MCX has introduced gold option contracts that start trading today. It is good news for option traders who are profitable trading options. Liquidity in Gold Futures trading is very good which will show in Gold Option trading too.
However you must hedge your trades – without hedging you are at 100% or more risk.
Hedge is a trade that protects another trade – so basically you become a broker – take money from one hand and give from another.
Hedge reduces the risk of adverse price movements in any trading object – equity or derivatives. A hedge is taking opposite position in same or related security. Pair trading for example is a part-hedge not fully hedged trading.
Basically hedge in an insurance for loss in trading especially derivatives. Like for medical emergencies we buy medical insurance, for accidental death we buy term insurance – same way for trading losses we can buy insurance.
Hedge reduces potential risk and limits the loss to a large extend. It also takes away some gains, but is a boon when the original trade is going for a huge loss. For overnight positions hedges are recommended. But hedge comes at at cost – it is not free.
For example when you could have made 10 points profits, hedge may reduce it to 7 points. But if you could have lost 10 points – hedge will reduce it to 3 points.
Therefore the joy of trading with a hedge is unmentionable. Imagine difference between a trader trading without hedge and a trader trading with hedge.
One is at a unlimited or huge risk and another is at limited profit or loss. A profit is a profit even if limited.
If you are still doing trading without hedge you can do my course and change your trading results from tomorrow itself.
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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.