NIFTY Options Trading by RAJ

[healthraj]

Raj,

This is shocking. I used to check ur thread once in a while, and thought that u r doing well... Switching off activities that r detrimental to ur well being should be easy. Just do it (as easy as quitting smoking )

Does this mean that u started trading the methodology presented in this thread, without having backtested it sufficiently?

1. Backtest: One thing that i have found is that many systems look very profitable in theory, and when scanned visually, but may bomb during live phases - maybe after a couple of months of success. Get a system that has high return on capital employed during backtests. When u go live, expect to be earning lesser, because of slippages, execution errors, psychology, and due to a few poor out-of-sample months.

2. Money Management: Even if u get a backtested +ve expectancy system, get ur MM right before going live. What is the probablity of running into a huge losing streak? What is the max. drawdown that u can handle? Plan for handing the worse scenarios. Have reserve cash in place - for daily expenses, and to restart ur trading account in case of really bad drawdown. Do not hope to live off trading initially.

3. Psychology: Decide on ur objectives. Why r u trading? What are u looking to gain from trading? R there better ways to earn money instead of trading?

4. Psychology: Ur emotions r going to play a major role in ur trading and results. How do u plan to handle them? If u have a backtested system, do u have enough confidence in it to minimize the role of emotions?

There are 1000s of systems available on the net, and in this forum. What kind r u looking for?

Augubhai,

Thanks for your detailed mail. I will certainly go through it if I want to continue trading. But I had a question. Will you give your honest answer? I used to follow your thread but I found that you were always making losses and you used to do so many trades in a day. So I thought may be you are doing paper trading or doing backtesting. So now comings back to the question, I know you are trading for a long time. Are you making profits? If YES, After how many years of trying you started making profit. If you don't feel like answering because you feel it is personal, please ignore it.

 

[Option.Trader]

OT, One of few persons I respect in TJ. You are the only reason for me to develop the OAT tool and may be a lot of people are now benefitting out the tool but not me because I don't have the grace. Unfortunately may be due to the way I was brought up in life, I never believed in God. I don't believe in God and I will never believe in God and so the God's grace will not be upon me...

So what options do I have ?

But I always believed that I have to find a solution to my problem. What work for others might not work for me.

With the interactions I have had, I believe you are a good person, so your belief in a god or higher force is irrelevant for the grace in our life. When I meant grace, it's about these seemingly unbelievable talent without any training, and to give more credence brain injury which leads to savant syndrome, so geniuses are truly differently wired. Check this link http://www.popsci.com/science/article/2013-02/when-brain-damage-unlocks-genius-within
So in essence average Joe's are fighting a losing battle in every field to these brilliant smart assess. Don't get me wrong, there are n number of people who do decently well, but there is no logical explanation why someone will do exceptionally well in a random market consistently

 

[healthraj]

Off topic... aren't the 2 parts contradictory.

BTW, I got addicted to twitter towards the end of last year twitter.com/augubhai... but I gave it up, because I was wasting time on it... Just like I quit smoking.

I was answering to OT's comments. OT was saying that somewhere we need the God's grace. So I am modest enough to accept that I don't have God's grace or I actually do not expect the grace from God.

Now If I have to turn back the question, Is God so Selfish to give the grace to only his believers. If God was God, then I don't think he would be partial in giving his grace to only very few people.

To be explicit, what I meant was that there is no such thing as God and so there is no such stuff as God's grace. Does that mean that all successful traders are believer's in God

 

[healthraj]

With the interactions I have had, I believe you are a good person, so your belief in a god or higher force is irrelevant for the grace in our life. When I meant grace, it's about these seemingly unbelievable talent without any training, and to give more credence brain injury which leads to savant syndrome, so geniuses are truly differently wired. Check this link http://www.popsci.com/science/article/2013-02/when-brain-damage-unlocks-genius-within
So in essence average Joe's are fighting a losing battle in every field to these brilliant smart assess. Don't get me wrong, there are n number of people who do decently well, but there is no logical explanation why someone will do exceptionally well in a random market consistently

OT, You are super fast, You have actually answered my next post too.

