NIFTYMAGICIAN

One simple thing if any ne not agree with my things or feel uncomfort pls can say ur things in between any time its will b good for all .....

i will share only my practical exp which is i learn frm mkt n i got 80%+ good result for me

option trading one of huge risky segment and

1000's time normal trder got loss in option trding

can say its slow poison for ur a/c

 first thing we will share + points in option trading

• trader can make good % wise return in option trading if they enter with right timing & mkt trend
• possibility of money can double in single series
• if u r BUYing option first thing u should know ....index/stocks spot price sup/r
• mkt simple rule know every trder BUY @ sup/ SELL @ res
• if mkt trend is down side obvious BUYer will think about put option so thn u shud wait first price shud b near res point
• thn u can BUY ur put
• if u doing only day option trading ur strike price shud b near
• exmple today mkt
• today res was 5913-30 as per me
• sup was 5847-32
• mkt came down 5913-30 so i will BUY 5900-5800 puts

• if u miss right time entry so forget
• dont run behind the mind of the market

• is u think for positional option trading
• so dont hold any option more thn 2 days wteevr u get loss or profit
• aftr 2 days holding if price not run ur side thn ur trde 80% will loss
• its v simple rules may b u did nt read anywhere in any option theories
•
• now come at open interest
• 90%+ mkt run against open intrest 15-17 days out of 20 days series
• so pls understd closly this point
• see exmple ...who r SELLing option for u ?
• obvious xchnge

• think for ur profit
• example am SELLer u trder r BUYer
• obvious i will SELL my item in high price
• u r trder mind will say BUY at any price will SELL in high price
• but u cnt do tht
• few min ago i said dont hold any put/call morethn 2 days
• bcs option put/call daily 75 prem reduce
• 7%

• now 5700 put @ 75 6000 call @ 72
• tomrow mkt open again @ 5850
• u will see 7% prem will b down thr
• if option trde put /call not run in ur favour 2 days u lost 15% already
• supose ur BUY was 100 rs
• aftr 2 days ur price automatic @ 85
• without mkt move any where
• if mkt run against u
• then ur prem will fall more double triple speed
• so if 2days 1 day mkt run against u
• 1 day mkt raneg bound
• ur prem will b 70 belwo frm 10
• almost 30 % gone
• 3 point index move thn ur option move 1 point only
• so u lost 30 point mean u need 90point in ur favour for ur cost

• so dont use any emotions in trding
• like hope panic or impatience
• always try to entr on time @ res/sup ( whet ever u folow moving avg or pivot point or etc etc
• pivot point & camarilla best tool for option trading entry

http://i.imgur.com/2yYUD2r.jpg
• some ppl may think its ema or sma
• i will shre this formula very soon here at nm.com
• now i doing backtesting
• so back to open intrest
• if put side oi rising =mean mkt will up
• if call side oi rising =mean mkt will down
• 90% 15-17days out of total 20 days wrk like this
• now matter how u will get put/call shorting or BUYing
• rght ?
• exmple today 5900-6000-6100 call oi ws up
• mkt ws down whole day
• put oi also ws rise but less thn call oi
• so mkt ws slow down
• didnt panic
• some time oi rise or fall from opening
• some time oi chnge after 30-45 -60 min
• thts y experts say trding start after mkt setle min 30 min
• thn strt trde
• if call oi rising mean big plyrs SELLing call
• bigplayer /xchnges /fii dii/hni trders
• if they SELLing call mean mkt how come up ? if mkt come up thier call prem will rise so they get loss


• so call oi rise simple mean is call shorting in system result mkt down ..pure exmple of today mkt
• 4 sep to 11 sep put writer ws v active( put oi continues was rising )
• result u all seen mkt rally 5350 to 5930
• if call side oi rising more thn put side oi = mkt down
• if put oi rising more thn call oi= mkt up
• so pls first chk proprly which oi rising in live mkt thn decide u shud BUYput or call

• u can downlaod daily fno bhavcopy http://www.nseindia.com
• n check daily n track daily oi which strike oi high or less in either side ( put/call

