vanathi

Trader's Queries - Trading Index Options

Education
NSE:CNXINFRA   NIFTY INFRA
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/
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.