4 Money Management Rules

4 Money Management Rules

Dear Trader As trading is an enterprise to make a profit in an atmosphere of wide-ranging probabilities, a flexible approach is a must. Therefore, the following four rules are not supposed to be taken as sort of traffic rules that need strict adhering to. They are more like a checklist of do’s and don’ts – a bit like the routine a pilot goes through before pressing the ignition button. Nevertheless, a new trader would do himself a great favour by sticking to them as the traffic rules for a while. CAP rule Count All Pennies involved in the total monetary value of the instrument to be traded beforehand. Especially the hidden ones that come up gift-wrapped in the form of Leverage, because Leverage is the real villain responsible for dispatching the trading capital on the road to hell more than often.     Let’s say, for example, that a nifty contract can be traded MIS for under 20,000 and as NRML for about 50,000. Now, this 20k leverage is the 25th part of approx. Rs. 500,000, the actual value of 75 shares of Nifty. The leverage thus is 25 times. So a trader with 100,000 trading capital can easily trade 3-4 contracts in one go, right? Wrong. What gets forgotten is that one Nifty contract will move with the full weight of 500K, not with that of 20K. That is, loss and profit will be calculated in terms of full value, not in terms of leverage. One simple rule to follow to save yourself is to make sure you never lose more than 2% of your capital on a...
Muhurat Trading 2016

Muhurat Trading 2016

What is Muhurat Trading? Muhurat Trading is a symbolic and old ritual, that has been retained and observed from ages by Trading Community. Muhurat Trading is the stock market trading activity which happens for about an hour on the Diwali day. The markets open in the evening on Diwali day and most traders buy on this day. It is a symbolic ritual which has been performed for years and investors make some token purchases on this day.   As Diwali also marks the beginning of the New Year – Samvat in Hindi, it is believed that Muhurat trading on this day brings in wealth and prosperity throughout the year. This is Samvat 2072. Usually, the Sensex closes on a higher note on the Muhurat tradings day. In the past 10 years, the benchmark Sensex index has lost value only twice during the Muhurat session.   This year the exchanges will conduct a special muhurat live trading session from 18:30 hours to 19:30 hours on October 30, 2016 on Diwali in NSE Segment and from 18.30 hours to 19.30 hours in MCX Segment . Do remember to login and trade. May the odds be always in your...
NSDL Best Performer Award 2015

NSDL Best Performer Award 2015

Fellow Traders NSDL Best Performer Award 2015-Rising DP’s   We are truly grateful to you for choosing us as your best Demat service provider. It has been a pleasure serving you We hope that you have enjoyed the enhanced quality of our services. We will continue our efforts to meet your expectations and requirements in the future as well. Meanwhile, your unwavering support and patronage is what keeps us boosted and charged up always . Again, thank you so much for choosing SAS Online. Let us know if there is anything we can do to assist you further with your online trading needs. We look forward to serving you for many profitable years to...
Trading Holidays-2016

Trading Holidays-2016

Fellow Traders Official Trading Holidays Calender of Equity,F&O and Currency Derivatives. Commodities will be updated once the circular is issued. Sr.No Date Day Description 1 1/26/2016 Tuesday Republic Day 2 3/7/2016 Monday Mahashivratri 3 3/24/2016 Thursday Holi 4 3/25/2016 Friday Good Friday 5 4/14/2016 Thursday Dr. Baba Saheb Ambedkar Jayanti 6 4/15/2016 Friday Ram Navami 7 4/19/2016 Tuesday Mahavir Jayanti 8 7/6/2016 Wednesday Id-Ul-Fitr (Ramzan ID) 9 8/15/2016 Monday Independence Day 10 9/5/2016 Monday Ganesh Chaturthi 11 9/13/2016 Tuesday Bakri ID 12 10/11/2016 Tuesday Dasera 13 10/12/2016 Wednesday Moharram 14 10/31/2016 Monday Diwali-Balipratipada 15 11/14/2016 Monday Gurunanak Jayanti The Holidays falling on Saturday/Sunday are as follows: Sr. No. Date Day Description 1 5/1/2016 Sunday Maharashtra Day 2 10/2/2016 Sunday Mahatma Gandhi Jayanti 3 10/30/2016 Sunday Diwali-Laxmi Pujan* 4 12/25/2016 Sunday Christmas *Muhurat Trading Will be conducted on Sunday ,October 30th 2016.Timings of the same shall be notified...
Demystifying “Open Interest” and Securities in “Ban Period”

Demystifying “Open Interest” and Securities in “Ban Period”

Fellow Traders What is open interest? It  refers to the total number of outstanding derivative  contracts that have not been settled. Whenever you want to buy a Future/Option contract, there needs to be a seller. The buyer buys with the assumption that the contract price would go up and the seller sells with the assumption that the contract price would go down. When a trade happens between the buyer & the seller, there’s one ‘Open Contract‘ that comes into being and the quantity of these open contracts is referred to as ‘Open Interest‘. Thus Open Interest is the total number of outstanding contracts that are held by market participants at the end of the day. Open interest applies only to the futures/options segment. Open interest, or the total number of open contracts on a security, is often used to confirm trends and trend reversals for futures and options contracts. A common misconception is that open interest is the same thing as volume of futures and options trades. This is not correct, as demonstrated in the following example: Open Interest On January 1, A buys an option, which leaves an open interest and also creates trading volume of 1. On January 2, C and D create trading volume of 5 and there are also five more options left open. On January 3, A takes an offsetting position, open interest is reduced by 1 and trading volume is 1. On January 4, E simply replaces C and open interest does not change, trading volume increases by 5. Benefits of monitoring open interest By monitoring the changes in the open interest figures...