Learn what the is difference between Intraday and positional options trading.
Traders start with buying options due to the lure of limited loss and unlimited profits, forgetting that this is only possible if they are good traders. Fact is “limited loss and unlimited profits” is only on paper. I have not met, known or heard in media a single trader who bought a call for 10 and sold if for even 100, forget about unlimited profits.
Even Warren Buffett profits are limited every year. His Compound annual growth rate (CAGR) is just over 22%, but on a multi-million, sorry, multi-billion corpus. Still he went on to become the best stock market investors the world has ever produced.
This is where traders get confused by reading or being told by brokers that buying options is limited loss and unlimited profits. They do not try to know the facts if anyone ever has done it. Only after they start losing money they realize that the phrase, “limited loss and unlimited profits” is only on paper not in the real, stock trading world.
In any case somewhere down the line a buyer has to close the trade some day or the other. Let us assume an option buyer bought an option for 10 and sold it at 100. In this case as well where is the unlimited profit? Fact is once the profit was booked, the trader only made a limited profit of 90 points that is all.
So there is nothing as unlimited profits in any business in the world please get your mindset right before buying an option.
Once they start losing money buying options they start selling options. Then for a small time they see success and get very happy selling the options going worthless on expiry day. At least they are making limited profits. Then one day after three or four months a storm comes and all the profits they made in last 3-4 months plus some capital too is lost.
Traders then get confused. What to do, buy or sell? They are losing money by both buying and selling.
The problem is traders who lose money do not know hedging methods or are not willing to hedge because of greed that if I win I need all the money I made, forgetting that if they, lose they will lose all they made and that day is not far away.
If you study how the HNI (High Net Worth Investors) trade you will see that they always hedge their trades. They have millions of dollars at risk. One bad trade can wipe out millions of dollars. To avoid that they properly hedge their positions. On top of that they are never into Intraday or day trading. The most popular trading method of a novice trader, equity, options or futures.
Day or Intraday trading is a sure shot way of losing time and money. How many Intraday traders have become millionaires? NONE. Why? Because Intraday trading is the worst form of trading even for experienced traders. They know this therefore do not trade Intraday at all.
For example today if an option has been bought for 50, it may close at 40 and the Intraday day trader will take the loss. But the positional trader can carry that position for next 30 days or more until expiry. There can be a chance that that option may go to 70-75 someday before expiry and the positional trader can close the position for profits.
Another benefit of positional trading is it can be hedged, whereas Intraday trading does not need a hedge as it is monitored closely. Positional traders can trade and leave their trades do their job in the background while they continue their job. They can check their trades anytime they want and take their profits out.
This is benefit of positional trading. Grow your income while trading the stock markets and get your salary from your job or make money from your business too.
You can do the hedging options course to learn positional options and futures trading with proper hedging to take the fear out of losing too much money in stock markets.
Hedging works as insurance to protect your capital. When required hedging do their job perfectly to limit your losses. But hedging needs to be done properly. For that knowledge is required, which you can get by doing the conservative options and futures course.
You Can Read More On My Site
Hi, I am Dilip Shaw, owner of this website. I am a trader like you. I have been trading since 2007, but lost a lot of money till 2010. I then stopped trading and studied options like college exams. Started trading again from 2011 and never looked back since. I did a lot of research, read books and did countless paper-trading before being profitable. You can read about me here.
My conservative trading course since 2014 is helping many retail traders just like you who have a job or business make consistent profits like this:
What Traders Say About This Course
Testimonials Year 2015
Testimonials Year 2015 Page 2
Testimonials Year 2015 & 2016
Testimonials Year 2016
Testimonials Year 2017
Testimonials Year 2018
Testimonials Year 2019
Testimonials Year 2020 to 2023
What People Say Just After Reading My Course
Emotional Testimonial by a Young Woman Trader and Her Mother
One Of My Client Is Making Rs.25k Per Week
Difference Between Other Courses And Mine
What Others Charge for Courses
You can do this course from your home. Some traders make amazing profits like Rs. 16.26 lakhs profit in 5 days though results may differ for all.
This course helps you learn to trade conservative option strategies for monthly income. Once you finish the course you can start trading immediately. You can start trading from any day. No need to wait for expiry. You will make profits consistently.
This course is good if you have a regular job or business. You DO NOT NEED to monitor your trades every second.
What You Get?
Before reading please understand that for all 5 strategies, strike selection will be taught. Strike selection while trading Options is the most essential part to succeed.
You get two conservative non-directional strategies on options, one conservative stock option strategy and two conservative directional strategies on Future & Option combination.
Non directional trades are profitable 80% of the times and make 3-5% per trade (Results may vary).
Directional strategy makes money fast. It does not matter which side the stock moves. In fact you make more when you are wrong in the Future trade. 🙂 Some amazing profits possible here.
The stock option trade makes 30,000 in one trade and if SL is hit there is a way to recover losses plus make 30k in that trade.
Technical knowledge is NOT required. No need to monitor trades every second.
In the course you will learn how to select the strike prices. You learn when to trade, which strikes to sell which to buy, how much profit target you should be looking for, the best place to take stop loss and what to do after taking stop loss – means how to get that money back. The success rate is more than 80%.
Since trades are properly hedged there is no stress in trading my strategies.
I am very confident that you will make money trading my strategies. To help you succeed I offer few months support for FREE.
11 Reasons Why You Should Do The Course:
1. TA Knowledge NOT required
2. NO Software Required
3. Regular Monitoring NOT Required
4. Continue with Your Job
5. Do Course From Your Home
6. 100% Hedged
7. Stress-Free Trading
8. Not too much money needed to trade
9. Scaling Possible
10. One Time Fee
11. FREE Support For Months
To know more Call/SMS/WhatsApp me on 9051143004 or email me now. I know English and Hindi.
Read the details of the course here.
If you want to enroll for the course you can do so here.
P.S: So many years of trading has thought me one thing - it is always better to make small profits month after month, rather than lose money month after month trying to make too much money. It never happens. But small money accumulated month after month can become very big in only a few years.
WhatsApp or Call me: 9051143004
If you have any question you can contact me.
You can read about me here and my trading mistakes here.
Dilip Shaw, Founder
Copyright Infringement: Any act of copying, reproducing or distributing any content in the site or newsletters, whether wholly or in part, for any purpose without my permission is strictly prohibited and shall be deemed to be copyright infringement.
INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However every trade depends on the trader and his level of risk taking capability, knowledge and experience. Moreover stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website.
DISCLAIMER: I am NOT an Investment Adviser (IA). I am an Authorized Person (AP) of a Stock Broker. In other words I am a sub-broker. I DO NOT give tips or advisory services by SMS, Email, or WhatsApp or any other forms of social media. I strictly adhere to laws of my country. I only offer education for free on finance, risk management & investments in stock markets through the articles in this website. You must consult an authorized Investment Adviser (IA) or do thorough research before investing in any stock or derivative using any strategy given in this website. I am not responsible for any investment decision you take after reading any article in this website. Click here to read the disclaimer in full.