Option Buying Course By Power of Stocks | EP-2 | English Subtitle |

Summary

In this video, Subasish shares his trading journey, focusing on the importance of psychology and position sizing for big profits in options trading. He discusses his experience of making 2,00,00,000 in intraday option buying, emphasizing the need to aim for significant point gains rather than frequent small trades. Subasish stresses the significance of holding positions for maximum profit and outlines his strategy for identifying trending days. He encourages viewers to learn from his experiences and develop a mindset geared towards capturing substantial profits in their trading.

Takeaways

• 🎯 The video emphasizes the importance of aiming for big profits in trading, rather than focusing solely on small, frequent gains.
• 🧠 It highlights the psychological aspect of trading, suggesting that overcoming fear and greed is crucial for holding onto positions for larger profits.
• 📈 The speaker shares personal experiences, detailing how they made 2 crores in intraday trading by buying options and managing position sizing.
• 📊 The video discusses the significance of understanding market psychology and money management for successful trading.
• 📉 It points out the common mistake of beginners going into 'scalping mode' too early, which can lead to net losses due to brokerage and charges.
• 💡 The speaker advises focusing on capturing large points in the market, which can provide a cushion for future trades and reduce the impact of small losses.
• 📅 The video mentions the strategy of planning for big profits on specific days, such as expiry days, and the importance of understanding market trends.
• 🔍 The speaker encourages viewers to analyze their trading strategies and back-test to see how they would perform with a focus on larger profits.
• 📚 The video promises to cover more on how to identify trending days and plan trades for maximum profit in upcoming videos.
• 🤝 The speaker asks viewers to engage with the content by liking, sharing, and watching related videos for a deeper understanding of trading psychology and strategies.

Q & A

What was the promise made to the subscribers in the video?

The promise made was to prepare another video of the option series if the last video received 15,000 plus likes.

What is the main focus of the video?

The main focus of the video is to discuss how to overcome psychological challenges in trading, particularly when aiming for big profits, and to share insights on position sizing and money management.

What is the significance of the date 15th June mentioned in the video?

The date 15th June is significant because it was the day when the speaker made around two crores in intraday option buying.

What is the importance of understanding psychology in trading as per the video?

Understanding psychology in trading is crucial because it helps in managing the mindset when dealing with big profits and losses, which is essential for successful trading.

What is the strategy the speaker suggests for beginners in options trading?

The speaker suggests that beginners should not focus on scalping but instead aim for big profits by capturing maximum points in the market movement.

Why does the speaker emphasize on capturing big points rather than small profits?

Capturing big points provides a leverage and a cushion of profits, which allows traders to sustain losses in future trades without affecting their overall account balance significantly.

What is the role of position sizing in the trading strategy discussed?

Position sizing is important as it determines the quantity of options to be bought or sold, which directly impacts the potential profit or loss from a trade.

What is the significance of the VIX and strike price in options trading as hinted in the video?

VIX and strike price are significant in options trading as they help in determining the volatility of the market and the price at which an option can be exercised, respectively.

What is the advice given regarding the use of stop loss in trading?

The advice given is to set a stop loss that is reasonable and not too tight, to avoid being stopped out prematurely, and to consider the potential for market movement.

Why does the speaker recommend watching past videos for a better understanding of trading psychology?

Past videos provide detailed insights into the psychology of trading, which is crucial for understanding the mindset required for making big profits in the market.

What is the next step the speaker plans to teach after discussing option buying?

After discussing option buying, the speaker plans to teach option selling and how to identify trending days to capture big profits.

Outlines

00:00

📈 Overcoming Trading Psychology for Big Profits

The speaker, Subasish, starts by expressing gratitude for the audience's support and mentions a promise to create more content if the previous video reached 15,000 likes. He introduces the topic of the video, which revolves around the psychology of trading and achieving significant profits. Subasish shares his experience of making 2 crores in intraday trading through option buying. He emphasizes the importance of understanding the psychology behind holding positions and managing money. He outlines the video's agenda, which includes a deep dive into trading psychology, setting up trades, scalability, VIX, and understanding strike prices. Subasish recounts a specific instance of his successful intraday trade on June 15th, where he made a substantial profit. He discusses the common mistake of getting into scalping mode too early and stresses the importance of aiming for big profits to offset the costs of trading. He concludes by encouraging viewers to watch a detailed live trading recording and to understand the significance of capturing large points in intraday trading.