 

[angira]

Raj,
I've read also some nice thread on option here on TJ, but I really understand something from u'r thread that how to read option data & how to trade. Still i'm learner of option trading. Thanx a lot for your Tools & Techniques. I'm regularly silent visitor of your threads. But after read your some above post then taking a break-rest is good idea. After rest pls continue with TJ.
God bless for u'r health & wealth.

angira...

 

[healthraj]

With the interactions I have had, I believe you are a good person, so your belief in a god or higher force is irrelevant for the grace in our life. When I meant grace, it's about these seemingly unbelievable talent without any training, and to give more credence brain injury which leads to savant syndrome, so geniuses are truly differently wired. Check this link http://www.popsci.com/science/article/2013-02/when-brain-damage-unlocks-genius-within
So in essence average Joe's are fighting a losing battle in every field to these brilliant smart assess. Don't get me wrong, there are n number of people who do decently well, but there is no logical explanation why someone will do exceptionally well in a random market consistently

So all that we learn in School and College does not work in Markets. The traditional wisdom does not work. The guy with a Great IQ or the guy with the best system is not guaranteed anything here. So in essence we are talking about some Random wins more like a Chaos theory or Fractals. I am going crazy now. Let me stop here... So in essence It also puts a doubt in my mind whether the so called people who say they win are winning. Of course there should be some winners (I have seen those Zerodha mailers on 60-day challenge winners). But do they keep winning for life? Is this sustainable. This 9:00 to 3:30 job with so much of stress. Once you a trade in a normal human being will go through those stress.

 

[healthraj]

Raj,
I've read also some nice thread on option here on TJ, but I really understand something from u'r thread that how to read option data & how to trade. Still i'm learner of option trading. Thanx a lot for your Tools & Techniques. I'm regularly silent visitor of your threads. But after read your some above post then taking a break-rest is good idea. After rest pls continue with TJ.
God bless for u'r health & wealth.

angira...

Thanks Angira. At last I have seen one person who is able to understand what is going in my mind.

But you have put a catching statement too :thumb:

 

[stock72]

we ( u and me ) are here some times in TJ from 2009 --2010...

to clear your confusion -- let me say --yes earning money is possible ... in trading ..

 

[angira]

Raj,
just because all want that you don't leave TJ forever.

angira...

 

[Nettwork]

There is no problem with my family. But I am not the same as I was 4 years before or before I started trading... Nowadays I am always before the Traderji forum...

May be I am a good analyst or a good teacher but not a Good trader. I don't have the trader mindset.

When I say I have lost my health - I mean was around 73kg and now I am 58. I didn't follow any special diet regime to come from 73 to 58. It is the pressure to succeed in trading.

When I say I have lost my savings - I mean I have lost many lakhs. I don't have an account. And I always that I would gain it back one day. I still think I will get it back. But how I don't know

My family - If you are not spending time with my family then how do one expect all to be well within the family ?

I think there is something wrong with me. Right now I feel that I am so much addicted to this Trading and Traderji. Trading if you don't do properly (meaning you are not making money) is like an addiction. It is like smoking. People those who smoke cigarettes do not accept that they have some addiction problem. The moment they realize that smoking cigarette is like taking a drug, then they will stop smoking.

My father is 75 and he still smokes and he does not have a problem. But I have seen smokers who smoke two packets but their body does not accept that kind of smoking. So they should quit smoking.

It is also my sincere request to those who have been trying to trade and getting that click or grace should take a break and do some introspection.

For me I don't have a problem with knowledge or Techniques but I feel I am overdoing it ....

And that it is the reason why I want to take a break. If people have gone through this before, please suggest me an alternate approach.

At the end of day honestly speaking even though my mind is telling me to quit trading or Traderji, my heart is not willing... Same like the smoking problem, the withdrawl symptoms...

Let me take a Break now

Please NO. Elections are the best time to get the lost money at one go.
See coming months as good opportunity to recover your money, have to wait another 40 months to get this kind of opportunity. Just concentrate on only one or two scrips.
Give more waitage to price action than technical's/fundamental till elections, just go with the trend. (you would be knowing all these things).
If one trade in BNF options this month he/she could have doubled the money every day from 3rd to till day.

I'm not good in articulating things in correct way, but hope you understand what im trying to say...
Dont quit before elections atleast.