Whether positional trading of stock options is better than day trading

Dear Sir

I am finding difficult to gain profit in intraday stock options/nifty options trading though I am taking advisory services. Reasons are that unable to catch the speed of trading for both entry and exit and ultimately end of the trade end up with loss only. Can you please advise whether I can switch over to positional trading of stock options or nifty options for better trading and profit. If so, how many days we can maintain the stocks in position. Please advise how much percentage of profit or loss is to be operated since the prices raises and falls very sharp at no point of time in derivatives.

Thanks

I think the problem is with your trading system, not whether it is intraday or swing. Instead of following advisory services, develop your own system for entry, exit, stop loss, position and risk management.Then back-test it. Do some paper trades for sometime till you get the feel of your system is working.

There are plenty of information available in this forum and internet to help developing your own system. Go and search it, increase knowledge and apply it.

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I think a mix of both is always good to handle. Even I am not very successful with options buying, but I have seen Nifty intraday and stock options positional are OK with me. since Nifty movement is good enough in a single day, say a 10 points rise or fall of ATM Nifty option is always possible. So I think Nifty intraday is good.

For stock options ATM options would be costly and so taking a positional trade with span of 1 week to 2 weeks has proven good with me.

In both cases, you should have a stop loss fixed based on underlying price movement. If underlying moves in unexpected direction and hits your stop loss zone, do not hesitate to square off. Also in positional if the stock option underlying has no movement for few days after you buy it, square off. Do not wait until the month end and loose all your premium.

If you have good cash balance, start with shorting deep OTM options with a sqaure off target, how much you can lose. Deep OTM options do not rise rapidly and looses value as time passes. So you can easily square off in a weeks time and if situations are favorable you can let it expire worthless. I am not very fond of buying options.

No one can say that this is better than this, it's depend on the area, if you are in stock options so you will say "stock options" are better then day trading but those who are good in day trading they will say day trading is better.

It's depend in you where you are playing and how. There are some tactics or strategy if that followed by the investors it will be good for them. Regarding stock options i get idea from a post, even I checked investopedia  also.Here I get suggestions for trading.

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first of all dont rely on advisory services,they will update the highest point of achievement if it hits targets and will not update losses…first read the charts develop good strategies i dont think trading option on intraday basis is good personally as the entry is very important even if it falls 1 rupee after your entry you will start feeling the heat…try stock futures on intraday basis with 1 lot and try yourself with paper trading plot 5 min chart intraday for stock futures then wait till 1.45 or 2 pm, look for intraday high/low if it breaks that high/low of the day after 2pm with spike in volume enter the trade with a stop loss…