Investors Lose 7 Lakh Crores. Day Traders make 2100% Profit.

[DayTrader007]

If you read todays all news papers and yesterdays 24/08/2015 all news channels you find only one Breaking News all over saying bloodbath on all world stock markets and in India biggest crash in 7 years and investors loses Rs. 7 Lakh Crore in one day.

If you are new to stock market please remember this is all bullshit. If somebodys lose Rs. 7 Lakh Crores then it doesnt mean that money vanish in air but the real fact is that somebodys profit 7 Lakh Crores.

Stock market has simple funda if you are a buyer then someone is seller so if you got loss thats one side of coin, another side is someone who sells you make profit.

Yesterday Nifty Close -500 and Sensex -1600 this scenario is very rare in market but if you are Die heart Day Trader this type of day makes Fortune for you.

Yesterday 7800 PUT of Rs. 7 at market open become Rs. 150 at market Close that means gives 2100% profit in just one day with very limited risk. If you Buy this Put on Friday then this profit goes more than 4000%. Thats really Huge.

To make this kind of money you need 32 years in Bank FDs. and almost 14 years in Mutual Funds, only when they continuous gives 24% p.a. return with 100% Risk of your capital.

So New Traders please dont be panic by these kind of news until you are a Day Trader. We dont care what is happening in China or Greece or USA or India. Just wish God give these kind of days more often.

Thank You.

Happy DayTrading.

 

[badarivt]

Wondering if this logic is correct. Assuming Tata Steel is trading at Rs 220 and due to global conditions, drops to Rs 200, the 10% loss due to sentiments is not anybody's gain. Seniors may clarify

 

[onlinegtrash]

If you read todays all news papers and yesterdays 24/08/2015 all news channels you find only one Breaking News all over saying bloodbath on all world stock markets and in India biggest crash in 7 years and investors loses Rs. 7 Lakh Crore in one day.

If you are new to stock market please remember this is all bullshit. If somebodys lose Rs. 7 Lakh Crores then it doesnt mean that money vanish in air but the real fact is that somebodys profit 7 Lakh Crores.

Stock market has simple funda if you are a buyer then someone is seller so if you got loss thats one side of coin, another side is someone who sells you make profit.

Yesterday Nifty Close -500 and Sensex -1600 this scenario is very rare in market but if you are Die heart Day Trader this type of day makes Fortune for you.

Yesterday 7800 PUT of Rs. 7 at market open become Rs. 150 at market Close that means gives 2100% profit in just one day with very limited risk. If you Buy this Put on Friday then this profit goes more than 4000%. Thats really Huge.

To make this kind of money you need 32 years in Bank FDs. and almost 14 years in Mutual Funds, only when they continuous gives 24% p.a. return with 100% Risk of your capital.

So New Traders please dont be panic by these kind of news until you are a Day Trader. We dont care what is happening in China or Greece or USA or India. Just wish God give these kind of days more often.

Thank You.

Happy DayTrading.

THis is like saying... hey look the lottery drawn... its drawn once in 6 or 8 years... limited cost but returns are very huge...

Even if one is into naked options buying no one can't allocate 100% trading capital to just buy PUT and wait for lottery, usually traders go for 25% to 30% of allocation on options, as there is chance to lose all the 25 to 30% in the case of naked option buying.

Sure it was a great day for skilled traders, that's unquestionable, just throwing in some sense to the pie in the sky type of arguments.

Just to capture and fully exploit days like this one needs quite a lot of emotional preparation and insights, most people who actually bought PUT cut their profits in the pullbacks... that's how real life trading goes...


so... the 4000% returns on theory will be more like 1000% return on account if one managed to get into the trade. Assuming he got stopped out couple of times by the violent pull backs... it will be 300-500% returns ... assuming he exited after initial huge profit...thinking how can market go below this or he felt like not giving his money back after 100% return on capital!!!... it will be 100-200% on account, which is super awesome anyways.

All these applies only to skilled traders usually having years of training... for the rest its... like river full of money but I can only have a sip of it... damn! (still there is another group who mistook the bounce on friday for long!).

