To begin with, determine whether Bank Nifty is trending, consolidating, or stuck in a range.
Why?
Cause we can predict what it will do then.
How to make 1% consistently via Option Selling?
• Analyzing the trend
• Selling OTM's
• Making adjustments
• Capturing trending move
• Without big drawdowns
• Right Position Sizing
• Risk Management
Here are the 11 aspects to focus on:
Collaborated with @AdityaTodmal
To begin with, determine whether Bank Nifty is trending, consolidating, or stuck in a range.
Why?
Cause we can predict what it will do then.
The margin required for selling one lot is around Rs. 1.5 lakh for a strangle.
If we earn around Rs. 1500 on one lot, we would make 1% return on our capital.
1500/25 = 60 points
Either sell directional 60 and make it zero.
Or 30-30 both sides.
Can tend to skip Friday's as there are two days holiday.
In those 2 days market has ample time to come out with news, react to SGX and so forth.
So from a R:R perspective it is not great to carry from Friday.
The Weekly candle also is from Monday to Friday.
So at Friday EOD we know how the weekly candle looks as well.
If the market was consolidating recently then we are going to wait for a proper breakout or breakdown.
If it is taking too much time we can sell far otms.
But with the intention of exiting the strangle when a breakout/breakout happens.
Post a big movement in the weekly candle, we are looking for an inside candle in the current week.
Thereby we would look for selling strangles as they would be most rewarding.
Usually can target around 30-40 rs premiums.
Adjustments can generate more returns than you had originally planned.
Basic rolling up and down can be done to extract higher premiums.
Can't adjust every move though, so should know when to exit.
Here is where levels come into play.
There are levels after which Bank Nifty is going to make a big move.
In my Youtube channel as well as my twitter, I always share my bias.
Sometimes I don't mark one side at all.
That's when I am expecting a trending move.
https://t.co/Ywik8EMxl0
#BANKNIFTY
— Nikita Poojary (@niki_poojary) November 13, 2022
4. Hourly TF:
\u2022 S/R mentioned on the charts.
\u2022 Moving within the rising channel.
\u2022 41300 zone is a good level to go long in case any reversal pattern.
\u2022 40800-850 would act as a first pullback post BO, good levels to go long on positional basis. pic.twitter.com/E2x9DCKY0s
https://t.co/g7MwzR706i
I gathered 15 examples of Weekly Bank Nifty analysis
— Aditya Todmal (@AdityaTodmal) December 2, 2022
By @niki_poojary, chronologically:
Save 100+ hours researching.
A thread: \U0001f9f5
Don't take more than a 3% hit.
I have seen traders usually lose their minds when they lose more than this. The cycle of bad trading originates after this.
So we have to ensure to not let it happen in the first place.
Psychology needs to be intact.
On Rs. 10 Lakh maximum you can sell is 6 lots.
Beginner should avoid any leverage unless they are profitable for 6 months consistently.
Don't enter all your qty at once.
Stagger the qty as and when you make profits.
Do respect your SL.
Never change it based on Hope or your bias as you always go wrong as the market is supreme. Your SL should be the one which you had planned before taking an entry in the trade.
Can go and backtest your trading and look for areas for improvement.
Forward testing is also essential to see if you can do it in the live markets and keep a check on your emotions when trend is not in favour but your SL is also not hit.
We have a FREE Youtube Channel where we cover our analysis of the markets.
If interested feel free to join using this link: https://t.co/ijbLiYzXml
https://t.co/7pmJkbBM2N
Do you want to know how to create a Trading Plan using only Price Action?
— Nikita Poojary (@niki_poojary) October 26, 2022
Here's a breakdown of 11 simple yet powerful steps to create one: \U0001f9f5
Collaborated with @AdityaTodmal
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More from Nikita Poojary
Over the past month, we have shared 15 powerful threads:
These threads cover topics like:
• Trading
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• Investing
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Here they are all in one place!
1/ Top 26 threads from the past 26 weeks of year
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Here they are all in one place!
1/ Top 26 threads from the past 26 weeks of year
Twitter is like a free university.
— Aditya Todmal (@AdityaTodmal) July 1, 2022
However, 98.8 percent of users missed out on the best content on this platform.
Here are the top 26 threads from the past 26 weeks of 2022: \U0001f9f5
Collaborated with @niki_poojary
2/ How to build your Twitter
I started at 0 and grew to 109,000 followers
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Here's how we use Twitter and why:
Collaborated with @niki_poojary
THREAD \U0001f9f5 \u2193
3/ The most simple set-up of Subasish Pani -
Subasish Pani revealed the most simple, yet successful strategy: 5EMA set up!
— Nikita Poojary (@niki_poojary) July 3, 2022
Here is a thread of 23 video clips on the 5EMA set-up that will save you hundreds of hours and available to you for no cost!
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Collaborated with @AdityaTodmal
4/Free valuable tools that helps you to trader better!
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