Journey from Stock Options to Nifty Options trading !!

We bring you Face2Face Trading featuring Mr. Vivek Bajaj, co-founder, StockEdge, Elearnmarkets, and Mr. Pathik Patel. In this video, our expert will talk about an essential aspect of the market, which is risk management and your risk appetite. The discussion also delves into the cultural impacts on trade psychology, with a particular emphasis on the various mindsets prevalent in different parts of India.

Mr. Patel discusses his slow shift from investing to trading, which included studying concepts like open interest and options chain analysis. He will also share his journey from stock options to nifty options in his trading career. He traded IV (Implied Volatility) crusts to take advantage of pre-result IV surges. He initially succeeded by selling options contracts and profiting from the subsequent IV decline post-results. He, however, gained valuable insight from a trade on Wipro where a significant gap-up resulted in sizable losses. This event made him realize how important position sizing and risk management were to his strategy.

He further shares that he modified his strategy after experiencing difficulties when trading IV crust. Recognizing the value of diversification and risk management, he aggressively traded various stocks during the results season to evenly distribute his risk exposure. Most equity trades took place inside a constrained range, offering prospects for profit even though some trades resulted in losses. He strongly emphasizes comprehending stock behaviour, such as volatility, and making appropriate strategy adjustments.

Watch this video to learn more about risk management, cultural influences on trade psychology, and Mr. Pathik Patel's journey from investing to trading. Learn about his trading experiences with IV crust, the significance of risk management and position sizing, and how to modify strategies according to stock behaviour.