Derivatives Guide trading in options- A buyer rule

#1
hii guys im mahesh here , im just sharing my experience which will be of help to many traders
no books its all practical's
a rule for a success in day trading esp as a options buyers ,
let me put it in 3 ways from my 10yrs + exp of which 9 yrs i failed though i was not continuous all these year,,,, but yes this year im successful

remember basic thing options buyer has only 60%-70% of chance of winning ie 6/10 to 7/10 if ur analysis is right 70% ie 7/10 as a buyer you should be ready to make it
5/10 or 6/10 rest 10% time your loss will be very small due to premium decay /or range bound day in intraday. be ready to accept that dont turn that into big loss...
ie if ur making 100 trades and you win 80 trades but due to decay they are chances that ur success is only 65 to 70 trades... its all about probability, if ur a seller your can expect 5% additional ie if ur 80% winner then 85% is your chance to win due to decay.
there is not much difference in as per your analysis but 85 here vs 70 there( seller vs buyer) yes is much difference.
now lets get into facts of being successful

3 parts rule :

first imp part is reason for failures
second part is Mind power
third part is physical elements like shutting down ur system and being discipline
Remember the golden rule if ur loosing money 1lac in a month soon once your successful you will make 1 lac in a day , i assure you that.
now before getting into each part in detail i now trade with finvasia happy with it saved a lot brokerage being a day trader...

Part one : Reason for failures : first is over trading you need to find a system which can control this over trading , define some rules with it.
second is changing your system often - remember to stick to a system for at least 2 months before you change it note it down and back test
is for at least 3 months before doing anything .
Third is mind set when ur angry or your on a revenge mood in market you should actually start doing things you love most take a half day
break remember nothing will happen in half day , your mind will become strong if u follow this.
Part two : Mind power : Mind is everything and only reason for your success then make it stronger your goal should be this follow a process be organized , the way you think your tomorrow will your based on how you do today. dont give your mind too much of pressure it has huge power to make you big remember it , just have a positive mind set , money will come for sure... revenge trading ,anger , repeating yourself it will only happen to you etc will pressure your mind and put it in wrong way , your analysis will go wrong , if u make yourself happy in any movement and do stock analysis(esp in morning time) 90% time you will right market will just follow you, all you need to know is proper entry time and exit time , if your entry point doesn't come remember that operator is not in a mood to come on your way or may be he wants to test your patience be ready he wants to actually tempt you make you enter early then try going half way as per your analysis then come to your buying level just below it but not hitting your sl level , make you panic and get off the trade and makes you loose ,then again moves to your trg finally your will end up seeing yourself as a failure even though your analysis was right , Mind it yes your can can make you Big , its the reason for how your today what what will be your tomorrow.


Part three : Physical Elements : im sure you much be surprised how can discipline be here? well yes it has to be here discipline is nothing but reviewing yourself daily writing it on paper/journal/book , u need to follow it maintain records for it, its a Backoffice work, a backbone of ur trading which connects all together , can u avoid Backoffice / admin part in a business or @ your working office?? without it u cant really see anything dont even know where the company is going what is happening, same is with trading u need the physical records to see it.. now im sure you much be convinced why its here,
remember to shutdown your broking account once exit it done, forget it again you need to open when there is a chance of second trade about to come.... im sure you will have 2min of time before entering in any trade that's enough to login into broker account again....


Note : common fellow traders anyone from hyderabad like minded day traders lets join together , anywhere from world is also ok, only peopl who are into full time or who have chosen trading as fulltime , being successful or not doesnt matter, its just a matter of time im sure you all will win soon from some day.
dont forget to ping me or reply me here
 

Vmaster369

Well-Known Member
#2
so what did we learn from 9yrs of fail ?

The best in stock market have made money from Equities by sitting on shares Not by option trading.
be the junjunwalla or vijay kedia or buffet or Ramdeo ....
Buy Equity say put 10 lakhs in 3-4 company wait 30 yrs Even if 1 company is success and compounds at 26% u are winner lol
but yes your initial investment MONEY u have to earn by hard work


watch that ... you wont be rich but your kid sure be billionaire if u adapt that
option cannt guaranty that BEat that
 
#3
so what did we learn from 9yrs of fail ?

The best in stock market have made money from Equities by sitting on shares Not by option trading.
be the junjunwalla or vijay kedia or buffet or Ramdeo ....
Buy Equity say put 10 lakhs in 3-4 company wait 30 yrs Even if 1 company is success and compounds at 26% u are winner lol
but yes your initial investment MONEY u have to earn by hard work


watch that ... you wont be rich but your kid sure be billionaire if u adapt that
option cannt guaranty that BEat that
im talking about day trading hope you understand derivative ,
from 10 yrs of trading do u think im only trading in options?? wont i invest , well as of now im into manipal petro chem from 26rs and recently took idea @ 8.1rs holding huge qty in manipal looking for a trg of 130+ happy with dividend.. please being a trader understand diff between an investor and a trader.
dont overlook another top would not be helpfull for day traders.
Thanx bro.. for your info......i have a lot more info right from Tatamotors to hexaware stock... we are looking for day trading in derivatives here...
i would not appreciate any comments regarding investment in derivatives forum bro thx..
 

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