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How to do options trading?


o do options trading, you first have to open a demat account with any broker. Then you can easily do options trading by selecting any stock or index by activating the Futures and Options i.e. F&O segment.

Options trading can be done in two ways –

  1. Option buying 
  2. Option Selling 

As I mentioned above, most people buy options because it requires less capital, but it is also true that big money people earn by selling options.

But this does not mean that you can not earn money from option buying, but there are many option buyers who are earning millions of rupees a day, just need the right knowledge and experience.

  • 👉 Friends, I want to advise you that if we want to be successful in options trading, then you should strengthen your grip on any one instrument, whether it is Nifty, BankNifty or any particular stock.

There are many option traders who earn millions of rupees a day just by trading in Bank Nifty because they focus only on BankNifty. What happens is that gradually you get to experience how the BankNifty chart moves and gradually you become so expert that you can easily predict what will become the next candle on the options trading chart.

How much Money options trading cost?


How to do options trading?



In options trading, you can trade with a minimum of 100 rupees and this is the advantage of option trading that you can earn more money with less money. If your prediction is absolutely correct, then you can become rich by options trading even in less money.

And I am not just saying this, but many option traders have become rich in this way, who started option trading with very little capital and today their capital is in crores, if you want, you can research on the Internet about it.

Yes, if you want to earn money as an option seller, then you need millions of rupees because it does not work with less capital.

In option trading, whether you trade with less money or more money, always remember this tip that –

  • As you earn profit from options trading, try not to convert that profit into a loss. Meaning if you trade 5-6 times a day and today you have made a profit in a single trade, then try that today you will take home 70% of your profit.

Because many people get greedy when they make a profit in the first trade and then they also convert their profits into losses. Similarly, if you are losing again and again and you have to bear only a loss on every trade, then stop trading on that day.

There are some people who do double losses in the pursuit of recovering losses. Prepare your mindset in advance of how many times you have to trade today. Try to learn about trading psychology as much as possible, this will not only improve your option trading but also the overall trading journey.

How to Learn Options Trading?

To learn options trading, you have to understand options chain data, market research, strike price, put call ratio, trend analysis, etc. Also, you can convert your losses into profits by learning different options trading strategies.

If you also want to learn option trading, then first you have to choose which instrument you will trade in – Nifty, Banknifty or Stock Options.

If you are a beginner in options trading then you can start with Nifty or Banknifty. If you want, you can move towards stock options.

The following points will help you to learn options trading –

1. Learn the basics of options trading

Later, you should focus only on the basics of options trading. Start learning all the things that happen in options trading one by one. Gradually you will see that you did not know a lot of things and you will move on from other new people.

The biggest reason for the loss in options trading is that people do not know the basic rules and start trading options directly.

2. Read options trading books

If possible, try reading options trading books. I know it can be difficult for you but that's what will take you far ahead of other people. If you read books written by experts, you will get to learn a lot of things about what an option trader has to go through.

3. Watch options trading videos on YouTube

In today's era, there is no better option than YouTube to learn anything. There are many channels on YouTube that can teach you very well for free associated with the group. Try to watch options trading videos as much as possible. You may not understand some things, but gradually you will start to understand everything.

4. Learn by practicing paper trading continuously

After watching the videos of option trading, you should also implement the things mentioned in it, that is, just watching options trading videos is not enough, but you have to practice on the live chart yourself. If you want, you can also do paper trading instead of real trading in the beginning, that is, write down on a paper at whatever price you want to buy shares.

If your stock increases according to your estimate and you make a profit, then write it down on paper and check how many times you have made a profit in how many trades.

When you start making 10 out of 7 trades on paper, you can trade options in the real stock market, thus your risk is greatly reduced.

But some people say that your trading psychology works differently in paper trading and in the real market in a different way. Which is true to some extent, but I believe that if you are not able to make profits on paper, then there is no point in trading with real money because even in that you will only make a loss.


Rules of option trading

There are some rules of option trading such as increasing profits by reducing losses, managing risk and avoiding greed, all these rules are explained in detail below.

1. Reduce the damage

In options trading, your focus should be on reducing losses more than making profits. Because even if you earn a lot of profit but after some time turn it back into a loss, then it is of no use. That's why try as much as possible not to turn the profit you have made into a loss.

2. Manage risk

You all know that the risk in options trading is very high, if you trade carelessly, then your millions of rupees can be cleared in a few minutes. You have to focus on risk management, which means that you should do options trading with only as much money as you can take.

3. Avoid greed

Most option traders are wasted in greed. If you make a profit, then 10 out of 9 people trade again and then if you make a profit again, then trade again and they keep trading until they lose all their money.

  • ➡️ You have to adopt a discipline that if I make a profit on my capital today, I will not convert it into a loss. You have to decide that even if there is less profit, I will not lose today. ⬅️

If you look at options trading, there is a lot to learn, just need the right dedication. Do you think people who earn millions of rupees a day from options trading, is it just their 'luck'?

No...

There are many successful option traders who have understood option trading deeply, then today they are able to earn profits 10 times out of 8 trades. And if you jump straight into the world of options trading without learning anything, then it is sure that you will make a loss.

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