How to Trade Option Buying Using 33 EMA Strategy | Ft @isankalpchaturvedi | MastersInOne | EP - 69

[Music] It is said that option buyers always make losses. Yes, options are wasting assets. Yet, there is a 33% probability that money is made. When I started option buying, I had no other option. Because I had limited resources. The major losses people make are in bull and bear traps. I blew my account n number of times due to greed. The major losses that I have made is because... ...for any reason, I did not exit from a risky setup at the right time. Index will not give daily trade, but some or the other stock will trade. Option buying is the last step of trading. We have two capitals. We do not pay attention to others. One is the financial capital and the other is the mental capital. For me, safety is more important. If I want to earn money, I can get 10 more opportunities. When someone used to ask my mother what your son was doing. She never used to tell it. Traders are not respected in India. Hello friends! I am Vijay Thakkar. I welcome you all to a new podcast of Masters in One. Our guest in today's podcast is Mr. Sankalp. Mr. Sankalp is a SEBI-registered research analyst. He is also a full-time trader. Mr. Sankalp trades in option buying. In today's video, Mr. Sankalp has discussed his option buying strategy. It is related to 33 EMA. He has explained how to enter and exit this strategy. He has also explained why he started option trading. Mr. Sankalp used to work in a bank. Then he had to leave his job. Then why he started trading in options. He has explained his entire journey. He has also explained the 33 EMA strategy in detail. In the last, Mr. Sankalp had an issue related to his health. He has also explained how he has improved his health. This video is going to be very interesting. For those who want to understand option trading. For those who want to understand health. Without wasting time, let's go to today's podcast. Let's understand from Mr. Sankalp how he is profitable in option buying. What is the 33 EMA moving average strategy? Welcome, Mr. Sankalp. It's good that you came to our podcast. Thank you for coming from Jaipur. The most important thing is that you came here on Valentine's Day. Leaving your family. And we are making this video on Sunday. Thank you, sir. I don't know much about you. But I know that you are an option buyer. You work on the basis of your systematic method. In today's podcast, our intention is to know about you and your system. Recently, I saw a video on YouTube. In which you shared some things about your fitness journey. What was your health condition before? How did you change it? If you have time, we will talk about it. Because it is my personal interest. We are going to discuss this today. Tell me how you started your journey in the stock market. Most people say that option buyers always make losses. How are you profitable? First of all, Jai Siya Ram. Buyers earn money, sellers earn money. It is a very old debate. Yes, options are wasting assets. Yet, there is a 33% probability that money is made. But for that moment to be there in the option, you have to have discipline and patience. If there is a 33% probability and odds are against. Yes, I agree. Because theta decay is against us. Many people do not understand the underlying movement. Whether the market is bullish or bearish today. You have to keep a lot of things in mind. So, I always look at the positive side. Yes, odds are against. But there is also a 33% chance. All I have to do is stick to my system. And keep evolving my system. And whenever the opportunity is there. Then be ready like a sniper. In option buying, you don't get the liberty to be in a trade all the time. If the market is 7-8 hours a day. Then my trading time may be only half an hour. But that half an hour, I have to make it count. Because I am patiently waiting for my setup. We will also talk about the setup. There are some conditions. If that condition is not fulfilled, I will wait. And 70-80% of the times, it has saved me from a lot of traps. Because the major money that people lose is in bull and bear traps. You will suddenly see a big candle. May be breaking out or breaking down. Makes entry in FOMO. And it reverses. So, if my system gives a green signal. I will take the trade. I am not saying that I have a holy grail. That all my trades will be 100% right. No one has it. But if you can work at 60-70% accuracy. At month end or fortnightly if you are reviewing your trade. You will be in green. And that is the objective. Okay. So sir. Definitely, we will do a deep dive into your system. And I also want to see it personally. Because before coming here, I have seen some of your videos. So, I don't do option trading. I don't do option buying. But I have tried many times. Because when you are free. And you see that the market is good. Someone does a major breakout on a daily time frame. So, I have done all those things. But you can't say that I am a proper option trader. Or I look at options. So, we will understand all those things. So sir. You tell me. Did you start with the stock market? Or there is some other history? No. In 1997. I heard from a cousin for the first time. He got some money. So, he wanted to invest in a company. So, it intrigued me. That this is also a thing. It was the first instance. Then schooling got over. During MBA in Marketing and Finance. We were given projects. And your peer group. Then you start reading Economic Times. Then we formed a small group. We used to do mock trading. By analysing the results. Fundamental analysis. Whatever finance we knew. So, we started mock trading. And then we started. We used to do a meeting every week. That I had 1 lakh rupees in a kitty. This is all mock. No actual money involved. So, I found it very intriguing. Because my thought process is very research oriented. So, I thought. I will get to learn. Like what are the products of a company. I got to know from that research. I had no clue that this company works like this. I won't have examples to share of course. But I liked it a lot. Then I joined a government bank. After MBA. And I was given operations. First of all. They make you a teller in a bank. So I. I took it as an insult. That. You know. I have studied so much. I have such a great ambition. I want to learn and grow. And they made me sit on cash. And I was in a branch. Where 3 crores used to come. And 3 crores used to go. In MBA, they don't teach you how to count notes. I still don't know how to count. And you imagine. A fresher has a small training. Even in that they don't teach you how to count notes. The actual physical. They don't teach you how to count notes. We have never seen 3 crores in our life. And you have to count it. You have to tally it. If there’s any shortfall, we’ll have to cover it from our own pocket. So, I used to sit like this the whole day. And I was in a government bank. In a government bank. There are lunch hours. We don't have lunch hours. We used to have lunch at 4 o'clock. Then there used to be a tension. That you have to tally. You have to load the ATM. There used to be ATM sorting. The teller does that. You take money from the ATM. Those good notes. There are sides in today's collection. There are bundle of hundreds. Then they are loaded in the ATM. It is a different process. Then the entire day’s accounts are settled, and the money is deposited into the vault. I worked for 3-6 months Then I told my dad. I don't like this. He said. Whatever is the method of this work. The bank will know. They teach one process at a time. I said. Have I done MBA to count notes? He said. Do whatever you think is right. Then we have Regional ED. There is a hierarchy everywhere. Which you are not aware of. After studies. You understand that politics staying in the job Some of our Regional ED came. I said. I want to do sales. I don't want to sit here. Give me a chance. By chance. One of the relationship manager was not well or something He was on leave. He said handle that. Now I broke the hierarchy. My branch people gave me a side look. How did you cross me? It's been 6 months since I joined the bank. In Government banks it's systematically done. So I said I am gone. We are always after our dreams. I fought and took sales. I took sales but no one taught me how to do actual sales. So you are given a portfolio of clients. Fortunately for me, who are typical Marwadi businessmen, they are my clients. All I used to do was, in the beginning, for relationship ice breaking, I used to go to them. It was very hot in Jodhpur. During the day time, we used to go and they used to say that why have you come in such hot weather after getting worried. They don't know that we have to answer in the bank, building a relationship. Then you do sales, bring in business. So I never used to discuss any product with them. I used to listen, how do you work, explain it to me. There I came to know that there is a steel rolling mill in Jodhpur. They press iron and make it like utensils. This is a business. I was not aware. In many such industries, luckily I talked to them. I used to stay in their process. They used to trust me and tell me everything. Then I used to ask them, how do you do this with money? What do you do with this money? Because my objective was sales. They told me how do they plough back the profits. They put it in business. Some invest