If you’re engaged in options trading, this video holds a treasure trove for you. Brace yourself for an exceptional strategy that goes beyond just expiries. While this tactic is designed to shine during expiries, it’s applicable every day. Now, why the buzz around expiry? Well, let’s delve into it.
Imagine trading in the Nifty index. On Fridays, the premium might be around ₹400, but it dwindles to approximately ₹50 on Thursdays. The catch here is the Nifty lot size of ₹50. This leads to a stark difference in the amount you need to trade, making expiry days a tantalizing opportunity. A mere ₹2500 can have the same impact as trading with ₹20,000. Thus, people eagerly anticipate expiries as the reduced premium can lead to rapid gains or losses.
Now, let’s demystify the concept with a special guest, Mr. Nitin Mural. To harness this strategy, understanding the Put Call Ratio (PCR) is crucial. PCR is derived from the Change in Open Interest of Puts and Calls. By dividing Puts by Calls, a PCR ratio is obtained. For example, a ratio below 1 suggests a bearish market sentiment, indicating a potential fall. Conversely, a ratio above 1 signifies a bullish sentiment, suggesting an upward movement.
An essential indicator is VWAP (Volume Weighted Average Price). Found on charts, VWAP becomes a guiding line for optimal buy or sell entries. It’s recommended to trade around VWAP as it minimizes losses and maximizes gains.
Additionally, comprehending risk-to-reward ratios and implementing stop-losses is vital. This discipline-driven approach ensures that even if losses occur, overall profitability is maintained. For instance, if you lose ₹1000 three times but earn ₹3000 seven times, your net gain would be ₹21,000.
The concept of risk-to-reward ratio is paramount. Having grasped the three foundational concepts thus far, you’re well-prepared to delve into the strategy. Remember to maintain the risk-to-reward ratio for optimal trading outcomes. For those who’ve assimilated these essentials, let’s proceed with the strategy. It’s imperative to emphasize that risk management is pivotal. Now, let’s dive into the intricacies of the strategy.
Before we proceed, I must stress the significance of having pen and paper ready. To fully comprehend the strategy, take note of the first concept: the PCR ratio. Once you’re versed in these aspects, let’s proceed. I’m about to introduce you to Nitin Ji, a distinguished expert with 15 years of industry experience. While I could have formulated this video independently, I recognized the value Nitin Ji’s extensive experience brings. Being a regular face on news channels like Zee Business, CNBC, and Awaaz, Nitin Ji’s insights promise to be enlightening. Now, without further ado, let’s hear from Nitin Ji himself.
In our discussion, Nitin Ji sheds light on why Thursdays, particularly expiry days, hold such allure. The condensed premiums and heightened market movement make them a trading jackpot. Nitin Ji’s expertise, honed over 15 years, will guide us through an effective strategy. He articulates the essence of tracking the Put Call Ratio (PCR) and open interest. Nitin Ji reveals that by skillfully exploiting these elements, traders can unlock significant profits.
As the discussion unfolds, Nitin Ji introduces the concept of change in open interest as a cornerstone of their trading approach. By analyzing the positions established in calls and puts, traders can discern market sentiment. Nitin Ji advocates trading against the crowd, backed by the insightful backtesting results. He underscores the power of going against the majority’s expectations.
In the live market, Nitin Ji delves into data analysis. He underscores the importance of the PCR ratio, emphasizing that a PCR below 1 signifies a potential market downturn, while a PCR above 1 hints at an upward trajectory. Nitin Ji’s strategy involves tracking this ratio and gauging the predominant market direction.
With the impending expiry, Nitin Ji details how traders should focus on the PCR and the crowd’s positioning. If the crowd leans towards calls, it’s prudent to opt for puts, and vice versa. Nitin Ji emphasizes staying attuned to the PCR trend, which offers insights into market movements.
Nitin Ji shares practical advice for executing the strategy. He suggests trading “at the money” call and put options on expiry days, as these provide a balanced risk-reward proposition. For traders engaging earlier in the week, selecting options one strike above and below “at the money” might be favorable due to higher premiums.
As we continue to delve into this strategy, let’s recap some of the key elements we’ve discussed. The PCR (Put Call Ratio) serves as a crucial signal in this approach. When it’s indicative of a sell-off, traders receive a sell signal. Similarly, the VWAP (Volume Weighted Average Price) signal also points towards a sell. It’s important to note that if the PCR ratio is below 1, it’s a sell signal, while above 1 indicates a buy signal. For those trading in puts, a PCR below 1 suggests a market decline, hence a sell signal. Conversely, for calls, a PCR above 1 suggests a potential market uptrend, prompting a buy signal.
