I help people make money. People know about stock markets and have often made losses. They know the potential of the stock market and earning through it but due to existing commitments or job or barrier of some kind are not able to trade themselves. I manage accounts for such individuals and help them generate returns from the market.
Here are few frequently asked questions about the services:
1. What market/product do you trade?
I only trade in Index Options specifically on Indian Nifty and Bank Nifty. It's for two main reasons. First, I understand how these Index work. Second, they provide adequate liquidity that if I have to trade with even 100 crores rupee, I easily can.
What are the rules of the service for me and for Individuals?
I work on 2 non-negotiable rules when handling the account for Fund Management:
My priority while handling the funds is capital protection first, profits later. If capital is protected by way of avoiding losses in a bad market, profits will automatically come.
If I decide it is a no-trade week, then it is a no-trade week. That can happen even twice in a month in case of uncertainties. For eg. Election Results. For the sake of profits, I will not compromise on point 1.
2. How much money is required for effective trading?
A fund of at least ₹10 Lakh is required to trade. I am primarily an Option Seller. It is the least that is required to trade effectively.
3. How can one avail the services?
Contact me on 70180-13195 via call and we can discuss how to proceed. But do read the complete introduction given here to resolve common doubt.
4. Do you have to give me your hard-earned money?
No. I open your account with the desired broker. An account that is yours. The linked bank account is yours. I do not have access to your funds, just to account. With your authorization, I can take trades from your account.
5. Why do we need a minimum of ₹10 Lakh?
Because Option Trading is about money. I am an option seller and each contract requires 60k-80k. So, I can take 17 Bank Nifty lots or 12 Nifty lots approximately. The strategies I do are based on strict money management and risk management rules. When I take a trade, I never risk all the money. It's just a portion of the money I use to make a trade. With every trade I take, I assume I can be wrong the very next day and in order to reduce risk or take more positions for hedging, we need money.
Friday, I deploy 20% of the money or none at all fully expecting I can be wrong on Monday or I don't deploy at all.
Monday, I deploy more money if profitable or hedge the positions or I adjust the existing ones or change the directions.
This goes on till Wednesday. So, in a nutshell, we need money to fight uncertainty by hedging and adjustments. And that is why we need at least ₹10 Lakh to trade effectively.
6. What if someone does not have ₹10 Lakh?
Sorry. I cannot help. Its money we are dealing with. I cannot risk something I cannot defend. I cannot commit to something I cannot deliver. Below ₹10 Lakh, it is difficult for me to trade. People who are doing options trading required even more than ₹10 lakh. It is the minimum I am asking.
7. Is there a guaranteed profit?
No. If someone says guaranteed, then he is probably a fraud.
Probability of profit in options trading if done right is very high. Equities are sideways 70% of the time. In options trading, we can earn profit in any kind of market. There are no guarantees. Trading is subjected to market risk and there is a certain risk which even after best of my abilities, I cannot predict. That is why I share my personal profit/loss every week. I have also taken losses in some week or made only break-even someday. That's just part of the game. My profit/loss is my performance sheet for you to review and decide whether I am worth managing your money. I can assure you that I will trade on your account, what I am trading on mine so that our interests are aligned with each other. Can there be losses? Certainly. Can there be profits? Yes. Can we go broke trading due to uncertainty? Definite NO as I do hedge strategies and adjust positions all the time to reduce risk. We can have a losing week but a winning month. Losing month but a winning year.
8. How can you trust me with money?
I think I have always been open about what I do. My financial statements are what can make you trust me. I keep followers posted about my trades in real-time as fast as I could. I post financial statements provided by the broker after settlement. Knowing that your money is in your Demat account and not mine is another reason. I am taking trades which I am also taking for my personal account so my interests are equally aligned with yours.
9. How can one enlist for Managed Account Services?
I charge 1% as a yearly service fee. It is non-refundable.
I take another 1% which is refundable after 1 year of availing services at the time of service discontinuation.
So in all to enlist or confirm for services, the client has to initially pay 2% out of which 1% is refundable.
1 dealer can handle 3 accounts from a single computer. 1% per client is to cover the infrastructure cost that I incur.
Refundable 1% is a security deposit to ensure that I will be paid at the end of the month after I have given my services.
10. What if we make a loss?
First, we cover that loss and I don't charge any fees on that.
Once recovered, I make-up for the lost time by not charging fees for another month. My motive is always profit to you first.
11. After reading all the FAQ questions, Who should not opt-in for my service?
I have already cleared it in the above questions. There can be three types of scenarios we can have:
A very limited loss for a day or a week.
A break-even week.
A profitable week as per expectations.
If you do not have the stomach for 1 and 2, then please do not opt-in. I have already said, we can have a losing day but a winning week. A losing week but a winning month. High returns require a high risk. In our case, our strategies are hedged, so the risk is very limited. You must understand that when I am trading, I know what I am doing. Loss and profit are part of the business. It is the losses that we have to avoid being profitable.
12. How can we know this security deposit is not a scam?
I really do understand the concern here and never take this question offensive as I can feel the same way. My own account is my primary business. I will continue to trade that. I will continue to make profits from my own trading. I will continue doing workshops. I will continue posting my profits here for all of you to see. I have started my business after my own name. Bank accounts I use are on my name and not some dubious company. Its integrity and business ethics matter to me. While scams don't last forever, you can wait and see me here doing the same thing repeatedly in the coming days. Once you are satisfied, we can work together. But for now, some of the rules related to my services won’t change.
13. Is there any minimum lock-in period of advisory service?
Yes. 1 Year.
I expect a person wanting to avail PMS services with me to continue it for 1 year. I already said that a person should have a stomach to cough up a losing week and a breakeven week. There are times when due to stock market-related uncertainty, I cannot give expected performance or returns because that means taking the unwarranted risk. And that I will not take. Case in example, the last two months post general elections. The market is underperforming and highly sideways. There were two weeks when there was no performance and I was breakeven. But tough times also pass, and fund’s performance gets back to normal over time. And hence the requirement to avail services at least for 1 year so that services are judged based on performance and not on bad market conditions. It filters out impatient people from availing the services.
14. Anything else you should know?
Yes. Services I provide are totally dependent on the broker. I do the utmost due diligence when selecting a broker. There are always chances or period when the services of a broker are good or bad. While we do try to sort the issue with the broker but in case the problems faced (if faced) are unsolvable then clients may have to shift account with a new broker. While my try is always to work in a stable environment, some problems if they arise, sometimes are beyond our control. In that case, the client has to be willing to shift funds to another account with a good broker.
To be continued...