05:01

💹 The Habit of Earning Big Points in Trading

Subasish continues his discussion on the mindset required for successful trading, focusing on the importance of earning big points rather than small profits. He explains that consistently making small profits and incurring small losses can lead to a net loss over time due to trading costs. He shares his own experience of making a significant profit by holding onto a position until it reached a high value. The speaker also touches on the concept of scalability, suggesting that as traders grow, they should aim for larger profits. He provides an example of a successful trade where he sold a call option and made a profit of ₹500. Subasish emphasizes the need to develop a habit of capturing big points to sustain in the market and avoid drawdowns. He also hints at future content, promising to discuss how to identify trending days for capturing large points and the psychology behind holding onto trades for big profits. He concludes by advising viewers to watch the video series to understand the trading psychology and to practice capturing big points in their trades.

10:02

🚀 Capturing Big Profits and Setting Up for Success

In the final paragraph, Subasish encourages viewers to reflect on their trading strategies and to consider the outcomes of aiming for big profits over multiple trades. He suggests backtesting one's trading setup to understand the potential impact of capturing significant points. The speaker expresses his hope that viewers enjoyed the video and asks them to like and share it. He also reminds viewers to watch the previously mentioned videos for a deeper understanding of trading psychology. Subasish concludes by reiterating the importance of setting up for big profits and the psychological aspects of trading, hinting at further discussions in upcoming videos.

Keywords

💡Option Series

An 'Option Series' refers to a collection of options contracts that share the same underlying asset and expiration date but have different strike prices. In the context of the video, the speaker is discussing a series of videos focused on options trading, specifically highlighting a video where he made significant profits through option buying strategies.

💡Profit

Profit in trading refers to the financial gain made from the sale of an asset that was bought at a lower price. The video emphasizes the importance of aiming for substantial profits in trading, as opposed to frequent small gains, to overcome the challenges of psychological barriers and to manage risk effectively.

💡Psychology

Psychology in trading pertains to the emotional and cognitive factors that influence traders' decisions. The speaker discusses how understanding and managing one's own psychological state is crucial for holding positions and managing risk, especially when aiming for large profits.

💡Position Sizing

Position sizing is the strategy of determining the appropriate amount of capital to invest in a particular trade. The video touches on the difficulty of position sizing when aiming for significant profits, as it involves balancing risk and reward effectively.

💡Scalping

Scalping is a trading strategy that involves making many trades to profit from small price movements. The speaker advises against relying solely on scalping for beginners, as it can lead to net losses due to costs and the lack of substantial profits in the portfolio.

💡VIX

VIX, or the Volatility Index, is a measure of the stock market's expectation of volatility over the next 30 days. The video mentions VIX as one of the topics to be discussed, likely in the context of how it can influence options trading strategies.

💡Strike Price

The strike price is the price at which an option contract can be exercised. In the video, the speaker discusses the importance of understanding strike prices in relation to options trading, particularly when aiming for large profits through option buying.

💡Intraday

Intraday trading refers to the buying and selling of financial instruments within the same trading day. The video script mentions a significant profit made by the speaker through intraday option buying, highlighting the potential for large gains within short time frames.

💡Milestone

A milestone in the context of the video refers to significant achievements or benchmarks in trading, such as making a certain amount of profit. The speaker mentions creating a series of milestones in his channel, which likely includes educational content aimed at helping viewers reach their own trading goals.

💡Option Buying

Option buying is the act of purchasing an option contract, giving the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price. The video is part of a series focused on option buying strategies, with the speaker sharing his experiences and insights on how to achieve substantial profits.

💡Trailing Stop

A trailing stop is an order placed with a broker to sell a security when it reaches a certain price, which is a specified amount below the current market price. The speaker implies the use of trailing stops in managing trades, particularly when aiming to capture large profits by allowing the trade to continue as the market moves in a favorable direction.

Highlights

Introduction to a new video on options trading series with a focus on psychology and money management.

Emphasis on the importance of understanding psychology and position sizing for big profits in trading.

The speaker shares their personal experience of making 2,00,00,000 in intraday option buying.

Discussion on the psychological aspect of holding positions and the challenges faced by traders.

Advice on not getting into the habit of scalping in the initial stages of trading options.

Highlighting the fact that small profits from scalping can lead to net losses in the long run due to costs.

The strategy of aiming for big profits and the impact it has on the trader's account and confidence.

Explanation of how capturing big points can provide a leverage and cushion for future trades.

The concept of setting stop losses and the importance of not letting the market go to zero.

A detailed walkthrough of a specific trading day where the speaker made significant profits.

The significance of the expiry day in options trading and the speaker's strategy for such days.

The speaker's approach to planning trades and capturing big profits on specific days.

Advice on focusing on earning big points rather than small profits and the benefits of this mindset.

Encouragement for viewers to watch previous videos for a deeper understanding of trading psychology.

The speaker's promise to cover more on how to identify trending days and plan big profits in future videos.

