Trading for Living -- Successfully Completed one year as Full Time Trader

[SarangSood]

Yes... this is actually not a 'normal' human's game... a perfect combination of man and machine can make it happen... here the man is the strategy builder or the shot caller (as in casino) and the machine (can be a man who has no emotion or truly zero sum mind) is the executioner... which is practically 1-2% or max 5% people can achieve in life...

there is a saying in America... that the marines turn out to be the best performing traders post service... just due to their training about obeying orders, patience and zero emotion while pulling the trigger on command

I am not sure about how many people (1 or 2% may be) understood the positions Sarangsood has explained...

It's possible mycall sir to achieve this. We just need to practice these or any strategies day in day out to master them. I'm also learning new ways everyday and specially in such market conditions. Such times deepens your understanding of options and matures you as a trader.

IMO we need to understand volatility first. How premiums rise or fall and also knowing it live that it's happening so. After that we can apply our strategies likewise.

 

[SarangSood]

3rd action
25200PE: 4000 @250 (delta 0.5x100)
25100PE: 4400 @205 (delta 0.4x110)
Somewhat delta neutral to positive position... but riskier than the initial position...

This would be less riskier then the initial position because in an event of gap down opening the naked puts are only 10 lots. The initial position has 100 lots extra which can be way more risky.

 

[mycall]

It's possible mycall sir to achieve this. We just need to practice these or any strategies day in day out to master them. I'm also learning new ways everyday and specially in such market conditions. Such times deepens your understanding of options and matures you as a trader.

IMO we need to understand volatility first. How premiums rise or fall and also knowing it live that it's happening so. After that we can apply our strategies likewise.

This highlighted portion is the most important aspect I try to focus on.... delta is a fix kind of thing... it can be calculated and predicted... but other greeks which increases premiums during volatility can't be calculated...

it is not much difficult to calculate which day at what strike what will be the approximate option cost... but what can't be known or predicted that what will be the cost if BNF strat moving wildly... to understand that building a relationship with option behaviour by active participation is a must... I am trading options since 5-6 years now... still I have doubt some times... at least I have understood when to stand by and just watch the show

And truly speaking psychology matters... be it 1 lot or 10 lots... once price crosses the short strike... the trader must act... at that point of time previous calculation nullifies... that is the point trader's psychology is to be judged... most of us fail at that point... unless we have much bigger resources to counter the impending drawdown...

You are absolutely correct... practice makes a man perfect... that applies everywhere...

 

[mycall]

This would be less riskier then the initial position because in an event of gap down opening the naked puts are only 10 lots. The initial position has 100 lots extra which can be way more risky.

You are right... in case of gap down previous one will ruin psychologically... psychologically only... because I guess there still a long play... extra shorts are about 900pts far..

but then option position are taken on market view... if I sense there is a gap down possibility... I would prefer a simple 200strike low cost debit spread at a ATM+-200 strike...

This is my own view... I am a conservative trader... not an aggressive one

 

[anildnr]

As sarang said..there are many ways to play with 4 options i.e buy ce , buy pe, sell ce, sell pe. Its not like in this kind of market we need to trade iron condor or spreads etc..only thing we need to make sure is ur positions always should give you credit and time decay should be in our favour. According to this we can adjust our positions in watever way we feel profitable.
As other person mentioned in doing real trading in volatile market..it is very difficult but i m sure its possible thing only

 

[kingkrunal]

I have a trend system which gives good return yearly basis... also this suits my current job engagement as this needs very little involvement... only thing it is too slow...

Is it posted anywhere mate ? I am getting stuck up on time too..

 

[mycall]

Is it posted anywhere mate ? I am getting stuck up on time too..

No brother... I haven't posted it anywhere... I use it for investment purposes... when to buy specially... it is based on mathematical system and gives trending SAR levels... for all stocks, futures indexes... I have choosen some stocks and use it on those...

 

[kingkrunal]

No brother... I haven't posted it anywhere... I use it for investment purposes... when to buy specially... it is based on mathematical system and gives trending SAR levels... for all stocks, futures indexes... I have choosen some stocks and use it on those...

i assume it is proprietary one .. or you can share please

 

[mycall]

i assume it is proprietary one .. or you can share please

Yes it is proprietary one... I can't share it... but I don't have any problem to share the levels... This thread is not appropriate for it....

 

[govindheg]

Hi all,
Thread has become silent suddenly. Hope everyone is fine.
September & October were difficult months for me and SLs were more in numbers than Profits booked.
Would appreciate if some one shares his success story.
Regards