option trading: ETMarkets Trade Talk: What’s common between art & Nifty Bank charts? Ask this Pune options trader

Terminologies like cease loss, positional buying and selling and choice scalping do not belong to the dictionary of arts however then the inventory market does entice individuals from every kind of backgrounds. When Pune-based artwork designer Pranav Daure began buying and selling to get some further earnings, he knew he wasn’t educated to decipher knowledge and take fast purchase and promote name choices.

Daure, who has labored as a technical director in movies, nevertheless discovered it simple to narrate to charts, colors, actions and kinds on his buying and selling terminal given his background in artistic arts. After years of follow, the graduate of Nationwide Institute of Design (NID), Ahmedabad, is now a profitable Nifty Financial institution choice purchaser. As a scalper, his script is straightforward – shut down the system after making 1% return on any given day, barring the Thursday expiries.

Edited excerpts from an interview:

The 2 worlds of arts and inventory markets are poles aside. How did you discover your forte in buying and selling?

As an arts pupil, I used to be searching for some further pocket cash. My curiosity within the inventory market developed after attending a workshop by Ashish Kelkar. Afterward, Sivakumar Jayachandran taught me the methods of scalping. I made some huge cash until 2016 however the subsequent 3 years have been very unhealthy. I went again to fundamentals and caught to the 1% rule and issues modified.

As I’m an artist, I don’t perceive knowledge in a short time however I can perceive charts, colours, actions and kinds. As I used to be technically good, I understood the information but it surely was taking 5 minutes to decipher the entire thing. However in scalping, you should determine inside a second.

Then I began taking trades as per the charts solely. I made positive that I restricted myself to 1% return in a day. My entry and exit factors are mounted. Folks ask me the way you handle to be in inexperienced daily. I inform them that I shut my system every time I flip inexperienced.

I’ve been coaching different new merchants additionally and most of them make cash daily. I inform them to close the system as soon as they’ve made that 1% return. If you happen to maintain seeing a number of alternatives on the display, then you can be tempted to maintain buying and selling. We do not have to remain there for your complete day. All we want is 3 minutes.


What’s your buying and selling technique as a Nifty Financial institution scalper?

We give attention to ‘In The Cash’ choice (ITM). When the market strikes just a little bit in your favour, ‘In The Cash’ choice premium runs instantly and so that you get the premium. Within the case of reversal, it would not degrade instantly however ‘Out of the Cash’ will get degraded.

There’s a lot knowledge concerned and so I look much less on the knowledge and extra on the charts. If I see formations occurring within the charts clearly, then I take a commerce.

Folks like us are indicator merchants. We additionally research volumes.

A motion of 10-12 factors within the premium occurs 200 occasions in a day. All we have to do is to search out that one second of commerce the place we are able to make 1%.

Is it actually that simple to make 1% return in a day as a scalper?

Greed and worry are the most important obstacles on the trail. It is very important perceive your personal behavioural psychology to have the ability to succeed.

In scalping, you additionally want numerous muscle reminiscence to make fast trades. In case you have not educated your hand, you possibly can’t do scalping. As an train, I inform my college students to make purchase and promote orders as soon as the market is closed. All orders will clearly get rejected however it’s going to assist construct muscle reminiscence.

What’s the sort of technique you undertake on Thursday expiries?

On Thursdays, I take the hero or zero commerce. So both my cash will double or I’ll lose the whole lot. At 2:30 pm, there are possibilities of a gamma motion. We take that gamble commerce. There’s a 50:50 probability of successful however our technique offers us an additional 1% edge. We’ve doubled our cash more often than not.

Identical to the way you began buying and selling for some extra cash a number of years in the past, numerous children at this time are doing the identical factor. A few of them are even taking part in with hearth by betting a big a part of their financial savings. What can be your recommendation to them?

In case you are into scalping, you want a minimal of Rs 1.5 lakh however it’s best to have a second earnings. Buying and selling is just for these individuals who have extra cash mendacity round. One ought to guess solely that a part of the cash which you don’t must run the home. Scalping is like doing a PhD out there.

One ought to deal with the cash within the demat account as only a quantity. It’s cash solely when it’s transferred to the checking account.

(Disclaimer: The Financial Instances would not endorse any services or products that could be provided by the skilled. Suggestions, strategies, views and opinions given by the specialists are their very own. These don’t symbolize the views of Financial Instances)