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HOW TO PROTECT YOUR OVERNIGHT POSITIONS ?

This post is for  those who trade in FUTURE & OPTIONS in stocks and indices.If you look at NIFTY after this expire its trading in a narrow range of around 100 points ,ie 5200-5300.Open interest of these two strike change in higher single digits in Lakhs.So if you have an OPEN position and market gone opposite to your position,Obviously your premium in OPTIONS will get a hit and may trigger your stoploss also.Same can be  in FUTURE positions also.Big investors (FII) will cover there opposite positions in Singapore stock exchange in night trading or in morning trade ,WHAT A NORMAL TRADER DO ? 

Main problem with India Stock market is when we close trade European market will be 3 hours old and US market yet to open, 80 % of our next days trading sentiments comes from these markets news.So you have to do financial hedging in those market to cover your tomorrows loss.

Am introducing all my subscribers to one financial site were you can bet against you positions(ie,If your bearish in NIFTY FUTURES ,and a good data came in US(like JOB LESS CLAIM ) you can bet on US MARKET as well as stocks to minimum of $1 to make as much as your Loss you will make next day in NIFTY.So you can relax if market open higher.

Check site and for any queries you can add in comments

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