Share markets are always lucrative for investors, sorry😃 for traders. So, Options trading may be most rewarding for aggressive traders.
Markets provide different products to invest your money wisely.
You can start from scratch and can also start with just ₹500.
The new investors come in market to generate money as become trader, when they start loosing money and left with very less then they turns investor.
This happens just because of a lack of knowledge. Investors come and invest without knowledge and lose their whole money very fast.
Investment Products in Share Markets
Stock market gives you a lot of products to invest in and they are as follows:
b) Mutual Funds
c) Futures and Options
h) Global Investments
These are the all type of investments which you can invest in share markets.
Out of all these investment options available, today I will talk about how Options trading may be most rewarding for aggressive traders.
I know most of the people in the market are not aware of this term.
As I have mentioned earlier that traders start trading “options” for earning quick money without any knowledge and they incur a loss.
Before, Jump into options trading, you should know what is the “options” in trading terms?
“Options” is nothing, but, a contract that conveys its owner/trader/holder the right, but not the obligation, to buy or sell underlying asset or product at a specified price or on the specified date.
There are so many strategies to trade in options but here I would like to mention only best and feasible ones.
My Own Strategies
- Choose the liquid most stock or indices options.
- “In the money”, options are available on more premiums compared to “Out of the Money” or “At the Money” Options.
- So, choose the nearby “At the Money” option for maximum profit, if the trade is in your favor.
- This is you who has to decide call options or put options.
- A call option is bought when you are expecting that the price of that particular stock or indices is going up.
- A put option is bought when you are expecting the price of stock or indices is going down.
- Do not hold an option for a long time, especially when this is “Out of the Money.”
- Keep a sharp vigil on the “Strike Price” of the underlying stock or indices,
- Do not deploy huge money for trading in options, instead use a small amount of money initially.
- When you are trained you can take risks and enjoy your profit or loss if any.
- If you incur losses, don’t remember for long.
- When you are making profits on the trade, start putting a stop-loss prices for saving this profit.
There are lot more practices and terms for learning options, which will be benefitting you for earning huge money.
If you think this article is informative for you please do comment.
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