Singhksb ,
Yes , agree for newcomers who dont follow rules , its a slow poison. Even i did mistakes in my first 2 months of Options trading and nearly lost my capital.
I strictly follow my 3 rules which if even give losses , they do limit losses and your capital is preserved to some extent.
1. Follow Stoploss , many people dont follow SL as they say Options have limited risk and we will lose only Prem if the call goes against us. They dont cut their losses when its 20-30% but wait praying again and again for a Miracle which believe me never happens in my Trading history and lose 100% PREM.
I follow charts and if i go wrong , have predetermined SL levels written in my copy with my Trades and never listned to my heart to let run the losing position. If one is following Trend in Nifty Options , use %SL , like SL can be 20% of PREM deployed.
2. Also , i never BUy options in EXp week or 1 week before Exp as Next month Options shed PREM quite fast in Exp week.I had made Trade ( Buy straddle) 2 times in Exp week for Next month Options and i lost on Both occasions , my SL triggered.
3. In Options one should be prudent to Book profits as soon as one gets Desired profits or a little less as if you keep hoping for More and More profits and the Trade reverses , the Trade will never get time to get back in Green as Near Exp , Prem decelarates quite fast and we repeat mistake1
Delivery Buying no doubts has no risks but Profits are also less. So one wanting more Profits has to take more risk. There is no way out.
If one is making losses In options again and again , its better to stop that seeing your account get to zero and broker calling you again and again.
Yes , agree for newcomers who dont follow rules , its a slow poison. Even i did mistakes in my first 2 months of Options trading and nearly lost my capital.
I strictly follow my 3 rules which if even give losses , they do limit losses and your capital is preserved to some extent.
1. Follow Stoploss , many people dont follow SL as they say Options have limited risk and we will lose only Prem if the call goes against us. They dont cut their losses when its 20-30% but wait praying again and again for a Miracle which believe me never happens in my Trading history and lose 100% PREM.
I follow charts and if i go wrong , have predetermined SL levels written in my copy with my Trades and never listned to my heart to let run the losing position. If one is following Trend in Nifty Options , use %SL , like SL can be 20% of PREM deployed.
2. Also , i never BUy options in EXp week or 1 week before Exp as Next month Options shed PREM quite fast in Exp week.I had made Trade ( Buy straddle) 2 times in Exp week for Next month Options and i lost on Both occasions , my SL triggered.
3. In Options one should be prudent to Book profits as soon as one gets Desired profits or a little less as if you keep hoping for More and More profits and the Trade reverses , the Trade will never get time to get back in Green as Near Exp , Prem decelarates quite fast and we repeat mistake1
Delivery Buying no doubts has no risks but Profits are also less. So one wanting more Profits has to take more risk. There is no way out.
If one is making losses In options again and again , its better to stop that seeing your account get to zero and broker calling you again and again.
What u have mentioned is the characteristic of option. But option give u vitually unlimited ways of forumlating strategy to benefit from anytype of market condition and at the same time limit your risk.. Key is the right knowledge of options pricing and ability to develop right strategies to suit the market conditions.
Yes, it is time decaying instrument.. but what about if you can find a strategy where this decay work in your favour while u are on holiday ..
Better we know the animal that we are dealing with, safer it gets.
Happy Trading
Yes, it is time decaying instrument.. but what about if you can find a strategy where this decay work in your favour while u are on holiday ..
Better we know the animal that we are dealing with, safer it gets.
Happy Trading
Singhksb ,
Yes , agree for newcomers who dont follow rules , its a slow poison. Even i did mistakes in my first 2 months of Options trading and nearly lost my capital.
I strictly follow my 3 rules which if even give losses , they do limit losses and your capital is preserved to some extent.
1. Follow Stoploss , many people dont follow SL as they say Options have limited risk and we will lose only Prem if the call goes against us. They dont cut their losses when its 20-30% but wait praying again and again for a Miracle which believe me never happens in my Trading history and lose 100% PREM.
I follow charts and if i go wrong , have predetermined SL levels written in my copy with my Trades and never listned to my heart to let run the losing position. If one is following Trend in Nifty Options , use %SL , like SL can be 20% of PREM deployed.
2. Also , i never BUy options in EXp week or 1 week before Exp as Next month Options shed PREM quite fast in Exp week.I had made Trade ( Buy straddle) 2 times in Exp week for Next month Options and i lost on Both occasions , my SL triggered.
3. In Options one should be prudent to Book profits as soon as one gets Desired profits or a little less as if you keep hoping for More and More profits and the Trade reverses , the Trade will never get time to get back in Green as Near Exp , Prem decelarates quite fast and we repeat mistake1
Delivery Buying no doubts has no risks but Profits are also less. So one wanting more Profits has to take more risk. There is no way out.
If one is making losses In options again and again , its better to stop that seeing your account get to zero and broker calling you again and again.
Yes , agree for newcomers who dont follow rules , its a slow poison. Even i did mistakes in my first 2 months of Options trading and nearly lost my capital.
I strictly follow my 3 rules which if even give losses , they do limit losses and your capital is preserved to some extent.
1. Follow Stoploss , many people dont follow SL as they say Options have limited risk and we will lose only Prem if the call goes against us. They dont cut their losses when its 20-30% but wait praying again and again for a Miracle which believe me never happens in my Trading history and lose 100% PREM.
I follow charts and if i go wrong , have predetermined SL levels written in my copy with my Trades and never listned to my heart to let run the losing position. If one is following Trend in Nifty Options , use %SL , like SL can be 20% of PREM deployed.
2. Also , i never BUy options in EXp week or 1 week before Exp as Next month Options shed PREM quite fast in Exp week.I had made Trade ( Buy straddle) 2 times in Exp week for Next month Options and i lost on Both occasions , my SL triggered.
3. In Options one should be prudent to Book profits as soon as one gets Desired profits or a little less as if you keep hoping for More and More profits and the Trade reverses , the Trade will never get time to get back in Green as Near Exp , Prem decelarates quite fast and we repeat mistake1
Delivery Buying no doubts has no risks but Profits are also less. So one wanting more Profits has to take more risk. There is no way out.
If one is making losses In options again and again , its better to stop that seeing your account get to zero and broker calling you again and again.
1) You should not wait for 'Doubling of Profit - 100% return' RATHER try to book profit with 40% return when Market movement is "DULL", OR book 50% profit when market is "slow-but-Trending". Don't be tempted and lost control on your sixth sense.(2) As this Trading is very sensitive on "Events", always keep yourself aware of both - International AND National one during Trading hours. It is risky no doubt but you can book handsome profit within a short time.
Me too , thats why i said , i too kept praying that one day this 100% lost prem will recover but that day never came and profits turned to ashes
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