"OBVIOUSLY" TRADING STRATEGY! || Live Trading 10 Lakh ++ Profit

Summary

The video emphasizes the pitfalls of following obvious trading strategies and suggests focusing on less obvious, high-probability trades instead. It showcases a live trading example, explaining how to avoid common traps by using double or triple confirmations. The narrator highlights a successful trade, making significant profits through option selling rather than buying. The video also advises on the importance of mixing option buying and selling to enhance profitability. Lastly, it encourages viewers to learn from the strategy shared and apply it to improve their trading performance.

Takeaways

• 💼 Followed an obvious trading strategy and earned Rs 7 lakhs, closing the day at Rs 10,50,000.
• 📉 Many traders face losses because they follow obvious strategies like buying after resistance breaks or selling after support breaks.
• 🔍 Obvious strategies only work 2-3 times out of 10, causing losses most of the time.
• 🔄 High probability trading can be achieved by double or triple confirmations, or by trading against the obvious trap.
• 📈 Today’s trade included selling after a big candle breakdown and making Rs 4 lakhs from a head and shoulder pattern.
• 🤔 On eventful days with market uncertainty, technical analysis becomes less reliable.
• 💡 Selling at the top and buying at the bottom with double candle confirmation is preferred.
• 📊 Mixing option buying with option selling can turn the game in your favor, suggesting a 60% selling and 40% buying strategy.
• 💵 By option selling, Rs 7 lakhs profit was made today, instead of option buying which would have required more capital.
• 🔔 Importance of using a reliable broker and the benefits of directional option selling were emphasized, along with the necessity of double confirmations and avoiding obvious strategies.

Q & A

What is the 'obvious trading strategy' mentioned in the video?

The 'obvious trading strategy' involves actions like buying when resistance breaks, selling when support breaks, and reacting to patterns like head and shoulders. However, these obvious moves often lead to losses because they are predictable and frequently fail.

Why does the speaker believe that obvious trading strategies lead to losses?

The speaker believes that obvious trading strategies lead to losses because they are predictable and do not always work. The market often traps traders who follow these obvious patterns, resulting in losses more often than gains.

What approach does the speaker suggest instead of following obvious trading strategies?

The speaker suggests using double or triple confirmations to identify high-probability trades or trading the opposite of the obvious traps. This approach increases the chances of success by avoiding the common pitfalls of obvious strategies.

What examples of trades does the speaker provide in the video?

The speaker provides examples such as a breakdown move leading to a profitable sell trade, a head and shoulder pattern indicating a potential trap, and a trade based on an oversold area with a triangle breakout.

How did the speaker make a profit of Rs 7 lakhs?

The speaker made a profit of Rs 7 lakhs through option selling rather than option buying, which allowed them to benefit from premium decay in a choppy market.

What is the benefit of option selling according to the speaker?

According to the speaker, the benefit of option selling lies in its ability to profit from premium decay, especially in a choppy market. It also involves using more capital but provides a better risk-reward ratio compared to option buying.

What is ATR and why is it significant in trading?

ATR stands for Average True Range, which measures market volatility. A higher ATR indicates a larger range of price movements, which can affect trading decisions. The speaker mentions an increased ATR as an important factor in their trading strategy.

What advice does the speaker give to new traders?

The speaker advises new traders to mix option selling with option buying, focusing on double or triple confirmations for higher probability trades. They emphasize the importance of avoiding obvious strategies and learning from experienced traders.

How does the speaker suggest managing risk in option selling?

The speaker suggests managing risk in option selling by taking smaller stop losses and targeting larger profits, ensuring a favorable risk-reward ratio. They also emphasize the importance of using more capital in option selling for better outcomes.

What is the key takeaway from the speaker's message at the end of the video?

The key takeaway is to avoid obvious trading strategies and focus on learning and applying more sophisticated approaches. The speaker stresses the importance of minding one's own business and continuously improving one's trading skills.