How to make money from options trading

#1
Hi All,

this is Yogesh Dadkar, I am a very old member in mudraa.com and today joined in traderji.com

My main focus to give an idea about market trend what is happening and teach on how to trade in options with proper calculation of risk-reward ratio and with option charts.

I will start posting few idea here also i will create new thread based on trend progress
 
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#2
Welcome to Traderji.

Here we focus on sharing knowledge and welcome your ideas and experiences. Hope there will be no naked trading calls and no personal details shared.

Once again, welcome to Traderji.
 
#3
I find that trading options is very hard job. First you need to understand the movements of underlying market in order to understand what to trade with options. Some guidance on the topic would be very beneficial for all beginners
 
#4
I am a Nifty Option Trader for last 4 years. I am happy that I can make some money now ...but most of my life I made losses.

The rules I follow are:-
1. I am a scalper...I do small trades multiple number of times.
2. I always sell first and never buy first.Prefer to sell call. If selling put, then I do with strict stop loss.

The things that comes with experience are:-
1. Volume to play with.The volume to trade should be as per your ability to take loss.It should not be decided thinking about the profit.
2. The distance of the options to choose. For selling it is better to choose a little bit distant options but should have some movement with which you will feel comfortable.
3. Entry point and exit points comes with experience. It is the most important thing that test your character.Determine your entry points in both directions and wait for them patiently. Sit and observe but don't make a entry unless they comes.
4. The last but most important point. Always I play with stop loss in the system and not in mind. Also I determine a amount of loss I can take for a day. If reached I quit for the day.
 

praveen taneja

Well-Known Member
#5
I am a Nifty Option Trader for last 4 years. I am happy that I can make some money now ...but most of my life I made losses.

The rules I follow are:-
1. I am a scalper...I do small trades multiple number of times.
Broker must be happy with you
2. I always sell first and never buy first.Prefer to sell call. If selling put, then I do with strict stop loss.
for that one must have a deep pocket
The things that comes with experience are:-
1. Volume to play with.The volume to trade should be as per your ability to take loss.It should not be decided thinking about the profit.
??????:confusedd:
2. The distance of the options to choose. For selling it is better to choose a little bit distant options but should have some movement with which you will feel comfortable.
Out of the money option selling means less profit huge loss
3. Entry point and exit points comes with experience. It is the most important thing that test your character.Determine your entry points in both directions and wait for them patiently. Sit and observe but don't make a entry unless they comes.
Are you a TMA member???
4. The last but most important point. Always I play with stop loss in the system and not in mind. Also I determine a amount of loss I can take for a day. If reached I quit for the day.
you mean support resistence are useless and thousand two thousand mean more as exit point bro dont mind you too need lots of guidance like me Bhali karenge Ram Jai Ram Ji KI
 
#6
you mean support resistence are useless and thousand two thousand mean more as exit point bro dont mind you too need lots of guidance like me Bhali karenge Ram Jai Ram Ji KI
1. I am a scalper...I do small trades multiple number of times.
Broker must be happy with you
Thats why I choose Zerodha(low Brokerage)

2. I always sell first and never buy first.Prefer to sell call. If selling put, then I do with strict stop loss.
for that one must have a deep pocket
Thats why I choose Zerodha( with MIS option and putting cover trade in Nifty options its takes less)

The things that comes with experience are:-
1. Volume to play with.The volume to trade should be as per your ability to take loss.It should not be decided thinking about the profit.
??????:confusedd:
Think more...you will understand..thinking is necessary

2. The distance of the options to choose. For selling it is better to choose a little bit distant options but should have some movement with which you will feel comfortable.
Out of the money option selling means less profit huge loss
People sell those options where Nifty will never reach...so its better to sell out of the money...far enough to secure your safty.

3. Entry point and exit points comes with experience. It is the most important thing that test your character.Determine your entry points in both directions and wait for them patiently. Sit and observe but don't make a entry unless they comes.
Are you a TMA member???
No
 

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