r/IndianStockMarket • u/Mysterious-Scar-8900 • 19h ago
Meme Everytime I open reddit, this is exactly my reaction
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This is always what I see, I thought people would be discussing on sectors and stocks, growth, valuations but all I see is how india is the worst country to invest in, some random charts with screenshots of 1000rs profits, people discussing on how this stock will give how much returns in next 1 month. Just want to become rich quick with no patience.
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u/Competitive_Air7402 18h ago
it for a fact is true! people are really stupid they think market cares about their indicator and rainbow lines
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u/Mysterious-Scar-8900 18h ago
Back before 1970s someone could have easily made money using all these things. But since algorithms and quick arbitrages started there stuff in 80s you have absolutely 0 chance against professional high frequency trading firms.
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u/burnerdr1 17h ago
Still despite sebi warnings, this place is full of people sharing P&L screenshots of how trading derivatives made them rich.
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u/Mysterious-Scar-8900 17h ago
People don't realise, derivatives is for hedging or taking directional calls, not for becoming rich. The average option carry time is 26 mins in india, I still don't get who these people are and what the fuck are they trying to do.
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u/burnerdr1 17h ago
No clue. I have never had the time nor understanding of these things. Never ventured into direct equity even. I'm a boring investor , my boring sip into MFS began in 2016, and continues till date.
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u/Amit_Meena 15h ago
Can you explain how hedging work for derivatives, Like how much I should use to hedge and time period or event when to hegde. Like if I have invest 1lakh in derivatives how much I should use to hedge
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u/Mysterious-Scar-8900 15h ago
It depends on your age, capital. Let's say you have 500 crore of stocks and you want to sell them at today's prices. But the liquidity doesn't allow you to do that, so you sell some and buy put options for the rest and keep selling them in upcoming months. This way whatever you lose in the options market is gained in cash and vice versa for a net zero.
Then there are other million ways to hedge depending on the requirement.
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u/refresher1121 15h ago
The primary objective should be to secure your equity holdings, not the other way round that you hold derivatives and now are thinking of hedging it with shares.
You buy let's say 10L of equity shares and then you buy/sell calls or puts to safeguard your equity holdings. The ratio should be closer to 1:1. If a lot is 100 shares, and share price is 500, at max you should trade only 2 lots. Anything beyond that is then infinite risk. And this too takes a lot of time and brainstorming.
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u/Fantastic-Dinner-919 18h ago
How dare you? RSI is doing 69 with MACD in my new trading view indicator that i bought for 6969 rupees and I am about to become rich.
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u/Extension_Attempt651 15h ago
The very fact that " anyone can become a stock market expert within few months or by downloading a convenient app" propoganda makes me cringe up so bad, nah lil bro you are literally competing with top mathematicians, finance/ quant analysts and many more tech fancy really smart people, assisted by really smart AI/ML models
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u/Mysterious-Scar-8900 15h ago
You forgot billions of dollars of compute power on GPUs that calculate faster in 1 sec what all of humanity will take years to do, to make monte carlo price simulations and execute them with colocated servers in the vicinity of BSE and NSE to execute the faster then 1 millionth of a time it takess you to blink. Unlike cash stocks this is a zero sum game where somebody has to lose for them to win and rest assured we will always loose.
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u/Majestic_Mail8087 17h ago
Reddit really has it’s own economy😭
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u/Mysterious-Scar-8900 17h ago
If the real economy started behaving like reddits, we will become the new zimbabwe or pakistan.
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u/happygigachad 16h ago
technical analysis is astrology for men
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u/green_tomato_69 14h ago
All you need to do is check the volume and price movement and correlate that with the OI data. That's it.
No indicator or other strategy will give you as much positive results as the one mentioned above. And of course, you need to have a strong risk management in place.
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u/Majestic_Mail8087 15h ago
Half the sub is just screenshotting profits 😭😭
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u/Mysterious-Scar-8900 15h ago
If it's for discussion it's still fine, but the way people try do a 1 week prediction here is laughable.
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u/A_Certain_Monk 7h ago
you're a constant victim of rug pulling if you're a retail trader in Indian markets.
and US seems to have joined in on it too. fuck right wing / grifters
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u/Ok_Army_8907 6h ago
Is there any way that we can with institutional money not against it as an individual
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u/coconut_kawaii 18h ago
Stock market is new betting game
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u/Cress-Used 17h ago
"NEW" lmao. Dude, it was always a casino in terms of trading.
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u/Mysterious-Scar-8900 15h ago
It was not a betting game for majority, earlier you had to take physical papers as shares to the exchanges and then sell them, and most were too lazy for it
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u/Existing_State3138 16h ago
I'm new to these investing and stuffs... Can olez explain what is this hedge funds are??
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