in gold, some in real estate. So I come from a middle class background. Both my parents are teachers. They don't know that if you are earning lakhs, this should go to saving, this much in gold, this much in land. They spend their life in loans. So that sort of training is never there. So I learnt from them that if you are earning 100, it should be equally divided. So my actual training should be with businessmen who are experienced players. And of course, a major part of their investment was in stocks, mutual funds. That came in my interest. Then they used to have weird stories. How will the market react to the news? They used to say that this will happen in Reliance tomorrow. It used to be intriguing for me. These are tricks. Tricks of the trade. What I didn't know, we used to read the newspaper and do fundamental analysis. They used to see the price on the ticker that if something is worth Rs.1000, it goes up as many as it comes Rs.1000. You can buy it. We used to walk around on the phone. Yes, buy 100, 200 Reliance. It really used to intrigue me that this is a good thing. It was my interest. So I worked for 11 years. After that, there was an unfortunate incident. I had to quit due to some medical reasons. But in those 11 years, they made me strong. Along with that, I did some investments and some trading. But that was random trading. There was no system. Sometimes I bought something and sometimes I didn't. Even now, Bank Nifty is my favorite instrument because I owe everything to banking. Because I am in the banking industry. That happens. When you start from an industry, it becomes your favorite. So the bank's result is going to come. We read it and took some call put. We used to do this. So it was an interest. After the medical incident, I quit. I was on bed rest. So at that time, in 2017, there was no such thing as work from home. And after staying in the hospital for 1.5-2 months, I came home. Bonds bounced. Very bad financial condition. So as a man, you feel that what are you bringing to the table? First of all, you are not doing anything. Money was spent for medical condition for you. You are not able to pay the fees of your children. So I thought that I have been exposed to trading. I was just looking for avenues who hire me as a consultant. We used to do project financing also. So I could provide consultation according to my expertise. But I tried and I won't get anyone. Because I had no actual experience. I had practical experience of sanctioning loans, doing all these project work. So I thought that I will do trading. So I collected some money and started with option buying. I thought that I should do something. It is better than sitting idle that I should do something. Beginner's luck or anything, I did really well. 5-6 months, while being on bed rest, my life that got off the track. Or the hole in my boat, I fixed it by mending it. I owe everything. Even till this time, I was just implementing the mistakes that I had done for 10-11 years and the experiences of people. Till date, I have never read a book on trading or I don't have any mentor. It is on self observation only. And when I used to do trading, I used to do a journal. SBI and Tata Steel were my favourites. I made good money. I owe everything. They had a big hand in my recovery path. So I used to see that I took a call or put or did anything or avoided any trade. Why did I do it? Then I started learning based on need. Like RSI was like this, this happened in candlestick. So I learned it by reverse engineering. What was the decision that I took in the whole day and what was in its favour. And if the trade went bad, then I used to look that if a candle went up, then why it didn't follow through. So I learned it by reverse engineering. I built my system also for the last 8-9 years. So I got such interest. Then greed overpowered me and I blew it. So after bringing everything on track, I blew it again. I blew my account n number of times due to greed. At that time, I didn't know about Greeks. I used to think that if the stock runs for 10 rupees, then the option will also run for 10 rupees. I had no knowledge. It was just functional knowledge that all this can happen. If the market is going up, then buy the call and if it is going down, then buy the put. But where to set the target, how much to do? That was not there. Blew it up. Then I had to sit down. I thought to myself and I was physically also getting better. So my confidence was also coming. For a man, if you are unable to provide for your family and if you are physically weak also. I couldn't stand straight due to stomach surgery. That strength came then confidence also started coming. I felt that I can do this work. I was fit to join another bank. I could have done a job at that time. Then I thought that if I do it properly, then nothing is better than this. My elder son was 4 years old at that time. I didn't see him growing up completely. Because I was in job. I was posted in a far off city. My family was living apart. I thought let me give it 2 years. I write down my mistakes and do the process of reverse engineering. But to not forget my limits, I do one thing. I have a lot of data in my trade journal. Till date I have a lot of data. What was my mistake? I have earned 8000. I closed it at minus 10 for doing 8 to 10. In greed of 2000. Or I have earned 50,000. If it is becoming 50, then I will do 1 lakh too. When money is in scarcity, then it feels good. It is like the body hogging for fat. Whatever you get, it will be useful in a bad day. Psychology is like this. I thought that this is my mistake. Your lifestyle, EMI, expenses, going out is divided on your salary. You are earning X amount. My daily amount was 4,780 rupees. My lifestyle which was my bank's salary could not be my main income and expenses. I said let me just aim for 5,000 and a stop loss of 2,500. I learned to calculate the risk reward after many years. But I made this arrangement that I will lose 2.5 and earn 5. And I have 500 extra. If I will be in profit for 10-15 days out of 20-22 trading days, then my work will be done. Since we have limited resources, there is no tension. If there is a profit of 10 days, then we will be in green. I am bringing something home. I did that. 5,000 rupees can be done in a minute in option buying. Sometimes in 2 minutes, sometimes in 2 hours. But then I started reviewing my performance fortnightly, monthly. Green, green, green. This liability. I gave money to this, returned it, started paying off. I have a lot of confidence from that. All I did was I limited myself. Then I thought that when you do a job, I am a very hard worker. I’m driven to work. I was a high flyer in my bank. I made loss making branches profitable by working hard. I used to think that where I worked so hard, neither did they gave me any bonus. If I am working for 4 hours extra, I don't get paid extra. Why am I doing smart here that I make 8,000 to 10,000. Let me just stick to my daily wage. Then I started treating it as a job. I have come to earn 5,000 rupees. The best opportunity I will get, I will do that. It happened. End of the story. And then an army discipline. Because I could not afford to lose. At that time, today there is no such problem by God's grace. But at that time, I had very limited to lose. Okay, you ask money from someone, but there is also a respect that you have already troubled your family financially because of your health. Or EMI calls are coming, something is coming, credit card people are coming. So when you are fighting for life, it is not your priority that you pay EMI etc, It doesn't come in anyone's mind. I did this for 5000 for a year and then I thought that now I am confident. I write all the mistakes and I started building a system that the patterns of price, the breakouts or breakdowns, when it's a consolidated market, by doing reverse engineering, I developed a system in my mind. Now the system and all these things, we are humans. In the live market, when the price is ticking, there is a lot of tension. Sometimes you are unwell or you had a fight with your wife, your mother said something, your child needs something. It is never a free space. And then you are seeing live prices, when you are dealing with actual money. So this system and all is just talk. You don't remember a lot of things at that time. I thought that I will code this. Now I don't have any engineering background. Commerce graduate, MBA, job. I learned coding by sitting extra at night. And I started coding my system. And that too need-based. I need to plot this line when this happens. Of course, now I will not learn coding from zero. I don't know how much time it will take. By doing reverse engineering, when I RSI does this or ADX, I need this. I need to be alerted. That this light should be on, this red thing should be plotted. So by doing reverse engineering, I started building my system. Till now in the last 7-8 years, I have updated the whole system 87 or 88 times. Depending on the market conditions. Or I learn something new. With that, I am on the line. I am very patient. When my system says, I take the trade. Today trade isn't there, I'm listening to songs, watching something on Netflix. When I started, There is no one. You have no one to share your victories or your defeats. That teach me something. Give me some knowledge, don't do this. You yourself fall and pay with