Yesterday I was coming from the airport, so when I came from the airport, I booked a cab. Now when I booked a cab, the cab driver told me that I have read your blogs on passive income, on trading, on investment. I also want to do trading, but I don’t have a lot of money, I don’t have a lot of capital. If someone has very little money, then what can he do trading. I told him that why is there a need to trade.
He said that there will be some extra income. Many people want to trade for extra income. We trade with less money and we have some extra income. See what is most important is that you learn first, then invest money. Because it seems so attractive that you will earn a lot of money. You see that someone has earned lakhs, someone has earned crores.
So definitely people earn lakhs of crores from the stock market. But as much as you find it attractive, itis risky if you don’t learn. Many people say that is the stock market gambling? I say that 100% is gambling for that person when he is coming from this mindset. It is coming from a gambling mindset.
If you do anything without learning, then there is a risk invite If I don’t know swimming, I do it without learning, then there is a risk in it. But if you learn, then it is not a risk, it becomes a calculated business. So trading in options with less capital, is it risky? Yes, it is risky if you do it without learning.
But if you are learning continuously, then now I have to give the answer that how to trade in options with less capital and less money. Now we keep it very simple that if you feel that the market will go up, then you buy the call option and if the market goes down, then you buy the put option. Nothing can be cheaper than this.
You simply buy, but here comes another question, which we say is right strike selection. Which strike should I buy? I have told you that if you do not know anything, then you buy one strike in the money. Thesis the safest, but in the money options are expensive. We also know that in the money options will be expensive.
If you buy in the money, it is expensive. Now someone has less capital. He wants to learn in the starting. He wants to trade for 200, 500, 1000 rupees. So sometimes what will happen is that he wants to buy in the money, then he will not get trade in 1000 rupees.
Now what should he do? Here, because this is a question of many people, I am giving an answer to this. Here you need to choose right broker, which allows you to trade with less capital and where strike selection happens automatically.
Today’s educational partner of our blog is Market Wolf. Now what important things do you get from this? First of all, you can trade with less capital. This is point number one. Second, what is here is that if you have a loss, then there is no brokerage here.
If there is a loss, then there will be no brokerage. Only profit will be brokered. This is point number two. Point number three is that strike selection happens automatically here.
According to how much capital you want to invest, you do not have to choose which one to buy. They will give you two options. They will tell you from among 2000strike prices that which is better for you. You can choose. Now I will show you once how you trade in Market Wolf. So here we have come to Market Wolf.
First of all, see what is written here that you can trade in Nifty options. You can trade in Bank Nifty. You can also trade in ETF. What is important here is that it tells you in advance that how much capital you need for example, for Bank Nifty options, you need 200 rupees. Now we come to Bank Nifty. We continue from here.
Now when you click on Bank Nifty, then your Bank Nifty chart opens here. Now you will see here on the right hand side, the amounts written. 200 rupees, 500rupees, 1000 rupees, then validity is written and after that the direction is also written. Now suppose you simply say that I want to trade up. Now suppose your direction is bullish.
You say that the market will go up from here. Now I will show you by taking a trade on going up. My technical analysis says that the market will go up from here. So what I did here, I took a trade on going up. Now it will analyze itself which option will be best for you out of the 2000 options.
So here the second important thing asks us that how much profit do you want to take in this trade and how much loss can you take maximum. So suppose you say that you want to take 100% profit. You can keep the stop loss according to you, 20%,40%, 60%, 80%. It will itself skewer off the position.
If you have 100% profit, then whatever loss you select, then I select 100% and 80%. I am showing for example. You may want to take a loss of 20%. This will also work for you. So here we have selected. Now we submit it. Now as soon as we submit, our trade has been executed from here.
Now if I click one on the left-hand side, then you can see the graph. Here you will also get a graph of options and you will also get a graph of bank nifty and our profit loss is going noon the right. So now you can see that I am getting a loss of51 rupees, a loss of 91rupees, a loss of 88 rupees, but again my analysis says that we will get a profit from here.
So we will wait for a while. Let’s see what happens from here. Now a little time has passed. You can see that the profit is running at around500 rupees. So this is our target of 100% profit. 100% means that if there is a profit of1000, then this position will automatically skewer off. So now you can see that the profits running at 591rupees for 670 rupees.
So write the percentage below that how many percent returns are coming to me on my capital. Almost 73-74% have been done. So you can see the green line above. This is our target. If this target is achieved, then the position will automatically skewer off. So we will wait for a while. Let’s see what happens.
And you can see it yourself. Here you can see that we have come close to the target. As soon as it becomes 1000 rupees, it will be skewered off. As soon as the position is profited, so 913, 965, alright, as soon as the profit of 1000 rupees, our position has been skewered off.
Today you saw that put 1000 rupees and made a profit of 1000 rupees, which is100% returns. But this does not happen every day. Today, the momentum was very fast in Bank Nifty. That’s why I have got 100% returns. But you don’t expect it every day. Soothe platform we were trading on was Market Wolf, which is semi-registered.
I told you about Market Wolf because many people who want to trade with less capital, their concept of strike selection should be clear.
Strike selection is not done by you yourself, you are getting it in an automatic format. And the second thing is that you do not have to decide how many lots, what is in the money, out of the money.
You just have to see that you have to trade with 1000 rupees, 2000 rupees or200 rupees. This is what you need to decide. You can definitely trade with more amounts on this platform, but those who want to trade with less capital, you can check out. Here, as I said, if you have loss, then there will be no brokerage charge