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What are the Best YouTube Channels to Learn Options Trading in India?
9 Best Youtube Channels to Learn Future & Options Trading in India Here are my personal suggestions to learn Future & Options. You can consider these 9 prominent stock market Channels as the best ones for futures & options trading. They are as follows: Trade with Trend - Raunak A BoomingRead more
9 Best Youtube Channels to Learn Future & Options Trading in India
Here are my personal suggestions to learn Future & Options.
You can consider these 9 prominent stock market Channels as the best ones for futures & options trading. They are as follows:
1. Trade with Trend (Raunak A): Special Approach towards Futures & Options
Raunak A, a trader by profession, began a channel by name ‘Trade with Trend’ that revolves around the share market activities in detail. Till now, the author has uploaded 578 videos and holds a subscription of 243k.
He began the youtube channel with a desire to educate the investors, and traders that could enable them to perform better in stock markets.
The entire channel is about trading and investing in stock markets, and further, he has many interesting videos hosted on the channel in regard to risk management, and stock market psychology.
Raunak A is absolutely passionate about explaining technical analysis, and fundamental analysis on several trading segments. They are futures and options, ETFs, intraday trading etc.
2. Booming Bulls
Booming Bulls has uploaded about 1k videos and holds a subscription of 1.72 million and the entire trading set up has been initiated by an Indian Trader by name Anish.
To reach out the subscribers the company has Booming Bulls Academy on Telegram that is meant for the educational purpose.
Vision-Driven: The channel (Booming Bulls) functions with a basic objective of sharing correct trading principles. It strives to impart proper trading knowledge and significant keynotes to the new-learners and fellow traders.
Booming Bulls is a vision-driven organisation that mainly focuses on sharing the correct trading principles. We always thrive on sharing the proper trading knowledge and valuable keynotes to active learners and fellow traders.
The channel keeps on updating you with high quality content on the stock market just to create financial independence.
Training Activities:
Based on the interest you can take courses or guidance on intraday trading, options or positional trader, for that Booming Bulls extends their core skills and you can become a successful trader.
Additional projects are assigned to the program participants and those live projects can motivate them to perform better in real time situations. Such an activity features in Booming Bulls Elite Trader Live Mentorship Program.
3. Intraday Hunter:
Intraday Hunter has attracted a huge subscriber base of 88.4K, uploaded 546 videos till date and they began to operate on Youtube platform from November 11, 2021 onwards.
The Intraday Hunter is manned and organised by a team of full time traders. The company daily updates Intraday videos to benefit investors/traders.
Every team member functions with a single objective in motivating and educating the investors on stock markets on this platform.
The team members make effort in eliminating the myths that are associated with Intraday trading. There is a common misperception that Intraday trading is no less than gambling although the perception is not true. However, it involves high technical analysis, patience, and a control on emotions.
If you indulge in Intraday trading then being a part of the Intraday community can help to perform better in day trading. Therefore, Intraday Hunters invite the day traders to join the Intraday community and improvise the ‘state of being’ of trade participants.
Daily the Youtube channel updates Live Intraday Trade on various topics that play a significant role in decision making on Intraday. Few prominent videos on Nifty & BankNifty important support and resistance level, how to find chart patterns in live markets, price prediction trading, etc.
4. Nifty Prediction:
Nifty Prediction has a well established Youtube channel and if you want you can observe the NIFT analysis of Bank Nifty of the next day.
Nifty prediction youtube channel also publishes videos like option buying, mistakes in stock markets, how to maintain daily profit and loss, and a lot more. Till date, Nifty prediction has attained 383k subscribers and has uploaded 66 videos for investors/traders.
Nifty Prediction youtube channel has a lot to provide to the investors/traders in regard to the predictions of the stock markets for intraday operations, short term and long term period.
You can gain more meaningful information on stock markets on a daily basis a day before and predictions are said to navigate the investors course of action during day trading.
Nifty target is for Intraday operations and Nifty prediction is for a day later, for short term and long term investments.
Nifty Prediction is a forecast of stock market movement and they are achieved by deploying software that uses technical and fundamental indicators. Therefore you can rely on the accuracy of the stock market predictions.
Nifty prediction for Intraday and Tomorrow is obtained by using MACD indicator. For this you can predict whether to buy, sell, or hold the index for trading in the future. MACD indicator presents the NIFTY Index signal and its upcoming sentiments.
