The MYTH OF SHORT SELLING :-
Most Important Question to be asked before starting this story :-
Why do Traders Short Index and Stocks in Stock Market and loose money rather than believing in a Bull Market.
Short selling refers to the tactic of selling a stock without owning it, with the view that the price is likely to fall further and, hence, there is profit to be made by buying it back at a cheaper price. In Indian equity markets, short selling is typically undertaken via the futures and options route since short (sell) positions in the cash markets can be held only intra-day.
Its widely believed that Shorting give a fast money than a Long trade. Hence many chart analyst advice Short Selling than Making long. Some times they become a critics of economy, growth number, present govt and finally start believing in pessimistic approach. I personally believe or found that - these short sellers never take into account the Risk Vs Reward Ratio - some times they don't even have a Stop Loss, Kept saying that - Sell on Every Rise. Finally their loss become Un controllable.
I can say that - more than 60% to 80% of Derivative Traders Lost their Precious Hard Earned money - Either by Shorting or Buying PUTs - with out analyzing their risk and money management.
So why and how Shorts can be Utilized. Its simple to me that, Shorting can be done to Hedge or Protect your Longs or Profits. Either You Short a Future or Buy PUTS to Protect yourself from any major Losses in an Uncertain Market.
This doesn't mean that I am against Shorting the Market. When the Market ready to fall or Starts a Bear Phase - A Best Trade is to Short. But Unless you are not sure or clear about a Fall - When You short a Future Contract on Index or Stock or Buying PUT Options - will make Your Losses to Peak.
Most of the Traders make mistakes in identifying their Shorts Timing and met Huge Loss. When you are Long, Its easy to identify how far the Stock or index may fall by identifying its Support, Mean while - when a Stock or INdex Rise after you enter a Short - Its hard to find out - how long it will move UP and where you can Cut Your Loss and when to Exit Short.
A BAD SHORT is a Big Risk for Your Capital.
>>> Nifty Daily Chart <<<
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Nifty closed above 10530 & 10660 - Next Resistance @ 10730 & 10760.
>>> NIFTY Hourly Chart <<<
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Price need to Cross above 10700 - 730 for a Fresh Rally and Short Covering. Support @ 10600 - Must break for a short term weakness.
>>> Bank Nifty Daily Chart <<<
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Price Must trade above 25780 for a Rally till 26070.
>>> Bank Nifty Hourly Chart <<<
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Price need to cross above 26070 to test 26460 & 26960.Support @ 25530 & 25455 if breaks - Short Term Correction to start.
>>> NIFTY IT - Weekly Chart <<<
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Expect a Bulls Best Friends from IT stocks - If IT Index Trades above 12180.
>>> Performance till 12th Jan 2018 <<<
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Above performance is not a Promise or guarantee for the given Profits or Loss.Performance given based on 1 lot at a time and clients Profit differ as per the margin availability and Number of Lots taken by them. We may or may not re-enter the Calls given here hit Stop Loss, as per market movement. The charts given above are just for educational purpose only and we don't recommend any Entry / Buy or Exit / Sell. Reader must taken their own decision or consult their qualified Analyst before making any decision
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