Those who would like to follow my recommendations of one option trading call every month, and trade in those calls, should adhere to the following strict guidelines:
1. Allocate a fixed amount for Options Trading, say Rs 10000, preferably out of profits earned by selling shares invested earlier, or out of your savings. Borrowing money to trade in options is a strict NO NO.
2. If you allocate Rs 10000 for the purpose, dont put more than Rs 5000 in any single call. That means even if you dont earn in the first call, you are left with funds to trade in the second call. Beginners may put not more than 30% of the amount allocated in any single call.
1. Allocate a fixed amount for Options Trading, say Rs 10000, preferably out of profits earned by selling shares invested earlier, or out of your savings. Borrowing money to trade in options is a strict NO NO.
2. If you allocate Rs 10000 for the purpose, dont put more than Rs 5000 in any single call. That means even if you dont earn in the first call, you are left with funds to trade in the second call. Beginners may put not more than 30% of the amount allocated in any single call.
3. NO STOP LOSS will be indicated by me. Since the recommendations will be only for OTM calls/puts, money invested will be very small like 3000-5000, and hence no need for having any SL. This means you have to be prepared to get the amount put in Options wiped out totally at the end of the expiry, if the market does not move in the direction of the trading position taken.
4. If due to bad luck, if the amount allocated initially is totally wiped out in 2-3 trades, just get out of the option trading for ever.
4. If due to bad luck, if the amount allocated initially is totally wiped out in 2-3 trades, just get out of the option trading for ever.
5. Target will be indicated whenever I give a recommendation. The call will be like "Buy Nifty 5600PE/May 2010 at 30. Target 150". Those who trade on my calls need not wait for the reaching of the target given by me, and may book profits even before the target, specially during the initial 2-3 trades. The idea is to protect the capital, and add to it by bit by bit in every trade.
6. I will allot one post for every trade/recommendation, and update the progress once in 2 or 3 days. If I recommend any options at a particular rate, prudence calls for buying those options ONLY at rate below my recommended rate, and NOT above the same. Allotment of one post per trade is done with this purpose in mind.
7. Since the option trading is in small amounts, you should ensure that you dont end up paying heavy brokerage on option trades. For any assistance in getting a lower brokerage arrangements, members may contact Mr Jay Sarkar, one of the earliest members of fiftypointsaday blog on his email stockmarketsinindia@gmail.com.
8. If the capital alloted by you for any trade permits you to buy 2 lots of the recommended option, you may buy only one lot at the rate recommended by me, and buy the second lot only at Rs 5 below the recommended rate. If the plan is to buy 3 lots, the third lot may be bought only at Rs 10 below the recommended rate.
I hope by trading in option trading calls given by me, and strictly adhering to the above guidelines, members will be able to slowly and steadily increase their initial capital in the months to come.
6. I will allot one post for every trade/recommendation, and update the progress once in 2 or 3 days. If I recommend any options at a particular rate, prudence calls for buying those options ONLY at rate below my recommended rate, and NOT above the same. Allotment of one post per trade is done with this purpose in mind.
7. Since the option trading is in small amounts, you should ensure that you dont end up paying heavy brokerage on option trades. For any assistance in getting a lower brokerage arrangements, members may contact Mr Jay Sarkar, one of the earliest members of fiftypointsaday blog on his email stockmarketsinindia@gmail.com.
8. If the capital alloted by you for any trade permits you to buy 2 lots of the recommended option, you may buy only one lot at the rate recommended by me, and buy the second lot only at Rs 5 below the recommended rate. If the plan is to buy 3 lots, the third lot may be bought only at Rs 10 below the recommended rate.
I hope by trading in option trading calls given by me, and strictly adhering to the above guidelines, members will be able to slowly and steadily increase their initial capital in the months to come.
Good Luck.
kadiyali.
PS: Those who have any queries on the above guidelines may place their comments.
Sir,
ReplyDeleteMy best wishes for your new OOAM... Initiative..
So for your investment picks based on fundamentals and we sit with patient and got a good reward in your calls.
For this option trade initiative what kind of strategy you have to follow ? option basically time based one so we are not able to sit with faith. Its news based approach or technical one you have to follow for this option trades.
Any way my wish and expectation also the same for this initiative also give a fruitful return to all of us..
All the best
Regards,
Sara
sara,
ReplyDeleteThe option recommendations will be strictly based on certain data collected by me for the last 2 years on a set pattern of movement of option premium depending on market direction in a particular month. I am confident at least 2 out of 3 calls will click. Even if one of 3 clicks, the capital will be intact.
It is absolutely necessary that one should trade in options with a limited allotment of trading capital, like Rs 10K as suggested by me, and it is all the more essential that we allot only one third of the capital to any one trade.
If the guidelines given above are strictly followed, I dont find any reason why members should lose money in option trading. Anyway, just watch for 3 months. Let us see where we stand at the end of this period of 3 months.
Sir,
ReplyDeleteIts happy to read that the same way you put your effort to this option trade also for the wellness of us. Thanks for your effort and make a good success as like the parent blog of fiftypointsaday.
Regards,
Sara
dear kadiyali sir,
ReplyDeleteit is nice and excellent idea.. to get back the
money,slowly but surely..
my best wishes..& kind regards..
dear readers
ReplyDeletei came to know about some people giving recommendation in my name.all are false. i gave a target for 5800 for last series but never told anything for this series.