Risk Management - Not to hold more than 20% capital in a single stock or upto a maximum of 2,00,000

Long Term Blue Chips at reasonable valuations after reading at least one annual report and valuation with financials from 5 years. Buy after checking price data. Holding Time Period: 3 - 5 years Medium Term : 1-2 years Undervalued Stocks of Midcaps P/E < 10 or P/BV < 1 or Div Yield > 7% (closed to FD Rates). Operating Cash Flow Positive. D/E< 1 Profitable. When purchase decision is based on BV, ensure BV of asset is atleast fairly priced and is not made up of obsolete inventory and plant and machinery with no value. Investments and land , written off assets with useful value of life can be a great opportunity for asset play.

Short Term for Swing Trading: Check the technical price data. Time Buy and Sell based on candle stick Chart. Buy in Cash market. Holding Time Period : 3- 6 months. Target upswing - 5% + Trading strategies Risk Management - Not to risk more than 5% capital in a single trade  When Volatality is low be a buyer, when it is high be a seller.  Trade only where you know the script/index and a understanding of risk:reward ratio behind the trade.  Time value of option decay enables a far out of money option also obtain a decent premium.  Play the long game. Learn from your mistakes.  Maintain trade diary.

Option Strategies (1) Expectation: When the market is not expected to swing wildly Strategy 1A: Sell one at the money call and at the money put (closer to the spot) and one out of the money call and put . Strategy 1B: Sell deep out of the money call and puts. Keep stop loss of double premium

     Strategy Evaluation: 

(2) Expectation: Market is not expected to rise or fall to the call/put sold. Stop loss to be managed through option. Strategy 2: Sell one slightly out of the money call/put and buy one further out of the money call/put (same instrument as first). Advantage: if the instrument containing unlimited risk is closed first, the other one can be traded profitably as well in the remaining time period Strategy Evaluation:

(3)When a stock/index is expected to swing wildly in a direction.

Strategy: Long /Short in Futures market as expected. Buy a call/put for stop loss.

Trade Journal Today's Trade:

Nifty Spot - 10800 Bought Nifty 10600 PE Option at 51. Executed on June 7, 2018 - Thursday

Reasoning: Volatality is around 11 % much lower than the average voltality observed of 12- 14%. 10500 - 10600 seems to be the average of Nifty based on put - call open positions. The current rally is thin mostly on bank stocks which have increased because of the rate increase by RBI. I expect the market to turn south in a few days.

June 14, 2018 - Market has been slightly upward trend although today it dropped to below 10800. There has been no clear upward or downward movement. Premium has been reduced to 36. Unless market moves south by atleast 80- 100 pts the option may expire worthless.

Nifty Spot 8400 Sold Nifty 11100 CE option at 15.

Reasoning: Highest Calls have been written for 11000. As the market resistance seems to be at 11000, hoping to hold the call to expiry.

Sun Pharma Spot - 560 Sunpharma 580 PE Option at 6.5

Reasoning: Sun Pharma has increased with good results plus USFDA clearance. Higgest PE written yesterday was at 560 and then 580. As this will be a double resistance, written a PE at 580.

However today it appears the higest no. of puts have been written at 600 currently. 10 days of market to expiry. The technical indicators look good, waiting to see how it behaves with R1 @560. Stop loss shall be decided mid next week.