Wednesday, May 13, 2009

Volatility : Lesson in trading futures and options

The Market saw increased volatility, with sharp bouts of buying and selling. This was truly a nightmare for online day trading. Yesterday, on TV, in this blog and my lettr to clients I had suggested staying away from trading during 'big news events' like elections. Specilaly when the election cannot be called - there is much uncertainty about the results.

As I write this, NDTV abruptly stopped its poll broadcast, promising to tell all tomorrow. Just a few states were covered. I talk about NDTV because they remain the most respected TV channel for exit polls. (Thier opinions are biased but that is a different issue). Other channels have generally suggested a neck to neck race beween th NDA and the UPA.
Based on the polls, it does appear that a congress govt will not be formed withou the left. A weakened congress will have to yield a lot to get into power. Not a bullish scenario!

I have a post on buying pullbaks, which you can read Here

5 comments:

vs said...

I thought that holding back such information by a TV channel was not a fair thing to do, from multiple perspectives. They could have given the summary all India position and left the details for discussion tomorrow.

CS said...

Ji ur views and principles are undoubtadely great.i respect ur thoughts i will follow u and iam adding some of ur principles in to my life.

god bless you
chandu.

tushki said...

sir plzz give a one week view on gold

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GLOBAL INVESTMENTZS said...

we saw a minor glimpse of volatility but exit polls does not give the picture clearly,chances are firm that upa might continue.In tha?t scenario ,how market may react