About OptiTrader

Where Value Meets Expertise

Dear Traders

Let me Break the Ice for you, Trading is a Tough Job.

In that,  Intraday Trading is much Tougher. Intraday Trading requires Right Tools, Risk Management and Strict Discipline .

Stock Markets are Really driven by the Smart Money Like Fund Houses& Big Trading Corporations etc who have all the Tools and sharp Minds Churning all the Money out of Normal Retail Traders. These smart Money is always better equipped in almost all aspects. They Trap all the Retail traders whenever possible so that they get the stocks at the Best Possible prices.

So, It is very necessary to Understand the Behavior of Smart Money/Institutional Traders and where they are positioning so that we take the Trades along with them and wont't be taking trades against them.

We at Trade Point train the an Investor/Trader in both Intraday and Positional Trading  with our Special Tools which makes him to Understand the Smart  Money Behavior. We also make sure that Each and Every Individual Trader  under our training gets the highest value while trading which is the most important aspect to gain trading confidence. We time to time Review trader Performance In trading even after the Course is over and if necessary we also suggest the necessary course of action for making best Trading Decisions.

So Arrange for a Demo today & Find out for yourselves.

 

Why Us...?

When we say we know what Exactly a trader/Investor Needs, its not an Overstatement.

Generally What you see all over the Internet is Only half of the story about the trading and  a trader with little Experience in Trading will certainly agree with me.

We at "Trade Point" are a team who has Experience Ranging from 8-14 Years in Different Fields of Investing and Trading. We all are Totally Dedicated to Trading and we know In & out of the Markets.

A trader has to Understand where & How Exactly is Smart Money  positioning themselves, once you understand this you go along with them. This is what we do Exactly with our Unique approach.

To Understand this a Trader needs Right Tools & Right Expertise.

What & How of a Stock Market

Stock also known as Share is a Piece of Ownership in the Company. It’s that simple. But why Share Exist is to provide the Liquidity to the Company. Whenever a company wants to raise money, they have Many ways to do it like Loans, Private share, Friends, issuing Bonds Etc. Issuing shares to Public is also one way of raising money whenever a company wants to raise Huge Capital.

Shares to Public are Issued through a process called "IPO"(Initial Public Offering) In Pre-IPO process the company who needs to raise Capital will approach an Underwriters/Investment Banker and if the Company meets all the Regulatory Requirements of that Country, the Underwriters will take up the case of Raising the capital for the Company for some Percentage of Amount based on the Capital to be Raised.

Once the Underwriting Institution takes up the case, after thorough Analysis and Brainstorming the Financials of that Company, they submit a draft to the Regulator of that country. The draft called as "Red Herring Prospectus" which may contain purpose of the IPO, any Commissions to Under Writer, Balance sheets, P&L statements, Legal Related etc except the Price range and No of Shares to be Issued.

Once the Draft is approved then the No of shares and Price range is fixed by the Underwriter and a IPO date is fixed where the shares are allotted to the public for the first time. Based on the Subscription the shares are allocated, if oversubscribed then a lottery method is used to allocate the shares, if there is an Under-subscription below certain percentage then whole IPO is cancelled and all the Money is returned  to the Investors who ever have applied for the Shares. 

 All this whole process is called as "Book Building Method"Once shares are allocated then Floor date will be announced which will be few days after IPO, then the shares which are previously allocated are now freely traded on Exchanges where any one can Buy or Sell the shares based on their Perception of what is fair price.

What Drives the Stock prices

Before Understanding what moves the stock/share price, we must understand what drives the human Behavior. Because finally its the human who holds the stock.

Let’s say a person "X" has 100 shares of "ABC" Company and another person "Y" has shares of 10,000 Quantity of the same Company, Now both people may react differently to the same news, whoever has larger stakes in the game will have more effect on the share price than the person with lesser stakes. Remember Always a share has both buyer & a Seller. Buyer bids at lower prices and Seller wants to sell at higher Prices. Now in the above scenario if the person(Y) who have 10,000 Quantity panics he won't quote Higher prices, instead he starts selling at prices where the buyer is asking for(which will be lower prices) and the Prices go low. Here the Seller is being aggressive and Buyer is being Passive.

So, If i have to sum it up Stock market is an aggregate of Thousands and Lakhs of Traders so any News which will make these people panic or Greedy will move the prices of that stock.

Since majority of the Volumes are traded by the Institutional traders the prices will be moved based on what they perceive about the stock, This is where the normal Traders fall in to the Trap of those institutional Traders.

Stocks Vs Derivatives

Stocks: 

These are nothing but piece of Ownership in a company. When a trader purchases a stock and takes Delivery, then it will be with you forever like a piece of Land you own. Dividends, stock Splits etc will be Credited accordingly.

Derivatives:

 As the Name Implies these don't have any value by itself but derive its value based on the Share or Commodity it is attached to(Underlying). All Derivatives have an Expiry date where the Contract becomes Void at the Time of Expiry.

There are many types of Instruments in Derivatives segment like Interest Swaps, CDO's, Futures & Options etc, but when it comes to stock markets we Mainly deal with Futures & Options.

a)Futures: 

     These are the legal contract which entitles the Holder to either Buy or Sell the Underlying at a Predetermined Price at a Specific time In the Future as agreed in the Contract.

Eg; Lets say Apples are Costing 100Rs/Kg today, & I believe that their Prices are going to Rise to 150 Rs/Kg in the Next 3 Months, so I find a Seller who is ready to Enter a Contract with me with today's price but the product has to be delivered in the Future. Now lets say Down the line in 3 months as per my view the Apples have raised up to 150 Rs/Kg and now the seller has to fulfill the obligation by purchasing them at 150 and sell it to me at 100. Here i am in a profit of 50 Rs.

 Lets take an other scenario the apple prices fell Below 100 up to 70 Rs/Kg in that 3 Months, the seller as per the agreement he will buy the Apples at 70 and Sell it to Me at 100 Rs/Kg, here he is in Profit of 30 Rs.

 

b)Options:

    These are bit complex instruments than Futures. Lets Understand it by Example itself.

 Eg: Lets say same apples are Trading at 100 Rs/kg today(Spot Price) But i believe it will go up more than 150 Rs/Kg so i enter in to a contract with some seller, here the Contract is little different than Futures.

-The Contract Seller sells me a 110 Call(CE- Call European) Strike (3 Month Expiry )Contract for 20 Rs Premium which he receives Upfront, This means, if the price of apples go above 110 by Expiry then i will keep the Difference amount. Lets say by the expiry the Apples price goes to 150, the difference between 110 Ce Strike and 150 is 40 Rs, So i will Keep the 40 Rs and My profit will be 20 Rs {40-20(Premium)=20}.  what if the Price of apples doesnt goes above the 110 CE...? Then the Option Buyer will Loose all the Premium(20 Rs) to Seller.

 Same thing goes to Downside also, Here we call it as Put Option(PE-Put European). Lets say the seller sold me 90 Put(PE) for 15 Rs Premium, then the Put option has to go below 90 by Expiry. Then i will get the difference amount. Here the Price end up at 70 by Expiry then i will get 20 Rs( 90-70=20) and my profit will be 5 Rs since i paid 15 Rs Upfront as premium.

   Derivatives is much deeper subject where there are Greeks involved in determining the Premimum Prices and More. Without Understanding the Options Dynamics, it is very Dangerous to Trade in Options. 

Trading in stock markets itself should have sound knowledge of Stock Market Dynamics.

Tutorials

 
 

Mobile: +91 9989039185

Land Line: 044 42074810

No-15, Vivekananda Street, Adambakkam, Chennai-88

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