Addressing the concerns of our engaged audience, Nitin Ji elaborates on how to effectively use the software for tangible results. For traders keen on witnessing consistent profits, Nitin Ji has set up a dedicated Telegram channel named “Index Trading with CA Nitin Murar.” With over 107,000 subscribers, this channel disseminates invaluable data insights. These insights are empowering traders to make informed decisions and reap profits.
In this dynamic channel, traders have been leveraging the provided data to make successful trades. Today, numerous individuals shared their impressive profits, attributing them to the PCR data. The beauty of this setup lies in the fact that these traders are achieving these results independently. Nitin Ji’s teachings have empowered them to navigate the markets with self-assurance. Comments echo with gratitude for the PCR data that has steered them towards profitable trades.
Moreover, a live chat shared by Nitin Ji demonstrates how traders are utilizing this strategy. This real-time interaction showcases traders’ abilities to accurately interpret data, forecast market movements, and ultimately, capitalize on them. Such interactions foster a sense of self-sufficiency, enabling traders to make confident decisions.
Nitin Ji also reveals a personal anecdote that highlights the accessibility and applicability of this strategy. Even his wife, who is not a professional trader, has adopted this approach. By adhering to the PCR data and employing a sensible stop-loss strategy, she has not only minimized losses but also secured commendable profits. Her journey exemplifies how this method can be embraced by individuals from various backgrounds to achieve consistent gains.
An essential aspect emphasized by Nitin Ji is the risk-to-reward ratio. He underscores that while not every trade yields colossal profits, maintaining a disciplined approach ensures that small losses are outweighed by substantial gains. By adhering to a risk-to-reward ratio of 1:3, traders can generate considerable profits even with a 70% success rate.
Trading with dual objectives remains central to Nitin Ji’s strategy. Firstly, he’s committed to equipping traders with the knowledge and skills they need to become independent decision-makers. This approach stands in stark contrast to providing ready-made tips, which he avoids. His Telegram channel, “Index Trading with CA Nitin Murar,” serves as a hub for disseminating valuable knowledge every 15 minutes. Through this channel, he shares real-time data insights, predictions, and stock analyses. He even occasionally shares stock recommendations. One recent example was his forecast regarding Reliance’s buying interest, which proved accurate, resulting in significant gains.
Nitin Ji’s philosophy encourages traders to harness their understanding and trade autonomously. The Telegram channel caters to both those seeking to learn and those relying on Nitin Ji’s trades. For the latter, he crafts intricate strategies like bear spreads, bull spreads, and naked options. Risk minimization remains a key focus, especially in volatile market conditions. Nitin Ji’s approach shifts between spreads and naked options, depending on the market’s volatility.
An exceptional aspect of Nitin Ji’s strategy is his willingness to update his subscribers promptly. If market data shifts, he doesn’t hesitate to share exit strategies. A recent example involved swiftly guiding traders to exit puts due to changing market data. This real-time interaction ensures that traders aren’t left with losses due to outdated predictions. Such transparency and timely communication distinguish Nitin Ji’s approach.
He doesn’t shy away from admitting that even experienced traders encounter losses. However, by maintaining a disciplined approach, these losses are eclipsed by significant profits. Nitin Ji’s emphasis on the risk-to-reward ratio and maintaining a disciplined stop-loss strategy further underscores his commitment to trader success.
To illustrate the effectiveness of his approach, Nitin Ji shared a real-time example from his premium Telegram group. During a volatile market session, he demonstrated the entry and exit points he advised, showcasing how traders could secure profits in a matter of minutes. The live chat interactions further validated the reliability of his strategy.
In his premium group, traders learn to leverage tools like VWAP to make informed decisions. Nitin Ji’s skill in teaching traders when to enter and exit positions, based on VWAP data, fosters a sense of confidence and expertise among his subscribers.
In a conversation about intraday trading, Nitin Ji shared insights about the nuances of trading multiple times a day. He emphasized the importance of disciplined entries and exits, especially in volatile markets. While acknowledging the market’s unpredictable nature, Nitin Ji highlighted that disciplined trading and adhering to stop-losses are critical to long-term success.
Summing up his methodology, Nitin Ji recommended traders practice his strategies for 10-15 days. He emphasized that while the approach might not guarantee constant wins, it acts as a safety net against significant losses. With the promise of consistent profits and a risk-reward ratio-focused approach, Nitin Ji’s strategy emerges as a valuable tool for traders seeking financial success.
