So in school and college, training is not given on the skills of earning. So people start from zero. I started with minus. There was a time when I was sitting there. I have also written it in a blog. Everyone is earning money. How many people know how to grow it? So the simple logic is that if you invest in SIPs, then the more time it will take, the more your money can increase. You will have 4.8 lakh rupees in 10 years. It’s not a big deal. So people will think what will happen in 30 years. It will become 2 crore rupees.
We talk about there is one aspect that you can invest in the share market. And for beginners, I say that you select stocks. Why will you select stocks? Why will you invest money in stocks? Your main logic is that I have to beat Nifty, Index, Benchmark. So if you bring returns above the benchmark, then we will say that your focus should been stock selection. Otherwise, for beginners who have less time, they can’t do the job, they can’t do the stock market every day. You can simply invest in index funds or Nifty ETFs.
Let’s move forward. I will definitely show you this, but one more thing is important. How many people want to learn a trading strategy from here? OH my God. How many people have a basic idea of option trading? Yes, then I can give it. Because what I am going to give you, I am going to give you a strategy of options. Now I tell you how many people know about Brahmastra.Alright, you have learned a lot. So you know the Brahmastra, so basically we told you to buy options at the beginner level.
Now we are talking, today I am going to give you such a strategy that is safer than Brahmastra and can make consistent money in its how many people want to learn? So today is something special, but learn a little bit, what I will tell you, note it because what I am going to train you on, this is a very simple strategy, but you can make money in this strategy, whether the market goes up or down. In fact, money can be made in this strategy in the sideways market. So its hit ratio is quite high, about 70% you will see its accuracy.
Now I will explain the strategy to you and then I will show you immediately. So the strategy is simple, how many people know about the super trend indicator, a simple indicator, so you know, you know it majorly, what setting dowel use?20 or 2, so we take 20 or 2, here we take factor 2 and we take the length of 20, so you can edit it for you. Now what we are going to do in this strategy, we are going Togo above the daily time frame and apply the super trend,
now this is not an intraday strategy, so what we are going to do in this strategy, daily time frame, which time frame, were going to apply the super trend on daily time frame, on our charts, on whose chart, on nifty’s chart, you Cando it in stocks also, it will work.
So what you can do on nifty’s chart, you can apply, now what to do after that, as soon as you see that the super trend has broken, a new trend has started, and whenever a new trend is formed, it gives you an indication in the starting that trend is forming from here,
now if you follow the super trend, then what to do, here we will use a selling strategy, whenever you see the super trend, you see a line below it, suppose the trend is going up, then the green line will be below the price, right, and if the price is falling below, then which color line will be there, red, and above the price,
so where that lines, where that line is, there the option will always be out of the money option, right, so what we have done now, if the price, I will explain to you here, you have seen that the price is going up, for example, 17500, okay, the line of super trend you see on the daily time frame, for example, at 17000, understood, 500 points below, understood, now for 17500 put option, sorry for 17000 put option, what will happen, out of the money,
the price has not fallen there yet, so it is out of the money, you have sold the out of the money option of 17000, 500 points below, perfect, thank you so much, this strategy will be fun for people, now get excited, the strategy is amazing,
so now see here immediately without wasting any time, so here see on the daily time frame, my super trend is there,20 or 2 can you see, alright, now if you see here, a super trend changes from here, it happens, when does it happen, on 18th October, if you can see, then it is okay,
otherwise will show you, so here on 18th October, this super trend changes, now what we will do, I will show you, if you go here, see here, the price of the super trend line is almost at 17000, right, and the price which I gave as an example was17500, so go for 17000 and sell the put option, but which one to sell is important, so see here, I will show you,
like we have taken the index of nifty, now we have come to October, so here I come on18th October, so if I am on 18th October, then the expiry for this should be around40 days ahead for you, otherwise you will not get anything special, how many days should it be ahead, 40 days, so instead of 40, 50 is also okay,
if you get a monthly expiry ahead and behind, then take that, now we will not take the monthly expiry of October, we will take the next one, so if I go ahead, so here you can see monthly expiry of 24thNovember, okay, this is the monthly expiry, I took this, and my ending date will be the same here, 24th November, those people who are understanding well and good, because you have come from far,
so I have to give such a strategy, it is possible that people are not understanding, you will have to understand a little bit of option trading, basics, online we have made many s, but this is just a one level up strategy, so understand it, now what we did, I said here we will sell the put option of 17000,see here the option chain has come, put option of 17000, for example 36 slots are selected here, I have sold it, I have added a position,
so I have sold the put option of 17000, which expiry will come about 40 days ahead, so if I get a near about monthly expiry, then it is well and good, and after that what I did, here to hedge, because if there is a big gap up gap down, if my capital is not blown, then I bought this here for 500 points, see I bought this hedge, it was for 199 rupees, and here I will buy16500, so it is for 102rupees, I bought it here, now you see what my max profit admix loss can be, see this once
, in the next example it will be fun, so I am telling you first, so here my max profit can be of 174000 and my max loss can be of 7 lakh rupees, whenever you make accredit spread, what is credit spread, in this theta is in your favor, so your risk to reward ratio will always look like this, but generally it is preferable that you do network on 1 is to 5, but I am showing you here for example, so suppose you had taken this trade that day,
then what would have happened the next day, if you see the next day, then you will see 25000 rupees, if you see the total P&L here, then you will have to increase it,
