Stock trading as a career is not popular in India because it has more social reasons than economical. When someone wants to embark upon a career in stock trading, there are no precedents to tell your parents.
As there would be no sure salary at the end of the month, there is hesitation and uncertainty.
All business has the element of uncertainty.
But their people see some activity, staff, inventory, sale, turnover and it matches their concept of business.
Trading in the stock market does not have inventory, does not have sales in the conventional sense and as most of the traders are the lonely warriors, there is no staff.
So it does not fulfill the stereotype requirements of a business or job.
Hence the lack of social acceptance. And it is tough to take up a career without social acceptance.
This is the social acceptance level of trading that even at the age of 60, you can not engage in your passion if you care for the social norms.
These are just prejudices.
People do not have any knowledge of trading, therefore do not consider this as a good career.
But people do not have knowledge of coding and software also. They are okay with these careers as there is a salary at the end of the month.
They get worked up if you wish to establish a startup business doing what you would be doing a job.
We are not risk takers as a society.
We want others to create and own the businesses while we seek employment.
We are a society of takers, not givers.
And our thought process does not permit us to take up activities like stock trading as a career.
Risk avoidance and lack of social acceptance are the two main reasons for people not taking up a career in stock trading.
Lack of knowledge about this field is another reason.
Due to lack of knowledge about trading, most people consider it akin to gambling. This again is a reason not to seek a career in such an activity.
As more awareness comes in, the situation may change in future.
I started trading carrier way back in 2014, I have started in stocks initially but due to the requirement of more capital & less gain, it forced me to trade Options.
Initially, I was trading with blind guessing, which wiped my account several times, but thanks to my mentors who suggested me to trade small initially.
A trader is an inquisitive person. Whether winning or losing, one would still like to know if there could be some better method for trading. For that, a trader has to know himself (herself) first.
Option Buyer has the potential for Unlimited Profit and Limited Loss.
But the probability of the Limited Loss is very high. Option Seller has the potential for Limited Profit and Unlimited Loss.
The probability of profit is higher than that of loss.
So most traders believe that selling Options is a surefire way to win the game.
Remember to be careful about the unlimited loss probability.
It can wipe out your capital. One can be a profitable both ways, by appropriate exit when losing in a trade.
Options are not as complex as they have been made by the creation of strategies.
Strategies are needed for large portfolios.
My trading summary: FY18
Here is my summary of trading options, started my performance tracking from June 17 to Mar 18, with a target of multiplying my capital based on my past trading experience form Optin trading,
I have created a trading plan, where I have started with NAV of 1, where you can see month on the month I have been able to gain consistent profits in options trading, here are some of my trade details:
Here you can see how I trade Options, below are some key points to watch for:
- I do not trade every single trade, I trade only on defined pattern I know
- I have defined Risk: Reward ratio for each trade
- I am not winning 100% of trades, my success ratio is just 57.57%
Watch video on my trading performance: Click here
Well I am also not winning huge percent wins on a single trade, I have trading based on the pattern formed Intraday with defined risk: Reward, here you can see my percentage wins & loss over the course of trades!
Here you can observe that I also have losses in trading, everybody has, but no one showcases publically as they post one screenshot of big wins & they are lost over time, Trading is not a one-time activity, to be consistent & profitable trades one should have the edge in trading!
My trading strategy:
Markets are on a high. New traders are coming to the markets every day with a dream of huge profits. Beginners luck gives them some profits and then the dream goes bust.
The learning process starts. Looking for Options Trading strategies is the part of that learning process.Every trader goes through it.
Looking for the Holy Grail. Looking for a method which works every time. Looking for sure-fire profits.
Looking for the best Options Trading strategies. Let me give you the truth in the beginning.
There is no options trading strategy which can be called best.
The quest for the best strategy or even a good strategy is an endless pursuit. Every trader whether trading Options, Futures or Equities is looking for a strategy to stay profitable.
Read more about most profitable pattern basedon technical strategies: Click here
Precious time is spent, huge data is backtested and the experts come out with some formula, method or strategy with the fancy name.
The success ratio may improve to 60–65% with best of the strategies. Will they ultimately be profitable? No, if applied blindly.
As the sucess of trading is not about strategy it is all about Psychology, here is the bifercation of perfect trading plan!
Is Option Trading Really Complicated?
It is human nature to look for problems where none exist. Life is simple, we complicate it ourselves and then spend our time clearing the mess.
What Do You Want To Achieve? :
You want to be a good trader. Work towards that goal.
You want to learn driving. Learn it. Do not aspire to be Michael Schumacher on the first day of driving.
And do not try to become automobile engineer when all you want is to learn driving.That is where most people waste their time and energy.
For crossing a railway track, look left and right and cross. Do not try to memorize the train timetable just for crossing the track safely.
A beginner should observe the movement of Index and the stocks linked with the Index first. The observations should be made in uptrend and downtrend both.
Subscribe to Free Nifty observation course where you will learn how to trade Nifty options intraday: Click here
After few days of general observations, one should become stock specific. Follow just one or two stocks for about a week and make notes about the movements. These are going to become your bread and butter trades once you have gained enough experience.
There are only two lessons to follow initially.
The only way to make money is to buy low and sell high.
It is a universal truth and needs no proof. Only that it is not very easy to accomplish this in practice.
Keep your loss small and wait for big profit.
Again a simple principle but difficult to do.But no profits will accrue if this rule is not followed.