You can also predict NIFTY 50 for short term trading and to obtain an accurate prediction it utilises Simple Moving Average (SMA) indicators.
These indicators in the tables usually depict sentiment and the trade signals can be measured for 15 days (SMA) in advance.
5. Ghanshyam (Art of Trading):
Art of Trading was initiated on March 25, 2018 and has attracted the attention of 111,453,388 viewers. Till date, the Youtube channel, Art of Trading has a pool of 1.26 million subscribers and the channel holds a collection of 836 videos. The channel videos are hosted solely for the educational purpose only.
In his educational videos, you can observe that they are mostly on Bank Nifty option trading, and videos that speak on specific topics like Bank Nifty Option Expiry Day Loss Analysis, chart reading and understanding, psychology of successful bank nifty option traders, how to analyse and complete candlestick pattern and obtain profitability, behaviors of Support and resistance, and buying mindset on bank nifty options.
About Ghanshyam:
Ghanshyam is a full time stock exchange trader who engages in educating investors and traders through digital courses. In fact, he has developed and designed an app that functions and fulfills many essential needs of the traders.
The app, known as’ Art of Trading’ features special learning video programmes conducted on Saturday and Sunday : 9:00 am and in addition, you can view the uploaded Bank Nifty Options Daily Video ( Monday to Friday).
The Art of Trading app known as Ghanshyamtech is fundamentally designed to host learning videos on share markets and commodity markets to make it understandable in a simple manner.
In addition you can enrol for Demat service account, and other important trading features to stay interactive with stock markets.
You need to subscribe yourself on the Youtube channel to benefit from these uploaded videos completely and you can get the technical analysis of the subject in hindi in detail.
6. VP Financials (Rohit Rohra):
Rohit Rohra, a professional stock market trader, is an expert in Intraday trading and keeps himself busy on social media.
He sets aside his valuable time in guiding and educating new investors over the Youtube channel. With his excellent stock market analysis, Rohit Rohra’s Youtube channel has pooled in about 100k subscribers.
To mention a few, his important analysis given by Rohit Rohra are Nifty & Bank Nifty Monthly expiry analysis, Fin Nifty prediction for tomorrow, Option buyer market analysis, live intraday price action trading, weekly expiry trades and lot more.
Key Activities of Rohit Rohra:
At the age of 11, he was introduced to the world of stock market and trading.
His first investment was about 10K and after completion of one year, he gained 36 percent and this small success triggered passion to excel in stock markets.
Rohit learnt price action trading from a US based mentor and everything happened with its terms and conditions.
Rohit made systematic advances in Intraday trading and began analysis from monthly charts to 5 minute charts to 3 minute charts to 1 minute charts.
After a consistent effort of 10 years as VP Financials, Rohit promised to give back his experience and time to the new entrants as stock brokers.
7. Power of Stocks (Subasish Pani)
Subasish began Youtube channel on April 12, 2018 and over the years the youtube channel ‘power of stocks’ has attracted about 173,589,020 views. In addition, you can observe that the power of stocks youtube has been enrolled by 1.48 million subscribers and uploaded 1.3k videos.
The company provides educational material on stock markets for the investors/traders to realize the significance of the stock market trading.
You can learn specific topics and its applicability in real time situations during trading periods.
The topics vary from ‘bullish pattern in the market’ to ‘Monthly Expiry- ‘Trending or Sideways’ to ‘ Option Buying in trending market’ to ‘No Trading Zone,’ and a lot more.
About Subasish : Owns Power of Stocks
A self-styled stock brokerage expert and a regular stock market player, Mr. Subsaiah had earned a good reputation in the stock business circle. Mr. Subsaiah had struggled a lot in seeking recognition and for that sacrificed huge value on stocks when participating in stock trading.
Through the process of stock trading Mr.Subsaiash says you must maintain self-discipline and practice risk management techniques.
Subhasish is building a trading community that can protect the interests of the investors and avoid adopting the jackpot strategy.
He recommends joining the youtube channel ‘ power of stocks’ to gain value information on the time spent.
8. Indian Trader: A live Market Education
An Indian trader provides a technical analysis to learn and become an independent trader.
Till date, the company has attained a statistical record, it has a spread of 198K subscribers and uploaded 243 videos to benefit the subscribers.
You can contact the Indian Trader customer support service at whatsapp number : 91 9113300459.
The company provides digital learning built on pure price action technical analysis and the product of the youtube channel is a ‘live market education.’