• u can slect ur mkt wtch column
• last open intrest, current oi, & oi chnge %
• if call side chnge % is ++ mean mkt down
• now many ppl think abt stbt/btst
• i tell u interesting point
• now today cal oi was good rise ..nxt day opening will b not +
• if put oi rise high so down opening chnces r less
• 4 sep to 11 sep put oi ws rising like rocket
• tthsy mkt ws opening with big gaps
• n shrp rise in frst 15min
• if incase put oi is hgh n price belwo tht stirke so nxt day mkt surely wil come up v fast
• exmple ...28 aug & 4 sep mkt made low 5118 & 5319
• put oi ws v high but they ws not in panic bcs sep series days was thier hand
• they ws not panc
• sos thtsy mkt did not hold belw 5300
• thier u can see vol also
• 28aug vol was highest in last 1 yr vol
• low was 5118 high was 5318

• if SELLing vol is high mean mkt can reverse
• if BUY vol is high mkt can down soon
• 3-4 point is v v imp ........oi risng or falling , dont hold more thn 2 days , always try to enter at res/sup only

• 1 more thing
• if u BUYing option so pls try in min 2 lot
• after chk proper oi
• if u getting profit in day in option trding & mkt taking sup or doing consolidate in day u shud book ur 1 lot atleast
• in option trading keep ur profit focus on % wise
• supoe u BUY put or call @ 100 rs
• price move ur side till 110-15-20 mean u getting 10-20% profit
• u shud book
• bcs in 100 rs BUY ur invstment 10000 in 2 lot
• ur pice up 10-20% in day wtelse u wnt in day ???
• if oi reducing mean they r covering short ( or in simple sense BUYing )
• now come @ SELLing option
• till now if any hv any q so can pls ask now
• yh i1 more point
• if u going to BUY call or put pls try to enter near strike price
• example
• u going for 5900 put BUY as per tday mkt
• & call i rising continues
• & u got poitn mkt is down
• if u dont know exct up/res so u shud b wait for spot come near 5900
• today u all seen
• call oi ws rising mean mkt ws getting weak
• so spot ws strugle for near 5900
• 3-4 time ateempted abv 5885 once made high 5894
• but failed cross 5900
• tht time ws prfct for BUY puts
• see yetsrday eod closing 5900 put oi ws higher thn call oi
• so abv 5900 ws difficult for survive today
• so mkt open 5930 n within 15min coem back to belwo 5900
• why come belwo 5900 with in fewmin
• bcs reason ws 5900 put oi ws higher thn call
• inlast eod
• so eod homewrk of oi is alos imp prt of opening entry
• tthsy i said @ 9.19 am mkt belwo 5930-13 strong weak n 1 way wholwe day
• as per today closing cal oi 5900 @ 34lac put oi 28lac ==wht is conclusion for oenng trde any one can give idea
• 5800 call oi @ 27 lac & put oi 38 lac
• as per this oi staus ..if mkt come near 5890-5900 go short if mkt open n come near 5800-5815 go BUY .....this oi not chnge in live mkt
• as per today mkt action call oi was higher thn put ---so chnces r less more thn 5870-80 opening
• 1 more think
• mkt min take 3 to 7 days time consolidation for u turn
• 12 Sep 13, 10:35 PM Gaurav: any question in ur mind till wteevr i shared
• i just share with my l last 10 yr trading exp & some inside things
• 1 more thing keep in mind mkt give only few mins in day for perfct entry

Good one. Aprreciated. Simple basics are been told but most effective.

Jaagoo forum members. All are sleeping.

Good Work Done by Gaurav Sir and Achintya

Very less people comment.

Very Good Info...please keep posting if you find more.

Hi, I have been reading this trading style for the past few days and back testing from what i understand.
The backtesting has been good the results are coming out good, i know this is an old post but i think this could be a really good trading system.
has anyone tired this ?
IS the member who posted this trading style still active on the forum ?
I would like to get other traders opinion on this as well.