We always believe that protection of an individual capital is a must to make sure that an individual lasts for long in the market and makes money as market opens its doors to gateway of making money every day and one need not be on the look out to kill the golden hen in one day. Thus we advise our clients not to trade on forthcoming budget day. Now 28 Feb 2013 happened to be a combination of 2 events namely budget presentation and derivative expiry being last Thursday of the month which is a ‘Sone Pe Suhaga’.
Another reason not to trade on major policy days is that at times staying on the side-lines and watching the market as a mute spectator is also a strategy as on such days rarely technical analysis and its set parameters are adhered as market itself is uncertain and in such scenarios it performs in that manner which causes maximum pain to the market participants. This post was first published on Indian-Share-Tips.Com on 24 Feb 2013.
Update : 01 Mar 2013
Have a look at budget day performance of Nifty on 28 Feb 2013 which gives all the more credence to the fact that we should not trade on such days and if at all we are trading than we must use the stop loss. This was the reason that why we did not provide a call or Jackpot tip for our traders to trade on 28 Feb 13.
Please read the below related posts to understand the nuances of the market in a better manner. happy Trading.
