How to get profit by option chain in trading For long calls: If the underlying is above the strike price on expiration, the profit is the underlying price on expiry – strike price – premium paid per contract. If the underlying is at or below the strike price on expiration, the option has no value so your loss is the premium paid to buy the call option.
Options trading can be one of the most lucrative ways to trade in the financial markets. Traders only have to put up a relatively small amount of money to take advantage of the power of options to magnify their gains, allowing them to multiply their money many times, often in weeks or months.
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What is Option Chain ?Options chain can be defined as the listing of all option contracts. It comes with two different sections: call and put. A call option means a contract that gives you the right but does not give you the obligation to buy an underlying asset at a particular price and within the option's expiration date.
How does an option chain work? An option chain displays available call and put options for a specific underlying asset, with their strike prices, premiums, and open interest. It provides a snapshot of market sentiment and potential price movements.
TECHNICAL CLASS of trading Technical trading is a broader style that is not necessarily limited to trading. Generally, a technician uses historical patterns of trading data to predict what might happen to stocks in the future. This is the same method practiced by economists and meteorologists: looking to the past for insight into the future.
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Technical Trading Made Easy: Online Certification Course.
Stock Valuation Made Easy.
Candlesticks Made Easy: Candlestick Pattern Course.
Options Trading Made Easy: Options Trading Course.
Commodity Markets Made Easy: Commodity Trading Course.
OPTION TRADING When you trade options, you're essentially placing a bet on if a stock will decrease, increase or remain the same in value; how much it will deviate from its current price; and in what time those changes will occur. Based on those parameters, you can choose to enter into a contract to buy or sell a company's stock.
You don't need a considerable sum of money to become an options trader. You can start small with a capital of less than Rs 2 lakhs too. However, as you start small, you need to be a careful trader so that you can cut down on the possibility of losses and enhance the return potential of your trades.
DATABASE TRADING Trading data providers supply real-time and historical information relating to stocks and securities traded on various global financial exchanges. Opah Labs. Based in USA. Delivering deep proprietary industry data across a broad range of sectors to create cutting-edge insights.
Stock exchanges and data vendors are great sources for institutions. Retain traders can use broker APIs as it's more economical. As a trader, you must be quick and analytical, and good-quality data is the way to go
Relative Strength Index (RSI) IndicatorThe relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security's recent price changes to detect overbought or oversold conditions in the price of that security. The RSI is displayed as an oscillator (a line graph) on a scale of zero to 100.
RSI readings below 30 signal buy opportunities, indicating the asset is undervalued. Conversely, RSI readings above 70 signal sell opportunities, suggesting the asset is overvalued. A value of 50 signifies a balance between bullish and bearish positions or a neutral stance.
PROFESSIONAL TRADAER ( point of view )A professional trader is someone who buys and sells securities frequently for short-term benefits. An investor generally buys and sells securities for long term capital gains and dividends.
What is a professional trader? A professional trader is a person who works in finance and engaged in investing as a business or in a full-time role rather than occasionally or as a hobby. They may work for themselves, at a trading company, at a wealth management firm or as a freelance trader for individual clients.
The estimated total pay for a Trader is ₹13,41,500 per year, with an average salary of ₹8,41,500 per year. This number represents the median, which is the midpoint of the ranges from our proprietary Total Pay Estimate model and based on salaries collected from our users.
Technical analysis MACDMACD is a momentum indicator, which follows trends and belongs to the oscillator family of technical indicators. It permits you to: According to the relationship between two moving averages, determine the current trend direction (bullish or bearish) and forecast where the price is more likely to go.
The 12 represents a moving average of the previous 12 bars. The 26 represents a moving average of the previous 26 bars. The 9 represents a moving average of the difference between the two moving averages above.
Divergence in Trading What is Divergence? Divergence is when the asset price moves in the direction opposite to what a technical indicator indicates. When a stock is diverging, it signals weaker price trends and the beginning of a reversal
Seeing divergence increases profitability by alerting a trader to protect profits. Technical traders generally use divergence when the price moves in the opposite direction of a technical indicator.
Strong divergence is the most reliable type of divergence, often signaling a significant reversal. It occurs when the price makes a new high or low, but the indicator fails to do so, indicating weakening momentum.
Advance database trading Stock exchanges and data vendors are great sources for institutions. Retain traders can use broker APIs as it's more economical. As a trader, you must be quick and analytical, and good-quality data is the way to go
Paper trading, also known as virtual trading or simulated trading, is a practice that allows beginners and experienced traders alike to simulate the process of buying and selling financial assets, such as stocks, without using real money.
MARKET SEDUCES YOU AND THEN ABUSES YOUIf you’ve been trading for a while, you’ve likely experienced the bittersweet relationship every trader has with the market. It's alluring, promising wealth and freedom, but just when you think you're in control, it turns around and shows you who's boss. If you ask me, the market is like that one girl (or guy) who seduces you with charm, only to leave you questioning every decision when reality sets in. Let me explain.