I can’t see it, I will make it smaller, I will see, can you see it now, can you seat now, so see below, at the bottom, see 25000 rupees, here is my cursor, so here you can see that the next day I would have been making a profit of 25000,the next day I would have been making a loss of 4400 rupees, now see the magic, next Day i would have been making profit of 66000, the next day I would have been making a profit of 66000, so here I would have been making a profit of 86000, next day I would have been making a profit of 92000,you can see this according to your capital
so I took an example according to 1800, so here I took a profit of 92000, now see our expiry is 24th November, November has not even started yet, now we are standing on 28th October and weave made a profit of 92000by 28th October, next day we have made a profit of 124000 and now November has not even started,
this strategy you will not have to wait till the end for the maximum profit, you will not have to wait till the end for about 70% profit, what was here, the market was directional, what is amazing in this strategy, if the market does a little time pass, so theta is in your favor, so in any option that you have sold, you are getting theta,
similarly I come to the end quickly because I have to show you another example, so here 141000, 143000,so by the end you know you have to get the full money, 148000,160000, 160000, 160000,lakhs 65000 so in this way you are getting profit in strategy, this strategy can give you good returns consistently if market is directional and if it is little bit sideways and if market passes 10 days then you will not face big losing strategy,
now in this strategy before I take the second example, what is stop loss, stop loss is your trend line, as soon as this trend line breaks wherever it breaks you will be out, if it would have happened earlier then stop loss is your super trend line, if loss will happen then we will book,
we will not do adjustment for strategy, although you can do, those who are at advanced level can do but I will not suggest beginners that you go for adjustments, next see here now a downtrend starts from here, so now I will sell call option in downtrend then I will take this option,
so till the end you already know that you don’t have to stop till 24th, you will get 1 lakh 75000, now I will take an option for you, suppose come here on 9th of December, I came here on 9th of December and now I will take expiry and now which expiry will I take, about 40 days ahead,
now I will not take December, so I will take the January expiry, you can go a little back, because I am saying to go-ahead, because the pricing of the option will be high on the next expiry, but you will always get liquidity on the monthly expiry, so for the sake of liquidity, I am taking the January expiry of 25 January, so we can go a little ahead of 40 days, there is no problem, Solet’s see what we have done on this expiry,
I will remove there and just show you, and it will be very good to see your risk to reward ratio in this, here now this connection is getting lost, so you can see that the market at that time, if you see the super trend here, it was around 18800, see above, it was around 18000, so I will go and sell the call option of 18000, here I will go and sell the call option of 18000,
I have sold this, now 500points ahead, what happened, 19000, say it, 19300, so I will buy 19300, for beginners am just showing you that you can hedge 500 points ahead, now if I do this, then you will see the risk to reward ratio, here I can have a profit of4 lakhs and a loss of almost 5 lakhs, amazing risk to reward ratio, getting it, now you see what happened here, on 9th, I took the entry on 9th December, because the price was falling,
the next Day i get a direct profit of 1 lakh 25000, next day this profit becomes70,000, it becomes less, so the fluctuation will go on, but what is your stop loss, super trend, next you get loss of about 1100 rupees, next day you get a profit of 35000rupees, next day you see this, you get a direct profit of 1 lakh 61000 rupees, 1 lakh99000 profit, 1 lakh47000, it becomes less,
and now see, we are standing in December, we have taken the expiry of January, and you are running on a profit of 2 lakhs, next2 lakh 87000, I have taken the expiry, wait a second,
so what I mean to say is that if you get a trend on daily time frame, and the market moves ahead even while passing time, your ad reliance will not increase as much as it increases in an hour of expiry, you understand, the pricing is going on in the mind, when you take a strategy like this, you know what is your risk, what is your reward,
second thing you are theta positive, you are spreading the credit, and you have sold the option so far that when you will have a loss, now I will tell you safe thing in this, many times the market which is going on now is a little sideways, so it is not just full trending right now, so in this market, if the price will pastime, then you will get theta, but if you think that we are using this strategy and we need a lot of safety,
so from where you are taking the entry, you can take the stop loss of the one candle which was higher than that, and otherwise your main stop loss is this, I have changed this, if I take the default setting of 20 and 2, if I make it 10 and 3,then the line will run further, it will go a little further, I will just show you if it works, so otherwise to make it more accurate, to make it faster, we have changed the setting of super train
, how many people have understood this strategy, say hi, and those who have not understood, no problem, I am also understanding, because if someone would have taught me this strategy, then maybe I would have gone away,
so now I will tell you that if you have not understood, it is 100% ok, from options basics to intermediate, now we have such advanced level trainers here, who are going to teach you a lot of things that you actually need, alright, so what we understood today, when it comes to investing, for a beginner, what is the best thing, do the SIPs,
Why do, SIPs? because in this you get insulated byte volatility of the market, sometimes it is going up, then it is getting purchased up, it is going down, then it is getting purchased down, so your average is getting made, and the benefit of the average is definitely there,
so here the strategy have given you for this, it is basically option selling strategy, we are trading with trend, and I have told you how you can get profit in it, in fact loss can also happen, and I think it is great learning for you all that you have understood about investing and trading strategy.
I wish you all the very best for your future, and with this I would like to invite the MC on the stage, so that they can call upon the stage the next speaker of the day, thank you very much everyone, thank you, that was my time, thank you.