# Ask me Anything on Trading & Investing

**URL:** https://tradingqna.com/t/ask-me-anything-on-trading-investing/27350
**Category:** AMA (Ask Me Anything)
**Created:** [November 27, 2017, 12:57pm UTC](https://tradingqna.com/t/ask-me-anything-on-trading-investing/27350 "2017-11-27T12:57:24Z")
**Posts on this page:** 20
**Page:** 3

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### Author: ![Sujay1803](https://tradingqna.com/user_avatar/tradingqna.com/sujay1803/32/18608_2.png) [@Sujay1803](https://tradingqna.com/u/Sujay1803)
#### Post date: [November 28, 2017, 7:08am UTC](https://tradingqna.com/t/ask-me-anything-on-trading-investing/27350/42 "2017-11-28T07:08:15Z")

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could you please give us a description with chart on NIFTY & OR BNKNIFTY

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### Author: ![portfolioplus911](https://tradingqna.com/user_avatar/tradingqna.com/portfolioplus911/32/513_2.png) [@portfolioplus911](https://tradingqna.com/u/portfolioplus911)
#### Post date: [November 28, 2017, 7:20am UTC](https://tradingqna.com/t/ask-me-anything-on-trading-investing/27350/43 "2017-11-28T07:20:07Z")

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Hi Karthik,

In your journey as a retail Investor, screening through the fundamental data of many companies listed on the exchange to find an investment opportunity.

How much percent of the companies listed on the Indian exchanges, do you think are really genuine ?

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### Author: ![Harsh\_Vardhan](https://tradingqna.com/letter_avatar_proxy/v4/letter/h/278dde/32.png) [@Harsh\_Vardhan](https://tradingqna.com/u/Harsh_Vardhan)
#### Post date: [November 28, 2017, 7:21am UTC](https://tradingqna.com/t/ask-me-anything-on-trading-investing/27350/44 "2017-11-28T07:21:11Z")

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Hi Karthik,

Trading is all about your mindset, one mistake like getting complacent after string of winners, deviating from your plan and you can lose most of your profits. How can we minimise this,?

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### Author: ![deva](https://tradingqna.com/letter_avatar_proxy/v4/letter/d/7cd45c/32.png) [@deva](https://tradingqna.com/u/deva)
#### Post date: [November 28, 2017, 7:21am UTC](https://tradingqna.com/t/ask-me-anything-on-trading-investing/27350/45 "2017-11-28T07:21:20Z")

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i am new to option trading…i had read option theory and option stratergies on zerodha varsity…but whenever i start to trade in real market i always get confused from where to start…like first selecting typical perspective about given option or stratergy for that…if there is any step wise solution please provide…

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### Author: ![jamalss4](https://tradingqna.com/letter_avatar_proxy/v4/letter/j/f1d935/32.png) [@jamalss4](https://tradingqna.com/u/jamalss4)
#### Post date: [November 28, 2017, 8:07am UTC](https://tradingqna.com/t/ask-me-anything-on-trading-investing/27350/46 "2017-11-28T08:07:18Z")

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Hi Sir Karthik  
please advice for Mahindra & Mahindra, is it right time to buy now as upcoming Bonus issue.  
thanks

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### Author: ![Karthik](https://tradingqna.com/user_avatar/tradingqna.com/karthik/32/65_2.png) [@Karthik](https://tradingqna.com/u/Karthik)
#### Post date: [November 28, 2017, 8:08am UTC](https://tradingqna.com/t/ask-me-anything-on-trading-investing/27350/47 "2017-11-28T08:08:44Z")

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Here you go, this is for Nifty 50 chart -

 ![ama2](https://tradingqna.com/uploads/default/original/2X/b/bada537703f99cfa58923d856b6cd98f131180d1.png)

Starting from left, count the first 6 circles - they kind of define the upper and lower levels of the double bottom. These are also known as the price action zone. The two horizontal lines, connect these price action zones defining the range for this double bottom. So when the price moves above this level, it is considered a breakout. A move below this level is considered a breakdown.

It is interesting to note that the price retraced back to test the upper range (7th circle), only to post a reversal.

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### Author: ![Karthik](https://tradingqna.com/user_avatar/tradingqna.com/karthik/32/65_2.png) [@Karthik](https://tradingqna.com/u/Karthik)
#### Post date: [November 28, 2017, 8:10am UTC](https://tradingqna.com/t/ask-me-anything-on-trading-investing/27350/48 "2017-11-28T08:10:16Z")

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> [@portfolioplus911](#):
>
> In your journey as a retail Investor, screening through the fundamental data of many companies listed on the exchange to find an investment opportunity.
> 
> How much percent of the companies listed on the Indian exchanges, do you think are really genuine ?

