IIT-B Post Grad | AVP | FIX | Capital Markets Published author- Thank God I'm Fired (and others). All opinions are indeed PERSONAL and shouldn't be associated with any individual/organization.
I was stuck in a traffic jam. I like to observe other stuck souls and how they are reacting. It's pretty much chaotic fun. So out of habit, I gave my eyes a tour around in the hope of finding something interesting. Alas! I got one! Traffic jams never disappoint! Beside me was an auto-rickshaw driver zooming in and out on his mobile tied on the handle. He seemed too captivated by it. He was so close that even if I didn't want to I could see his screen. I saw (guilty!). I was stunned. I had never seen anyone doing that in a traffic jam in my entire driving career. He was analysing candles! Stock candles! I couldn't resist small talk as I wanted to give him a big appreciation. I initiated. "Do you trade?" I broadcasted as loud as I could in the jungle of horns. "Yes. You too? In profit or loss?" he replied instantly. He was too direct and spot on to ask if I make any profit. No beating around the bush; came directly to the point. "No no, I don't trade. Only invest." "Oh, long-term investor." He wasn't sparing any single chance of impressing me. "Options?" my further question. "Yes, only nifty and bank nifty," he replied. He was focused. Distractions don't make a man a good driver (and a trader), he knew that. My appreciation for his financial knowledge was apparent in my eyes, only he could see it in the pollution-freak air between us. I smiled (a genuine smile and not a smirk) and gave him a thumbs-up, the simplest way of appreciation in the WhatsApp era. He reciprocated with a smile- our ways of wishing each other success in our financial journeys. The signal was now green. My next observation awaits probably on the next traffic jam. #stockmarket #financialeducation #storyboard
Front office Trading Application Support | Business Analyst | FIX Protocol | EMS OMS RMS | Derivatives | OTC Derivatives | Ex - BROADRIDGE, HSBC & Nomura
7moNSE is playing in the hands of brokers and at the same time making money for itself at the expense of common people. Derivatives are sophisticated instrument not suitable for everyone. Instead of erecting barriers around it NSE has made is easy for all. Their own reports says 95% of day traders are in loss if they are trading for atleast 1 years. Earlier buying option was costly because of big lot size. To lure more people to market NSE reduced lot size to so low that it came in reach of everyone. 2000-05 -200 2005-07 -100 2007 - 50 2008 - 25 2009 - 50 (maybe because market fell so much that NSE had to revert to 50) 2010-15 -25 2016-18 - 75 2018 - 50 Even more volatile index Bank nifty currently has lot size of - 15 It is insanity. The great Indian casino. Sadly poor are loosing because they do not understand the instrument, and regulators don't care.