Final thoughts on the importance of setting up for big profits and the role of experience in trading.

Transcripts

Hello friends welcome back to my channel

This is Subasish

As I had promised you had given 15,000 plus like in last video

So now I'm going to prepare one more video of option series for all of you

This video is interesting because

Forget the prophet but you will have to understand that

When we talk about big profits

At that time intact the psychology a bit

Or holding position sizing

It is difficult

But as a trader how do I overcome that

And what learning you will get from this

First you learn that

Because I want that as I told you in the series

This is the second part of our video

In which way I made 2,00,00,000 an option buying in intraday

Then psychology and money management

You might be able to see the schedule on the screen

We will complete it in that way

First we will understand psychology in detail

After that slowly set up

And after that scalability , VIX

Strike price we are going to discuss all the things

So we will start the video

I'm going to tell you in detail

This date was 15th June when in intraday

I had made around two cr

okay

So I will take you to the screen you might be able to see the screen over here

So if you will see this once you might be able to see 15th June over here

Somewhere around endless you might be able to see verified

I had got the prophet something around 2,00,00,000

If you have still not seen this video

Then I will recommend you to see it in details in live trading recording

I had told at that time

Watch the video 15th June

2 Cr, I will do one thing

In description box or in end screen

Or I will put it in the comment box

So that what will happen is

I have made a series of milestone

In this channel go and watch that

Many points will be clear to you

First we will see over here

You might be able to see 43,900 PE on the screen

Over here I had purchased 40,500 quantity

In ₹82

And 404 was the last traded prize

And at that time I was getting the profit something around 1,00,00,000

You might be able to understand that I had purchased in 82

And I was holding it till 400

Just now I'm going to teach you this thing only

Because what happens is

Mind setup we think that we will do option buy

We will do option sell

An option buying many people do this mistake

In the beginner stage

They go in the scalping mode

Scalping no doubt is very interesting you should do scalping

but imagine if big profits are not there in your portfolio

Then what will happen is that you earned small profit in scalping

Then you gave small losses in scalping

If you will see in the longer run

Then you will be in net to net losses

It is a fact

Because brokerage is there charges are there there are many things

Until you do not have an area and profit point Wise

Then how will you play around

That means let's say in one month or two month

You need a big profit what will happen with that

That day also I had told you in the video

That if I have earned 2CR in option buying

Then this is not my pure profit

Because it is possible that after that I will take risk on it

And I will take a trade there it is possible that I might incur losses

There it is possible that that account will grow

Now imagine over here you might be able to see in the chart

Around 80 somewhere around this range I had purchased

And let's imagine if we keep stop loss even of ₹50

Somewhere below this 50

I don't let it happen zero you know that

And if there will be sl below this candle

There would be SL of somewhere around 30 or ₹40

But we will consider that there was SL of 50RS

From your market went up to 280

You might be able to see off 43,900 PE

I am showing you the charts so that you can understand it in detail

If I have purchased in the average price of ₹80

And market has reached up to 200

If many people are purchasing in 80

It has reached 200 so the account has become double the money has become double

The book it to square off

But my intention is that if you want the target then there can be big profit

And there is a reason behind big profits

I will tell you

And after that I was holding it

And then after one o'clock when it gave breakout

Somewhere around 400

425 and 435

I booked the profit over there total in my account 2,00,00,000

In the same intraday

I got the profit

Now you might be able to understand that

Now imagine over here

More than 300 or 350 points

I earned in option buying

It was possible that I would have purchased two lakh quantities over here

If I would have got even 100 points

Then also it could have been 2,00,00,000

But always where is my focus

How much point total I can capture in intraday

How many points we can capture

Because if today you are capturing 300 points

Tomorrow morning you already have leverage of 300 points

You already have cushioned you already have profit

You can take trade on that

Even if you will incur loss of hundred points

Then still you have 200 points

But if you have earned 50 points today

On that brokerage slippage

There are many things

Then when you will trade tomorrow morning

Every time it might be coming in your mind that

We cant keep SL of 50 points and if it goes 100 points

Then yesterday's profit has also gone

And today also you are not going to get any money in profit

I hope you are able to understand this point

So my intention of telling is

You will have to set for big profits

My account has always grown because

I set for big profits

And I am setting up my mind because

Whenever there is 50,00,000 or 1,00,00,000 in my account

At that time I capture big profits

What do people do

Big quantity small points

What do I plan is

Quantity will increase today or tomorrow

Your confidence will increase your money will increase

Then it will increase

But if you have learned to earn points

Then you cannot get out from the market

Now if I have owned 350 or 400 points from here

Let's say if 10 stop loss are hit in the market

Of ₹50

Then I will incur loss of ₹100 or ₹150

