Characteristics and ADVANTAGES OF TRADING AND INVESTING LIKE FIIs:
- FIIs use derivatives for hedging and several times for speculating as well, but their most of activity consists of positional bets.
- They operate in most of the geographical markets across the globe. They operate in varied asset classes.
- They shift through these geographical markets and asset classes creating bubbles and prickling them as well.
- It is a hard fact THEY RUN THE MARKETS, we have seen more than one times, how FIIs selling brought panicky in markets and vice versa FIIs buying brought spat of cheers in markets and amongst traders and investors.
- We all know by facts and figures how billion of dollars of FIIs inflow has helped Indian markets rise to highs.
- It’s a proven simple correlation (especially in emerging and less developed markets) that when FIIs inflows rise the markets rise and when fii inflow dries or slows down the markets feels uneasiness and jitters.
- The FIIs is no one’s enemy and no one’s friend, several of them are long term investors but most of them are speculators/hedgers, traders and medium term investors. They are the best traders. They have the best technology, quant models, experience, best talented work force. They follow a unique trading/investing technique of delivery-based-stop loss which very few people know of and that is what helps them mint money in the most euphoric of bull markets and save themselves from bear markets severity.
- They are the players who squeeze maximum juice out of any bull market buy the stop loss based positional trading strategy in on the buy side in a bull market and on Sell side in a bear market-which is not long term investing.
- They at most of the times affect and dictate the policy of the governments. They speak it loud when they don’t like the policies. They are the best knowledgeable persons of business cycles and stages of economies by virtues of them operating into more than one countries and more than one type of economies.
- ...even more...we'll write later. Keep
THE DISADVANTAGES OF TRADING AND INVESTING LIKE FIIs:
- Please tell us if you know/find any!
