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Basics Options 1

This document provides advice for those looking to earn money through trading futures and options. It emphasizes that knowledge and proper risk management are essential, as 80-85% of traders lose money due to a lack of understanding. The document recommends several steps to improve trading knowledge, including reading business news daily, taking courses to learn from basics, finding a mentor, learning technical and derivatives analysis, developing a daily learning routine, and not actively trading for the first 3-6 months in order to focus on learning. The key is having a passion for understanding how markets work and learning from a mentor over time.

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Balakumaran Durairaj
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50 views2 pages

Basics Options 1

This document provides advice for those looking to earn money through trading futures and options. It emphasizes that knowledge and proper risk management are essential, as 80-85% of traders lose money due to a lack of understanding. The document recommends several steps to improve trading knowledge, including reading business news daily, taking courses to learn from basics, finding a mentor, learning technical and derivatives analysis, developing a daily learning routine, and not actively trading for the first 3-6 months in order to focus on learning. The key is having a passion for understanding how markets work and learning from a mentor over time.

Uploaded by

Balakumaran Durairaj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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OPTIONS BASICS PAPER 1

Try this book.. ‘Option Greeks,


strategies and backtesting in Python' available on Amazon
….this will help you to even back test your strategy

People will say its simple. You just need trading account linked with Bank Account and of course
money in the bank. You need just this if you want to trade in Future and Options.

However if your aim is to earn money through trading in Future and Options then you require a
lot more than just a trading account & Bank account. You need the knowledge and know how of
the Share market.

This is something that people mostly take for granted and as a result lose money and leave the
trading altogether.

Share Market has both risk and reward, 80–85% people lose money so only 15–20% end up
earning. Remember its a zero sum game someone’s loss is someone’s profit. So, more people
lose and only few earn…..but these few earn massive amount of money……….Why do only few
earn money?? Its because they have knowledge, proper risk & money management plan.

Don’t start trading without proper knowledge.

So, if you want to earn money in trading F&O here is what you should do

 Improve your knowledge - You will get lot of information and knowledge on
internet on F&O (Future & Option)….Read that
 Read Business News Economic Times Daily
 Invest in yourself. Join Courses on stock market, start by learning from basics,
you can do that from may be ICICI (they conduct classes) or you can join
training programs of Derivative World and learn from experts there …they are
very good, its a Delhi Based Stock Market Institute.
 Have a mentor. You can never learn soon enough if you don’t have a mentor.
Without proper training or a mentor it will take you decades to learn the tricks
of the trade…..and believe me by then you will be bankrupt.
 Learn Technical Analysis.
 Learn Technical and Derivative Analysis …One such course is Techno
Derivative Course. You can do that from ICICI all over India.
 Have a routine. like getting up early spend an hour learning about the market.
Go to work. At work spend say about 15–30 mins on learning (may be read
economic times or browse a website) In the evening again spare an hour to
analyse what happened in the market during the day. You will need to follow
this routine everyday.
 You should know everything on NSE website…again if it looks too daunting,
then you need a mentor.
 Don’’t trade for 1st 3 months, just learn, next 3 months just trade a little but
keep learning, spend next 3 months learning advanced concepts of Trading. By
the end of the year you would learn how not to lose money. Earning money
should happen by next year if you keep learning and don’t risk too much
capital when you trade.

1
Important thing is to have passion to learn how market works and how smart money does
trading….that you can only do if you have a mentor to support you….Start learning you will get
the mentor along the way.

By the end of it all, it will look simple but its not simple when you take that first step…..But by
the end of 1 or 2 year, you will look back and say its simple to earn money. But right now
looking forward you cant say that.

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