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6 Steps to Learn Options Trading

Here are 6 steps to learn options trading. Please note that reading may be easy but implementing needs patience, hard work, commitment, money, time and energy:

Step 1: Read about options basics first here:
Options Greeks Explained Delta Gamma Theta Vega Rho

Step 2. Read 3 times the above page so that you learn the Option Greeks by heart.

Step 3. Then watch one At The Money (ATM), either Call option (CE) or Put Option (PE), move with the stock for one hour at least.

Step 4. Do this for 3 days – same stock, same time, without a break in between. read more

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What You Should Trade Stock Markets Year 2023

In the year 2022, we witnessed a lot of things. End of Covid 19 in India and start of War in UkraineStock markets recovered and hit an all-time high. But is your portfolio all-time high?

Next year not sure what will happen.

But one thing will remain in common for both 2022 & 2023 and beyond – 99% of traders lose money. 🙁

Do you know why this happens?

Because there is average knowledge and zero financial planning.

“Risk comes from not knowing what you’re doing.” – No not told by me, but by the greatest investor of all time – Warren Buffett. If you are losing money trading you are doing exactly this. read more

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What is Nifty Option Chain NSE in Details

Since I started this website in 2014, the most asked question was related to the Nifty Option Chain NSE (National Stock Exchange). A lot of traders see the options chain before taking a trade. In this post, you will learn how to read, understand and interpret the option chain. I will explain the option chain of NSE available here:
https://www.nseindia.com/option-chain

In short, an option chain will show the LTP (Last Traded Price) of the options of a particular expiry of a stock/index. You can change the expiry date or the stock to see the options chain of that stock’s expiry. read more

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How To Trade Intraday With Help From India VIX

This article is part of my newsletter sent to my subscribers. If you do not want to miss a post you can subscribe above.

I also wrote earlier in my blog that India VIX and Nifty movement are inversely proportional. You can read that post here:
https://www.theoptioncourse.com/nifty-and-india-vix-are-inversely-proportional/

What is India VIX?

India VIX is a volatility index based on the NIFTY Index Option prices. From the best bid-ask prices of NIFTY Options contracts, a volatility figure (%) is calculated which indicates the expected market volatility over the next 30 calendar days. You can read more here: read more

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How to Guess Sensex and Nifty Share Price Today for Intraday

This article was published on Thurs, 01-Sep-2022

Traders do a lot of speculative trading in the US as well as here in India. 70% of these trades in either options or futures are intraday. I asked a few of my customers why they trade only intraday – most of them replied the same. We do not want to take the overnight risk with our money. They were afraid of gap up or down opening the next day.

Well, there is nothing wrong with being afraid of the gap opening the next day, but most traders do not know that if they hedge their trades, the gap opening will not damage the position. The hedged trade works like a sword to protect the losses from the actual trade. read more

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Why Do Markets Fall On Rate Hikes By The Banks

This post was sent as a newsletter to my subscribers on Monday, 22-Aug-2022. The topic is – Why Do Stock Markets Fall On Rate Hikes By The Banks?

I wrote this topic because today (22-Aug-22) there was a fall in stock markets:

Image source: Rediff.com

The reason for this fall?

Reason 1: Central bankers worldwide including in India are aggressively doing rate hikes – this in turn is pushing the markets into negative territory. Source: https://www.businessinsider.in/stock-market/news/markets-are-entering-an-era-of-global-multi-year-interest-rate-hikes-to-combat-inflation-societe-generale-says/articleshow/93645531.cms read more

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A Full-Time Trader Should Become Very Conservative

On Friday, July 22, 2022, I received a testimonial from one of my clients in Bangalore. He took retirement (Voluntary Retirement Opportunity (VRO)) from his job and switched to full-time trading. And he started reading my strategies. 🙂

Read above – he started reading the course. So happy that in 2022 when Youtube has taken over in almost every aspect of life – from listening to music to watching shows & movies to knowledge on everything – my strategies are something my clients look back to. This is clear that he too must have tried some strategy seen on Youtube – but later realized that it’s all not worth the time. read more

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Learn How to Start Investing in U.S.A Stock Exchanges

This page has information on all the major U.S / U.S.A Stock Exchanges, how a person can start investing in them, and possible returns.

Before naming the major stock exchanges in the US I would like to discuss what happens in the US stock exchanges.

Important Information on Stock Exchanges (Applies to all stock exchanges in the world):

When you buy a company’s stock you become one of the owners of that company and are fully entitled to get the benefits of that ownership. Do not get too excited, you are only a part-owner and your rights and benefits are limited to the number of shares in percentage terms you own. For example, if a company declares a dividend of 100 dollars to be shared among its shareholders and suppose there are only 100 stocks of that company floating in the market and you own just one share, then you will get one dollar as a dividend. One share of 100 is 1% therefore the dividend you will receive will also be one percentage. read more

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How to Profit in a Stock Market Crash

As I am writing this on Monday, June 20, 2022, Sensex and Nifty are at the lowest level this year 2022. Not sure that it will go down further, but one thing is for sure it will move up someday, it’s just a matter of time. Here is the Nifty live chart at 1.46 pm on 20-Jun-2022 – Source: Google:

From 18,000 levels down to 15,300 levels. That’s a decline of 13.18% this year. Is this good? No, it isn’t good for short-term equity investors, but it’s just another day for long-term equity investors – this kind of volatility they have seen many times. read more

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Lessons From Warren Buffett Letter to Shareholders

Below are some of the lessons an Investor should learn from Warren Buffett’s letter to shareholders. I have sourced this article from many authentic websites. I have written the most important points that an investor should learn.

1. Economic Moat Keeps Changing of a Company:

What is Economic Moat?

“Economic Moat” is a long-term competitive advantage that a company holds that allows it to protect its market share and profitability. A company with a strong moat possesses a competitive advantage that is both strong and sustainable. The most effective moat is the Brand Name. For example SONY, SAMSUNG & LG charge a higher price than their competitors just because they can easily leverage their brand name in electronics items like Smart TVs, Music Systems, Refrigerators etc. read more

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