Trade Options:
“If you want to be truly successful, invest in yourself to get the knowledge you need to find your unique factor. When you find it and focus on it and persevere, your success will blossom.” – Sydney Madwed
We’re sure some of you have questions. So, we created this comprehensive FAQ page to help answer some of the more common questions we usually receive. Please take a minute to look over these question below as you will probably find your answer. But, if your question isn’t here, then feel free to contact us.
- Why most Investors/traders lose money?
Most new investors and traders, whether they are beginners or professionals, usually lose money for two reasons. First, they do not have a grasp of how the markets really work. Second, they are under too much stress when they trade because they fear losing money. Many times, traders liquidate good trades too quickly or have no idea when to take profits.
- Why one should stop trading stocks and trade in options?
A stock investor can only buy or sell a stock, whereas an options trader can have a number of different strategies for different time frames. Stock investor buying stock can make money only when stock price goes up; similarly stock seller (short seller) makes money only when market goes down. Option traders can make money in any kind of market, up, down or sideways. Nothing in the stock market or any other market is a sure thing. The unexpected must always be expected, and this is one of the big reasons why one should trade options.
- Why don’t you trade stock options on individual stocks?
Because NIFTY index is less volatile than individual stocks, which gives us a tighter range to work with and hence a greater probability of success. Individual stocks are almost always more volatile than any index, in part because they’re subject to so much “event-driven” movement, like earnings reports, the actions and fortunes of competitors, management shakeups, etc. These sorts of events can activate an unexpected dramatic price swing at any time, and can easily push the price. So we only trade NIFTY options to avoid these kinds of unforeseeable shifts.
- What’s the minimum account size necessary to follow your trades? We can’t legally give any personalized advice about account size or what risk profile is appropriate for you. But we can say that an account with less than Rs.50,000 will face decreased percentage returns as commissions and slippage take a large portion of profits.
- My purpose in trading is to construct the amount of my account, how can AssuredGain help me?
Trade Options are a great way to build capital because they have two built-in features that you can’t get by trading stocks alone:
1) leverage – every NIFTY option contract is worth 50 shares of its underlying asset, which enables you to capture the price movement of an asset with a much smaller outlay of capital;
2) hedging – option spreads enable you to define your maximum upside and downside before you initiate a trade, so you know right from the start exactly how much you will win or lose on any trade. Defined-risk trades like these protect you from the infinite downside/upside risk that is inherent when you buy/sell stocks.
- My purpose in trading is to generate a steady monthly income, is it possible with AssuredGain?
Then you’ve come to the right place, the goal with options isn’t to hit homeruns every time we trade – instead, our goal is to make a lot of base hits that will add up over time.
- My purpose in trading is to reduce the risk of my other longer term investments, like stocks, mutual funds, and etc, is trading options right choice for me?
Trade Options spreads can play a valuable role in any portfolio. Even if you only commit a small amount of capital to our strategy, you can use options to smooth out your returns and reduce the volatility inherent in investing. Let’s say that over a three-month period, the sensex Index loses 30% of its value.
If your investment portfolio is long the sensex, you’ll be fully exposed to that downside risk. But if you take that same portfolio and add our options spreads into the mix, you can still make money over that time period by profiting from the relatively range-bound nature of the index.
- I hold blue-chip stocks bought at very high rate and have very less amount to trade now, can AssuredGain help me?
Yes, Please do contact us to avail our mentoring service.
- I am very new to stock-market, can AssuredGain help me? AssuredGain provides “Conquering The Markets Training Course” and Personal Trader Mentoring”, please do contact us for more info on the above.
Introducing the Most Comprehensive Education Program Available Specifically For Option Traders https://assuredgain.com/our-services/options-mentoring/
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