The Seduction: The Perfect Setup
Every trader starts their journey starry-eyed. Charts look predictable, patterns seem reliable, and the idea of making money feels as simple as "buy low, sell high." You see a bullish setup—a textbook breakout or a pristine reversal—and your confidence skyrockets.
The market whispers sweet nothings:
"You're smart."
"You’ve got this figured out."
"This trade is the one that will change everything."
Your heart races as you enter the trade, convinced that profits are just a formality. The charts, like a perfectly written love letter, pull you in deeper.
The Abuse: The Sudden Betrayal
And then it happens. That perfect setup? It fails. Your stop-loss gets triggered, or worse, you hold on as the market spirals out of control, dragging your account with it. The promises of wealth turn into whispers of regret:
"Why didn’t you see the signs?"
"You should’ve exited earlier."
"You’re not cut out for this."
The very market that lured you in with promises of riches now mocks you with losses. Your emotions swing wildly—frustration, regret, even self-doubt.
The Cycle of Hope and Hurt
What makes the market truly intoxicating (and dangerous) is its unpredictability. Just when you're ready to walk away, it offers another chance—a new setup that looks even better than the last. It reels you back in, and the cycle repeats.
The seductive charm of the market lies in its ability to make you believe you’re in control, only to remind you of its dominance when you least expect it. It tests your patience, discipline, and ego like nothing else.
How to Survive the Relationship
To thrive in the market, you must treat it with respect and caution, like a volatile relationship:
1. Detach from Emotion: Avoid getting too attached to any single trade. The market owes you nothing.
2. Have Clear Boundaries: Use stop-losses and position sizing to protect yourself. Don't give the market more than you're willing to lose.
3. Stay Humble: Overconfidence is the market's favorite weakness to exploit. Stay grounded and stick to your plan.
4. Learn from the Pain: Losses are inevitable, but they’re also lessons. Reflect and adapt after every setback.
The Market Is What You Make It
While the market can seduce and abuse, it’s ultimately neutral—it’s neither good nor evil. The key is in how you approach it. Treat it with caution, embrace the uncertainty, and remember: no one trade will make or break your career.
Trading isn’t just about winning; it’s about surviving. So, the next time the market flashes its charm, remind yourself: looks can be deceiving. Stay vigilant, and don’t let its allure blind you to the risks.
how to use ADX The ADX is widely used and is considered by many traders to be very reliable as a gauge of trend strength. Traders can easily alter the time period to meet their
ADX below 20: Non-trending or consolidating.
ADX crosses above 20: A new trend may emerge.
ADX crosses 25: Confirmation of the trend.
ADX above 40: Strong trend.
ADX crosses 50: Extremely strong trend.
ADX crosses 70: A rare occasion.
Lecture for option trader Derivatives - Options & Futures: Interactive Brokers.
Practical Guide to Trading: Interactive Brokers.
Trading Strategies in Emerging Markets: Indian School of Business.
Financial Engineering and Risk Management: Columbia University.
If you think the stock price will move up: buy a call option, sell a put option. If you think the stock price will stay stable: sell a call option or sell a put option. If you think the stock price will go down: buy a put option, sell a call option.
Database information for traderCandlestick charts are perhaps the most widely used among active traders. In some ways, candlestick charts blend the benefits of line and bar charts as they convey both time and impact value. Each candlestick represents a specific timeframe and displays opening, closing, high, and low prices.
Price Data: Real-time and historical prices of stocks, commodities, and currencies.
Volume Data: Details on traded quantities within specific timeframes.
Order Book Data: Insights into buy and sell orders at different price levels.
Market Timestamps: Precise timing of trades and market events.
Option trading // Options are a type of contract that gives the buyer the right to buy or sell a security at a specified price at some point in the future. An option holder is essentially paying a premium for the right to buy or sell the security within a certain time frame.
When options are better. Options can be a better choice when you want to limit risk to a certain amount. Options can allow you to earn a stock-like return while investing less money, so they can be a way to limit your risk within certain bounds. Options can be a useful strategy when you're an advanced investor.
Class for option trader In summary, here are 10 of our most popular options trading courses
Derivatives - Options & Futures: Interactive Brokers.
Practical Guide to Trading: Interactive Brokers.
Trading Strategies in Emerging Markets: Indian School of Business.
Financial Engineering and Risk Management: Columbia University.
The course provides students with an understanding of the derivatives markets (futures and options) and how they are traded. It also explains the construction and applications of payoff diagrams, and introduces a number of options trading strategies.
RSI trading RSI readings below 30 signal buy opportunities, indicating the asset is undervalued. Conversely, RSI readings above 70 signal sell opportunities, suggesting the asset is overvalued. A value of 50 signifies a balance between bullish and bearish positions or a neutral stance
In the chart below, RSI is the blue line in the section below the S&P 500 price. Low RSI levels, typically below 30 (red line), indicate oversold conditions—generating a potential buy signal. Conversely, high RSI levels, typically above 70 (green line), indicate overbought conditions—generating a potential sell signal.
