Saturday, March 1, 2008

How the Budget can help you make some money!

All the investors in the stock market are the fearful of the last day of February. This is the day when the budget for India is presented. And depending on the statements of the finance minister the market moves in a big way -- either up or down, that is, the market will be very volatile.
If there was a way you could know what the finance minister will say just about 15 minutes before he would say it you would become a very rich person. But that's just wishful thinking.
However, one thing that every investor knows is that during the budget the markets will either move up very strongly or vice versa. But can we use this information to make money? Yes! We can and we can handsomely profit from this.
There is a strategy that can be used in the futures & options market that can give you limited risk and very high return. The good thing is that we don't even have to guess which side the market will go. In simple words:
~ If the market goes up -- you profit.
~ If the market goes down -- you profit.