vanathi

Trader's Queries - Trading Index Options

Education
NSE:CNXINFRA   NIFTY INFRA
1162 views
68
This is one of the most asked queries. It resembles the doubt in many newbie traders mind.
Query: I have a small capital “Y” amount. If I trade in stocks, my profit will be 0.1 to 0.5 % of my capital. But index options are cheap. And it has the potential of giving more than 10% profit of my capital in few trades. But I keep on losing money. What to do?
Let us see the different scenarios.
Factors to consider:
Understanding the price movement.
Emotional balance.
Flexibility and adaptability.
Person A is a newbie trader with 1 to 2 years of experience in trading. He get tensed during live market and unable to take right trading decisions which results in losing the capital.
Person B has more than 2 years of experience in trading. He can understand market movements, but lacks the flexibility in trading which results in losing money.
Person C is an experienced trader and he is good in understanding market & has the ability to adapt any market situations. He makes more than 10% profit in few trades consistently.
Experience in trading is important in deciding profit. That too in index options. Any one can make money in share market if he develops the qualification for it.
Success Log.For live maket analysis follow me in telegram. https://t.me/Analysis4Newbie
To learn about system trading, https://neomechanicaltrader.home.blog/

Comments

You would succeed well in training .
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hi madam, can you please help us in giving training
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Very helpful for traders. Need more guidance on trading the options. Though I have learnt that buyers of options are always at disadvantage visa vis sellers of Options.
Leaving aside the Capital required , which is better to trade futures or options. Options are affected by various Greeks ,mainly the decay of premiums .Please tell us what is preferable Index options or Index Futures. Or is it it is better to sell OTM options .
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I lost my lots of capital but I learnt from that.
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love to hear these words ❤️ I'm.beginner focusing on learning
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vanathi munadutta
@munadutta, Learning is good.
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One must learn price action and the theory of options trading before entering into index option trading.
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vanathi kapil_dixit
@kapil_dixit, Yes. Learning is a must.
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Ma'am , Your guidance and opinion is very honest and applies to everyone. The first time I traded with options I lost heavily. Then I started buying or selling just 1 lot of index options. The loss or profit I gained was minimal but, it helped me understand the market movement. Now, I have the confidence to trade with options.
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vanathi Study103
@Study103, Thats the right way. Thank you for the kind words.
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