Option chain and full knowledge about tradingAn option chain lists all option contracts, including put and call option for given security. However, several traders focus on net change,' 'bid,' 'last price,' and 'ask,' columns to assess current market conditions. Option chain is also called the option matrix.
Options trading is a type of financial trading that allows investors to buy or sell the right to purchase or sell an underlying asset at a fixed price, at a future date. Options trading operates on the basis that the buyer has the option to exercise the contract but is not under any obligation to do so
Technical concepts in trading Technical analysis is a means of examining and predicting price movements in the financial markets, by using historical price charts and market statistics. It is based on the idea that if a trader can identify previous market patterns, they can form a fairly accurate prediction of future price trajectories.
The 3 5 7 rule is a risk management strategy in trading that emphasizes limiting risk on each individual trade to 3% of the trading capital, keeping overall exposure to 5% across all trades, and ensuring that winning trades yield at least 7% more profit than losing trades
Trading will BREAK YOUR BACK more than you can IMAGINETrading Will Break You Before You Master It: A Trader's Journey
Trading in financial markets can be one of the most rewarding yet humbling pursuits one can embark on. Beginners often enter the arena with dreams of quick riches and freedom, but they soon discover that trading is a brutal teacher. Before you "get the knack of it," trading will break your back—financially, emotionally, and psychologically.
Here’s why that happens, and how you can turn the pain into progress:
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The Painful Reality of Trading
1. Emotional Turmoil
Trading is more than analyzing charts or following strategies. It’s a test of your emotional resilience. The markets are unpredictable, and every trader faces losses. Fear, greed, and frustration often overpower logic, leading to impulsive decisions and repeated mistakes.
2. Financial Losses
Even the most experienced traders lose money. For beginners, losses can be especially devastating because they often lack risk management skills. The pain of watching your hard-earned capital disappear is a reality every trader must face.
3. Overconfidence and Humility
Success in early trades can foster overconfidence, which leads to riskier behavior and eventually to significant losses. Markets have a way of humbling even the most confident traders, forcing them to rethink their approach.
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Why Persistence is Key
The difference between successful traders and those who quit lies in how they respond to setbacks. Every loss is a lesson, and every mistake offers an opportunity to refine your strategy.
1. Building Resilience
Trading is a long-term game. Emotional resilience comes from understanding that losses are part of the process. Developing a mindset focused on improvement, rather than perfection, is crucial.
2. Learning Through Failure
Each failure teaches a valuable lesson. Perhaps you risked too much on a single trade or ignored a key indicator. Analyze every loss with a critical eye and adjust your strategy accordingly.
3. The Power of Discipline
Successful trading requires discipline—following your strategy, managing risk, and knowing when to exit a trade. This discipline doesn’t come naturally; it’s forged through repeated experiences, both good and bad.
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Tips to "Get the Knack of It"
1. Start Small
Begin with small positions to minimize risk. This allows you to learn without the pressure of significant financial losses.
2. Focus on Education
Study the markets, technical analysis, and trading psychology. Books, courses, and mentorship can accelerate your learning curve.
3. Keep a Trading Journal
Document every trade—why you entered, your strategy, and the outcome. Reviewing this journal helps you identify patterns in your behaviour and performance.
4. Develop a Risk Management Plan
Never risk more than you can afford to lose. Use stop-loss orders and position sizing to protect your capital.
5. Practice Patience
The markets are always there. Avoid the temptation to chase trades. Wait for setups that align with your strategy.
Conclusion
Trading will break you before it makes you. The journey is riddled with failures, but each one brings you closer to mastery. By embracing the process, learning from mistakes, and maintaining discipline, you can transform setbacks into stepping stones.
Remember, trading is not about winning every trade; it’s about being consistent over the long term. Success comes to those who endure the grind, adapt to challenges, and persist despite the pain
RSI part 2 RSI Indicator: Best Settings for Day Trading Strategies
Short-term intraday traders (day trading) often use lower settings with periods in the range of 9-11.
Medium-term swing traders frequently use the default period setting of 14.
Longer-term position traders often set it at a higher period, in the range of 20-30.
To use the RSI indicator, check if the value is above 70 to show an asset is overbought, or below 30 to show it is oversold. Traders can use these signals to find possible trading opportunities
26:59 Become a Profitable TraderExpectation management and risk
And to make a lot of money, traders have to take on a lot of risk. High levels of risk usually lead to margin calls and traders losing a lot of money. Therefore, in your beginnings, you should practice risk management and especially position sizing.
Few Important Information about tranding Few Important Information about tranding
Trading refers to the process of buying and selling financial assets, including stocks, bonds, currencies, and commodities. Trading is done with the explicit goal of making profits from price changes in the short term.
Trading involves the buying and selling of financial assets, such as stocks, to earn profits based on the price fluctuations of these assets. There are different types of trading, and traders use various strategies, techniques, and tools to decide when to buy or sell different assets