Most of the listed companies are junk grade. Not worth your time. I think the investment universe is just about 1000 companies.

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### Author: ![Karthik](https://tradingqna.com/user_avatar/tradingqna.com/karthik/32/65_2.png) [@Karthik](https://tradingqna.com/u/Karthik)
#### Post date: [November 28, 2017, 8:12am UTC](https://tradingqna.com/t/ask-me-anything-on-trading-investing/27350/49 "2017-11-28T08:12:18Z")

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> [@Harsh\_Vardhan](#):
>
> Trading is all about your mindset, one mistake like getting complacent after string of winners, deviating from your plan and you can lose most of your profits. How can we minimise this,?

The only way you can do this by staying grounded. Do not forget to attribute a portion of your success to luck.

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### Author: ![Karthik](https://tradingqna.com/user_avatar/tradingqna.com/karthik/32/65_2.png) [@Karthik](https://tradingqna.com/u/Karthik)
#### Post date: [November 28, 2017, 8:12am UTC](https://tradingqna.com/t/ask-me-anything-on-trading-investing/27350/50 "2017-11-28T08:12:45Z")

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> [@jamalss4](#):
>
> please advice for Mahindra & Mahindra, is it right time to buy now as upcoming Bonus issue.
> 
> thanks

Have never really tracked this stock.

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### Author: ![jamalss4](https://tradingqna.com/letter_avatar_proxy/v4/letter/j/f1d935/32.png) [@jamalss4](https://tradingqna.com/u/jamalss4)
#### Post date: [November 28, 2017, 8:14am UTC](https://tradingqna.com/t/ask-me-anything-on-trading-investing/27350/51 "2017-11-28T08:14:24Z")

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thank you sir…

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### Author: ![Karthik](https://tradingqna.com/user_avatar/tradingqna.com/karthik/32/65_2.png) [@Karthik](https://tradingqna.com/u/Karthik)
#### Post date: [November 28, 2017, 8:16am UTC](https://tradingqna.com/t/ask-me-anything-on-trading-investing/27350/52 "2017-11-28T08:16:30Z")

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> [@deva](#):
>
> i am new to option trading…i had read option theory and option stratergies on zerodha varsity…but whenever i start to trade in real market i always get confused from where to start…like first selecting typical perspective about given option or stratergy for that…if there is any step wise solution please provide…

Start with something simple. Try and complete a buy-sell of a call option. When you do this, be cognizant of how you placed the order, its implication, what happened once you placed, how the premium changed after you bought, what made the premium change, how did you close the position etc.

Do the same for Put options.

I know you may lose few Rupees doing this, but trust me, this is the best way to figure this out. Way better than reading a step by step instruction.

Good luck!

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### Author: ![portfolioplus911](https://tradingqna.com/user_avatar/tradingqna.com/portfolioplus911/32/513_2.png) [@portfolioplus911](https://tradingqna.com/u/portfolioplus911)
#### Post date: [November 28, 2017, 8:19am UTC](https://tradingqna.com/t/ask-me-anything-on-trading-investing/27350/53 "2017-11-28T08:19:15Z")

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Hi Karthik,

Thanks for your valuable inputs so far. APPRECIATED.  
Here is another interesting question for you.

For an individual INVESTOR to make money out of the stock markets, which is more important ?

1. Expertise in Technical Analysis. OR
2. The Luck Factor.

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### Author: ![Karthik](https://tradingqna.com/user_avatar/tradingqna.com/karthik/32/65_2.png) [@Karthik](https://tradingqna.com/u/Karthik)
#### Post date: [November 28, 2017, 8:22am UTC](https://tradingqna.com/t/ask-me-anything-on-trading-investing/27350/54 "2017-11-28T08:22:13Z")

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> [@portfolioplus911](#):
>
> For an individual INVESTOR to make money out of the stock markets, which is more important ?
> 
> Expertise in Technical Analysis. OR  
> The Luck Factor.

I think the chances of you getting lucky is higher when you put efforts in the right direction. To put efforts in the right direction, you need to be knowledgeable.

So yes, in a sense, both are important 🙂

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### Author: ![Dhruv\_JC](https://tradingqna.com/user_avatar/tradingqna.com/dhruv_jc/32/7085_2.png) [@Dhruv\_JC](https://tradingqna.com/u/Dhruv_JC)
#### Post date: [November 28, 2017, 8:22am UTC](https://tradingqna.com/t/ask-me-anything-on-trading-investing/27350/55 "2017-11-28T08:22:34Z")

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Dear Karthik,

Pls elaborate on your Intraday and swing/positional trading setup.

