Option & Future Conservative Hedging Courses
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As soon as a trader enters the world of Options the first thing that comes in their mind is to buy options.
These are the reasons they start off by buying options as told by brokers, or friends or reading in websites:
1. Option buy has low risk – It is a myth. Agreed you can buy an option for less than 100 rupees but do not forget that it does not guarantee that it will make money. That 100 rupees can become ZERO. There is no business in the world where you buy something then there is a possibility of losing 100% of the money on it. Low risk if combined for one year can be very high risk. Ask any three year experienced option buyer how much he lost. I bet the average will be more than 1 lakh rupees.
Low risk is to lure option buyers to buy options.
2. Option buy has unlimited profits – This is only in theory. Have you ever heard of an option buyer who started with 500 rupees and went on to make 5 crores. Unlimited profit right? so why stop at 5 crore, why not 10 crore or even 100 crore?
Nobody has ever done that, no one will ever do that.
In reality option buyers book profit at some stage. This they call as target. There is nothing wrong in keeping a target for stop loss and profit because this is how this business is done, but then when there is a target to book profits and exit where does the word unlimited come from.
Beware of this myth of limited loss unlimited profits of buying options.
3. Best option trade in the world is to buy both at the money call and put because if the stock moves down out will make money and if the stock goes up call will make money – This is actually one of the worst option trades in the trading history.
In that case why not every option buyer does that? I mean buy both calls and puts of the same stock and keep laughing all the way to the bank every month?
Why this does not make money?
Do not forget that options do not come for free. What an option buyer pay for is the premium built inside the options.
At The Money options have the maximum time value built in them. And statistics suggest that most trading is done in ATM – at the money options, which has the maximum time value.
Last 10 days time value of options evaporates like melting ice. Time value evaporation means money getting evaporated in the sky. This is like throwing money.
Greedy traders who want to take advantage of movement in last 10 days actually buy options during last few days only. Imagine the kind of risk they are taking. It is like putting their money on fire.
Sure sometimes option buyers get lucky here and there, but long term they lose money. The real reason is written above – options slightly overpriced compared to the expected move of a stock. Overpriced means Theta and Vega is added to their pricing.
I hope now it is clear why most of the times option buyers lose money even if they buy both long calls and puts.
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What you should do now1. If you have still not subscribed for my free 5 days course you can do by filling the form above. You will learn a lot about option trading.
2. If you are a new option trader, not much experienced and are making losses you can do my paid course. I recommend Nifty Conservative Option Course for beginners because it is easy to understand and easy to trade. Even a 18 year old young trader or a housewife can learn it and start trading from next day. It will help you to earn consistent monthly income without any software or speculation or stress or big risk. You will learn proper hedging strategies that works in any market condition.
3. If you are banknifty weekly options trader you can do my Bank Nifty Weekly Options & Futures Strategy Course. You will learn future and option hedging strategies that works in volatile market condition.
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Course fees: Click here to know the course fees.
Here is complete process of my course1. Once you pay I will send you the course materials for studying to your email.
2. You read and ask me questions via phone/whatsapp/email to clear doubts.
3. Then you start paper trading and still can ask me questions.
4. After about one month you can start trading.
5. Since doubts can come anytime the support will be there for one year.
Within one month you can start trading on your own. No need to depend on anyone once you are on your own.
If you have any question you can contact me.
You can read about me here and my trading mistakes here.
Dilip Shaw, Founder
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. Please note that I DO NOT give tips or advisory services by SMS, Email, or WhatsApp or any other form of social media. I strictly adhere to laws of my country. I only offer education on finance, investments on stock markets in the best possible way as much as I can through this website. Still, you must consult an authorized advisor or do thorough research before investing in any stock or derivative before trading any strategy given in this website. I am not responsible for any investment decision you take after reading any article given in this website. Knowledge is the only way to get success in stock markets. I try my best to give stock market investing and trading knowledge through the articles posted in this website. Thanks for visiting my website.