 

[DayTrader007]

Wondering if this logic is correct. Assuming Tata Steel is trading at Rs 220 and due to global conditions, drops to Rs 200, the 10% loss due to sentiments is not anybody's gain. Seniors may clarify

Badarivt dont assume anything in market but if that happens you said that 10% loss is not anybody's gain. I want to ask what if tata steel drop another 20% or 50% again you said same thing there is only loss and nobody's profit. Dear Frend real fact is 10% 20% or 50% your loss is that much % profit of who sells you. and usually Market makers make this profit who provides liquidity in markets. All world markets are sentiment driven and only that give us profit.

 

[DayTrader007]

THis is like saying... hey look the lottery drawn... its drawn once in 6 or 8 years... limited cost but returns are very huge...

Even if one is into naked options buying no one can't allocate 100% trading capital to just buy PUT and wait for lottery, usually traders go for 25% to 30% of allocation on options, as there is chance to lose all the 25 to 30% in the case of naked option buying.

Sure it was a great day for skilled traders, that's unquestionable, just throwing in some sense to the pie in the sky type of arguments.

Just to capture and fully exploit days like this one needs quite a lot of emotional preparation and insights, most people who actually bought PUT cut their profits in the pullbacks... that's how real life trading goes...


so... the 4000% returns on theory will be more like 1000% return on account if one managed to get into the trade. Assuming he got stopped out couple of times by the violent pull backs... it will be 300-500% returns ... assuming he exited after initial huge profit...thinking how can market go below this or he felt like not giving his money back after 100% return on capital!!!... it will be 100-200% on account, which is super awesome anyways.

All these applies only to skilled traders usually having years of training... for the rest its... like river full of money but I can only have a sip of it... damn! (still there is another group who mistook the bounce on friday for long!).

Dear Frend Onlinegtrash
Let me clear all your points

As per my knowledge there is no such thing like naked option buying. Option Buying is just Buying Call or Put or mix of these and it is Limited risk Unlimited profit strategy. yes there is naked option selling that is limited profit unlimited risk strategy and even I dont use it.

I dont think as you said you need emotional preparation and insights to do these trades. I wrote thread for new day traders they already horrified so Please make things simple dude dont use these kind of high level words.The days like this you dont need anything just buy Put and get ready for huge profit.

Like you lot traders think its 100% risk of capital.Its true but half true, real fact is if you buy Futures or Stocks its more risky and actually you are at 100% risk in that trading. And Risk is huge because you need huge margin to buy future and huge money to buy Stocks. If you say you can use stop loss to control loss in stocks but more often that stop loss price is more than its OTM call or put, and if you buy ATM call or Put you can also put stop loss there. And by % wise only options give you huge profit, unlimited profit and your risk is limited to your initial amount you paid and its not for one day you are in the game till expiry. If you see option buyers these days they are happy, dont look at Investors they still in Shock.

First of all there was no any violent pullbacks on that day and it was not exploit day. Market was going down slow and steady with huge volume.
7800 Put had more than 26 lakh crores turnover that's more than 10 times as compare to other days. As per your saying traders sell Put on pullbacks,
but that also makes huge profit. If you check Nifty chart on that day you will see there was pullback at 11am if you cut position there your profit was 500% another pullback at 1.14pm if you cut your profit 1000% and third pullback at 2.15pm if you cut there your profit was 1500%. I think that's huge for any trader. I said 2100% and 4000% to understand things for new traders its not possible anybody to capture exact that much profit because nobody knows exact top and bottom of market. Better make Pyramid selling if you are not sure of pullback as I did on that day.

And the most imp its not lottery drawn which comes in 6/8 years. I trade in market since 2005 and trade in options from 2010. I am pure Day trader and Option Trader. I did not buy single stock for long term or future in these 10 years (except Coal India IPO 2010)
If you see NSE website for options data, you will see every month option trading gives you 100% to 3000% return if you buy right option. and that's true for last 5 years not even a single month exception. So you dont need 6/8 years to make this kind of profit. Market gives you opportunity every month year after year.

But I agree with you that you need skill to make these trades but not years of training. Yes Option trading skill is very important, in my example i use 7800 PUT that's far OTM and give huge profit because nifty down -500. But that will not happen every month so dont buy that far OTM PUTS or CALLS that wont make you money even market goes in your direction. Buy just OTM Cal or Put in day trading.

Thank You

Happy OptionsTrading.