Hello
This is for active traders who sit in front of screen.
For first hour (or 90 min) of trade just watch screen till u build a judgement of NIFTY move for next 10 - 15 points (up or down).
If it is up then buy a CALL but if u think it is down then buy PUT (out of money cos the are cheap ... less investment ... leading to good RoI).
In the next one hour or so square up the position. This can give 10% profit. SL should be 20%. Trade only when u have good judgement and NOT EVERY DAY.
Example with Expenses incurred - on 31 Mar bought 8700 CE 4 lots at 60 and sold at 66. I paid Rs 20 brokerage each leg (zerodha), STT was only Rs. 1.33 (repeat Rs 1.33 - for 4 lots) and few other expenses. My total expenses were around Rs. 56 for 4 lots i.e. Rs 14 per lot.
Made a profit of Rs 600 (minus expenses of Rs 56) on an investment of Rs 6000. This is abt 9%.
QUESTION : Is this type of trade common among day traders or have I invented this (just joking guys). But seriously, can you share your experiences of profit / loss making with day trading in options?
pos_trader
This is for active traders who sit in front of screen.
For first hour (or 90 min) of trade just watch screen till u build a judgement of NIFTY move for next 10 - 15 points (up or down).
If it is up then buy a CALL but if u think it is down then buy PUT (out of money cos the are cheap ... less investment ... leading to good RoI).
In the next one hour or so square up the position. This can give 10% profit. SL should be 20%. Trade only when u have good judgement and NOT EVERY DAY.
Example with Expenses incurred - on 31 Mar bought 8700 CE 4 lots at 60 and sold at 66. I paid Rs 20 brokerage each leg (zerodha), STT was only Rs. 1.33 (repeat Rs 1.33 - for 4 lots) and few other expenses. My total expenses were around Rs. 56 for 4 lots i.e. Rs 14 per lot.
Made a profit of Rs 600 (minus expenses of Rs 56) on an investment of Rs 6000. This is abt 9%.
QUESTION : Is this type of trade common among day traders or have I invented this (just joking guys). But seriously, can you share your experiences of profit / loss making with day trading in options?
pos_trader