linkon sir
i read your all post from start and your name suggest me by nishikant sir
as i trade in nifty future but i take naked positions so sometimes i have profit and some times loss but at the end of month loss is there before i met with nishikant sir but now i want to learn the option hedge with future ststergy because it seems to be great either market go any direction we will earn money so will you please give some technical on
1. how to select call put .
2. what is impact of OI
please sir give me reply
Amol,
First thing that we need is a keen sense of direction on where the market is going. For that we track the OI of the various options. The previous day's high and low is tracked by many traders and that acts as support and resistance.
Trading in options can wipe out your capital in few months. You wont get a chance to recover, if you misjudged the direction and the strength of the direction. Its your hard earned money, dont waste it on experimentation.
In your case, i think you need to follow a system. Your entry / exit / stop loss is has to be well defined. If u make a judgmental call on the nifty, most of the time you'll end up booking profit early and let your losses run. All i can suggest is that you stop trading and evaluate where you are going wrong. write down your own rules and stick to it. If possible post your rules here. we can evaluate and work on them.