actual money. So this is what I have been doing till now. Okay. So your journey is very inspirational. Because I can understand when we don't have money. When we don't have work. So the family doesn't say anything to us. But it happens that the your respect goes down. But it is never seen. But it is felt. Right. And I can relate to that. Because in everyone's life, For some reason, it happens in the starting. So sir, today you tell me. In how many years did you make this system? How many years did it take? 8-9 years. Means by refining it properly. And you are still doing it. So now it is a commercial platform now. The whole system. It revolves around my strategy. Unique strategy. My own strategy. Again I am saying. No one is perfect. But it’s enough to run my household. We are happy. Nice. So sir, tell us your method today. And tell us that an option buyer. Who thinks of earning decent money in the market. So how can he earn? And how does he have to follow discipline? And what should be his approach? I don't want to go to option buying directly. Let's go through a process. Due to social media. And I won't blame social media. Due to the people who are greedy. To look for ways. That you leave the job. Earn 10,000 rupees a day. If they are making a content. People are only consuming. Right. So both are wrong. Option buying is the last step of trading. You have to have technical analysis. Your mind should be stable. You should have a system. And you should be disciplined. And all these things. It is easy to say. It is difficult to do. But the way it is portrayed in social media. You can do option buying with 10,000 rupees. You can't do selling with 10,000. You will go to buy stock. If you are getting a margin. How many stocks will you buy? 10? 20? Then you multiply. You received only 100 rupees. Nobody likes 100 rupees. Right there, if you take a call of 10,000 nifty. You might get 2,000-3,000. That looks good. But. Both are wrong. When I started option buying. I had no other option. Because I had limited resources. Today. By God grace, I can do anything. I can be a seller. I can do this hedge strategies. I can do futures. But. I just love option buying. All I have to do is. Stay disciplined. I don't need a big capital. To make ends meet. My small requirements. Are done with my capital. I don't need more than that. Because I am still on that. That 5,000. I kept scaling up. 10,000. In 6 months 10,000. Then I came straight to 20,000. In 20,000. I made a mistake. Because the M2M (Market to Market) fluctuations. That you. Make mistakes. So. When you increase quantity. 20,000 profit will be very fast. Then again 1 is to 2. 10,000 loss will also be very fast. That 20,000 phase. It was. A good. 5-6 months. That was my struggle. Because in option buying. If you are trying to scale up. It is a wasting asset. Everything is against it. Odds are against. Time is against. In technical analysis. See. Something is bullish. Even if it stops there. Then the option. Premium will decay. Correct. So, a lot of things are against you. So when you scale up. And these things happen. And the market also doesn't stay in a cycle. Sometimes it is bullish. Sometimes it works in gaps. Sometimes it is consolidated. That 20,000. It took me 5-6 months. But it made me so sure. That my screening process. I will share a free strategy also. It's just not about the platform. That I built. If someone uses it. Its screening process is so strict. It will keep you away from bad trades. According to me. A bad trade not taken is the best trade of the day. We have two capitals. No one pays attention to the other. One is financial capital. And the other is mental capital. If your mental capital is sound. You are fresh. You don't have red in M2M. You will do a positive thing. If your first trade is red. You. No matter how good a person is. He will think. I should make it green first? And in the process of greening it. Such a negative cycle starts. That you end up losing more. At least in option trading. Okay sir. You tell us. What is your system? And how can we practice it? Yes. See the first question. Any trader name. Opens the market at 9:15. So it happens. You know. What to trade. And how to trade. Okay. I will explain how to trade. Now in what to trade. There are 300 symbols in F&O. There are three good indexes in index. Nifty, Bank Nifty, Sensex. They have different options. So there is a lot of things that you can do. There are a lot of opportunities. And there is a lot of risk. All of them will not be right. I will give some examples of recent trades. You will get that idea. So what to trade. First I will explain my system. This is profit scout. Okay. This is my system. This is live tick charting. But it is intentionally intraday. You will never be able to see. What happened yesterday. This profit scout is your platform. Yes. I don't believe in tomorrow. I care about today. Because the kind of life I have lived. The experiences that I had. Today I was right. Yesterday I was in bed in ICU. I don't believe in tomorrow. I am only bothered about today. In this system. As soon as the market opens. Be it any symbol Nifty, Banknifty, stocks. The system makes two lines. Green and red. So the green one. As the color would suggest. That is the bullish break out for us. Red one is the bearish break down for us. And the middle zone. That is the scalping zone. Where you can do demand and supply based trading. Many a times it happens. That the whole day goes in this zone. The world is crying on twitter. And we do our work by scalping and exit. So this is yesterday's chart. I don't think it is below red. So it takes rocket science to what to do. Okay again. One thing. It surprises me a lot. There is a market sentiment analysis. So whenever you trade any instrument. You should know the direction. That it will go up or down. That is the basic question whenever you look at a chart. I added this aesthetically. But the feedback of the people. That it keeps them in the right line. If you are with the trend. The odds are always in your favor. Correct. Rather than reversal. Stunts. So this is yesterday's example. Nifty was bearish. Bank Nifty was bearish after a while. Around 10 am. So this chart is of a whole day. And it starts from zero. It is always going to be intraday. And the green and red lines. Our decision is made on this. And what time frame is this candle? That is up to you. You can change it at any time. For now, it’s 15 minutes. It is a fully functional charting platform. And what is this blue line? That is VWAP. VWAP. We have been very fortunate. The people with whom I have interacted. Whom I have taught in the past. This is on their demands. That we need such a charting platform. I don't want to know tomorrow. I don't want to be biased. I want to see today. So now you see. This is in tunnel vision. Many times we stop good trades. That this was a demand zone. That was done yesterday. We only care about today. And we work on 1 is to 3. We will talk about risk to reward later. So this is all about index. Second thing, this is all need based. I will come to how index works. I have a very good example for that. Everyone wants to trade in bank nifty, nifty. Bank nifty, nifty doesn't have any existence. It is just a summation of its components. How the components are behaving. Correct. So I will take a very simple example to teach this. This is a car which has no engine. You can just push it forward or backward. Ok. Now let's say this is bank nifty. The components of bank nifty are HDFC, ICICI, SBI, Axis, Kotak, IndusInd. They have different weightages. According to their weightages, some will be bullish and some will be bearish. So if strong weight banks push bank nifty, then bank nifty will be bullish. Correct. And if they pull, they will be bearish. Right. So our step 1 was to see only bank nifty. That system is flawed. Because it doesn't have any brain. It is just following what the components are doing individually. Correct. So it is very important to know this. And if opposing forces are same, that 11 banks are negative and HDFC is positive, then where will bank nifty go? It will go nowhere. So understanding this is very important in index trading. Index has no mind of its own. It is a car without an engine. We have to concentrate more on the components. So for that, in my platform, we have kept dedicated movers and draggers. It shows Bajaj Finance is bullish. Eicher Motor is bullish. And the dragger is HDFC, Reliance, ICICI. Now if a person has put it in the market for a year, then he has a little situational awareness. He won't go long in nifty by seeing these three as bearish. Yes, that is true. By looking at this bar, I can understand that I don't want to go long. It gives me a view. And here on the left, bearish is also coming. This is not rocket science. This is just situational awareness. In fact, I have put my setup video today. How I keep it on my screen. I have made all these things that I want. So I have a detailed view of this. I know that HDFC is eating 55 points out of nifty at this time. Okay, how much nifty has fallen, which stock is contributing how much percentage, that is visible. That is visible live. Bajaj Finance. Now this is a snapshot. This tells me it is a bearish market. It has a very good trading opportunity. It is telling you instead of looking at nifty, go long in Bajaj Finance. Look