, but is unsure of which direction the move will take. This strategy allows to maintain unlimited gains, while the loss is limited to the cost (premium) of both options contracts.

Long Straddle ensures the downside is restricted only till you cost, whereas upside is unlimited. Lets take the example of XYZ company currently trading at Rs. 35 Continue reading

A Stock Trader’s Story

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He had bought and sold hundreds of stocks and several properties over those years, but had never really made any real money. He owed it to himself and his family to finally get his act together and make some changes to his trading plan. That was the day the pain of not living up to his potential made him sit down and write out his trading strategy and rules.

One Saturday morning, while he was sitting at his computer studying the market, David’s 7 year old daughter came up, tugged at his shirt sleeve, and said, “Daddy, why aren’t we rich?”

Continue reading