For NEWBIES ONLY !
AN ONLINE PRIMER WORKSHOP ON
DERIVATIVES : Futures & Options
TOWARDS SAFE EQUITY MANAGEMENT

Shed your pretensions as a hard-core, straight-jacketed, long-term investor. Learn to PROTECT your capital (before it is too late) and earn regular PROFITS (small, but sustained) even in an extended bear market scenario

I have been approached by quite a new investors/traders who have absolutely no idea yet of what FnO is all about. Some of them have sought to subscribe to my FnO Course Modules (see below), but the same won’t be of much use to them, as the Course Modules are very detailed and intensive, and absolute beginners may actually be put off by them.

So, it is for these NEWBIES that I’ve structured some very easy and simple FnO lessons, intended to familiarize them with the bare essentials of FnO, and to apprise them as to how even the most simple FnO applications can indeed go a long way in letting the investors not only prevent erosion of the NAV of their portfolios in these rather bearish & volatile times, but also in letting them earn decent, recurring profits – whether the market is bearish, range-bound or bullish.

Those interested may please register themselves by sending me blank email at EquityPro@gmail dot com, simply with 'WORKSHOP' mentioned in the subject line. I will immediately send the final details of terms & conditions for joining the proposed workshop.

You can keep applying all through the year, as I propose it to be a continuous process. The moment you complete the joining formalities, the READY material will be emailed to you. Simple.

This WORKSHOP is for FnO NEWBIES only ! All others can of course DIRECTLY request my FnO COURSE MODULES listed below (please scroll down a bit). Happy learning & happy investing !

My field of interest is FnO-based Equity TRADING OPERATIVES.

The purpose of our presence in the market is to make money, and not to accrue the seemingly inevitable LOSSES. I myself attempt to do just that, and I wish to help others do the same.

Unfortunately, most investors are quite ignorant about even the very fundamental aspects of FnO. One of the main reasons of such ignorance is the usual FnO-phobia, as also the fact that they have no access to the right source of learning FnO in a proper, easily assimilable and systematic manner.

I'm all for dissemination of knowledge. Making others understand the FnO operatives & recover their LOSSES (or consolidate their GAINS) is indeed a joy, and extremely fulfilling too.

My FnO background also enables me to provide valuable Portfolio Management help to those who have invested their hard-earned savings in raising quality portfolio, but do not have the time or necessary knowledge of operatives to carry on routine risk-management, to either add more value to their portfolio, or to signficantly bring down its acquisition cost.

FnO is no substitute for long-term equity investment in cash segement. All lucrative strategies of FnO are built over a definite premise of your long term cash portfolio of the bluest of the blue chip counters. One must learn to use FnO operatives only to risk-manage and value-build one's precious portfolio. FnO used directly for routine buying and selling for instant gains is nothing short of pure speculation - something very, very risky and highly AVOIDABLE - unless of course you have learnt FnO from the right quarters, and also have access to some 'specialist' help to fall back upon in case of any trading emergency.

Any time is just about the right time to begin learning FnO operatives that have the potential to ARREST & actually REVERSE your LOSSES. The earlier you begin the better chances you stand to stem the financial rot that you have already entered into.

I list below a few COURSE MODULES that provide just the ideal platform for making your FnO learning process a sheer joy. Let me DOUBLY clarify that the purpose of the information provided in the modules listed below is NOT to lead you to any 'instant riches', but just to get to your mail boxes, well-researched, pre-tested and wholesome information on equity market operatives - that will let you grapple with the various market scenarios far more effectively than what you have yet been doing.

With the background of these modules, you will definitely be a far more COMPLETE and prudent trader/investor, who will be able to manage his portfolio to yield better returns on a more sustained basis - more as a genuine investor, rather than an opportunistic speculator !

I had often decribed the follwoing topics in detail at the IFCI and Reliance boards here at MoneyControl over the last one year. Interested members may still dig out some of the relevant material from MMB archives - if my posts haven't already been deleted.

However, to save on their labour and time, they can conveniently request the following MODULES from me by contacting me at EquityPro @ gmail dot com. Conditions apply.

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FUNDAMENTAL EQUITY-FnO ASPECTS THAT YOU MUST KNOW ABOUT
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001 : Essentials of ONLINE trading
002 : Trading and/or Investing : make an intelligent choice
003 : Basic OPTIONS-trading
004 : Advanced OPTIONS-trading
005 : Selling OUT-OF-MONEY Options
006 : Basic FUTURES-trading
007 : Advanced FUTURES-trading
008 : Bi-directional FUTURES-trading
009 : Operatives for bearish, rangebound & bullish markets
010 : Equity risk-management operatives
011 : High-return, low-risk operatives for consistent profits
012 : Fundamentals of portfolio management.

Answer(s) to my FnO posers !

Q.1 : How to have 75 shares of Reliance for FREE ?

Yes, you can have as many shares of a counter as comprise an FnO lot literally for FREE. That is about 50 shares of Larsen, 75 each of Reliance and/or BHEL, or even 5000 shares of UCOBANK. You just need to have a good-sized cash equity portfolio (say worth about 5 lacs, an example) with a client-friendly brokerage house like M/S Religare. If you do, they will let you buy FUTURES worth about 4 lacs (80%) without any additional MARGIN PAYMENT requirement. The balance 1 lac (20%) is retained by them as mandatory "hair cut" amount. However, please do keep the following points in your view ALWAYS :

Avail of the above facility with utmost discretion, and NEVER over-leverage. Though no additional MARGIN PAYMENT is being charged to you, you do remain liable to pay all M-2-M losses (if any) regularly on EOD basis ... and you must maintain sufficient CREDIT CASH BALANCE for that purpose.

What precisely is the basis of brokerage houses granting you such a faciliry ? Well, some brokers keep your cash portfolio shares in a common pool. They just appear to be in your demat account for all practical purposes, but still remain in a common pool. Yes, all dividend/bonuses etc are credited to your account as and when due. So you don't really lose anything. However, lot many brokers are quite steadfast and straight-jacketed. They ALWAYS keep your portfolio shares in you DEMAT account (and NOT in a common pool), and they require you to pay the due MARGIN AMOUNT every time you buy a FUTURE lot in any counter.

By the way, what precisely is the proof of the fact that a broker is maintaining your cash shares in YOUR demat account and NOT in a common pool ? b>None, to my knowledge.

And, what precisely is the advantage (to the broker) for maintaining your cash shares in a 'common pool'. Well, lots of traders short cash shares heavily every day ... and the common pool shares are made available to them for the purpose. Also, these days the insitutional shorters require cash shares on borrowing basis for about a week for their massive cash shorting operatives ... such cash shares are lent to them against a 'borrowing charge' ... but if your shares are maintained in a common pool, you will never know if your shares have been lent to someone, and whether the 'borrowing charges' have been credited to you account ... so THIS definitely works in favour of your brokerage house ! And, mind you, big sums of money may indeed be involved here over a period of time !!

My favoured STOCKS :

01. Larsen & Toubro @ 2400 or less
02. ABAN Offshore @ 1950 or less
03. BHEL @ 1375 or less
04. ACC @ 475 or less
05. GMRInfra @ 75 or less
06. RPL @ 145 or less
07. EDUCOMP Solutions @ 2500 or less
08. Financial Technologies @ 1250 or less
09. IFCI @ 35 or less
10. SBIN @ 1250 or less
11. Tata Steel @ 525 or less