Hello Bloggers
My question is really basic and someone somewhere must have already asked it , but maybe in different terms. I developed interest in trading few months back and started investing time in learning some basic, but have failed to get a conclusive answer to my question. Or maybe i am not understanding something correctly. I have done some studies on reading the Super trend and comparing it with other Oscillators and have been quiet successfully with small trades. I am doing paper trading or back trading these days to implement my studies with the real time market.
I am currently doing options trading on the NIFTY50. Meaning my script locator looks pretty basic with the NIFTY 50 Index at the top and few PE contracts and few CE contracts to the nearest Nifty 50 Value. Then i basically catch the upward or downward trends and trade on them.
I have seen many training videos on Youtube that talks about going short / going long on individual scripts. Lets take ITC as our example. So if the ITC has a spot price of 300 Rs and i anticipate the market to go down. How do i buy a Put ? That is my confusion. For example i can add ITC Index in to my script locator and it has the Buy / Sell buttons, but how do i apply the logic of going short or going long there? On the other hand if i have something like ITC JUL 250 PE / ITC JUL 350 CE etc … i can perfectly understand that i buy the PE when i anticipate the market to go down and vice versa. But how can i do trade on ITC as a stock and place buy / sell orders ? What is this type of trading called ?
i know i may be confusing, but if you can even point me to the nearest answer i would appreciate a lot.