Hi all
Ashwani gujral on dangers of option trading
When i say same thing people like @maddy_Des vehmently scolds and even uses vulgar memes
Now how long this compulsive addiction will continue among innocent retail traders only God knows.
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Why you want to validate your views by using views of another person?
So that you may know - This guy has no good reputation amongst retail. He had to close his tweeter account multiple times due to incessant trolling by disgruntled retails. He is one of those people who are accused of looting retailers in the name of training. He charges some 80k for 2 day program. His training material is available in pirated form and anybody can tell how shitty it is. He is also known to abuse his distractors on tweeter.
Now, tell me, have you not seen overall successful people in society - politicians, actors, players, industrialists, doctors, scientists - making stupid claims, giving stupid statements? Watch news channels and you will see such ppl by dozens.
Now traders are not exception. Many successful traders hold some stupidest views on trading. The views are mostly irrational and unscientific but still they subscribe to it.
FYI, its always successful traders who slug it out in social media. Option buying vs option selling fight was started by guys who supposedly earn in lakhs per day using their respoective methods. So I can get a video of another successful trader which claims exactly opposite what “taklu” (troll name on tweeter) here is saying. How about PRBandar (Troll name) video!!!
Now about accusations.I scold you not because your views on option selling. Nope. I scold you because you profectically predicted bad doom for option sellers. If you know hindi - it was like “Baddua” dena. You got slightlt carried forward in heat of passion. And I never used vulgar memes.
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Just for the record. IMHO this ishaan guy is idiot par excellence. Even more idiot than Ashvani gujral who he is claiming to expose. He know zilch about Absolute PnL statements. Just to show how even critics are idiots and most criticism is out of your own ignorance.
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Now regarding this option selling risk and messaih complex you have.
- The risk for option writer is exactly equal to the risk of futures traders. Period.
Nifty is at 10000 and I wrote 10000 PUT and you bought future. Both 1 lot each. Now nifty expired at 9500. My losses will be lesser than future player.
My losses = (10000-9500)-premium received = 500-premium received
Future players losses = 500 + future premium he paid while buying the lot.
- Now when this unlimited risk idea is debunked you guys jump on limited profits scene. Option writers eat like a chicken and shit like elephants.
Lemme debunk that as well.
Trading is not about risk reward only. There is this probability of profit. So we use SL, hedge, PoP, adjustments etc to control our diarrhea.
Basically in trading any idiot or a newbie can shit a lot. Few days back a guy posted here on forum - I have heard that option buyingis limited risk and unlimited profits. So I bought. Market move in my direction. And still I am getting unlimited loss.
The word to give special consideration here is unlimited loss. Now most people who replied to that post didn’t quite get what the poster was trying to convey. So they told him that he is wrong, there can’t be unlimited losses etc etc etc.
The issue was that ignorant guy had 1lakh in account (say) and he bought 90k worth of options, OTM, near expiry. So obviously it went into loss. By unlimited losses he meant “with respect to my account size”. So any middle class small account trader will get a heart attack if he sees 70k losses nad 70% account size in smokes. That’s what he menat by “unlimited losses”
So my man, shitting like elephants can be done with long term (ADAG holding value investors), short term, positional, scalpers, swing, equity, futures, options buyers and sellers alike.
- I would have write about vertical and horizontal spreads etc etc but you repeating same iissue again here means you have not yet understood naything.
It suffices to say - Don’t worry about others. Skilled and sane traders will make money. Others will lose. Hedged players will never get bankrupt.
I actually sell options and then do not even look at screen for days. IN case of black swan event my losses are limited due to hedge. So I don’t care.
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i completely agree with you
option business in india is expensive(margin required)and requires a lot of study in terms of TA,option strategy to deploy,how to adjust …
people dont understand what option are come noob lose and go home crying and get trapped by this AG kind of guys
simple strategy one can apply is ema cross over in 1 hour,and deploy long spread in weekly that will also earn money risk to reward is decent enough
risk management only deploy 5% of your total capital in a single trade keep rest in liquid bees see results over time
you are here to earn not to play casino
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HAHA… It was a great read. I can totally understand your pain when people make baseless claim with half knowledge they have gathered. It’s really sad that some so-called GURUs tempt novice and newbies into investing into options by deluding them with fast high returns. Investing in options require great deal of knowledge of what you are doing.
Yes, options has unlimited risk but it is only when you have no idea what you’re doing.
I was one of those guys who replied to the post that you referred on unlimited loss.