for short in HDFC. When the market will pause a little or the market will rotate, there is a chance that Bajaj Finance will fall. Or it will reverse and if the trend is strong. I have a very good example of a long. Eicher motor is also good in this. We took a long in Eicher motor. I will show you the chart. Okay. So many people say that I just want to index. I just want to stock. There should be no such rule because the market owes us nothing. It doesn't matter what you have come to do. It will work on the day of the sector and the direction it will perform. We live in times where a call of nifty can reward you 100 points. In the same day, put can also reward 100. You cannot marry a view. People take themselves very seriously in the market. I feel that the market is up. Who are you? Who is asking you? So we stick to the system. If I have taken a short, I have taken nifty short, I will keep an eye on HDFC. Because the biggest contributor is when it will reverse, nifty will stop going down. And even if it stops, my put value will start losing. No rocket science, situational awareness. This gives me a bird's eye view of what to look for. The first question, where is the market headed? Is it going down or up? So based on the system, based on how the components are placed, I form a view. I have made it further. In any option, there is an opportunity of a breakout. When will the option increase? When there is short covering or when there is long build up. In both the cases, it will find the option and the strike price and tell me. And it will also ring a bell that go and see. Then you go to that option. Like in this, there is a put of 25600. This happens according to the time closing. Just look at this put. It opened at 90 and day's high is 206. And when this qualify was done in the day? Around about 100-110. 110 to 220. In my eyes, Nifty option buying is the worst kind of option buying and for me 100 points in a Nifty call is a king's ransom. Means if you have done a very good job or you are unconscious after taking a trade then you will book 100 points. In Bank Nifty, Sensex it's very easy. On a news, event day, it's easy in Nifty but on a non-event day, it's very difficult to make money from buying in Nifty options. So see how my system has become. My system is telling me not to use my brain. I have given technical analysis tools, whatever I know. Market bullish or bearish, it is telling me. So my bias is over. Which component is doing what, it is showing me. I know where I have to keep an eye. Which option is going to move, it is showing me. So the human errors that I can do. Now what is the human error in this? I took a put instead of a call. It happens with many people. When you add in the watch list, you take a put instead of a call in a hurry. This can be a human error. Secondly, people feel very embarrassed to put a stop loss. And we, in my research services as well, when I find a trade doubtful or something happens, so as per risk management, I tell them this is the factor that might go against our trade. Let's keep a cost aside and this is the time when we have booked 30-40 points. We are bringing some home, the remaining quantity for higher targets. We are making it a cost SL(Stop loss), nothing from our pocket. People have a problem in putting that. No, I don’t want to do it. See, everything that you do is a probability. If there was certainty, then you and I would have bought our own islands and would have been there. They fail to understand that nothing is 100% accurate. So you would realize this part later that 90% is your trading psychology and 10% is all the skills and tools that you use. So I have only two places for human errors. Either I take a put instead of a call or this SL. Secondly, I will show smartness in my risk reward. I feel that the market will reverse now. Then I can spoil my trade. And the third thing is that no one has it in their hands, volatility. Market was bearish, some news comes, it turns bullish and vice versa. We don't have it in our hands, that's why there is a stop loss. Correct. Let me give you an example. This was index. People don't understand that the obsession of index is never right. There are 300 F&O stocks. Index won't give trade daily but some or the other stock will definitely trade. So my system screens the entire F&O universe and it looks for opportunities and it shows it here. You can change the interval, I need some confirmation, I will keep it for 15 minutes. Eicher Motors, in a bearish market where we saw Nifty is going down in the chart, it was gap down, we took a long and it overachieved our targets by I think good 40 points. Same logic, I told you that it is above the green line, it is qualified to go long. You can see, let's not do much of postmortem. Then it is possible that someone is looking at Eicher Motors late. Because you have to see where the price is coming from. There is an ATR of the stock, if something has already increased by 5%, then the chances of it increasing more are less. So you look for alternatives. Here my entry risk reward wise, because if I am buying at peak and retail trader takes it here in FOMO, that it has gone so much, let's buy a little. Or the others who are very smart, they short it. How much more will it go up? So this system doesn't work for a long time. So my system is going to look for similar stocks which have similar kind of setups. So you are getting an opportunity and here it is also grading. So there are different scouts. Like in smart money we have advanced volume analysis. Swing trading on higher time frame checks the stock on technical analysis. Now just common sense, if Eicher Motors is in F&O scout, has volume breakout, has a swing breakout, it is a high probability candidate. So here the system has told you that there are chances here. There are chances, not certainty. So you can take your bet and see this is the main question I told you. It is bullish. Sir, now you tell me properly that this is your system. This feature is paid on your website, right? Yes, it is paid. So now you tell me a method which is not paid and people can follow it. Okay. For that again we need to make a strategy and make some rules. There are many detailed videos on my YouTube channel. But for the benefit of your viewers. But we have to do this. See what happens in trading? Everyday a new thing comes. Even content creators for content farming that in RSI you do 21 and not 14. There is nothing to be done with that. They catch the ear from here but to sensationalize that this is new, go to Heikin Ashi, go to Renko chart, do what you understand and nothing is 100% perfect. I mean this is such a thing where our Hanuman ji also comes along, he also will have a stop loss. It is a volatility driven, probability driven work. So its components are 2 moving averages, 33 EMA's high, 33 EMA's low. So a band will be made. Correct. VWAP, RSI and Fibonacci pivots for target setting. I have a lot of detailed lectures on this on my YouTube. I don't know we will have so much time today. And time frame and this is for intraday trading. I did a lot of research. Many people have a problem. See I am a full time trader. I develop all these tools. So I have a lot of screen real estate. I mean today itself I put a setup video. I have a lot of screens. But a person who doesn't have the resources and when I started I just had one screen. Or if someone is looking at iPad on job then from where will he see so many things. So I did a lot of back test and took a time frame of 9 minutes. Okay. Which is that sweet spot. Which keeps you with the longer term and short term. It keeps you right. Whenever I used to teach this multi time frame analysis. I used to ask people that there are parents in your household. You and your children. So there are 3 generations. If there is any problem in life or you need advice. To whom do you go? To elders. You have to find out what is the latest fashion. To youngers. Then I used to say let's convert it into a time frame. Parents are told 1 hour time frame. You become 15 minutes. Make children 3 minutes. When all 3 are in confluence. There is more probability of that. Younger is saying something, elder is saying no. Then it won't happen. Trade got messed up. Trading is very easy. There is a little common sense and situational awareness. Correct. So the reason I am giving you this example is that everyone doesn't have so many screens. Everyone is not so focused. I have worked in a bank. We are used to so much multitasking. Cash is coming, this is coming, that is coming. Loan is also running. We are used to looking at screens and juggling between windows. It’s not found everywhere. And there is no screen. So 9 minutes is that sweet spot. It keeps all the 3 time frames that I have given as an example together. And very good results. And if we do option trading in this. Then we will keep a 3 minute time frame option chart. And ADX. The conditions of the setup is. First of all, price. The EMA band that we made of 33. If it goes above this, then bullish. Okay. First condition, tick. Correct. Second, RSI should be above 55. Hmm. If this is satisfying. Then only we will take trade. Tick. And put one more condition. Price above VWAP. VWAP okay. Tick. So you have graded the system in 3 points. EMA, RSI and VWAP. Vice versa for a bearish trade. Price should be below EMA band. Hmm. RSI should be below 45. And price should be below VWAP. Okay. Now there is a big question in this. What to do between 45 and 55. Hmm. I can give you this in writing. The zone between 45 and 55 is the zone where maximum people lose money. Because it is a no trade zone. Okay. It is a make or break zone. In that price either becomes very volatile. Or it doesn't work. In either case an option buyer is going to lose money. There you have to sit patiently. Okay. Okay. And no trade zone as I have written in the slide. 