TOP SECRETS OF OPTIONS TRADING IN INDIAN STOCK MARKET

BE PREPARE PSYCHOLOGICALLY WHILE DOING OPTIONS TRADING.

1.SELECT THE CONTRACT WITH PREDEFINED ENTRY AND EXITS.

Ex: If you want trade 1 lot 5000put  July contract be prepare entry is 54 and exit 60 and stop loss is 50

     that's it

   

     ONCE YOU FIX THE ENTRY AND EXIT LEVELS STICK TO YOUR DECISION.

2. ACCEPT LOSSES.

    

  Nobody is ready to accept their mistakes in this world. due to this reason most of the traders 

 loose their hard earned money in money market.

TRUST YOURSELF HONESTLY AT THE SAME TIME ACCEPT YOUR MISTAKES 

(LOSSES)HONESTLY.IT SAVES YOUR MONEY A LOT.

3.YOU CAN LOOSE ALL YOUR MONEY.

     Yes even single mistake enough to vanish your money in options trading.

     

     News based or experts tips based trades are very dangerous.

     

    YES IT HAPPENS IF YOU DO NOT PUT STOP LOSS CALLED BLIND TRADING.

     

    PUT STOP LOSS TO PROTECT YOUR CAPITAL AND TRIM YOUR LOSSES IS 

    

    THE TOP SECRET.

4. DO NOT FOLLOW EXPERTS TIPS.

     

    Now A days it become a fashion to having website and starting stock market tips business.

     NOTE: MOST OF THE EXPERTS WHO EXPRESS THEIR VIEWS IN TV OR WEB

                  

                  MEDIA THEY SAID THEY DO NOT HAVE PERSONAL POSITIONS OF THEIR      

                  TIPS BUT THEY RECOMMEND TO THEIR CLIENTS. 

5. LITTLE KNOWLEDGE IS MORE DANGEROUS.

     Yes start trading after learning essential knowledge on options trading.

       other wise your boat will sink in middle of the sea.

      LEARN LIKE A KID EARN LIKE A CHAMP.

6. LEARNING SOURCES FOR OPTIONS TRADING IN INDIAN STOCK MARKET.

NSE OPTIONS CHAIN

OPTIONS TRADING MONEY CONTROL

OPTIONS BINGO

WHAT IS THE OPEN INTEREST-IN-OPTIONS-TRADING-NIFTY

OPEN INTEREST IS NOTHING BUT NUMBER OF CONTRACTS TRADED ON STOCK OR INDEX.

IT INDICATES THE MOVEMENT OF STOCK OR INDEX.


BELOW SCREEN SHOT IS ENOUGH TO LEARN ABOUT OPEN INTEREST.


LEFT SIDE SHOWS CALLS OPEN INTEREST (OI).


RIGHT SIDE SHOW PUTS OPEN INTEREST(OI).

NIFTY OPTIONS CHAIN

ALL ARE NIFTY INDEX JULY-26 CONTRACTS.

MIDDLE ROW SHOWS INDEX STRIKE VALUE.

Open Interest plays major role in options trading.depends on open interest traders

can decide to act as a bull or bear.

Generally Open Interest movement happens @ stock results,important announcements (inflation,

RBI rate cut, news..),long bull or bear run.

HOW TO BECOME A EXPERT IN OPTIONS FUNDAMENTAL ANALYSIS?

WHAT IS FUNDAMENTAL ANALYSIS?


USING FUNDAMENTAL ANALYSIS WE FIND THE REAL VALUE OF THE STOCK.

knowing about company is very important before we bet on the company.


charts and company's financial results are key points of FUNDAMENTAL ANALYSIS.


OPTION TRADING IS THE VERY RISK TRADING,SO BEFORE GOING TO TRADE..


WE MUST KNOW THE FUNDAMENTALS OF THE STOCKS.


SOME OF NEWS BASED STOCKS MOVES UP TO DAY AND DOWN TOMORROW SHARPLY WITHOUT CHANGING IT'S FUNDAMENTALS. SO TRADERS LOOSE MONEY.


IF WE KNOW THE FUNDAMENTALS OF STOCKS..WE NEVER DO MISTAKE AND WE NEVER LOOSE HARD EARNING MONEY IN THE MONEY MARKET.






WHO IS THE BEST FUNDAMENTAL ANALYST IN THE WORLD?

WARREN BUFFET 

TYPES OF OPTIONS IN INDIAN STOCK MARKET

Options are 2 types


1.Call Option.
2.Put Option.


Call Option is a right to buy the underlying stock or index on or before expiry date


We choose Call Option if underlying stock or index is going up or in bullish trend.


Put Option is a right to sell the underlying stock or index on or before expiry date.


We choose Put Option if underlying stock  or index is going down or in bearish trend.


In Indian Stock Market stock derivatives expiry is 1 to 3 months.


In Indian Stock Market Index Options expiry is 1 month to more than 2 years.

What is an Option?

In Indian Stock Market we can trade in

EQUITIES
DERIVATIVES


In DERIVATIVE we can trade in  FUTURES AND OPTIONS.


What is Option?

Option is contract between option seller and option buyer,

contract give right to buy or sell underlying stock at the strike price on or before expiry date.

Buyer must exercise his options before expiry date.

to activate you FUTURE AND OPTIONS ACCOUNT in your demat account you must submit

6 months bank statement or salary statements to your brokerage company.

If you have small amount in your account you can buy and then sell your options.

but if You want sell options ( i.e Option writing) you must have huge amount

depends on brokerage company.


OPTION WRITING OFFERS HIGH RISK..If you are 1000% confident about

your trades then you can do...other wise you loose hard earned money..

when you buy options after execution your full amount deduct on the spot

in the same way if sell options or write the options amount will be credited

immediately...no obligation like equity trade...

OPTIONS ARE SUITABLE FOR A FAST MIND WITH QUICK DECISIONS.

Before going to do Option trading you must have at least 2 years of equity trading

experience,

BEST BROKERAGES OF INDIAN STOCK MARKET

So many Brokerage Companies in INDIAN STOCK MARKET.

Choose the Best Brokerage for your Options trading based on Service and lowest Brokerage plus

Trading terminal.


Sharekhan and Ventura are the Best Brokerages in India till now.

Sharekhan offers best service but brokerage is high which is per lot they charge 30 to 100 both sides.

trade terminal is trade tiger is good one...if you choose AMC brokerage will be reduced.

Ventura is other one it offers lowest brokerage 35 per lot single side and terminal also good.

There are other brokerages offer lowest brokerage but they may not have their own terminals.

Traders can trade on NSE NOW platform.

Better to avoid suitcase brokerage companies.


If you find any best brokerage please be mention in comments

thanks u

happy trading

HOW MUCH IS OPTIONS TRADING DAILY TURNOVER IN INDIAN STOCK MARKET?

In Indian Stock Market Daily Options turnover around Rs.75000 Crore. Which is

higher than Other trades like NSE Cash and BSE cash Market.. 

Why People are Trading Options with High volumes Daily in Indian Stock Market.

Now Imagine if you deposit Rs.5000 in bank or post office how much time will take

to double your money?..simple it takes 7 to 10 years...

In OPTIONS IT TAKE 1 HOUR TO 1 DAY......DO YOU BELIEVE..IT'S TRUE......

Because of Indian Traders do Options Trading with 25% of their margin Amount now a days.

Today Indian Traders love to do Option Trading with great knowledge.

Options trading offers 

HIGH RISK AND HIGH REWARD strategy.

Do Option trading with sufficient knowledge...

happy trading