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

Subhadip

Well-Known Member
#21
Current Open Trades for Stock Options for April Expiry:


Sold 1 lot SBIN 230 PE at 2.8 . Total Premium Received : 8400

Plan of Action : If SBI closes below 230 by expiry, then take loss for the option position and roll over the contract to May for the same premium.
If it losses in the month of May also and goes below 200, I may convert it into equity by buy 3000 shares of SBI at the time and use covered calls from there on. If it closes above 230, then keep the premium.

Sold 1 lot PNB 80 PE at 1.1 . Its already fallen so much and if it falls more same plan of action as above.

Sold 1 lot INFY 1200 CE at 15 . This is a covered call as I already hold shares.
be careful.....sold PE....
 

amrutham

Well-Known Member
#22
I got shivered after seeing your trades. You are playing with options that also on sell side. Hats off to you. Must be holding good capital to trade.
I am constantly trying to reduce the naked options and checking other strategies where risk is limited and known upfront. Will see what effect it will have on my ROI.

Since I had this plan of doing full time trading in my mind for the last 4-5 years, I had saved good amount of capital.
 

jagankris

Well-Known Member
#24
I am constantly trying to reduce the naked options and checking other strategies where risk is limited and known upfront. Will see what effect it will have on my ROI.

Since I had this plan of doing full time trading in my mind for the last 4-5 years, I had saved good amount of capital.
What is your ROI in the last one year of trading ?
 

amrutham

Well-Known Member
#25
This is where it all started.

During initial months of 2009, one day in office I was going through Rediff website and cam across this article in getahead section.

http://www.rediff.com/getahead/2007/sep/20pras.htm

Till then I didn't know anything about futures and options and used to only invest in PPF and ELSS funds.

After reading this article, I started reading about futures and options and opened a demat account with icici direct.

Most of my trades in the first couple of years were long option trades only.

The brokerage I used to pay at that time was around 107 rupees for one lot of nifty.o_O

One good trade I remember was during election results 2009, I was long both Nifty CE and PE and market went upper circuit and I made more than 40000 on that day. It was huge amount at that time for me and I lost it in subsequent months in the form of brokerage and some silly mistakes.

Once I started trading with discount broker, I got confidence that trading can be done full time.

One major difference I can see in my trading style is, in the beginning days I used to take profit very fast and let the losses running in the hope that the trade will turn around, But most of the times it didn't . Nowadays I am very quick to close/adjust losing trades and let profitable trades run.

One more thing that helped me is book "Trading for Living" by Alexander Elder. I read it almost 10 times. There is a audio book version also on Youtube.
 
#28
@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.
 
#30
@badarivt - I have just read about it, never dealt in Options Writing till now .. statistically writing option has greater chances of profit making. And if you believe in " Max Pain Theory " you know your answers why.

Here is how optionspain.com formally defines Option Pain – “In the options market, wealth transfer between option buyers and sellers is a zero sum game. On option expiration days, the underlying stock price often moves toward a point that brings maximum loss to option buyers. This specific price, calculated based on all outstanding options in the markets, is called Option Pain. Option Pain is a proxy for the stock price manipulation target by the option selling group”.

Regards,
Adi.
 

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