45-55. And there are scalping opportunities in this also. VWAP till the EMA band. If you know demand and supply based trading. I have some case studies to discuss. But these are the conditions. And we have to be loyal to this thing. We don't have to do anything with assumptions. Okay. If these things are happening. Yes yes yes. All three are ticked in the grade. Hmm. You go with the trade. Again, I am saying a disclaimer. There is no sure shot. Probability becomes high. No see. Don't take this video as a guarantee video. Because there is nothing guarantee in the stock market. Even in the life also. There is no guarantee. But you understand this. Sir is doing all these things for so many years. You have experience of 8-9 years. So you have so many observations. Sir has shown that observation to you in a good method. Yes. And you know, I like one thing here. That you have made a rule in this also. Yes. That if this happens, then only we will take the trade. If this doesn't happen, then we won't take. It is possible that 2 out of 3 things is happening 1 is not happening. So at that time also we won't take the trade. So now you tell us what we should do after this if this happens. I want to tell you a small thing here. The way trading is shown on social media. Like it is a very easy thing to earn money. I have 20 years of experience to make this one page. Obviously right. And this is the summation of my mistakes. What I was saying about trade journal, what works, what has spoiled my trade. The reverse engineering of all this is the summation. Again I am saying it is not the best strategy. It will be better than 1000. But this is what works for me. And this one page has 20 years of mine. Behind making rules. That's why we call this series Master in one. Because I also believe that you become such a person who is so master in one method or one field that no one can come in front of you. You are doing only one thing but with a lot of years of expertise and experience. So people have a tendency to earn money in trading but there should be no expenditure. Okay. They don't spend on tools. TradingView is an excellent platform. I have my own charting platform but there is no competition of TradingView. They charge peanuts. There is a monthly subscription of 2000-3000-5000. You set one good alert, take one trade and you will get many times more money. But the mindset is such that people don't want to spend money. TradingView is also free. They don't realize the limit. By the way, TradingView is not a paid promotion. I am saying that I have my own platform yet I'm... Correct. I told you that I missed the point. That's why I am putting it in the middle. Because you don't like to pay people, I can see it on my platform like this. If you are not on this, you can keep charts of major components on your own system. By putting an EMA band like this, you will be with the market that what HDFC, SBI, Reliance are doing. Sir, this is a setup of Nifty 20-06-25. If you see it according to conditions, I forgot to tell you one thing. Many people don't know about candlestick. For them, a wick is equal to the body. Importance wise. Many people don't know. If you ask an extempore, tell me how is a green candle formed? Someone will say that it is open at the top and close at the bottom. Or the market will be bullish and it will spread. Many people will spread. The body should close. There is a requirement of this setup. If you are taking a long, a part of the body should close above the band. That is confirmation. If there is a wick, that is confusion. Not in confusion. In this candle, you can take a trade. But in this one, it is too early. I will delete it once. You will understand. The body of this candle is closing above. But RSI is not giving me green signal. Here, after this candle, it gave me green signal. I did not add VWAP. Maybe I forgot in this example. But it was above VWAP. Because VWAP is generally above this band. Here, the system is telling me that green signal for a long. Okay You saw a small thing here. We didn't take a trade on this green candle. RSI has stopped it. Many a times, you will see a small green will be formed. And it will break the market. Its next step is risk reward. This trade is good here for option buying. It is not good here. It is not good here. As I said, there is ATR. If you miss the bus, if you miss the chance of getting on the bus at the right time, you have lost that comfort. Because now you are getting an expanded option. Its IV is increased. If someone knows Greek, we will need to spend a lot of time to understand. So you are buying an expensive thing, inflated. The chances of its failure is high. And this is FOMO driven. So risk reward, even if the setup is giving you a green signal. Someone will say that the setup is okay here also. It is above EMA band, VWAP, RSI. But you have to see where the price is coming from. If your risk reward is not good. If you make a pivot or do something, let's say there are pivots here. What will be your SL on this candle? The next demand zone which is very steep. According to the risk reward, it is not a good trade. You have to let it go. Discipline and patience should be controlled. If it is not there, then it can go up and chances of coming down are more. In either case, if you see in this example only, in this consolidation, premium must have died. It must have dipped. So, as I said, it is common sense where price is coming from. Now, something has increased a lot. Yes, the strategy is telling, okay, take it. But it has increased so much, now why to take it? So, we can understand that when it is closing above 33 EMA's high and 33 EMA's low, that is the best time. That is a very tight setup, small stop loss, expansion. So, we can say that 33 EMA's high and low break out. That is the perfect time to take the bid. Because as far as it goes, then these levels start acting as magnets. They will call suddenly and they have called. Even if you stop the price, then your premium will break. Okay, now the current price is coming near EMA. So, that can't be a good setup for pullback. This latest candle which has closed last. We can't do this. Like it comes near EMA. If it comes near EMA and retests, then again it becomes a very good setup. Okay. Because it has been defended. So, the trend has got reconfirmation. Yes, but still I will be comfortable when it is crossing EMA for the first time and breaking out. And all conditions are good. It was original, right? Yes, right. If I will put Rs.100 there, then in pullback trade, I will put only Rs.20. I won't put more. So, the most important thing is that everyone makes mistakes. Again, I am saying trading 90% is trading psychology. And setting the right risk reward is a part of trading psychology, not your setup. Because if the price has increased and you have missed the bus, you should have that patience to let it go. Because the market is full of opportunities. If you miss this, you will get a trade in a stock. And even if you didn't get it, the market didn't take any oath that I will give you money. You missed it, right? Maybe you had your reasons. Many people sit in the system and are not able to take it out of fear. What if this happens? Over analysis leads to paralysis sometimes. But you took a decision, then stick to it. If missed than missed. At least in option buying, you should have this military rule. Randomly, you just cannot jump between setups. If the market is up, then you took a call, took a put. This is a chart of your spot. And on the basis of that, add the money options. We will come to that. That is also a part of it. So, this is an example of a long. This green and red means this much to come and this much to go. My old example was in 22 trading days. If I am working on such setups, then my analysis is not that wrong. Neither is my luck so bad that I will be wrong for 22 days. If I am right even for 60%-55%, I am losing little but I am bringing in more. So, net, fortnightly and monthly, I will be in green. And that is my objective to bring home money. Correct. What you said earlier that your daily need was this much, so you targeted that only. That was the good thing. No one knows what their need is. Sir, I will tell you a very simple thing. Making Rs. 5000 in option buying is child's play. If I teach my 13 year old son for a month, he will be able to make. The challenging part is bringing that Rs. 5000 home. Why? Because you think that Rs. 5000 just with a few clicks. Then you start multiplying. Rs. 5000 for 1 hour, so I will do this much in 6 hours. Then you start multiplying it to 22 days. And you start multiplying in excel. And then you start, suppose your pocket allows OPPO's phone. Then you go to iPhone Pro Max. Then you think that you got a scheme from somewhere. This is what actual traders do. It is not hypothetical that your pocket is allowing. Just this one Rs. 