Intraday Trading related Questions

I am Starting Intraday Trading in Options from Tomorrow mostly Buying,So any Top 5 things I should follow or do while Trading.

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Im an intraday options buyer too. I trade Nifty Options only.

The rules that have helped make good money consistently are

  1. Have a well tested plan to trade. The plan should not include any discretionary element.

  2. SL is compulsory - If it is not in the system, it is not there. Period.

  3. Never ever risk more than 2% of your trading capital in any one trade. Do not take more than 2 trades in a day. One trade for one side. Thats it

  4. Targets are not important, but if you have to keep them, they should be atleast 2.5 times risk

  5. Trail SL is compulsory.

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Throw some pointers, for someone who wants to start options intraday.

Especially clear me the doubts on ce pe. Or well infact, tell me broadly what you do. That ll make lots of sense.

For basics of Options you can check out Zerodha Varsity. They have done a very good job.

I’m a full time trader (Trading to pay bills type). I trade Nifty options intraday (I’m an option buyer). I’ve made a trading system for myself that I’m deploying in my account for last few years.

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is your system intraday?
give a gist of your strategy.

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The movement is so fast in options,that I am Confused about to use Limit orders or normal while buying.And I am not able to Trade in Expiry day as it Reverses ever time.And I make Loss.So any Suggestions on this 2 Points.

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My system is intraday.

I use Bollinger Bands and price action to trade. Bollinger Bands is to decide when to trade. I wait for confirmation candle and place buy order for both Call and Put. Whichever triggers.

SL is known before placing order. Position size is such that I never lose more than 2% of my trading capital. Targets are dependent on my equity curve status (Drawdown or high). Minimum target is 2.5 times risk. It can be more also.

TSL is compulsory. Whatever happens get out of the trade at 15:25

Thats all

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If you feel expiry days are more risky, then don’t trade those days. Otherwise keep wider SL and position size accordingly.

I prefer to place SL limit order for entry, so I have enough time to place the order and wait for it to get triggered. Only targets are Limit orders.

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But in Options the Actions are so fast,that I am not able to Set Stoploss while buying,so I set it on my mind,how much loss can I take,and do U use Limit orders or Market order while buying and Exiting, which is better. And what is American Markets time according to Indian Standard Time.

Prices in Options move fast, but I don’t think they move so fast that you are not able to place SL. I think you must be either trading very small timeframe or you are working and you look at the market at intervals and so you are not able to place SL. Please correct me if I’m wrong.

I personally believe that there is no SL if it is not in the system.

I have no idea which is better. I use SL Limit orders to enter and also to place SL. I place a buy order above the market price, so a SL order. SL Market orders are not allowed in options, so I use SL limit orders. Once orrder is trigerred, I place SL limit order for Stop Loss.

When price is close to my target (10 or 20 points away) I change SL limit order to place target order which is Limit order.

I’m a full time trader, so I am in front of the system 9 AM to 4 PM everyday that I trade. I can manage to change the orders at will. SL Limit order to Limit order.

I did not understand this.

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It is better to trade with liquid options. Here you may use stops.

If you are going with relatively illiquid ones prices can make wild momentary moves and stops could be hit without correlation to underlying movment. It may be better to hedge it rather than use stops in this case.

Market orders are ok with liquid options. Limit orders are better with illiquid options.

Since you do intraday it may be better to limit your trade time between 9.30 AM to 3.00 PM. At and close to market opening and closing time markets could be pretty here and there with option prices.

US markets open from 7 PM to 1.30 AM IST when DST is ON. It is open from 8 PM to 2.30 AM IST when DST is OFF. DST is ON from the 2nd Sunday of March and continues till the 1st Sunday of November.

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  1. Select strike price having delta around 40
  2. In the starting Aim for small profit of 10-15%
  3. SL of 15-20%
  4. Refer chart of option price for better understanding .
  5. Do not hold option for long period of time.
  6. If trading in stock option , prefer stocks with liquidity and stock price between 300-1000 rs.
  7. Avoid trading in index option weekly expiry(specially wednesday and thursday)

You can use bracket order for stop loss and target.

I prefer more of a Scalping Trade,when I exit from Trade in Market order the profit changes very frequently.And I was talking about American Share Market Timings in Indian Standard Time.Because I frequently hear After 1 P.m that Dow is Down and our market Responds to it.

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Then what is after 1 p.m that news channels speak Dow is down and so our Market reacts to it.

They speak about dow futures which trade nearly round the clock unlike the US stock market. Also this is the time around which the European markets open. Our markets may react to both.

OK. I’m not a scalper, it doesn’t suit my temperament. I’m a slow trader. I take one trade in a day, few times 2 trades. It will never go to 3 trades in a day, whatever might be the opportunity loss.

I follow 15 min candles.

I have no idea about how Dow affects Indian Markets. I don’t track them, I don’t even look at them. I only look at Nifty spot to decide the candle on which I should trade and place orders on the corresponding Options candle.

I like to keep my life easy

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I loved this one!

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You can Check in past few weeks as Records as after 12 p.m Dow falls our nifty falls Dow recovers our nifty recovers.As federal Interest rates hike and many Reasons.So I am not able to get live Tick of American Markets and there Indian Time. So if U know then let me know.

Dont trade. With such high volatility you can get hit both sides