Stock Market has 7 major trends -

Stock Market has 7 major trends -

1. Bullish
2. Bearish
3. Sideways

90% of the time market moves sideways and only 10% of the time market is in Bull or Bear trend.

Usually, retail traders loose their patience while waiting for confirmed trend to form and eventually take wrong trade.

In order to avoid this, I recommend a large capital ie. Min 5 lacs and write option trades while market is trading sideways and you are waiting for the confirmed trend to form.

Also, you just need to use 10% of your capital for option buying and rest always in option selling.

Ping me on telegram (link given on profile) if you want to know more about this. As a general rule of thumb, trade in At the money (ATM) strike prices.

Keep a check on the option premium and time till expiry. An unexpectedly high premium on both call and put indicates that the market is expecting some dramatic movement in either direction such as election results, company quarterly results etc.

Deep OTMs give dramatic returns (1000% or more in a single day) when the market takes an unexpected direction, such as Trump election, Brexit etc. In such situations, you would end up in significant profit even when you purchase both call and put.

Contrary to popular belief, there is no such thing as a no-trading day if you trade in indices like Bank Nifty, you always have sufficient open interest for ATM strike prices and you can potentially make profit if you enter and exit at the right times every day.