Lately I have been getting several e-mails from fellow Happionaires thanking me about introducing them to professional trader - Aniket Waghmare. The returns have been over 100% just in a matter of days, making a high of over 150% in 5 days. This is a positional call option which Aniket feels has a lot of potential.
I’m glad that so many Happionaires are benefiting from the knowledge being shared and creating wealth. I know that such returns are welcome in the present market environment. Let me correct myself- such returns are always welcome. However what made me write this post is something what a fellow Happionaire wrote to me. This person after having made 100% so soon, told me how he planned to invest his entire capital into Options trading based on the advice he was getting from Aniket.
He was telling me how he was feeling bad he hadn’t invested more money in the beginning itself. For somebody just starting out with options, a return of 100% might seem a lot and would surely lead to greed.
Why invest for the long term, where you get 100% only in two to three years, when here you can get it only in one or two days? Before you answer that question, just remember that if things don’t go in the same direction of your call, your entire capital too can be wiped out in one or two days.
Of course, we all hope that nothing like that happens and professional traders all have a very strong network which helps them find out which way short term capital is flowing. I have also noticed that when markets are extremely volatile, the returns from trading tend to be extremely high for the people playing the game from the inside. And at the same time I have also seen the losses from trading being extremely high for people playing the game from the outside.
Does that mean you simply ignore it? I feel it is best to take a more balanced view. As suggested earlier, the best way to play Options is to put in around 10%-15% of your capital, depending on how much you are comfortable with and make it grow. You can pull out your profits and use it to invest for the long term. The more you know, the more you benefit and that is why I loved learning new things and meeting new people.
Lately I have been interacting with a few HNI investors who invest in art and I’ve been trying to understand more about the world of art. It is great fun learning new things and interacting with people who are on the inside of the game.
Just one thing – even if you know people on the inside make sure you keep your greed under control because nobody is perfect.
Read what others had to say about Bollywood, Builders and Options and feel free to share your ideas too!