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

[rsvaas]

Hi Everyone,

I am following this forum for last 4 years and this is my first post.

I was a software engineer by profession and worked in the filed for 12 years. Finally I quit my job in Jan 2017 and started full time trading.

I am into trading for last 9 years, mostly options trading.
In the beginning of my trading career I used to buy options mostly. Some times I win and some times i lose.

After accumulating enough capital from my job earnings, I quit my job last year and started trading.

Since Jan 2017,, I am able to generate consistent income by writing options. In the last FY 2017-2018, I am able to generate profit more than my last annual salary.

Its mostly Nifty current month options and BN weekly options and occasionally stock options.

To be continued..

Great Going!. Inspired by your success story. I am also trying the same for the past 6 months and is profitable. I am now concerned about F&O restrictions on retail traders by SEBI. What are your views. Whether small traders will be allowed to continue?

 

[amrutham]

@amrutham - Claps for you.

I find your story Inspiring. I am also someone like you who has worked in IT Industry from last 10 years.
Want to become a full time trader by End of 2020. I have just started from september 2017, and am a newbie. Read Books on technical Analysis , try my hands on Amibroker etc etc. Watch youtube videos and learning a lot.
I always wondered are there people who really trade for the living ? You gave me answer

Wishing you all the best in coming future and keep all of us motivated by your success.

N.B. - I read the rediff article shared by you its really inspirational. God bless the girl.

Regards,
Adi.

Adi,

Thanks and all the best to you.

Even though circumstances are different from person to person, I will list out the things I have done before starting this journey.

1) I started my career in 2004 and I postponed my home buying until 2014 and stayed in rented house and invested the surplus money stocks, MF and agricultural lands.
Finally when I bought my house in 2014, I bought a 2 BHK Flat in a medium budget and comparatively low home loan EMI.

2) If your spouse is working then it will be a great advantage. In my case my wife is a home maker and takes care of kids.

3) I put money equal to 2 years of living expenses aside in safe investments. This is to make sure I should not be forced to withdraw money for living expenses when I am in loss and also to use the power of compounding. This would greatly reduce your stress levels.

4) When you have reasonable amount of capital and not so high living expenses, you do not need to take big risks and can follow relatively safe strategies.


Keep trading. Cheers.

 

[punam.fintrade]

Thanks Amrutham,

Thats great you shared your journey.

I am from engineering background, left my job to do MBA so that I could get into Investment banking, but had to come back to IT as no Investment Banks were ready to take me after 3 yrs of IT experience.

Within 2 years of MBA ( From one of the very well known Business School ) I learnt about fundamental analysis but not about technical analysis, never knew name of any Technical Indicator. And yes my Specialization was Finance and Risk Management. Since, I had not got any job in IB, I thought I could never live my dream of Stock Market.

But, after so many years in 2017, I was watching a video on YouTube ( MarketGurukul ) and accidentally came across 'Technical Analysis' and then downloaded and read a book on same topic from John Murphy. Which made me feel I could do so.

I already have a housing loan with large EMI, but I believe I would be able to payoff with help of my family in next 3 years. After an year, If I am consistently able to generate profits , I dream of becoming full time trader by EOY 2020.

Regards,
Adi.

 

[pannet1]

hello @amrutham,

i was reading your posts. feels like ..... you don't need anyone's advice. it is really relieving to see another successful trader.

1) you are basically buying your favourite stocks at discount by shorting the PE. i hope they are far OTM
2) butterflies on expiry looks good (manageable delta)

i am trying to put some food for your thoughts .. thats all .. iam no expert here.

on the above points.
1) our indian stock market takes lot of margin from us ... for the little earnings we get out of shorting (naked) making the risk outweigh the reward.
2) if possible select your strikes and lots so that you are positve or negative delta, in case of calls (you buy one call more than the lots you are short).

you are well capitilised which is a huge plus. the way you planned your house, i am sure, you are going to remain in this game for long (and successful).

good luck.

 

[amrutham]

Trades opened today for Apr 05 Expiry.

Long BN 24200 CE 400 Qty @238
Short BN 24300 CE 400 Qty @182
Short BN 24700 CE 400 Qty @48

Total debit : 3200

Will carry these positions till expiry.

Plan of Action : If BN breaks 24500, then close 24700 CE and Short 25000CE
If BN breaks 24000, then close 24700 CE and Short 24500CE



Overnight short positions of 23500PE @34 and 24800CE @ 40 are closed with profit.

 

[amrutham]

Trades opened today for Apr 05 Expiry.

Long BN 24200 CE 400 Qty @238
Short BN 24300 CE 400 Qty @182
Short BN 24700 CE 400 Qty @48

Total debit : 3200

.

Closed all the positions. Net profit around 12k.

 

[amrutham]

New positions taken for tomorrow's expiry.

Long 24700PE 200 Qty
Short 24500PE 600 Qty
Long 24400PE 400 Qty

Long 24600CE 640 Qty
Short 24700CE 1280 Qty
Long 24800CE 640 Qty


Total debit : Around 10000

Max Profit : If BN expires between 24500 and 24700
Max Loss : Initial debit value of 10K

 

[pannet1]

Closed all the positions. Net profit around 12k.

if possible please provide premium at the time of closing. Hope i am not asking too much. Sorry if I am.

 

[traderniftybull]

New positions taken for tomorrow's expiry.

Long 24700PE 200 Qty
Short 24500PE 600 Qty
Long 24400PE 400 Qty

Long 24600CE 640 Qty
Short 24700CE 1280 Qty
Long 24800CE 640 Qty


Total debit : Around 10000

Max Profit : If BN expires between 24500 and 24700
Max Loss : Initial debit value of 10K

How much margin, did you pay for trade 1 and trade 2, individually.
At what rates you bought calls and puts
Max loss is calculated for both trades. Right
What will be the profit if BN expires, say at 24600

 

[amrutham]

if possible please provide premium at the time of closing. Hope i am not asking too much. Sorry if I am.

Sure. Will include premium values from next time onwards.