Great Options Strategy for Zerodha and similar only

#51
Gulu , if I am bullish , in this situation I would have taken the position of 3 lot ce of 5500 and 2 lot pe of 5600 or 3 lot pe of 5600 and 2 lot ce of 5500 . This is my personal idea
 
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Zerodha

Well-Known Member
#52
Dear Sachin, you were very qualified as a trader yourself and you can help us too in strategy from your past expierence and what big players do http://www.traderji.com/derivatives/53850-great-options-strategy-zerodha-similar-only.html and this way we can earn more and you will have more brokerage too. Reason of putting this request is since you have such a low breakeven there must be tricks which a normal investor or intraday trader might not be knowing. Else please just give some light and we'll find end of the tunnel if it's out of your work ethics since I read somewhere you don't provide "tips" like other brokers. But atleast you can share some simple money making ideas as you have such low breakeven and brokerage. Regards, Ajay.
Hi Ajay,
Unlike a lot of other brokers our highest priority is not to generate brokerage, the idea is to create an ideal environment where traders can profit. A place where the odds are not skewed towards the house but towards the traders.

Trading like a lot of other skilled jobs in life shouldn't be aped. A person with average intelligence should be able to make money off the markets, provided he is disciplined. You might have read the same things before, but I will share a few things that I think is important for a good trader.

Someone smart had said that Discipline is the bridge between goals and accomplishment.
Discipline is what can convert your talent to ability. When I say disciplined, I am not just talking about your stop losses, sticking to a trading system etc... These things you have probably read a lot already. What is important is to be disciplined in every aspect of your life. You can't be disciplined in trading and indisciplined in everything else, life doesn't work like this.....

One of the main reasons why there are a lot more professional traders in the US than in India. How many of you stick to your resolutions of dieting or quitting drinking?? Stick to an exercise routine?? meet people at right times?? etc... etc... Might seem unrelated but they are... It is important that you are disciplined about everything that you are doing in life, it will automatically make you a disciplined trader.....

Any average joe should be able to make money if he is disciplined, but it takes talent to take it to the next level. Trading is an art and not everyone can learn it. A satriani teaching you guitar doesn't guarantee you that you will become a good guitarist, forget good, it doesn't even guarantee that you will learn how to play a guitar..... Similarly to become a good trader, you need to be born with it, you as a person will understand if you are made for it or not in a few years of trading..... It is very important to put stop losses on trades, but more important is to put a stop loss on trading itself. A lot of people loose the plot and get egoistic about this, but a stop loss point on trading is extremely important otherwise time will go by fast and you will realize you haven't developed a skillset that can be used in everday life... Might sound pessimistic, but important that you keep this in mind... Not the thing you would hear ever from a broker I suppose... ;)...

Trading size-Leverage, After looking at traders over the last 5 to 7 years I can guarantee you that this is the biggest WMD made. Good traders ruin their trading career because of this. Assume you are driving in a car race and assume it is a street race. Do you go at maximum speeds throughout the race??? Don't you slow down at corners or when it gets crowded? Don't you know what is the maximum speed your car can manage and then plan the speeds at which you will drive??/ What will happen if you drive at max speed in all the places?? same thing happens innumerable times to a lot of traders everday....

Similarly in trading, extra leverage should be used only when you see long straight roads with clear visibility and no traffic.... Use smaller positions, when you are at corners, don't know what is happening around.... Your broker will encourage you to take extra leverage, coz he is making money of you, but you have to know what is right....

How do you know what is the right trading size?? Can you take a position and not worry what is happening in the market??? Switch off CNBC, terminal and go out for a coffee??? This is your right trading size for 80% of your trades.... The remaining 20%, you have to push the metal on pedal, when you see long clear stretches( which will keep coming up if you have patience), cause these are probably the trades which will make you money....

As far as trading ideas are concerned, it is a vast discussion, probably will take me 6 months to share all that I have learnt, both good and bad and as I told you before doesn't guarantee that you will make money, actually doesn't even guarantee if I can make money following the same... ;)........

