Options trading is not an easy task; every trader needs to have the skills for Options Trading. FnO trading, especially options trading, is one of the favourite topics of all traders. Everyone wants to trade in FnO and generate enormous returns. However, FnO trading is not child’s play. Trading FnO is far more difficult as compared to other trading instruments.
Many new traders often get confused about options buying and option selling. Some traders think that only option buying is the best way to trade; on the other hand, some think that money can only be made in option selling, and this confusion goes on for a long time.
In order to give you a clear idea about the reality of option buying and the skills required for option buying as well as option selling, we have come up with this article.
Option Buying is one of the popular trading styles amongst traders. Everyone wants to do option buying and wants to make quick money; however, this is not an easy task.
In order to make money in option buying, one needs strong technical analysis skills as well as risk management principles. One of the hard realities of Option Buying is, through option buying, you can not make money every day because the market will not give you the move every day, but when it does, you have to make sure that you need to win big in order to compensate for small losses and come out profitable.
Also, whenever the market is not in your favour, you have to cut your losses short. Often, many new option traders try to average their losing trades, and they end up losing a lot of capital. Cutting your losses short is a must for any options buyer; without it, you will not be able to make profits.
Option buyers need to have the courage to hold their position and book big profits instead of booking small profits. Your edge as an option buyer comes from holding your winning trades long and cutting down your losing trades because, most of the time, the market trends sideways, but whenever the market gives you the move, make sure to encash it.
As option buying and Option Selling are totally opposite things, the skills required for both trading styles are totally different. As an option seller, you will win most of the time and sometimes lose, as most of the time, the market trades sideways, but whenever you lose, you have to make sure that you don’t lose more than what you can afford to lose.
Generally, option sellers make money 10 out of 7 to 8 times, but when they lose, they may lose big if they do not exit at the right time.
As an option seller, you should always keep a stop loss in your system, or also you should always hedge your position to eliminate the possibility of unlimited loss. In this way, you can make consistent profits from option selling.
Irrespective of how you trade, skills for Options Trading are required, and without them, you can not make money; it doesn’t matter how good your trading strategy is. To summarise this article, I would say that money can be made through option buying as well as option selling, but you need to have the right mindset and proper risk management for it.
I hope that through this article, you were able to understand the different skill sets required for option buying as well as option selling.
If you like this article, don’t forget to share it with us across all your social media handles.
Happy learning!
Open a Demat Account using our link to get support from us – https://bit.ly/3gyhIWN and send your ID to [email protected]
would say that money can be made through option buying as well as option selling, but you need to have the right mindset and proper risk management for it.
. Many traders Are talking about like you can’t make money from buying and buying is something you don’t have to do.. But sir i like the way you interact with people in youtube social media’s and yes you are true mentor.. Learning lot from you Thank You ❤️. And yess paisa banta hai buying se bhi selling se bhi
Thank You Mussu, glad that you find the blog helpful. We constantly try to bring helpful blogs for our traders and will continue doing so.
Thankyou so much for this beautiful information sir, big fan.
Thank You Raj, glad that you find the blog helpful. We constantly try to bring helpful blogs for our traders and will continue doing so.
Great thank you
Thank You Sanket, glad that you find the blog helpful. We constantly try to bring helpful blogs for our traders and will continue doing so.
Superb an amazing article for every options traders ….. Thank you so much booming bulls
Thank You Rishabh, glad that you find the blog helpful. We constantly try to bring helpful blogs for our traders and will continue doing so.
This is an amazing article this will definitely help me while trading in options. I want you that due to you (Anish Singh Thakur) after 1.5 years I have became a successful as well as profitable trader.At the age of 16 I earn 5 lakhs monthly just from trading in the Indian stock market.Anish sir taught me a lot from his YT channel.I have never tried any of your courses but from your YouTube channel I have learnt all these skills and therefore today after 1.5 Years at the age of just 16 I am earning more than 5 lakhs a month.THANK YOU VERY MUCH Anish Sir.You changed my life.
Thank You Varun, glad that you find the blog helpful. We constantly try to bring helpful blogs for our traders and will continue doing so.
ThanQ
Very very thank you Anish sir
You are amazing।
I am very profitable ever since I started learning from your videos
Tq
Thank You Dhanraj, glad that you find the blog helpful. We constantly try to bring helpful blogs for our traders and will continue doing so.
Best teaching
Sir your all articles are very informative thank you
Thank You Kiran, glad that you find the blog helpful. We constantly try to bring helpful blogs for our traders and will continue doing so.
Am ur December Weekend Batch Student. Your class was awesome and i am glad to have a mentor like you Sir.
Thank You Midhun, glad that you find the blog and our teachings helpful. We constantly try to bring helpful blogs for our traders and will continue doing so.
Bast information sir
Great article on option trading, though I am more into forex trading but the way you explained it’s good. I have been using KQ Markets for forex trade, it would be great if you could share some key points on the forex market.
Thanks again!
Glad that you find the blog helpful; we constantly try to bring helpful blogs for our traders and will continue doing so.
Big fan of your way to spread valuable information of stock market.
Glad that you find the blog helpful; we constantly try to bring helpful blogs for our traders and will continue doing so.