You will get the learning information content on analysis of the live markets. Indian Traders do publish live market analysis, charts, and they are meant only for the educational purpose.
The company runs courses on Intraday Trading and encourages investors to participate in free live digital trading videos uploaded on the Youtube Channel.
To mention a few, titled under the ‘Intraday Live Trade,’ you can learn various topics like ‘best decision,’ Quick Decision, Option buying, Advance candle talk, accurate channel concept, the indian trader, channel based analysis, trend line based analysis, second based timeframe, Big loss day, etc.
Caution:
The company does make recommendations but doesn’t recommend you to buy/sell or call/put options in a live share market trading.
The company suggests hiring a financial analyst who is registered at SEBI only. The company never takes responsibility whether you make a profit or loss in stock trading.
9. Ayush Thakur:
An International Fitness and Nutrition coach, Ayush Thakur could change the lives of at least 200 people.
Besides fitness coaching, he is also involved in educational training of stock investors and his courses refer to price action trading in Nifty options.
For more information, Ayush Thakur courses and his activities can be learnt better on Telegram Channel.
https://t.me/s/AYUSHTHAKURTRADING. In addition, you can communicate with Ayush Thakur on whatsapp for webprice in action trading @8652310282.
Price Action Trading:
You can join a price action trading program that runs an 8-hour video course.
In the price action trading course, the coach shall cover 3 major strategies that are applicable in NIFTY Index, and stocks.
The learning technique shall involve pure action and volume analysis, and you will be exposed to multiple advanced techniques that are adopted for price action. The techniques are based on operators, and big funds.
You can participate in a 17-day advance price action video course at a nominal price of 14,999.
Futures and Options are fast moving categories in highly fluctuating stock markets. These are differ from the equity markets, those are preferred to obtain long term gains and future and options into play when you aspire for quick returns.
Hence, if you intend to make quick money, you must make a well planned effort in protecting yourself from the market fluctuations and continue to observe a steady increase in stock gains.
If you enter into the future and options trading, you must remember to develop the required skill sets like utilization of hedging and speculating techniques.
Hedging: It is the best tool to hedge your bets and protect your underlying assets from the immense market volatility.
Speculating: While speculating, you will end up in a situation where you shall be wrestling market volatility to make an outsized return. You shall certainly obtain good success but at a cost of substantial risk.
How to Start with Future & Options:
Most of the investors lack financial knowledge regarding stock markets and if you like to become an investor or a trader then you will need to follow chart patterns in the learning.
You must begin with basics of stock markets, glossary, and then detailing the future and options.
For your desired sort of trading ( future and options) you can approach Youtube channels and take guidance from stock market youtubers.
Depending on the level of popularity, viewership, and knowledge sharing principle, you can view these channels to seek the advice from the experienced minds.
Another important discount brokerage company that can be well trusted and most of the youtubers have begun to adopt it. They are Zerodha discount brokerage and Upstox discount brokerage.
See lessCan I Earn 500 Per Day in Swing Trading?
How to Earn 500 per Day in Swing Trading Your question on earning 500 per day in swing trading is pretty logical in nature. But, let me tell you, I would like to elucidate the essentials that should be kept into consideration. Just to earn a profit of at least 5 percent per day on an investment of IRead more
How to Earn 500 per Day in Swing Trading
Your question on earning 500 per day in swing trading is pretty logical in nature. But, let me tell you, I would like to elucidate the essentials that should be kept into consideration. Just to earn a profit of at least 5 percent per day on an investment of INR 100,00.00 daily.
For instance, you need to set a monthly target of at least 25 % profit. If you sum up the small profits on the invested amount of Rs. 100,00, it shall provide a return of Rs. 1.45 lakh in a year. And, if you spread the earned money (Rs. 1.45 lakh) it will make a daily profit of Rs. 500 over a year.
Below you will notice information that can serve your purpose in maintaining INR 500 as your daily earnings.
Research for Swing Trading Stocks:
For obtaining an objective of earning INR 500.00 per day, swing trades need fundamental analysis for a short period.
You will have to adopt recent, upcoming events, and tactics. You must calibrate certain parameters that turn out to be the significant indicators such as sales growth, new product launches, new strategy announcements by the companies, quick ratios, etc.
