Saturday, October 16, 2021

How to Trade Option | Important Strategy for Option Trading

 How to Trade Option | Important Strategy for Option Trading

Finvest Online

Friends, first of all you should assume that share market is full of risk. It is always affected by different types of news and events. Therefore it is not possible that anyone can give accurate information about its increase or decrease. 

In such a situation, it is my attempt that you can have as much accurate assessment as possible. First of all you have to decide how much money and how much time you can invest in it. On this basis you have to choose it.

You can choose the time from the data given below

1]  Long term Period Trade  : More than 1 year.

2] MID term Trade : 3 months to 1 year.

3] Short term Trade : 1 month to 3 months .

4] Swing Trade : 1 day to 15 day.

5] Future Trade : upto Expiry time.

6[ Option ( Call/ Put) Trade : 1 day to 3 days.


Nowadays people want to earn maximum money in a short period, then they should be ready to take the related risk.  Through option trading you can earn good return in a short period, but if there is a little carelessness in it, it will not take long to sink your principal money. Call - Put is a 1 to 3 day trade. It can be estimated to increase manifold of your capital or even exhaust the total money. It is completely dependent on your attention and the grace of God.

How to convert it in  profit by minimizing its risk

It is my attempt that each call or put can be bought for around Rs,15000. If you trade in it then you put at least Rs.75000 for it. For this you have to buy any 5 advise of nearly equal capital consecutively . This will reduce your risk by the principle of diversification.  
Then sell it in 1 to 3 days according to there targets or market condition and see how much you got against Rs.75000 you invested. My experience is that you can get around 30% to 100%  extra return on trading in this way.
But you cannot do any other work for 1 to 3 days from buying to selling. You have to be very attentive in that period.

If you trade any 1 or 2 trade at random , then it may happen that the same will decrease and you will have to bear the loss. That's why it is necessary that you make 5 trades continuously given by me of almost the same amount and after selling 5 , you see how much percent your average money has increased. I believe that in this way you will definitely get good profit in the short term.

Note -  For other Long to short term trading strategy stay connected with Finvest Online.

Thanks for your Precious Time.

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Disclaimer- The information on this blog are based on my personal opinion and experience, it should not be considered professional financial investment advice and in no way it should be considered as a tip. We does not take any compensation of any kind whatsoever from any reader, user and company that are mention on this website.  Please remember that this is a blog, and you do not need to agree with anything I write. We are not SEBI registered financial advisor or analyst.

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