Ok sir .
Thanks . I’ll keep that in mind
Regards
From how many days you are trading?
And u sold a stock at 700… right? How did u come to know that u should sell the stcok when the market was up today?
I am just curious my friend…
sir , i trade with two indicators PIVOT POINTS , RSI
THE DAY I SOLD KAJARIA THE PIVOT WAS 701.42 ,
PREVIOUS DAY CLOSING WAS 895 ,
PROBABILITY OF IT TOUCHING THE PIVOT WAS HIGH
TREND WAS DOWN ON DAILY CHART , ONE HOUR CHART
SO VERDICT WAS SELL
S1 WAS 682.10 .
SO TOOK A CALL TO SELL AT 700 WHICH WAS VERY CLOSE TO PIVOT OF 701.42
Risk = 750
Expectation = 1500
If you are not very good at trading then in about 22 trading sessions of a month, you may have 20 risky days, can you take it?
I agree with everyone. The expectation is unrealistic.
My advise:
Don’t trade now
First learn trading very well, master it, do paper trading
Start slowly without having any strict targets in mind, see how much profits and losses you make
Improve on your strategies and then raise/reduce your expectations
Invest 1.1 L in stocks. Trade FnO with 40K, it gives you a good return.
With these expected figures for profit and loss, what you will see is that your stop-losses are getting hit more frequently than your profit levels.
Simple maths about profit-loss calculations:
Profit = 1500, Loss = -750
Trade Winners %: (assume) 50% for profit and rest 50% for loss
Then your net expected average output = 1500 * 50% + (-750) *50% = +375 per trade over a long run.
However, the catch here is your assumptions about your winning percentage. With your expectations of profit and loss figures, you will observe that instead of 50-50, you are actually hitting 20-80% or 30-70%. That will change the whole game against you, putting it at net loss.
thank u so much for your valuable suggestion
regards
thank u so much for your valuable advice
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if you are conservative trader then you should never try for 20% return per month.you can achieve only 3 to 7 percent return per month if you risk apatite is very low. Conservative traders will be always looking to preserve the capital rather than thinking about huge profits. I will tell one strategy which worked for me. Go long on one lot of nifty futures and sell one ITM call and one OTM call each seperated by 500 points(i.e if nifty spot is 11000, then sell 11500 call and 10500 call) wait until expiry . you will make 3 to 7 percent return effortlessly. with 1.5 lacks this will work without any fuss.
1 Like
Thank you so much for your advice … I’ll definitely try this strategy
Hello Nithya, (@nithya_kabilanandha and @aob)
Thanks for sharing the strategy. But are you sure this works, because recent historical data (and payoff function design) suggests otherwise?
Here are the calculations with actual figures on NIFTY F&O for January series for your suggested strategy.
On 2Jan, Nifty index was at 10,442.
Future price closed at Rs. 10473 (buy price), and ITM option with strike of 10,000 was sold for Rs. 480 (sell price), OTM option with strike of 11,000 was sold for Rs. 5.05 (sell price).
On the expiry date of 25Jan, future closed at 11065, 10K option at Rs. 1058, and 11K option at Rs. 56.4
Net = (11065-10473) + (480-1058) + (5.05 - 56.4 ) = -37.35 i.e. Negative value indicating a Loss
Multiply it with the lotsize of 75 and the loss for one lot is Rs. -2,801.25.
Add to it the brokerage charges, the loss increases further.
Additionally, I also drew the payoff function for this combination. It is net negative everywhere, with big loss that increases linearly below or above the two strike prices.
Not undermining your suggestions, but please understand that there are lot of newbies on this forum who would jump to trade without actually verifying anything. It may lead to losses for them.
Are you sure this works?
If so, please help with the numbers for the benefit of everyone.
Just FYI - here is a good resource to draw payoff functions for F&O, which indicate how profit and loss varies based on stock movement:
2 Likes
true.
Thanks a lot @RSOptions, for providing the detailed calculations about the so-called strategy.
Also thanks for that wonderful link which clearly explains the payoff charts. Really useful!
1 Like
This is possible with intraday.
Nowadays subscription based services are available. Subscribe to one who gives good calls.
Each call can give you 1000 to 1500 with the amount you have. They give you 3 calls per day.
But somedays you will endup loosing. You should be ready to take lose too.
MR NITIYA ,
Kindly reply
coz i would love to try your strategy , but rs optios seem to have data to prove it wont work
is there a delta neutral strategy which could work
please note im totally new to options
regards
Hi…
In derivatives profit is more and risk is also… there rule in 90-90-90 means in 90 day’s 90%of people can loss 90%of money…if u r new stock market start with equity investment risk is less,and returns also…