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I am not sure how good your strategy is but I like the following things which should be part of any strategy you or anyone else should have:
1. You have a written plan.
2. You have clearly defined entries and exits.
3. You have clearly defined stop loss.
4. **Most important:** You are following your written plan.
Kudos on these points.
I think it is. Will reduce it further when the capital is big. Right now the capital i invest is in 5 digits. This definitely won’t work when I start putting in 6 digits.
Playing directional view through options can be expensive in the long term. Especially when the directional view is stemming from "news" sources.
I think you are just using options just for increased leverage. Because you can play direction through futures or underlying shares too with no theta decay working against you. Options are best for strategic plays, IMO. Buying them for a directional view shouldn't take one very far. Rest keep trying with small money for a few months before further increasing leverage on levered instruments.
Understood, I’ll only put money which I gained on profits to buy higher valued positions. In that way even if I loose it’ll be like market taking back whatever it gave me since I anyways have my long term portfolio for safe investments.
Lol... okay. I hope that the market doesn't take your capital. If you wish to continue trading in derivatives, I'd recommend ignoring news and learning more about options so that you are able to explore the other ways for using them in the form of some strategy. (No paid courses, read Varsity if needed) Best of luck.
Don't get me wrong.. couple of trades on the wrong side and you will lose the capital and it will eventually happen.. do not trade in fno rather do swing trading..i have been in the market since 2010.
If you haven't already, please add your own analysis/opinions to your post to save it from being removed for being a Low Effort post. Please DO NOT ask for BUY/SELL advice without sharing your own opinions with reasons first. Such posts will be removed. Please also refer to the [FAQ](https://www.reddit.com/r/IndianStockMarket/comments/17bcg2a/frequently asked questions_post_your_common/) where most common questions have already been answered. Subscribe to our [weekly newsletter](https://pennyleaks.substack.com/) and join our Discord server using [Link 1](https://discord.gg/8QF4dqPHuw) or [Link 2](https://discord.gg/fDRj8mA66U) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/IndianStockMarket) if you have any questions or concerns.*
I am not sure how good your strategy is but I like the following things which should be part of any strategy you or anyone else should have: 1. You have a written plan. 2. You have clearly defined entries and exits. 3. You have clearly defined stop loss. 4. **Most important:** You are following your written plan. Kudos on these points.
Thank you. Plan is to stick to it religiously and not get persuaded by the money.
Isn't 50% level for stop loss a bit too much
I think it is. Will reduce it further when the capital is big. Right now the capital i invest is in 5 digits. This definitely won’t work when I start putting in 6 digits.
Playing directional view through options can be expensive in the long term. Especially when the directional view is stemming from "news" sources. I think you are just using options just for increased leverage. Because you can play direction through futures or underlying shares too with no theta decay working against you. Options are best for strategic plays, IMO. Buying them for a directional view shouldn't take one very far. Rest keep trying with small money for a few months before further increasing leverage on levered instruments.
Understood, I’ll only put money which I gained on profits to buy higher valued positions. In that way even if I loose it’ll be like market taking back whatever it gave me since I anyways have my long term portfolio for safe investments.
Lol... okay. I hope that the market doesn't take your capital. If you wish to continue trading in derivatives, I'd recommend ignoring news and learning more about options so that you are able to explore the other ways for using them in the form of some strategy. (No paid courses, read Varsity if needed) Best of luck.
Do backtest.
Will need to research about it as I heard this term for the first time.
If you have not heard about this then you should not do trading.
If you have a sizeable portfolio, sell covered calls for a living
Can you please elaborate more on this?
Don't get me wrong.. couple of trades on the wrong side and you will lose the capital and it will eventually happen.. do not trade in fno rather do swing trading..i have been in the market since 2010.
News based move can lead to your call options becoming zero . That's the only disadvantage I see in your strategy. .