5% to 10% Gain Every Week in Swing Trading:
Swing trades never focus on gains developed over months, or even years. Its trading period is normally 5 to 10 days and if managed properly you can make a lot of small wins. And, when you sum up those wins it will give out good returns.
The ideal return on swing trades is up by 20% in a month or about 5% to 10% gain every week that leads to a noticeable profit level.
3-to-1 Profit loss Portfolio Management Strategy:
Experts suggest portfolio management to succeed in your attempts to earn decently, often referred to as 3-to-1 profit-to-loss ratio.
The funda of earning is that you can make small gains and create a growth in portfolio provided you are attentive in keeping losses small.
If you keep a stop loss of 7% to 8%, then the losses on stocks can reach a maximum level of 3% to 4% quickly. If such a situation continues then this kind of loss can reduce the accumulated small gains considerably.
Identify Breakout Volumes for Shorter Time Frames:
Observe for the shorter time frames with a token, and you can find volume characteristics of a breakout. Also find the volume of shorter consolidations areas for clues.
If you can sense that the breakout volume can surpass the recent activity then it means the stocks have strength on trade. And you can opt for such stocks.
See lessCan I Start Swing Trading with 1000 Rupees?
Swing Trading with Little Money Yes, you can start swing trading with 1000 rupees and make short term profit, say up to INR 500.00. Entertain yourself in the learning process by utilising this investment of INR 1000.00 as an opportunity to conceptualize and understand the stock market. You must notRead more
Swing Trading with Little Money
Yes, you can start swing trading with 1000 rupees and make short term profit, say up to INR 500.00. Entertain yourself in the learning process by utilising this investment of INR 1000.00 as an opportunity to conceptualize and understand the stock market.
You must not dream of making huge profits with it, but utilise this investment as a learning process on stocks. You should find all the basic procedures involved that lets you understand the buying procedures of a stock. Along with, also learn about your demat account.
For a demat account, you must also line up with a stock brokerage company that provides effective stock services at a price affordable to you. In that way, Zerodha provides online services that charge only INR 20 per trade whether it is buying or selling a stock/stocks.
With this little investment, you must view the intrinsic value, how to pick a right stock, know the basic terms like stock liquidity, volatility (stock price fluctuations), strike price, stop loss. You must also learn when to buy a stock or sell a stock in the stock markets in swing trading and in it, everything gets finalized in a few days to few weeks, you win or lose money.
In the Indian National/Bombay stock markets, Monday, Tuesday you will make out a lot of buying activity. By the end of the week, say Friday, Saturday it is a sellers market, you can plan to sell your bought stocks in swing trading.
Now the question is, if you want to make INR 10,000.00 investment then with such a nominal amount where should you plan to invest. You should not get worried when company stocks keep on soaring higher and higher thereby making it impossible for you to make a purchase. Remember, there is space for everyone in the stock market provided you need to accommodate as per your trading account capital. So, check for a well to do company, buy a stock that starts at INR 100 and lies somewhere around INR 500. Once you are impressed with the stock price try to purchase at least 2 units of a particular stock.
You must select a company whose products and services are visible in physical form. They can belong to banks, automobiles, consumer durable products, etc.
Do not jump to conclusions, before you select a stock make a detailed study and research on the stock for at least a week or so.
In your research you must view all parameters like the company’s fundamentals and the financials such as profits, P/E ratio, ROEC, ROI, Growth rate, annual reports, performances of the company’s product and services and most importantly their business models.
Note:
Not to forget, this investment is just like a practice session and hence even if you lose it do not overreact emotionally in this scenario.
See lessIs Swing Trading Better than Intraday?
Swing Trading Vs Intraday There is a common sentiment among traders as they say, swing trading can help you in overcoming the failures that usually arise when you are engaging in intraday trading. In both cases, your stock market business objectives can be achieved. But considering swing trade to beRead more
Swing Trading Vs Intraday
There is a common sentiment among traders as they say, swing trading can help you in overcoming the failures that usually arise when you are engaging in intraday trading.
In both cases, your stock market business objectives can be achieved. But considering swing trade to be a better option over intraday is completely an individual’s mindset.
Let me illustrate the key features of swing trading that will make you opt for, otherwise.
Swing trading and intraday trading operate in varied time bound frames, in intraday trading you will buy and sell stocks in a day, while in swing trade you have an option to buy and wait for a short term gain from few days to few weeks.
You can invest in swing trades when you have adequate time to wait for return on your investment, from a few days to a few weeks.