You entry & exit points and rationales.

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### Author: ![neerav\_thakkar](https://tradingqna.com/letter_avatar_proxy/v4/letter/n/e36b37/32.png) [@neerav\_thakkar](https://tradingqna.com/u/neerav_thakkar)
#### Post date: [November 28, 2017, 8:29am UTC](https://tradingqna.com/t/ask-me-anything-on-trading-investing/27350/56 "2017-11-28T08:29:19Z")

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Hi… Thanks for AMA…

Please keep doing this more often…

I would like to know if i wanted to simply invest in stocks on basis of technical analysis…

To be more precise like MA crossover in monthly charts… which two EMA’s would you advise…

Or this idea should be dropped…

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### Author: ![Karthik](https://tradingqna.com/user_avatar/tradingqna.com/karthik/32/65_2.png) [@Karthik](https://tradingqna.com/u/Karthik)
#### Post date: [November 28, 2017, 8:38am UTC](https://tradingqna.com/t/ask-me-anything-on-trading-investing/27350/57 "2017-11-28T08:38:26Z")

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> [@Dhruv\_JC](#):
>
> Pls elaborate on your Intraday and swing/positional trading setup.
> 
> You entry & exit points and rationales.

Frankly, I’ve reduced intraday trades as I cannot afford the time it demands. I do take positional trades, mostly in options. I prefer the conservative spreads - shorting straddles and strangles is something that I do often, which means these are essentially bets on volatility.

At times, when I see the changes of an interesting breakout, I do tend to take positional naked options. The entry and exit are mainly dictated by volatility and the charts.

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### Author: ![DA3110](https://tradingqna.com/user_avatar/tradingqna.com/da3110/32/11310_2.png) [@DA3110](https://tradingqna.com/u/DA3110)
#### Post date: [November 28, 2017, 8:51am UTC](https://tradingqna.com/t/ask-me-anything-on-trading-investing/27350/58 "2017-11-28T08:51:35Z")

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What is the best way to use Bracket orders ,Cover orders

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### Author: ![Karthik](https://tradingqna.com/user_avatar/tradingqna.com/karthik/32/65_2.png) [@Karthik](https://tradingqna.com/u/Karthik)
#### Post date: [November 28, 2017, 9:11am UTC](https://tradingqna.com/t/ask-me-anything-on-trading-investing/27350/59 "2017-11-28T09:11:59Z")

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> [@neerav\_thakkar](#):
>
> would like to know if i wanted to simply invest in stocks on basis of technical analysis…
> 
> To be more precise like MA crossover in monthly charts… which two EMA’s would you advise…
> 
> Or this idea should be dropped…

Don’t drop the idea. MA crossover is a good strategy. Look at a simple 50 x 100 EMA crossover.

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### Author: ![Karthik](https://tradingqna.com/user_avatar/tradingqna.com/karthik/32/65_2.png) [@Karthik](https://tradingqna.com/u/Karthik)
#### Post date: [November 28, 2017, 9:14am UTC](https://tradingqna.com/t/ask-me-anything-on-trading-investing/27350/60 "2017-11-28T09:14:09Z")

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> [@DA3110](#):
>
> What is the best way to use Bracket orders ,Cover orders

Its best to use these orders when you have complete clarity on the target and SL. Use it, but ensure you double check the execution.

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### Author: ![VIPULK](https://tradingqna.com/user_avatar/tradingqna.com/vipulk/32/5700_2.png) [@VIPULK](https://tradingqna.com/u/VIPULK)
#### Post date: [November 28, 2017, 9:23am UTC](https://tradingqna.com/t/ask-me-anything-on-trading-investing/27350/61 "2017-11-28T09:23:09Z")

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Hello sir… Nice to have u answer our queries 😄  
Most of d traders wud b having similar experiences like me I.e I choose a stock to short, it goes north and buy something, goes to rock bottom… Same thing happens when I exit 😭  
But I wud like to ask 3 to 4 points apart from it…

1. How do we hedge a portfolio of limited capital size say of 10 to 20k apart from diversifying it.
2. If in case u r in profit of say 30% on abv portfolio how do u manage and minimise d drawdown?
3. How do u analyze banking stocks 😱
4. Is there any possibility of zerodha providing us…  
a. Leverage on cnc order  
b. Binary option /spread order say buy or sell strangle or straddle in 1 click to enter or exit both sides simultaneously thus reducing risk and margin requirements…  
Thnx sir 🙂

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