The “Order Render” software presented by Nitin Ji holds immense promise, especially for newcomers to option trading. Its simplicity is a standout feature, offering a user-friendly interface and an easy-to-understand approach. For those venturing into options trading with limited experience, this tool proves to be highly advantageous. Nitin Ji’s endorsement of the software’s effectiveness stems from his own family’s experience. His wife, a novice trader, successfully navigates option trading using the software’s PCR ratios and VWAP indicators.
Complexity often clouds decision-making in trading. Nitin Ji believes that simpler systems lead to more accurate outcomes. He candidly admits his own tendency to over-analyze, which occasionally results in losses. A straightforward approach eliminates unnecessary complexities and reduces the likelihood of mistakes. The software empowers newcomers to achieve profits through simplicity, teaching them to adhere to set plans rather than be swayed by fear.
A live example shared during a chat further demonstrated the software’s capabilities. Nitin Ji showcased how VWAP rejections could be interpreted as entry points. By combining this data with negative PCR ratios, traders are enabled to make calculated decisions. The demonstration exhibited the power of probability-based trading, a fundamental aspect of the tool’s approach.
An important query raised related to carrying forward trades overnight. Nitin Ji’s advice was clear: avoid carrying over wrong or losing trades in weekly options. Overnight risks can lead to significant losses. Nitin Ji and his team advocate an intraday trading strategy that ends by 3:00 PM, regardless of the trade’s outcome. If positions are to be held overnight, he advises hedging through spreads, rather than leaving naked options exposed to overnight market fluctuations.
While the Order Render software may not be infallible, Nitin Ji acknowledges its 70% accuracy rate. He emphasizes that no strategy is flawless and losses are an inevitable aspect of trading. However, by adhering to the software’s indicators and maintaining a disciplined approach, traders can experience significant success.
The software’s link provided in the description and comment box allows traders to explore its functionalities further. Nitin Ji’s live analysis and real-time trades reassure traders of its potential. His commitment to education, evident through his Telegram channel, further establishes him as a credible guide in the trading world.
In the fast-paced world of stock trading, every second counts. Making informed decisions can be the difference between substantial profit and significant loss. In a recent live trading session, we had the privilege of connecting with Nitin, a seasoned trader with over 15 years of experience. Nitin shared invaluable insights into his trading strategies, demonstrating how data-driven approaches can lead to consistent gains in the market.
Nitin’s approach is straightforward yet highly effective. He emphasized the importance of utilizing accurate data to make well-informed trading decisions. One key tool in his arsenal is AutoTrender, a software that provides real-time data on market trends, including price movements and volume. Nitin’s confidence in the software’s accuracy was evident as he effortlessly navigated through charts and explained the logic behind his trades.
The session began with Nitin providing live commentary on the market’s dynamics. He used terms like “VWAP” (Volume-Weighted Average Price) and “PCR” (Put-Call Ratio) to analyze the market’s sentiment and direction. He explained that by observing price action in relation to VWAP and interpreting PCR trends, traders can gain valuable insights into market trends and potential shifts.
As the session progressed, Nitin demonstrated his approach with actual trades. The conversation flowed as Nitin shared his screen and executed trades in real-time. It was evident that his strategy was anchored in data-driven decision-making. He explained his rationale for taking put options, highlighting the importance of identifying key entry points and setting appropriate stop-loss levels.
A standout moment came when Nitin’s prediction based on the software’s signals played out perfectly. He spotted a rejection on the VWAP and identified a pattern of lower tops, indicating a potential downward movement. He quickly executed a trade, demonstrating the power of combining technical analysis with accurate data.
Nitin’s approach is built on discipline and risk management. He stressed the importance of setting stop-loss levels and sticking to them, regardless of the emotional ups and downs of the market. By adhering to these principles, traders can mitigate losses and secure gains more effectively.
Throughout the session, Nitin’s transparency and willingness to share his insights were commendable. He not only explained his strategies but also provided a rationale behind them. This level of openness is a rarity in a world where many traders guard their methods closely.
The session left a lasting impression, underscoring the significance of data-driven trading strategies. Nitin’s live trades demonstrated that with the right tools and a disciplined approach, consistent profits are attainable. While trading is inherently risky, Nitin’s emphasis on following well-defined strategies and adhering to risk management principles instilled a sense of confidence among the viewers.