Strategy in the post 8000 Era

Now that we are finally up and beyond 8000 on the sensex, what should we do? It is crucial to our financial health and worth some consideration.

It is very risky to take up fresh positions in stock. For all the talk of P/E's being healthy, and the earning prospects looking bright. They all sound like the tech-boom , things are different this time, hype.

The only constant in this world is we repeat the mistakes of the past. The more things change the more they are the same.

All this must not stop us from profiting from the market. The art of trading is being right, not bullish or bearish.

Futures trading also carries its own risk during a big contrary move. The only way I can think to play this type of a market is to use options exclusively.

Spread trading is a nice way to trade with limited risk. It is worth consideration by all traders.