When you participate in swing trading at NSE/BSE you can make short term gains with minimal loss on your stock investments. That means, your stop loss execution of 10% and stock purchase up to 3 percent of your trading account capital can protect your bought stocks when the share prices tumble fiercely.
You can react to swing trades effortlessly and spare yourself from being a victim of losses by utilizing the technical indicators. It will enable you to avoid speculation and you can make an informed decision.
You can reap your desired goals sets in swing trading through planned layout that too it is less time consuming when compared to intraday trading practices. In a way, you can look in as a part time job that consciously causes less impact on your day to day activities. You will keep larger time frames when trading on swings.
You can relax and stay cool when trading swings because you will have adequate time to select your stocks thus keeping you calm without emotional breakdowns.
However, swing trades help you make short term good returns with negligible losses but it is intended to make high profits in the long run.
Note: High priced stocks need high trading account capital :
Swing trading attracts a high volume of trading capital on high priced stocks. When you buy/sell stocks you will encounter risk and to avoid it, you will have to apply stop loss brakes, reasonable strike price.
But, due to the market volatility and liquidity factor of the stocks, it may lead to a slippage that results in less gains than the expected returns. Hence, I would advise you to limit your stock investment that is less than 3 % of the trading account capital.
For instance,
If your stock’s slippage falls by 10 percent on a stock of 500/- then, the slippage amount will be 50/-. At that instance, for a slippage of 50/-, you must hold trading account capital of at least 5000/- as it comes to 1%.
Therefore for highly priced stocks, your trading account capital must also be high.
See lessWho are the Successful Option Traders in India?
List of Richest Option Traders in India Every year you will find more and more successful option traders evolving in India. In which, few make an upside growth while others follow a downside. But, to reach the top, hard work, dedication, and clear cut understanding of the facts and figures that moveRead more
List of Richest Option Traders in India
Every year you will find more and more successful option traders evolving in India. In which, few make an upside growth while others follow a downside.
But, to reach the top, hard work, dedication, and clear cut understanding of the facts and figures that move around the stocks should be known.
I would like to pendown a couple of traders having performed so well that their views on stocks tweet, retweet everywhere.
1. Azim Hashim Premji
Azim Hashim Premji, has established Premji & Associates and made investments in stocks having a significant stake in Wipro, Tube investments, and JK lakshmi Cements. Better known for his philanthropic activities, he is often referred as the Czar of the Indian IT industry.
2. Ramesh Damani
Ramesh Damani, has made an investment of INR 10 lakh in Infosys and an IPO was released in 1999 that triggered his profitability. In addition, he has made some investments in Goldiam International, Godrej Industries, Panama Petrochem, and others.
Damani made an entry into the stock markets when the sensex was at 600 points in 1999. Ramesh Damani holds a bachelor degree in Commerce from the HR College in Mumbai and pursued an MBA from California State University.
3. Ashish Dhawan
Recognised to be a stock market investor, philanthropist, and an entrepreneur, Ashish Dhawan, is currently positioned as CEO of Central Square Foundation.
He holds around 16 stocks that value INR 1,971 and his business has grown by 81.07 percent last year and in fact spiraled by 651.38 in five consecutive years. Some of the important companies where he has investment made are IDFC Ltd., Birlasoft Ltd., Equitas Holdings Ltd., and Glenmark Pharmaceuticals.
4. Sunil Singhania
As CIO of Reliance Mutual Fund, Sunil Singhania, is well recognised investors and traders, and is listed among the top Indian Traders.
He made effortless growth in the stock business, his portfolio rose by 260 % and in five consecutive years he realized business by 11,004.55 percent.
He does maintain a highly diversified portfolio, and they are Paras Defence and Space Technologies Ltd., Saregama India Ltd., Mastek Ltd., Route Mobile Ltd, Polyplex Corporation Ltd and others.
5. Vijay Kedia
Vijay Kedia, built his career in Stock Market businesses at the age of 19, and continued the same professions till now.
He took challenges in Intraday trading that gave him much of his success. Kedia holds in Mahindra Holidays, Elecon Engineering, Repro India and others.
See lessOption Traders who Made Millions
Most Successful Option Traders: After years of practical experience, I can name many option traders, who made millions through options. Your question is pretty interesting but I am a little curious about whether you know the secret funda of their success. Besides successful millionaire traders, letRead more
Most Successful Option Traders:
After years of practical experience, I can name many option traders, who made millions through options.
