What are some good intraday trading strategies?

Shivam Solanki, Fundamental Analyst at ISM Institute of Stock Market (2014-present)

Answered Oct 5

Once my Mentor at ISM - Institute of Stock Market told me that……

Jeff Bezos once asked Warren Buffet " You are the second most extravagant individual on
the planet. Your investment postulation are so basic. For what reason don't everyone
simply duplicate them ?

Warren Buffett answered "On the grounds that no body needs to get rich
moderate".

This was calm a significant and profound proclamation for me. I understood that a large
portion of the retail traders are casualty of the above mindset.

In actuality, 90% retail traders are Option Buyers and just 10% are Option Sellers.

When you buy choices, you realize that situation is anything but favorable for you.
Alternative Buyers need noteworthy development in the ideal bearing to win any benefit.
The main inspiration is immense benefits that an alternative buyer procure infrequently.
Be that as it may, those benefits are rare such a large number of misfortunes in the long
run clearing off our capital.

Give me a chance to acquaint with the World of Option Sellers where predictable return
can be made absent a lot of pressure.

Choice Selling Strategy

In this Strategy, we sell bank nifty option of near week expiry.

Q: Which strikes to be sold ?

An: On opening of the market, around 9:30AM check the present Bank Nifty Level. Sell
Call Option Strike 200 above Current Bank Nifty level. Simuntaneously, Sell Put Option
200 beneath Current Bank Nifty Level. For Ex. In the event that Bank Nifty is trading at
24900, Sell 25100 CE and 24700 PE simuntaneously.

Q: what number parcels ?

A: You can sell the same number of parcels as you need yet consistently sell equivalent
number of bunches of every choice Type. For Ex - If you sell 3 loads of CE, at that point
sell 3 heaps of PE.

Q: What is the Stoploss and Target ?

An: As an alternative seller, we need the premium to eventually wind up supreme zero. In
this way, we will convey the situation till the day's end except if our SL is hit.

Stoploss is 15% over your consolidated Sell Price. For Ex - If you sold CE for 150 and PE
for 170, your joined sell cost is 320. For this situation your SL will be 320 + 15% of 320 ie.
368. Trail SL as the time pass keeping cushion of 15%.

Q: What will occur if Nifty moves 300–400 during the day ?

A: Since we have traded in week by week expiry choice and kept a cushion of 200 on
each side, slight developments up to 100–150 wont influence our position. In the event
that a major development (in excess of 300 points) comes, our SL will get hit and atmost
we will lose 15% of our investment. In any case, be guaranteed that this will be
exceptionally uncommon that you need to book real misfortune. Since as the time pass,
trail SL will come beneath complete Sell Price, subsequently you won't bring about real
misfortune.

Q: How much benefit can be normal ?

An: Assuming that market moves in scope of +/ - 150 from morning levels of Bank Nifty,
you will effectively gain 30%-half of initial Combined Selling Cost. What's more, upto
100% as Weekly Expiry approach. Talking from individual experience, with an edge of
around 1.5 lacs, you can compose 3 bunches of Bank Nifty on each side and
subsequently acquire 5–6k everyday. This is certifiably not a little return considering
generally safe included.

I need all retail traders to quit regarding market as a spot to bet. In the event that you
need to learn and develop your money with tolerance and less strain..

Dont neglect to upvote and share.

SHIVAM SOLANKI

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