Hi,
I lost 1.5 lakhs doing day trading and decided to concentrate only on swing trading using daily chart. Currently i have Rs.5000 in my trading account and i am not going to increase my capital any further. With this money i can buy OTM call/put option (only buying not selling).
My question is, is it wise decision to do swing trading using options? I mean when i am sure that market moves in certain direction (using technical and fundamental analysis), can i buy OMT call or put option and hold it for some days ? I know about time decay, i won’t be buying during expiry week. What are the disadvantages of buying options for swing trading?
Bhai, if 5K is ur last capital to lose, u better trade on buy side in equity/cash market, no margin trading. As brokerage is free in zerodha, u can opt fr 200-400Rs profit fr one trade. Over period of several months it might get double. By tht time ur trading experience/knowledge wud hv quadrupled.
I am a swing trader. Futures are better for swing not options. Options price is greatly affected by volatility. In swing u r essentially trying to catch the market turns which is tricky. So need to raise capital or settle for cash market.
Trade bank nifty weekly options intraday.i think u wont be able to buy positional options using 5k.if you have good technical skills then dont worry,u can recover your loss within 2 months by just earning 10% per day.
if u r asking me.
I follow price action and volume and market view.
On candle I see higher high than previous day or two for long. lower lows for short. Future premium also tend to be higher at market at top and lower at bottom (contrarian)