Your question is pretty interesting but I am a little curious about whether you know the secret funda of their success.
Besides successful millionaire traders, let me tell you the key points they usually focus on, and what is option trading that fascinates every aspiring trader.
Key Points Followed by Millionaire Traders:
If you go through the statements of a billionaire/millionaire you will find several of these stated points coincidental.
Some of those facts are to maintain the habit to learn, learn, and learn, to develop a winning strategy, and to define calculated risk management techniques. In addition, stay disciplined, be patient, and choose the right mentor in the stock market scenario.
What is Options Trading:
Options trading is a steady flow of buying and selling of stocks belonging to various portfolios. In the course of buying and selling contracts, you can utilise different strategies that form the building block of option call, and option put.
The strategies like strangle, straddle, and butterfly are used for option selling. You will come across strategies like naked call option, and married put that are suitable for option buying.
Option Traders who made Millions
Karen Bruton:
Certain people are spoken about quite often, since their business success fascinates all. Karen Bruton, has set her mark as a super trader for the outstanding performances.
In a few years of effort, she has made an exceptional progress of $41 million with an investment of $100,000. Karen’s most favorite strategy is conservative strategy known to be ‘selling strangles’ that did give consistent income over investments.
Nicolas Darvas:
Nicolas Darvas belonged to the 1950s and established a mark in the stock markets by framing his own trading system called ‘Darvas Box.’ As a professional dancer, she earned $2 million and her winning funda included an excellent fundamental and technical analysis.
Tim Sykes:
Tim Sykes, during his college days made an investment of $12,000 and it turned $4.3 million when he was 22. He is good at teaching option trading and stocks and conducts training courses in the online platform.
List of Billionaire Option Traders
Warren Buffett:
Known for his value investments, Warren Buffett has made huge money on option trading. In fact, Buffett earned a huge amount in premiums about $4.9 billion.
Bill Ackman:
Bill Ackman is a hedge fund manager, and holds a position of CEO in Pershing Square Capital Management which made huge profits in option trading.
He is involved in credit default swaps, a form of options contract. In 2020, Bill Ackman makes 2.6 billion for an investment of $27 million.
See lessWhat is the Average Salary of an Option Trader in India?
What is the average salary of an option trader per month? Option Traders are the key people of the stock markets and their average salaries in different capacities such as tutor, specialist, and analyst do differ. The salary of an option trader is completely dependent on the country, experience andRead more
What is the average salary of an option trader per month?
Option Traders are the key people of the stock markets and their average salaries in different capacities such as tutor, specialist, and analyst do differ.
The salary of an option trader is completely dependent on the country, experience and the size of the firm. However, to express in a grosser level the average salary of an option trader in India is in the bandwidth of Rs. 1.0 Lakh to Rs. 8.3 Lakhs per month.
Salary of Option Trading Tutor:
You can join platforms like Udemy and provide guidance on how to trade options online. An online tutor in India can get around Rs. 40,000 per month for instance, tutors in Mumbai will charge around Rs. 1500 per hour.
Tutors Need Skills to Deliver Online Virtual Lectures:
Salary of Specialist
You can earn an average salary of Rs. 6.4 Lakhs as an Options Trading Specialist and you must have specific skills to function the duties effectively.
Salary of an Analyst
You must be able to conduct research on global trade, analyse data and regulations. HR experts in Indeed say, the average salary of a market analyst in India is Rs. 2,50,000 per year.
Skills Needed by Analyst to Conduct Option Trading:
You must hold analytical skills, research skills, focus skills, customer service skills, and detailed oriented skills.
See lessWhat is the Option Trading Success Rate in India?
What percentage of option traders are successful? Option trading is risky and the success rate in India is quite low, say about 11 %. No matter, traders involved in option trading take all preventive and corrective measures such as stop loss, and trading strategies like strangle, butterfly, and straRead more
What percentage of option traders are successful?
Option trading is risky and the success rate in India is quite low, say about 11 %. No matter, traders involved in option trading take all preventive and corrective measures such as stop loss, and trading strategies like strangle, butterfly, and straddles for option selling still volatile markets prevents the profitability which ultimately leads to little success.
Likewise, for option buying, you will find strategies such as momentum strategy, breakout strategy, reversal strategy, etc yet very few mark profitability levels.
In a broader sense, investors/traders who indulge in option selling can make big money in trading stocks while option buying traders make a little money in comparison.
