thread ๐งต
๐ต๐ผ๐ ๐๐ผ ๐ฏ๐ฒ๐ฐ๐ผ๐บ๐ฒ ๐ฝ๐ฟ๐ผ๐ณ๐ถ๐๐ฎ๐ฏ๐น๐ฒ ๐๐ถ๐๐ต ๐๐บ๐ฎ๐น๐น ๐ฎ๐ฐ๐ฐ๐ผ๐๐ป๐ ๐ถ๐ป ๐ผ๐ฝ๐๐ถ๐ผ๐ป ๐ฏ๐๐๐ถ๐ป๐ด
there is overall perception in tweeter that only option seller make money and option buyer lose money
its right ? ๐ป๐ผ
its completely wrong ? ๐ป๐ผ
โฌ๏ธ
๐ต๐ผ๐ ๐๐ผ ๐ฏ๐ฒ๐ฐ๐ผ๐บ๐ฒ ๐ฝ๐ฟ๐ผ๐ณ๐ถ๐๐ฎ๐ฏ๐น๐ฒ ๐๐ถ๐๐ต ๐๐บ๐ฎ๐น๐น ๐ฎ๐ฐ๐ฐ๐ผ๐๐ป๐ ๐ถ๐ป ๐ผ๐ฝ๐๐ถ๐ผ๐ป ๐ฏ๐๐๐ถ๐ป๐ด
there is overall perception in tweeter that only option seller make money and option buyer lose money
its right ? ๐ป๐ผ
its completely wrong ? ๐ป๐ผ
โฌ๏ธ
average capital of option buyer is between 1 to 5 lac
option seller target 1-1.5% of there capital
but option buyer target 1 lac % ๐
thoughts of buyer
ye kal 2 ka tha aaj 10 ho gaya maine liya hota to?
hero zero trade mileaga or ham carorpati ban jayenge
โฌ๏ธ
option seller target 1-1.5% of there capital
but option buyer target 1 lac % ๐
thoughts of buyer
ye kal 2 ka tha aaj 10 ho gaya maine liya hota to?
hero zero trade mileaga or ham carorpati ban jayenge
โฌ๏ธ
average wining probability for buyer is 33% with atm or itm options probability is very less in otm options
so if i want to made money from buying what is basic thought process for me ?
1- my wining trade profit is need more then 2x from my loosing trade
โฌ๏ธ
so if i want to made money from buying what is basic thought process for me ?
1- my wining trade profit is need more then 2x from my loosing trade
โฌ๏ธ
2- if i take trade and its reverse then my analysis become wrong why i take another lot for average?
3- if trade running in profit why i book early without trend reversal
4- if my first 2 trades is going against me then why i took 3rd trade ?
โฌ๏ธ
3- if trade running in profit why i book early without trend reversal
4- if my first 2 trades is going against me then why i took 3rd trade ?
โฌ๏ธ
now lets think about selling vs buying
one main difference between option buyers account and seller account is capital
assume option buyer buy 10 lot & option seller sell 10 lot
buyer need approx. 1 lac
seller need approx. 15 lac
โฌ๏ธ
one main difference between option buyers account and seller account is capital
assume option buyer buy 10 lot & option seller sell 10 lot
buyer need approx. 1 lac
seller need approx. 15 lac
โฌ๏ธ
less margin requirement is the reason for over position sizing & overtrading
if you have 5 lac capital then may be you able to buy 50 lot buy don't buy 50 buy only 5
because if you buy 50 and position reverse then you lost minimum 25-30% capital
โฌ๏ธ
if you have 5 lac capital then may be you able to buy 50 lot buy don't buy 50 buy only 5
because if you buy 50 and position reverse then you lost minimum 25-30% capital
โฌ๏ธ
what is profit expectancy of buyer ?
unlimited
what is profit expectancy of seller ?
limited
but now think about your buy trade
witch trade you hold till its all juice ?
๐๐ผ๐ ๐ฎ๐ฟ๐ฒ ๐ฏ๐ผ๐ผ๐ธ๐ถ๐ป๐ด ๐ฝ๐ฟ๐ผ๐ณ๐ถ๐ ๐ณ๐ฎ๐๐ & ๐ฟ๐๐ป ๐น๐ผ๐๐ ๐๐ถ๐น๐น ๐น๐ฎ๐๐ ๐ฑ๐ฟ๐ผ๐ฝ
โฌ๏ธ
unlimited
what is profit expectancy of seller ?
limited
but now think about your buy trade
witch trade you hold till its all juice ?
๐๐ผ๐ ๐ฎ๐ฟ๐ฒ ๐ฏ๐ผ๐ผ๐ธ๐ถ๐ป๐ด ๐ฝ๐ฟ๐ผ๐ณ๐ถ๐ ๐ณ๐ฎ๐๐ & ๐ฟ๐๐ป ๐น๐ผ๐๐ ๐๐ถ๐น๐น ๐น๐ฎ๐๐ ๐ฑ๐ฟ๐ผ๐ฝ
โฌ๏ธ
majority option buyer take trade for quick gain
buy and if 2-3k profit then exit
but if it reverse then hold , average find support and again average and loose all in one go
they don't think about , what is there target and reason for taking trades
โฌ๏ธ
buy and if 2-3k profit then exit
but if it reverse then hold , average find support and again average and loose all in one go
they don't think about , what is there target and reason for taking trades
โฌ๏ธ
now lets discuss strategy
in trading you can make money with any strategy but you never make money without
proper money management &
understanding individual stock behavior
suppose you are buying breakout stocks
โฌ๏ธ
in trading you can make money with any strategy but you never make money without
proper money management &
understanding individual stock behavior
suppose you are buying breakout stocks
โฌ๏ธ
everyday 20-25 stocks give breakout can you able to buy all ?
always count and remember what is total risk open for all your positions
start option buying with 1 lac only
approx. 200 stocks in f&0
all stocks are not high liquid
โฌ๏ธ
always count and remember what is total risk open for all your positions
start option buying with 1 lac only
approx. 200 stocks in f&0
all stocks are not high liquid
โฌ๏ธ
give some time for manual backtesting of all stocks
like after breakout how is behavior of that stock
you cant follow long trend in itc ๐
but you can ride reliance & tcs for 200-300 rs
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like after breakout how is behavior of that stock
you cant follow long trend in itc ๐
but you can ride reliance & tcs for 200-300 rs
โฌ๏ธ
its take time for understanding stocks behavior
but after some time you can decide witch stock is ok for buy between those daily 20-25 breakout stocks
one more reason for loss is buying otm call&put
sometime in fast momentum otm will give money but probability is less
โฌ๏ธ
but after some time you can decide witch stock is ok for buy between those daily 20-25 breakout stocks
one more reason for loss is buying otm call&put
sometime in fast momentum otm will give money but probability is less
โฌ๏ธ
see some my last some examples of trades
most of buy reason is range breakout or breakdown
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most of buy reason is range breakout or breakdown
โฌ๏ธ
strategy is simple
see behavior of stocks
learn ATR for SL
don't trade with small SL
make proper plan for how much money you want to loose not make
don't overtrade and wait for SL and after 1 ATR move trail SL do not book profit
๐
like & share first tweet if you liked
see behavior of stocks
learn ATR for SL
don't trade with small SL
make proper plan for how much money you want to loose not make
don't overtrade and wait for SL and after 1 ATR move trail SL do not book profit
๐
like & share first tweet if you liked
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