If you earned 30 or ₹40 and there are losses for continuous 10 days

Then your account size will be negative

Or you will go in the drawdown phase

This point is clear

Find from first only I have this habit

That is why I want to teach you this habit

And you can trade on this mindset only

First I told you that we will understand the game

First we will understand what is option buying

After that we will slowly move ahead our steps

In which way psychology, setup

Option premium everything

Over here I'm showing you one more example

The day on which I had first made one cr

At that time I had earned an option selling

You think yourself as a trader

I don't care about whether it is buying or selling

I always focus on that

How many points I am getting

This is the buying series we are focusing a bit on buying

After that if we get 15,000 plus likes

Then I will also upload its next part

And after that when this series will get over

Then after that we will also make one series on option selling

So that all the beginners can learn slowly

After that we will be able to decide

Weather stock marketers for them or not

If we will see over here

You might be able to see

I had sold a 38,300 call

It is before one or 1.5 years

But I'm just telling you that whenever I had earned profit of 1,00,50,000

It is not because of 50 points or 100 points

I earn big points then only I earn profit

I always aim that

I should capture big points the quantity size will increase today or tomorrow

Because as you will become a trader

The account size will keep on increasing

If you learn to earn big profits

Or if you learn to sustain or hold

Because many people face this issue only in intraday

They are not able to hold big profits because

Because they don't have this habit

I will tell you slowly that how you can make it a habit

Which will be helpful to you

In this case if you will see

I had sorted in price 553

I covered in ₹4

I covered ₹500

You might be able to understand

I purchased it around 82 and I covered it around 400

Over here I had sold it for 500

₹400 this means

I had profit of ₹500

Tomorrow morning if I will go to do option selling

And if I incur loss of 200 to 300

Then also I will have profit

Tomorrow morning if I will go to do option buying

And there is loss of hundred to 200 points

Then also I can have profit

That is why I say that

If you are in bigger stage

First focus to earn a bit big profits

Once you will have this habit

After that according to the skill

I will also teach scalping don't worry in this series

We will learn it slowly

Then you can also plan scalping in this

Now the next question which might be coming in everyone minds is

Sir how did you come to know that, that day can be trending

Because if it is trending then only we can capture 400 to 500 points

Or so how did you come to know that today we have to hold

Or we have to trail or how did you decide the target ?

this question might be going on in many peoples mind

If we will get 15,000 plus like then we are going to do discussion on this only in the next video

The name of topic will be wait for your day

How do I plan this

I planet in a very simple manner

If you will listen to the logic then you will also be interested

But till then create a mind setup

Start going to the screen and watching

Or start watching in your trading journal

That if you are earning big profits or big points

You are earning maximum points

Then what could be its effect

You just have to focus this right now

Next week when I will make it in the video

Then we will talk in detail about it

In which way do I plan that which day can be trending

And 15 June was a expiry day

Why do I plan big profit on expiry day only

We will do the discussion in detail

So that what will happen is your mind setup psychology will increase slowly

So what did you get the take away point in this video

If you're planning this option buying in initial stage

Then don't think and come that

I want to do scalping

Scalping is a part of option buying

But set this in mind that

One day I want to take big profits

Or I want to take maximum points

You may trade in 1 lot or in 10 lots

That Does not matter

But if your mind becomes ready once for the maximum points

That if market is moving me to 1000 points

In that if I am capturing 500 or 600 points

Then also I can sustain because

It will give me leverage

Once whenever you do big profits

After that even if you incur loss for two or three times

Then it will be slowly covered

You're not going to face problem

Small profit and small losses

It will keep on happening in Scalping

And you should do scalping only when

You have got experience of three to four months

Or you have got positive experience of five to 6 months

So that what will happen is when you see a small momentum

I will trade

But if you will do it in the beginner stage

Slowly the capital will eroute

And I don't want that

once you've got big profit in your hand

Then your psychology will work that

Unnecessary there is no need to take 10 trades

If I'm getting a big profit in two to three trades

Then also we can sustain

I hope you are able to understand this point

In the end I will tell you this only

Make sure that both the videos that I had told you

You have to go and watch that video

You will understand in detail

In which way the psychology works

And once you have to go as I had given the homework last time

I had asked for three promises

Now I am telling you

You just go and see into the system

Whichever is your setup

No issue

But see in the setup that if you are sitting for big profits

What would have happened after 20 trades

What would have happened after 30 trades

You just have to back test a bit

So you will get a fair idea

after that I will tell you in the next video

In which way we can capture big profits

On which day I target a bit

As a option buyer

Let's say to capture big profits

I hope you liked this video

If you liked the video then like and share it with your friends

This is all for now

thank you