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Stocks and Options trading - a first hand experience for the beginners

(Note: The article below is only for education purpose and the author of this article or the administrator of this blog does not take any responsibility of your trade losses on basis of it, if any.)

Advices for Stock trading-

I have been tracking the stock market with a professional mindset since October 2021.  With the help of my Professor brother and his friend Mr. Divyanshu a fair knowledge has been gained and practice of option trading is on which is definitely beneficial. A big banker friend has also taught some effective methods of investment which are also working. In September '21 the market was at peak which was much above normal. After that there were several ups and downs in the index. I also got some shocks but finally I came out successfully. Got to know a lot. The role of luck in the shares trading is not as much as common people think. If you stay with good companies of various sectors for at least one or two years, if you invest significant amount of money but on piecemeal basis after identifying the suitable opportunities and if you keep your emotions under control, then profit is almost certain. Though this all may seem very simple but actually it is difficult to follow the the tenets. The biggest challenge is to control your feelings of excitement or frustration. I am now habituated to this. (17.7.2022)


Advices for Option trading-

I have been engaged in share/option trading since last fifteen months. I am also helping some relatives and close friends in this matter. Working proficiency in Share trading was got by April 22 and in Option trading by August 22 and now I am successfully moving towards developing it as my profession. Neither I nor any of my relatives/friends had done this work earlier. But now I have gained workable confidence in it. My Professor brother and his friend Mr. Divyanshu Sharma took took this marathon task upon themselves of training me specifically strategic and technical nuances in option trading despite my highly chaotic daily routine and succeeded to a noticeable extent. I express my heartfelt gratitude to these two sensitive scholars, who have received higher education in America.

See, telling in which sector to invest now - it will not be possible for me because my strategy is to keep invested some amount in each of  the sectors all the time.

So far, my conclusion is that trading in stock market requires more of psychological strength than the knowledge of finance because it basically tests your realistic insight and patience. People who do not come under greed, fear or excitement can be more successful in this. They should not be in a hurry to go ahead of others.

Don't jump into option trading without training and practicing mock trading for 4-6 months, otherwise after gaining some profit in the beginning you can make such losses that you can't even imagine. Some free courses are available online which are useful. It is important to understand that options trading is a full-time job, you have to plan in advance to take even a single day off. Option trading is better than stock trading in three respects- (1) It works better and gives you profit even if the market is going down, if the market goes up then you can already earn from your investment. (2) The average percentage of profit in this is often higher as compared to direct share trading. (3) The probability of making profit in this is more as compared to direct share buy-sell and you already have available authentic data regarding probability which is not there in share buying and selling. But the big demerit with it is that it does not work remarkably in low volatility scenario. A VIX level below 15 can be understood as low volatility.

Intraday trading, be it in shares or options, is a very risky business, so be careful and avoid it as much as possible. If you want, you can think of getting professional training from Mr. Divyanshu Sharma who trained me. (21.12.22)

Article  by - Hemant Das
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