Step1- Market View Sheet
Welcome to yet another article regarding the options trading strategy. In our previous article, we had discussed the SGX Nifty. We had seen how SGX Nifty is an opening doorbell for the Nifty 50 in the Indian stock market. Let’s quickly recap in brief about that.
It is derivative of the Nifty Index trade formally in Singapore Exchange. SGX is Singapore stock exchange nifty which suggested the Indian Nifty 50 traded in SGX. It gives a chance to foreign investors to take a position in the Indian Stock market. It is a very famous derivative product of the Singapore Exchange. Foreign Investors who are unable to approach the Indian markets, but who want to take an outlook in Indian markets, can trade in Singapore exchange. All the shares of the Nifty 50 are not traded here. It is one of the main competitor products of Nifty Futures. The order of this is settled in SGX.
Nifty futures on the SGX are opened for 16 hours on the exchange while Nifty opened just for 6 and half hours on the National stock exchange market in India. SGX begins trading early morning approx. 3 hours before Indian Nifty. SGX Nifty gives us different trading timings that enable the investors to trade in SGX even if India’s market is closed. SGX Nifty is available from 6:30 AM to 11:30 PM as per Indian time.
Now, back to our article. So far, we have studied more than I think 12 indicators but what if you can get one single sheet that can give you what is the mood of the market. Just one look won't be very fantastic? And time-saving especially if you are a trader or if you are a positional investor. so, in this article, I am going to share one of such sheets which I called market view sheet and also, I call world view of the market. It can be used for anybody a long-term investor or a short-term trader anybody. So, let's start and see what that sheet is.
We are understanding the first step that is how to make a market. As I have told you in our earlier article that I have written about the four steps. So, the first step is a market view, the second step is strategy means entry also so don't confuse with the entry and strategy because first, you decide the what is the market view, then you choose the strategy and using that strategy, you make entry to the position so strategy and entry both are same, the third step is an adjustment and it is only necessary when the market goes against your estimate and fourth is the exit. So, we are on the first step that we already completed the market view and I am going to share with you one sheet where you can just do this work once a month or once a quarter and it is going to guide you whole that one month or quarter.
Unless you don't place the trades by yourself, it will not make any sense even for the people who are starting it the first time. I’ll advise them don't go directly into the live market. Sometimes you should do a little bit of paper trading so that you can know how the buy and sell works? How does the stop loss work? All these things and those people who want to start the trading in future and option, so for them, I will say open a demand account also. A good Demat account with a good broker can make your journey very easy.
You can buy a Sensible subscription also. So, first, you can start using a little bit of say paper-trading for maybe one month or two months and then after that, you should start with one lot at a time and I will highly advise if you want to start the trading, use one of my strategy which I call that strategy super safe iron condor. This is the best strategy that you should start with one lot only.
Don't directly jump and start trading heavily. You can make very huge losses. You cannot recover all of your life. So, in the future and options making a profit is not that easy but making big losses is very easy so that should be your standard approach when you're going through this you can say trade training program.
You will understand overall what is the market situation? How the market is behaving and this sheet just at one look can make your very easy if you can prepare it? What is a bullish market and what is a bearish market and overall, what they are saying, you can create all the 12 indicators in one go and it saves a lot of time?
Every day, you are going to see every indicator and then make some view because unless you want to make a consolidated view, it is not going to help. If somebody just going with one indicator or two indicators, it's very risky and It can be wrong. But if you're going to consider at least 2 or 3 indicators, I am not saying that you put all the indicator at once, you can put any four or five indicators which you like and over time you will realize that it can create a good edge in your trading world. I am requesting you to please watch the attached video for a better understanding.