Hence, you can take it for granted that selling options can pay rich dividends. Even in selling options or engaging in futures and options you need to be highly cautious because they produce limited profits and can cause high risks in trading.
The stock trading dynamics are such that option buying generates huge profits and low risks. The chances of losing money is more in option buying even though you select all risk management techniques such as stop loss.
Your success rate depends on the guidance and advice given by the stock experts provided you are well driven by good stock brokers such as Zerodha, 5 Paisa, Upstox, etc.
Therefore, if you want to be a leader in the stock markets then one must consider several issues such as the type of option you choose to trade.
The kind of underlying asset portfolio you maintain, the prevailing market conditions, and the trading strategies you adopt to keep up the win situation, and a trustworthy broker.
In the long run, option sellers make better returns than buyers and usually, the market trends between -1% to 1%.
Securities and Exchange Board of India (SEBI) has released information stating that 11 percent of the traders made profit in the futures and options (F&O) during the financial year 2021-22.
Statistics reveal that the average loss is at Rs. 1.25 lakh. There is an impressive increase in the individual traders of about 500 percent from FY19 to FY22.
See lessWhat are the Disadvantages of Swing Trading?
Is swing trading is good or bad? Are you good at trading by utilising technical analysis? All, just to make profits in short-term price swings. If so, fine, you are one of those skilled brains to work on swing trades. Swing trading can be applied during bull/bear trends, and even while the stock swiRead more
Is swing trading is good or bad?
Are you good at trading by utilising technical analysis? All, just to make profits in short-term price swings.
If so, fine, you are one of those skilled brains to work on swing trades. Swing trading can be applied during bull/bear trends, and even while the stock swings are relatively stable.
The basic funda of making swing money is to hold positions for a few days to few weeks until you capture the short-term price movements which results in profit earning.
Why is swing trading risky?
Yet, the swing trades create a hostile environment due to its functional characteristics thus representing a series of setbacks while trading and such disadvantages can be evidently spoken as:
If you make good earnings on swing trades then there is every likelihood of losing a significant portion of your returns in the form of short term capital gains, in which you will be levied to pay higher taxes.
In addition you shall be subjected to commissions, fees and spreads that aggregates more financial burden on you when compared with buy-and-hold (long term investment) investors.
See lessHow Much Money Is Needed for Swing Trading?
How much money is needed for swing trading in india I do understand your interest in swing trading, you can make short term profits with a little investment. You can start swing trading with a minimum investment of INR 10,000 and rise to INR 50,000. The nature of swing trade shall demand you to mainRead more
How much money is needed for swing trading in india
I do understand your interest in swing trading, you can make short term profits with a little investment. You can start swing trading with a minimum investment of INR 10,000 and rise to INR 50,000. The nature of swing trade shall demand you to maintain at least 10 percent of your investment in the trading account balance. You will have to invest a minimum in the stocks that show medium price movements that begin and last for either a few days, or up for weeks. However, you can pick swing trading as a full time job. Furthermore, you must also maintain factors that lay the foundation for better trading returns.
Let me elaborate the acceptable account risk you can plan for in swing trading. In an Indian context, you should maintain a risk of around 1 to 3 percent and failing that you can experience a drawdown or get your trading account burst.
Invest on a Stock that is 1% of the Trading Account Capital
Let us assume that you purchase a stock at INR 800.00 by setting a stock loss at 10%, and in addition, not to encounter risk beyond 1% your trading account size. In such a scenario, your trading account must not be to the size of INR 1,000.00 but must be about INR 8,000.00 to become 1% of the trading stock @ INR 800.00.
Lets Analyse:
Keeping slippage into consideration, you can risk up to 10 percent of your trading stock, which comes to INR 80.00. Then, the maximum slippage of INR 80.00 is 8 % of INR 1,000.00 ( trading capital) which is greater than 1% acceptable risk.
Hence, to compensate for the risk factor to 1%, your trading account must maintain trade capital by INR 8000.00.
In case you agree for at least 2% risk, then you must maintain a minimum trade account capital of INR 4000.00. Therefore, I would say, go for cheaper stocks when you are not able to arrange for a higher trading capital.
Brokerage:
Do select a brokerage who maintains transparency, like, Zerodha, a stock brokerage company, does charge you a flat fee of INR 20.00 per trade, irrespective of the quantity of the traded stocks.
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