Hello folks! Hope you are safe and healthy in this COVID-19 Pandemic. In this weekly newsletter, I will share some important tips to be a successful trader. And nifty and bank nifty weekly options strategies for 10th September weekly expiry. So read this post till the end.
We all know the successful trading is not rocket science. Anyone who is managing their risk can make money here. But why most of the traders are still loosing? I’m sharing a few important factors here that you should keep in mind before you start your trading.
Tips to follow for a successful trading
Learn the basics
Stock trading is a serious business. Like any other business, here also there are some rules and precautions you should follow. In any business, the first thing we are considering is, “How that business works?” Same applies here too. The very first thing you should do is learn all the basics. Learn how the stock market works? When and how to buy or sell a stock? And the most important thing is how to manage your risk? So before you jump in the real trading, you should have all the answers.
Follow proper risk management
The biggest mistake most of the traders are doing is: They do not follow any risk management system. All the looking at the targets or the profits but never calculate their risk. If you are not managing your risk, it’s going to be very hard for your long term survival here.
So focus more on risk management. This is the only thing which will help you to survive for longer term here. If you manage to survive here, profit will come automatically.
Follow a proper trading plan
You must have a proper trading plan. Most of the traders are taking trades randomly. Either they are following some news channels, or some social media handles or just based on their gut feeling. This is not the right way to trade.
Before you start trading with real money, you should spend some time to make a proper trading plan. Your trading plan consists of some important activity you will perform during your trading. Like when to enter the market? Which and how stock to buy or sell? And the most important, When to exit from the market?
Most of the traders have the entry plans but you should have a proper exit plan too. You should work like the Arjun, not like the Abhimanyu, who knows how to enter but don’t know how to exit from the market.
If you just follow these three simple steps, you itself will notice the change. One last thing I want to share is:
Anyone can show you the path but you are the only one, who have to walk on that path to reach your destination. It’s only you, who have to learn and implement things in the right way to bring that desirable change. So be an action taker today if you want to see yourself as a successful trader here.
If you need any help from my side, just ask in the comment box. You can ask me on Twitter as well. If you need proper handholding support, can enroll to our mentorship program where I will be there to assist you in every possible way.
Weekly analysis with Best Nifty weekly options strategy
In the last nifty weekly options strategy post, I have shared that 11450 – 11500 is the strong resistance zone and it needs to break for further upside levels. Last week we saw a sustainable breakout from that zone.
This week, we saw a sharp correction from higher levels but Nifty manage to sustain above this zone. Which is a very good sign for short to medium term trend. Overall trend is still UP, and we can expect some higher levels in the coming sessions.
On the downside, 11000 is acting as a strong psychological level for short to medium term trend. A breakdown from 11000 can trigger our long stop loss.
Based on the charts, 11000 – 12000 is the range, we can expect in nifty for the coming weeks.
As I told in earlier weekly newsletters, It’s a very good time to invest in some good quality stocks. So build a good portfolio for you.
Option chain analysis for Nifty weekly options strategy
Based on option chain data, the highest Open interest stands at 11500 CE & 11300 PE, followed by 12000 CE & 11400 PE. PCR of all strikes is 0.81, which indicates a neutral market. PCR at 11500 stands at 4.10, which is acting as an immediate support level.
The Put-call ratio at 11500 stands at 0.30, which is acting as a resistance level. Equally, important indicator Option Pain is at 11400, indicating weekly expiry at 11400. A shift in option pain will provide further levels of expiry. So keep tracking max pain.
Significant open interest buildup on put sides. Indicating that Nifty is facing good support from lower levels and expecting to be in the uptrend only. So based on the OI, the possible range for this week should be 11300 – 11600.
Keep tracking change in open interest to analyze market participant’s behavior, so that you can adjust your position accordingly. If you don’t know how to analyze open interest fo find best option trading strategy in nifty and bank nifty. Just enroll for our Option Strategies – A Mentorship Program.
The Best Nifty weekly options Strategy: Iron Condor
Initially, you can keep a stop loss of 11300 & 11600 for this strategy. Means square off if you find nifty is giving a breakout or breakdown. Or you can do this adjustment too. ( Do not hold this strategy is loss is more than 2500₹).
If you find that Nifty is giving a breakdown and sustaining below 113000, then square off call spread and bring it down to 200 points lower levels.
The same thing you can do with put spread means if you got a breakout from 11600. You can shift your put spread to 200 points up.
Weekly analysis with best bank nifty weekly options strategy
After a good breakout from the range of 2100 – 23200, we saw a sharp decline on 31st August in Bank nifty. Despite this big fall, bank nifty is still holding its support level of 23200 (which was its resistance levels before breakout).
Now 23200 – 23000 is playing a very crucial zone for short to medium term trend. A breakdown will again drag to the no trade zone.
One thing we need to keep in mind here. Based on Fibonacci retracement tool, 24300 and 26300 are the 50% and 63.8% retracement levels respectively. Normally this zone acts as a reversal zone.
So for a long term target we should wait for a successful breakout from 26300. Till then, we can trade with some limited upside strategies.
As we are the limited risk strategies traders, we should not bother about this unclear trend. In fact, we need this type of range-bound market. So I’m expecting some good earnings in the coming sessions. So follow us on different platforms very closely for some real-time updates.
Bank Nifty weekly analysis based on the option chain analysis
Based on Bank nifty option chain data, the highest Open interest stands at 24000 CE & 23000 PE, followed by 25000 CE & 22500 PE. PCR of all strikes is 0.81, which indicates a neutral zone. PCR at 23000 stands at 2.18, which is acting as an immediate support level.
The Put-call ratio at 24000 stands at 0.12, which is acting as a resistance level. Equally, important indicator Option Pain is at 23300, indicating weekly expiry at 23300. A shift in option pain will provide further levels.
If you don’t know how to do the bank nifty weekly options chain analysis to find your best option trading strategy, Just enroll for our Option Strategies – A Mentorship Program.
Bank Nifty Best option trading Strategy: Iron Condor
Possible adjustments for this best bank nifty weekly options trading strategy are:
If you find that BankNifty gives a breakdown and sustaining below 22800, then shift your Call spread to 1000 points down.
The same thing you can do with put spread means if you got a breakout from 24000. You can shift your put spread to 1000 points up.
If you want to learn this bank nifty weekly options trading strategy and its adjustments in more practical ways with live mentorship, You can enroll in our Option Strategies – A Mentorship Program(33% OFF).
Post your comments in the comment box if you have a query related to the Best Nifty and Bank Nifty weekly options trading strategies. You can ask any question related to option trading in the comment box.
If you need More real-time assistance on how to find the Nifty and Bank nifty weekly options trading strategy, Can take our premium subscription or open a trading account with us and you will get real-time assistance every month on the Nifty and bank nifty weekly options trading strategy. You can contact us on WhatsApp
*( Please avoid any question like which Call or Put we should buy in the coming week).
Options Strategies – A Mentorship Program
On September 01, 2019, We have launched a new mentorship program for Option selling strategies, in which we’ll discuss how can we deploy these Options strategies? What rules we should follow before taking a trade? And what should be our adjustments if the script is moving against your prediction?
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DISCLAIMER: – we are not a SEBI research analyst. Views or the nifty and bank nifty best option trading strategy posted here only for educational purposes. There is no liability whatsoever for any loss arising from the use of this product or its contents. This product is not a recommendation to buy or sell, but rather a guideline to interpreting specified analysis methods. This information should only be used by investors and traders who are aware of the risk inherent in securities trading.