5000 trade will give you so many ideas. You will buy Defender or G-Wagon in this. Because you start thinking what all will happen. Correct. So then what will happen? You will think that I have gone to iPhone. I need to make something extra. There is something in my house for my expenses. Then you will take undue risk. In such a wrong vicious circle you will get into it. That the Rs. 5000 earned, you will give more than that 60-70% of the time. So earning Rs. 5000 is extremely easy, child's play. If you work on a good setup. If you are working on a simple VWAP crossover. Then also it has a good probability. Problem is bringing that money home. I had a very bad situation. I had to be disciplined. I lost my father in 2011. So I did not have a backup or a fallback mechanism that if I do something wrong still I have to run my house, I had to earn my respect back so I had to be disciplined. Now we have a rule, the target of the day is done, even God has come and told us long reliance. Forget it, we’ll see what happens tomorrow. The loss is also the same, it is not that every day is profitable, there is also a ceiling of loss, the ceiling of loss has come, we will see tomorrow, today is not my day, maybe I am not reading the market right, maybe my system is not aligned with this volatility or there is something wrong. Okay. The target of the loss is done, when did I do maximum losses? See a stop loss is a slap on your face in the life, it is an insult, people are not able to take it. Even if exit out of the mistake, the objective is to turn this red into green, to satisfy the ego, whatever it is. My major losses that I have blown, I have blown an account is because for any reason I did not exit from a risky setup at the right time. I could have exited at a loss of 5,000 or 10,000, I made it 2,00,000 or 3,00,000 just because the intraday trader has become an investor, a hope trader that tomorrow this will happen, that will happen. I could have easily sat at a loss of 5,000 or 10,000, rather I could have found an opportunity in the reversal, I could have earned more. Correct. So stop loss is a part of risk management, trading psychology, that is very important. Now we have taken an example of long, let's see an example of short, this is Bank Nifty's chart. Here if you see this candle, it is giving a good close below the band, RSI is in favour, green is 55, red is 45, there is no trade zone in between. Here from the side of the system, there is a green signal, you can go for a short trade. I call this kind of candle as a king candle in my setup. Perfect name. Because what happens in mine is that after many years if a stock breaks out its price and if it breaks out with the whole body, which is generally called Marubozu bullish candle in candlestick, then I changed its name to king. Because wherever it comes, it will dominate the whole direction. Yes. Again for me this setup makes sense if I make an entry here or in this candle. If I am making an entry here or here. One thing is that the major candle has to be closed. Yes. After that if it breaks low, do we have to take an entry or can we take a direct next candle? Direct, if RSI is giving a green signal, then we can take a direct. Okay. In this there is one more check, I will tell you in the option. You have to keep the stop loss at its high, if it is short. What I generally do is, this demand and supply, if this is price, anything that is above price is a resistance. Below is a support. So the next resistance, keep it a little above. Because if that resistance is taken out, as it is this trade makes no sense. If that resistance is taken out, as it is this trade makes no sense. Okay. So my stop loss will come somewhere here. Okay. So I am reminding you again and again that the trade will be satisfied even at a lower place. But there you have to be practical and realistic that the move is done. Let's leave this. Okay. One thing in option buying, people lose a lot of money here. So in range bound days and in gap days, there is FOMO. Just now there was a gap of 1000 points. This was a few days back. There was a news of tariff. In that everyone jumped in to it. Long long long. Market went up. Again ATR went up and then came down. IV was up. Calls completely melted. Lost money. Then thought that let's short. But the trend was bullish. It corrected and went up again. So nobody made money. On the day of gap day, we waited for one and a half hours in the research service. And we took a beautiful long. And it rewarded us like anything. Because patiently we waited. I knew that I don't have to go against the trend. Correct. After such a big news, you should not be looking for shorts. When the long will be right according to the system, then we will take. But we will have to wait. So this has a hack. If there is a gap day, then you have to wait for 3 candles. Okay. And the range of 3 candles will be ORB(Opening Range Breakout) You mark that. So 9 into 3, 27 minutes you have to wait. So one is that you will not enter into FOMO. Time has stopped you. And whichever side the range is breaking down or breaking out, that is your trade. Okay. This is only applicable. What is the condition in this? In Bank Nifty, there is a gap of 100-150 points. I don't see anything. Means there is no important change for me. In which there is a need for it. And in Nifty, 50-80 points is nothing for me. If there is more gap up or gap down then we follow this rule and again this is something that we follow. And it is possible that due to its weight we may miss out on a good trade that we became over cautious. It didn’t cost me anything. Correct. So it is just an opportunity loss. Sometimes 20-30% is such that due to this over analysis and everything things get out of hand and then becomes too expensive risk reward and we stay away. But it has also saved us a lot. So for me safety is more important. In order to earn money I will get 10 more opportunities. I wanted to share this thing. This is a gap day trading. This is a gap up. I will show you its day. It is a little small. It is a gap day. Last day the price was here. It opened up here. You will buy in FOMO. But it is more than 70-80 points. I wait for 3 candles. This has told me that this is a trap. Stop and look at what happened. Price came from here. You can imagine what would have happened to the calls. The resolution is more it is in 4K so price is not visible. But at this time we saw a good 50-60 point dip in calls. We waited patiently. When this range break out happened, and all the condition was applied here. I will share one more thing that we do in options. Our objective is to reduce the risk. Because everything is against us. There is a 33% success rate. Then there is theta decay. Whatever happens, the option will go down first. Because it is a wasting asset. I will show you its setup. There is another gap day. See this. In FOMO, many people have this. I have to look for a politically correct word. I have to take a trade at 9:15 seconds. It is addictive. God knows why they have to take it. There is a gap up take calls. There are other people like risk takers. How much will it increase? Take a put. In this, ego is satisfied. If you make a profit by mistake, then it is even worse. Then the person who takes it the next day. See here, I waited for 3 candles. It saved me. Neither did I go to FOMO to take a long nor did I do anything. Rather, it is an opportunity for me to take a scalp short. Of course, scalping is very advanced. You won't be able to do it. But at least, if you are a breakout kind of trader, it will keep you safe. Now, there are two opportunities. Either take a demand from here or break it down. I am mentally fresh. I am just seeing what the price is doing. Now see. It broke its 3-candle band. Now it will fulfil the RSI condition. Now we have to wait. It hasn't done it yet. Now it is done. Yes, correct. In fact, it happened after a long time. You have to wait patiently. If you would have taken it in this FOMO, then your SL would have hit here. It came up again. So everything that is there, that has been reverse engineered and time tested. Actually, you just clipped the one above it, the one before this. Yes. In this, generally, if someone gets stuck that it has come under EMA and has to take our trade. But when I saw RSI below, I stopped. I said that the condition of RSI is not fulfilled. Now you see. Sir, this system-based trading keeps you close to reality. Your random decisions, which are the cause of the biggest losses, they will not let it happen. Because you don't have to think. If the system has not given all three ticks, we don't have to take the trade. Nothing is going out of our pocket. That is a profit for me. Correct. You are playing with fire and you are not burning. That is God's blessing only. Correct. If I would have taken long in FOMO, then I would have been beaten. If I would have taken short in FOMO, then I would have been beaten. The system said that you have to take the trade only when all the conditions are met. Again, I am reminding you again. It is not a certainty that it will also reward. But it is a high probability setup. Sir, it is a matter of probability. This setup was made. Okay. Look at this. If one day a person understands that this can happen, many of his mistakes can be corrected. In this day, there is excellent reward only if you are patient and you