My Learnings from #OptionTrading this week....
1. Have a clear trading plan before you start your day
-- Support and Resistance
-- Trap Zones
-- Indicators on Multi TF analysis
-- Clear Bear/Bull Zone
-- Path of Least Resistance
Then decide where/which options to sell.
...1/n
1. Have a clear trading plan before you start your day
-- Support and Resistance
-- Trap Zones
-- Indicators on Multi TF analysis
-- Clear Bear/Bull Zone
-- Path of Least Resistance
Then decide where/which options to sell.
...1/n
2. Traditional technical analysis may fail. Consolidation > Breakout > Consolidation may not work always. New trend is V-up, /\-down trends, fake breakouts and fake selloffs. Be prepared for all these when creating a position. Any Option Position can be challenged...2/n
3. As an Option Trader you can not predict where the market will go. You can only predict where market might not go.
4. Positions from carry forward point of view of smart money are highly masked. Any trending move is preceded by a lot of fake breakouts....3/n
4. Positions from carry forward point of view of smart money are highly masked. Any trending move is preceded by a lot of fake breakouts....3/n
5. Unlimited adjustment cannot work &one should have fixed target and SL on position.
6. We traded in high vix environment for quite some time. Now that the Vix is low, sold options will not witness fast theta decay. But position going against you will gain theta very fast. 4/n
6. We traded in high vix environment for quite some time. Now that the Vix is low, sold options will not witness fast theta decay. But position going against you will gain theta very fast. 4/n
7. Forget the loss as soon as you can. Learn from what worked and what did not and plan your next trade, week or month.
That's a wrap!
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That's a wrap!
If you enjoyed this thread:
1. Follow me @rohit_katwal for more of these
2. RT the tweet below to share this thread with your audience
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