Hello folks! Hope you are safe and healthy in this COVID-19 Pandemic. In this weekly newsletter, I will share some important tips to be a successful trader. And nifty and bank nifty weekly options strategies for 09th September weekly expiry. So read this post till the end.
We all know successful trading is not rocket science. Anyone who is managing their risk can make money here. But why most of the traders are still losing? I’m sharing a few important factors here that you should keep in mind before you start your trading.
Tips to follow for a successful trading
Learn the basics
Stock trading is a serious business. Like any other business, here also there are some rules and precautions you should follow. In any business, the first thing we are considering is, “How that business works?” The same applies here too. The very first thing you should do is learn all the basics. Learn how the stock market works? When and how to buy or sell a stock? And the most important thing is how to manage your risk? So before you jump into real trading, you should have all the answers.
Follow proper risk management
The biggest mistake most of the traders are doing is: They do not follow any risk management system. All the looking at the targets or the profits but never calculate their risk. If you are not managing your risk, it’s going to be very hard for your long-term survival here.
So focus more on risk management. This is the only thing which will help you to survive for longer-term here. If you manage to survive here, profit will come automatically.
Follow a proper trading plan
You must have a proper trading plan. Most of the traders are taking trades randomly. Either they are following some news channels, or some social media handles, or just based on their gut feeling. This is not the right way to trade.
Before you start trading with real money, you should spend some time making a proper trading plan. Your trading plan consists of some important activities you will perform during your trading. Like when to enter the market? Which and how stock to buy or sell? And the most important, When to exit from the market?
Most of the traders have entry plans but you should have a proper exit plan too. You should work like the Arjun, not like the Abhimanyu, who knows how to enter but doesn’t know how to exit from the market.
If you just follow these three simple steps, you yourself will notice the change. One last thing I want to share is:
Anyone can show you the path but you are the only one, who have to walk on that path to reach your destination. It’s only you, who have to learn and implement things in the right way to bring that desirable change. So be an action taker today if you want to see yourself as a successful trader in the future.
If you need any help from my side, just ask in the comment box. You can ask me on Twitter as well. If you need proper handholding support, can enroll in our mentorship program where I will be there to assist you in every possible way.
Weekly analysis with Best Nifty weekly options strategy
After gave a breakout from 16000, we saw a good rally in Nifty and it broke all the resistance zone very comfortably. Nifty is hitting all the upside targets and showing a very good and strong upward rally.
Nifty had hit all the targets I have shared in the previous weekly article [Best Option Trading Strategy for 2nd Sep weekly Expiry], very confidently. Now What next?
If you look at the above chart, you can see clearly that 17331 is the resistance level for now and a breakout will lead us to the next target of 17710. So bet with long trade with trailing stop loss only.
On the downside, 16700 – 16400 is the support zone for the short term and a breakdown will lead to the next downside levels.
The overall trend is UP and there is no sign of weakness. So any contra trade is not advisable. Trade with the trend only.
IT and FMCG are the two sectors you can keep on the radar for the coming week.
As I told you in earlier weekly newsletters, It’s a very good time to invest in some good quality stocks. So, build a good investment portfolio for you.
Option chain analysis for Nifty weekly options strategy
Based on option chain data, the highest Open interest stands at 18000 CE & 17200 PE, followed by 17300 CE & 17000 PE. PCR of all strikes is 0.97, which indicates a neutral market. PCR at 17000 stands at 3.25, which is acting as an immediate support level.
The Put-call ratio at 17500 stands at 0.05, which is acting as a resistance level. Equally, important indicator Option Pain is at 17200, indicating weekly expiry at 17200. A shift in option pain will provide further levels of expiry. So keep tracking max pain.
Significant open interest buildup on put sides. Indicating that Nifty is facing good support from lower levels and expecting to be in the uptrend only. So based on the OI, the possible range for this week should be 17000 – 17500.
Keep tracking change in open interest to analyze market participant’s behavior, so that you can adjust your position accordingly. If you don’t know how to analyze open interest to find the best option trading strategy in nifty and bank nifty. Just enroll for our Option Strategies – A Mentorship Program.
The Best Nifty weekly options Strategy: Broken wing Iron butterfly
Initially, you can follow a strict stop loss of 17000 or if the loss is more than 2500₹ for this strategy. Means square off if you find nifty is giving a breakdown from 17000.
If you find that Nifty is giving a breakdown and sustaining below 17000 on Monday or Max Tuesday then square off the entire position and initiate a fresh position with the new strikes based on the price level at that time.
If you want to learn and need handholding support about how to find the best nifty weekly options strategy and its adjustments in more practical ways with live mentorship, You can enroll in our Option Strategies – A Mentorship Program.
Weekly analysis with best bank nifty weekly options strategy
After spending more than 3 months in a tight range finally, BankNifty gave a breakout and trading above 36000. Now 37600 is the next target/resistance for the banknifty. A breakout from 37600 will open new doors for the upside rally in BankNifty.
On the downside 34000 is acting as the strong support level and a breakdown will lead to further downside levels.
The overall trend is sideways but there is no sign of weakness. So hold long trades only.
Based on the chart, 36000 – 37600 could be the range for the coming week.
As we are limited risk strategies traders, we should not bother about this range-bound trend. In fact, we need this type of range-bound market. So I’m expecting some good earnings in the coming sessions. So follow us on different platforms very closely for some real-time updates.
Bank Nifty weekly analysis based on the option chain analysis
Based on Bank nifty option chain data, the highest Open interest stands at 37000 CE & 36000 PE, followed by 37500 CE & 36500 PE. PCR of all strikes is 0.75, which indicates a neutral zone. PCR at 36500 stands at 2.56, which is acting as an immediate support level.
The Put-call ratio at 37000 stands at 0.39, which is acting as a resistance level. Equally, important indicator Option Pain is at 36800, indicating weekly expiry at 36800. A shift in option pain will provide further levels.
If you don’t know how to do the bank nifty weekly options chain analysis to find your best option trading strategy, Just enroll for our Option Strategies – A Mentorship Program.
Bank Nifty Best option trading Strategy: Iron Condor
Possible adjustments for this best bank nifty weekly options trading strategy are:
If you find that BankNifty gives a breakdown and sustaining below 36000, then shift your Call spread to 1000 points down.
The same thing you can do with put spread means if you got a breakout from 37600. You can shift your put spread to 1000 points up.
If you want to learn this bank nifty weekly options trading strategy and its adjustments in more practical ways with live mentorship, You can enroll in our Option Strategies – A Mentorship Program(Offer is expiring soon).
Post your comments in the comment box if you have a query related to the Best Nifty and Bank Nifty weekly options trading strategies. You can ask any question related to option trading in the comment box.
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*( Please avoid any questions like which Call or Put we should buy in the coming week).
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DISCLAIMER: – we are not a SEBI research analyst. Views or the nifty and bank nifty best option trading strategy posted here only for educational purposes. There is no liability whatsoever for any loss arising from the use of this product or its contents. This product is not a recommendation to buy or sell, but rather a guideline to interpreting specified analysis methods. This information should only be used by investors and traders who are aware of the risk inherent in securities trading.