followed the rules to the T. Correct. So this is a hack to deal with the gap. Because major people at that time have such a bad psychology. So trading psychology is my favourite subject. And it is also the most underrated. According to me, I am telling you from the beginning, 90% is trading psychology. I have made a lot of videos on trading psychology on my channel. Because I felt that this is the most important thing to discuss. So no one watches it. But still I made it because it was for my satisfaction that people should know this. You made it because when you were struggling there was no one to teach you. Who gave a summation of some rules and told you this are best practices do it or this are worst practices stay away from it. You made it because of that. I will tell you a very recent example. For my research services, we keep holding Zoom sessions for Q&A if they want to learn anything. In a strategy session, I have to keep people quiet. I recently took a trading psychology session. I think that was the best session of my life till now. The more time you give, the more your full knowledge gets revealed. And you learn to express better. We know a lot of things. See, 2 plus 2 is 4. But why is it 2 plus 2 is 4? You should know that to teach. So you will learn. I think it is the best session of my life. I have put it on YouTube. I had to wake people up. Whether you are in the session or not. And if it was of strategy, sure shot strategy. You can't keep them quiet. Yes, that’s true. But whatever works in actual, they keep quiet. Sometimes when I meet someone, I say that if I tell my method in front of 1 lakh people in a stadium, then also I can challenge and say that the outcome will be less than 10 people. Because when they listen and go to apply themselves, then what happens from the side of psychology, that is the biggest problem. My method is openly available on my channel. Everyone knows what I do. Sir, this is one thing that we do in risk management. Again, I will reiterate. Options are wasting assets. If I take a call at 125, my final target is 175 delta wise. We will not get into Greeks. That is a whole day's discussion in itself. And my SL is 106. This is a probability. Suppose I took 10 lots or 9 lots. Major money will be made only when I take it at 125 and sell it at 175. But while trading, I don't know if it will go 175 or not. Right. In hindsight, it went to 175 or 180. What do I do? I divide it into 3 parts. This is my T1. This is my T2. And this is my T3. And as and when I keep achieving these targets, I keep increasing the stop loss. So there comes a point when between T1 and T2, it is a risk-free setup. Even if it fails, I will get money. I am more happy that I am bringing home the 20 points of my 3 lots. And I am risking nothing in hope that it goes up. Because in hindsight, you can easily make 100-200 crores in a day. If I had bought this call, then why I could have bought it there are tweets like this. When there is a big event in a stock, that this 2-rupee put has become 100 rupees. If I had put so many lakhs, it would have become so many crores in a day. Such tweets come. You get a lot of traction. And that person didn't do anything himself. But in my opinion, there is no one more stupid than him. If the trade was so good, then why didn't you work in an ATM call, put? Everyone knows it after it happens, right? No, if the trend is good, then you should work in an ATM. Your job is to earn money. Very soon your targets will be set. But no, both are at fault. Not only the content creator, but also the consumer. They are giving views. If you talk about trading psychology, you will not get 100-1000 views. I am a small creator, so I get this much views only. If I make a sensational thing, you can imagine the views. Right. Sir, If you are telling then I'll wait or else I will ask. Ask. As you saw, this is a spot chart. Which strike price should I target? I am at the same point. Okay. For that, you have to be aware of factors affecting option pricing. Even I didn't know in the beginning. One is moneyness, one is greeks and one is of course your analysis whether the price is bullish or bearish. Moneyness is the correct strike price selection. ATM OTM ITM. If someone doesn't understand, I stick with ITM in the money or ATM at the money. That means such a strike price, which is close to the price that is ATM. The reason to buy this is that the price will go with it. It is a make or break level, so you are going with the price. According to the Greeks, it has a delta of 50 paisa. So your target setting gets easier. You can do it easily with 50 paisa. Correct. And it stays with the price. It is not a far off, it means it's not a lottery ticket. It is running at almost half delta. If you buy two, then it becomes one delta of the future. You are running with the price. Correct. Secondly, if my Nifty's final target is of 100 points of spot. I bought one call. 50 rupees. Where will I get such a match in the run time? It will be such a target according to Rs. 60.75. Correct. Because in options, you have to be very precise. Yes. In spikes also, your order is cut or rejected. It is missed. So you have to be very precise with your target setting. So that is the sweet spot. Hold a delta of 50 paisa. If your spot is of 100. Your target is of 50 rupees. And what will I do by streamlining it? 12 25 50. I'll do it this way. I do risk management in that also. Okay. And always the objective is either be ATM or ITM. Okay. Greeks, when time permits, we should hold a very good conversation on Greeks. But as I just told, in the money or at the money. I concentrate on both. I have lost heavily in out of the money. I have blown accounts in the past. The problem is affordability. No one has sufficient capital. If you have 10 lakhs, you will feel less. If you have 1 crore, you will feel less. If you have 100 crores, you will feel less. Because there are richer people than you sitting in the market who move it. But you have to stay. Live within your means. If my capital allows, according to 2% risk. Let's say in a trade, there is a stop loss of 25,000. So my job at that time is to go to the strike price which respects 25,000. Quantity will come out accordingly. What people do is, capital is 1 lakh rupees. He will see that in ATM or ITM only 4 lots is coming. And OTM is coming 10-12 lots. So if there is a move in which there is more quantity. It will give money. Let's go to that grid. But no one knows whether it will give or not. This week's Nifty expiry was one of the worst expiries. Nothing has moved in it. In the recent expiry, if you have these kind of hopes. If you have an OTM call put, it will become zero. You won't get anything. Correct. So always be in the money ITM. This affordability becomes very indisciplined. So I have some common mistakes that option buyers do. Buying out of the money options in greed of more profits. Carrying long options overnight for swing trades. This is the worst instrument for investment. Because they have a decaying nature. It is a wasting asset. And if your breakout doesn't come. Then it will open only on reduced value. And whether the breakout will come or not. There are many factors involved in it. If you can see this much future. According to astrology. Then it is fine. As it is, there is no need to trade for more days. And trading without stop losses. Random trades. And applying default. I will tell you one thing. I don't have an example of it today. Because my system doesn't show historical data. This zone has two types of trades in a day. One is breakout trade. And the other is scalp. Many people keep the same quantity in both. It should never be same. Scalping reward probability is very less. Its risk reward is also 1 is to 1 or 1 is to 2. And breakout is 1 is to 3 or 1 is to 5. It is very streamlined for us. If the price is between red and green. That is our scalping zone. Then there we will do demand and supply based scalping. If we are getting rejection from green. We will buy a put. It will come down. Where will we get demand? It can be found on red. Why am I saying this with confidence? I have been seeing this for 9 years. My students and members have been seeing this for 9 years. It is possible that a new viewer will not get so much confidence. But our set is. In this zone we will scalp. And when there is a breakdown. Then my breakout quantity is 900. My scalp quantity is 100. 150. Right. I understood. To use less quantity in scalping. People do not differentiate in option buying. I will take 3600 quantity. Who are you? According to the market condition. You are situationally aware. Right. So put more money where there is a chance of growth. Probability is more. And if you are taking out the trade of expenses, scalp then keep the quantity less. If it will damage, then how much will it damage? 