3% Nifty Option Strategies Trade Limited Profit & Loss – TheOptionCourse.com

Today 18-Apr-2018 was a non-trending day for stock markets. See this pic:

Nifty on 18-Apr-2018

See the pic clearly. Till 1.45 pm all intraday traders must be long trying to make quick bucks. But then what happened?

STOP LOSS

I can bet ALL TECHNICAL INDICATORS – those 5 min charts, 15 min charts, 1 hours charts, candle sticks, bollinger bands, Moving average convergence divergence (MACD), and any other indicator that I am missing must be giving only one signal

GO LONG

And then when the trader goes long thanking the technical indicators, the software that they bought for a few lakhs or paying a monthly fees goes bust (fails) all of a sudden. read more

In this post I will discuss some points on how to avoid huge trading losses that most traders suffer almost everyday.

Forcing Yourself To Trade:

This is a BIG Mistake. How many times you have forced yourself into a trade and lost huge money? I am sure many times. And why you do that? To make money or to lose money? If you are losing money then why you force yourself to trade?

Stop Forcing Yourself To Trade

You are in control of trading – neither brokers nor tip providers (if you are taking tips and wasting your money) are forcing you to trade then why you do that on the first place? read more

This is one of the most common question I am asked by most traders since I started this website in 2015. Is It Possible To Become A Full Time Stock Market Trader?

Read this article to know if it’s possible to become a full time stock market trader. Basically if you are a good trader and making consistent profits then yes its possible. By consistent I mean in 6 months of trading you must be in profit of at least 10%. Which means if you can make over 20% a year you can become a full time trader, else its better to continue your job and trade. read more

Bad news of PNB, SBI and Union Bank of India, the war between world’s top two largest countries US and China over trade tariff leading to Japan’s Nikkei, Dow Jones and S&P 500 plunging 5-6 percent each will certainly have an effect on our stock markets as well.

Now based on this opportunity market pundits will start telling different stories in business channels and news portals online. Some will say go short Nifty might see 9600 in days to come, some will say go long Nifty will bounce back soon. Whom to listen? read more

All traders see losing days. I do not think there is a single trader who has never lost while trading options/futures or equities. If you take too much stress then trading is not for you. These days will come for sure, you cannot avoid them. If you get frustrated due to losses you will start doing revenge trading – revenge trading is a sure shot way to lose more in the stock markets. Even if you succeed one one revenge trading it will not bring back all the money lost. This can bring in mental issues. This is the reason I emphasis on hedging all your trades so that even if you lose money it will be small amount that will not bother you much. You can do my course and learn hedging in a proper way plus you will learn strategies to make a monthly income. read more

When a trader begins option trading they are bugged by payoff charts and diagrams. They try to know everything possible under the sun and try to make money. This is mainly with highly educated option traders.

By educated I mean traders just passed out from colleges who have access to smart phones etc. No there is nothing wrong in reading about options or futures or payoff graphs, Greeks etc., but having a wrong assumption about it is wrong.

What is a Payoff Diagram?

A Payoff diagram is a graphical representation of the potential outcomes of a option strategy. What can be the profit or loss and sometimes the success percentage of the strategy. It gives a visual representation of the possible outcome of a strategy if played at that time on a stock or indices. read more

According to most Technical Analysis Indicators, Nifty is now in a sell zone.

Moving averages for 5, 10 and 20 says STRONG SELL, however 50 and 100 says BUY.

So basically you can go short on Nifty for the short term. Success rate is 50%.

Why am I saying only 50%? Because this is what are Technical Indicators.

Technical Analysis Indicators Change Every Hour Every Day

They may also change EVERY Minute, Hour, Day or in a jerk due to the news.

We are not computers that we will keep automatically checking Technical Indicators every second or read news every minute. We have better jobs to do than to stick to our monitors and keep trading and keep changing our positions. read more

Today (Friday, February 23, 2018) is the first day of Mar 2018 derivatives (F&O) expiry and I am sure you will start with a “new plan”. Most speculative traders start their speculative strategies today. So what is you plan? Buy which Call or which Put or sell which Call and which Put? May I know why are you doing this trade? If your answer is “I think so”, then sorry to say you are gambling, not trading.

How many times you have lost money because you took a trade based on “I think so?”. read more

Fear is your biggest enemy in trading. In this article you will learn how to convert your fear into profits.

New traders start with greed but no fear. After a few losses their greed turns into fear and either they stop trading or they reduce the trading size quite considerably.

Stock trading is a calculated risk, people who take calculated risk almost always make money – those who do not take a risk or take too much risk almost always lose money.

If you fear trading you will never trade and never make any money or take a stop loss in panic losing money. Fear is responsible for a lot of mistakes new traders make. read more