But if you can follow what I mentioned, small changes to your life and trades, it will be a good start.

Be disciplined and trade the right size.

I am not going to proof read it, so don't even know if any of this made any sense to you.... :) ...

Best of luck with your trades...

Cheers...
 

GuluGulu

Well-Known Member
#53
Gulu , if I am bullish , in this situation I would have taken the position of 3 lot ce of 5500 and 2 lot pe of 5600 or 3 lot pe of 5600 and 2 lot ce of 5500 . This is my personal idea
Did the first one later. The previous position was taken when NF was @ 5600

GG
 
#54
I have become a fan of you SACHIN and ZERODHA. When i had no hope on trading with my scalping style of trading which i was doing being with other brokers like Sharekhan, Reliance Money, Bajaj Capital...... ZERODHA gave me a new lease of TRADING LIFE to me. THANKS. And this post from Sachin is like 'SAU SONAR KI, AUR EK LOHAR KI' which made me think and a morale booster too.
 

Taurus1

Well-Known Member
#55
Sold 5600CE @ 75
5500PE @64

Loss 6/- per lot

Now taken Bullish 3:2 C:p position @ 5600CE, 5600PE June series, @ 161, 158

June series choosen to avoid time decay - if needs to carry overnight.

GG
My 2 cents.
By taking the June series you get time relief but you also need a bigger move to make money from it. :)
Without going into deltas my rough approximation is that at least 100 points is needed now to make the same profit.
 

Taurus1

Well-Known Member
#56
The May 5600 CE are at 67, while the June 5600 CE are at 136. :eek:
Seems that high IV is already priced in. Preferable to exit the trade now and wait for a better opportunity. :D
 
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#58
Interesting thread, GuluGulu.

You are right about newbies trying to average their trade.
Recently, I was long on 2 lots of BNF when the markets started tumbling. After about 100 points, I had my Eureka moment and sold 4 lots of BNF. BNF tumbled almost another 300 points from there. Not only was I able to recover my loss, I made a small profit as well.
I know this trick doesn't work all the time and has its own pitfalls, but then, most traders have some idea of resistance/support and would keep those figures in mind before doing something suicidal.

It has been 2 Doji days in a row....NOW is the time to enter Nifty Strangle.
:thumb:
Hi comm4300,
What do 2 Doji's imply? Am not very good at reading candle stick charts. From whatever little I know, Doji's are a reversal signal. Hinting at a gap up tomorrow, or more volatility?
 
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comm4300

Well-Known Member
#59
What do 2 Doji's imply? Am not very good at reading candle stick charts. From whatever little I know, Doji's are a reversal signal. Hinting at a gap up tomorrow, or more volatility?
Doji days are days when the open are close are nearby. The price band of NIfty has been in a narrow range for more than a couple of days now.

result should be that Nifty move with good enough force either up or down. Just like when a spring has been coiled up and suppressed for a long time and released..........

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GuluGulu

Well-Known Member
#60
Hello,

It is also good to exit this trade and look for a new one. Anyway, Market is expected to move Up or Down very quickly in next few days.

Reason for Downtrend:

1. Nifty is already in down trend from first week of November and last few days, it is forming a Bear Flag.

2. It has already retraced FIB 61.8 level or more from April high, broke 100, 200 DMA, and now at a strong trend line support. If this trend line is broken after the bear flag, this means, it has also broken the 61.8 FIB and has all potential to quickly go to 5150 level and form a double bottom there and start an upmove.

3. The Election result can trigger this.

4. OI decreses with price increase. NF is below Nifty Spot value.

Yes, Nifty is now positioned like a compressed spring. It will be released and shoot up or down sharply.

Reason for Uptrend:

1. It can bounce from trend line and FIB 61.8 to another FIB 61.8 upward from last low to 5765 level to touch upper trend line and again start downward journey.

2. Forming of two Doji.


Whatever the case may be, Nifty will give a quick move from Friday (hope).

So, it is best time to open a strangle or straddle. See 3-4 days, then if in loss – find opportunity else. I shall hold the trade until election result declares.
 

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