2-4 thousand rupees. Right. It will not be a very big dent to deal. So this thing should be taken care of. Because of that, the money of big trade will be lost. Yes. So there are some best practices. If you want to talk about risk and deliberation, this lower cost, you know a person with 10-20 thousand, that is one of the reasons I have not kept my research services very affordable. Because I am an option trader. I don't want a person with 20-30 thousand capital to join my service in hopes of 100% rewards. Because no matter how good my trades are or my accuracy is I am never 100% right. But I don't want to be in that scenario where he trust me and wipe up his capital because as it is, he is under-capitalized. Many people say that your fees are very high, reduce it for us. I tell them that there is no option buying for you. If this X price is a big... That is a part of my screening process. Because if someone is doing option buying with a small capital, it is coming from a negative place. You are greedy, you want to... Make money fast. You are driven from all these success stories that I have made 1 crore out of 1 lakh. It will happen over time if you are disciplined. It won't happen in a day. Correct. So I don't want such people. Because they spoil the name. I will tell you a proper example. Traders are not respected in India. My parents were professors in the university. My mother is retired. I lost my father in 2011. So when I lost my job after being hospitalised, many used to ask my mother, what is your son doing? She never used to tell anything. Then I started coming on live TV, CNBC. Then she thought that I do something. I bought a car, built a new house. Then she felt I do something. You have to prove yourself. I also told you yesterday when we met, what happened to me. So you have to prove yourself. And here people think that a trader is a fraud. He is a gambler. I told someone that we have a stock market business. What else do you do? Yes. I said, what else do you do? I don't get time from this itself. And a lot of people think that this is a bad job. But I feel that this is the hardest work. If a person is not smart, if he is not skilled, then he can't stay here for a long time. You have to have common sense. And decision making has to be done every day. Every hour is an opportunity to double your capital and come on the road. Right. Sir, I learned a very good lesson of life. When all this happened to me, I start the day with the name of God. I serve the cows. Till date I have sponsored blind cows. No one pays attention to them. There's an ashram. I support that. I support the education of children. I haven't done anything wrong. You don't get time to think wrong or do wrong in the job. You are stuck in that process. I used to work so hard. I am lying on the bed in the ICU. My family is coming to meet me for 5, 2 minutes in the morning. I had a birthday. We celebrated in the hospital only. Everyone came wearing masks. Because it may be the last day. Because my chance of survival was 5-10%. So I used to think what wrong have I done that I have been treated so badly. And now if I see, it was a God sent opportunity. What you said, I always talk to Chetan, that if something bad is happening to us in life, then we will say this thing after 2 years that it was good that it happened to me. Because for that bad reason, God had given me a signal that you have to do this now. Or it also happens that we want to do something else but God's plan is something else. So God sends us there forcibly. And see when I am saying this I'm getting goosebumps, I am also saying the same thing. Because it has happened to me too. Because we have lived through that bad. Yes, it has happened to me. Someone may find it a dialogue. But since we have lived through it, you will get goosebumps. Right. And now he will understand this. When we meet after 2-3 years, then we will tell him that something is going on with him in life. So I told him, okay, let's find a solution for this. But after a few years, we will laugh at this. That this had happened, it had to happen, it was good that it happened in my life. You think sir, God forbid, someone has a condition like me when you have to fight for your life. You have to cheat death. But if you have gone through it, what did I get scared of? Nothing. Imagine the kind of confidence. We are from middle class background. I started working on a very important project due to which I got sick due to stress, I did it on this confidence that I can do it. If I would have been in job then what will happen, project will fail, I will earn. As a man my responsibility is to protect my family and make ends meet, I will do that by selling Pav Bhaji also. But market was always my calling and whatever situation changed at that time. Whatever I went through with pain and sorrow, it was fulfilled and it has left me a very confident man. Correct. Ok, so sir this was very good, whatever we have learnt from you. Is there anything else that you want to tell? See, fix your daily profit and loss targets, stick to this. According to your capital, I am not going to give any figure because someone will say that I have to make 50 out of 1 lakh, that is a stupid dream. Fix a reasonable amount, fix it for profit and fix it for loss. Do it for one month, review your performance, you will start seeing so many opportunities. 5000 will look very small in a day but multiply it with 15 days and see the amount. Correct. Ok, so now I want to tell you that the trading thing or the strategy thing has ended here in this podcast. Now I am going to ask sir a question about fitness. So those who don't want to understand about fitness, then understand that your podcast has ended here, you close it. Now sir this is a question for me. I recently saw a video of yours and after that only I messaged you on Instagram. So that was about your fitness journey. So you told there that how all your reports came out bad and then how you reversed it. So if you can tell that experience for 5-10 minutes, which I also want to see and listen and our other audience which will be left after trading, they also want to listen. Sir see, the work of trading is a very stressful thing. Even if you have the best system in the world, real money is involved, you will be stressed. You should be anxious. If you are in a trade then you should be a little scared. If not then you are gambling. So trading, they had to cut me open from navel till chest to repair the damage. Because of that my surgeon told me that you should always watch your weight. And for the first 4-5 years after surgery, I was not allowed to lift any weights. Because I can still feel when I am climbing stairs or when I lift something, I can feel something abnormal. I don't know what it is. So I was not allowed. The only way I could manage my weight, I cannot do sit-ups and all these things. Even now in my fitness journey, I don't see myself having 6 pack abs. Because they have done everything right by tearing my muscle. If the muscle is torn, I don't know what will happen. But I just wanted to watch my weight. And he told me that watch your weight, you should not gain any belly fat. It's as simple as that. Because any pressure on the repair thing is not going to be good. Then you get complacent. Stress, lifestyle and due to all these things, bad eating habits, started gaining weight. You and I are so busy that we don't go to the weighing machine to see our weight. Because that is not our job. What we do is come home, sleep, take bath, wear clothes and go to office. In that we have to watch our weight. And we don't have a good body to see in the mirror daily that what is happening, what is the development. It is a process. Go fast, take bath and leave. I did not realize that my average weight has always been in my adult life between 80-85. This is my average weight and I am 6 feet 1 inches tall. So you can imagine the frame. My weight was 95-96 without me realizing it. I was stressed. I was always irritated. I was diagnosed with diabetes. My fatty liver was diagnosed. BP, cholesterol. I was diagnosed with everything possible. I did not do anything on purpose. I was drinking a lot. Because the stress of the whole day was like this is my free time. Now let's enjoy. I come from a background and I am really embarrassed about it. I should be ashamed. I don't even have friends who drink. You can imagine both parents and teachers. When you get exposed to the wrong people or wrong company after joining the bank. I got used to it. It was not like I used to drink everyday earlier. Now that you have become your boss and if you want to reduce stress then you start drinking. I was drinking a lot. Stress, what happens is that due to stress, cortisol is high. The more cortisol is high, the more pressure will be put on the liver and the liver will not work. The glucose and insulin balance that is done in the body for energy delivery, that goes wrong. Beyond a period of time you start becoming insulin resistant. The first sign of that is lethargy, bad sleep, you will start gaining visceral fat and you will crave for high carb food like chips, fruity, bread, pizza. You will start craving for these kinds of things because the energy distribution system has gone wrong. Either it is because of your bad eating habits or stress. Because if cortisol increases due to stress, the liver will start malfunctioning. And since the liver is a very strong organ, it will show its failure at the end. It will keep fighting. In my case, I goes diagnosed diabetic, my father also had it, we accepted it as hereditary. But I didn't do any such work. I didn't eat any sugar since 2011. But my diet was fine but my stress was very high. This happened because of that and If you challenge me, my best will come out. Someone told me that nothing will happen to me and I will remain like this. Since then I have decided that I have to change. I lost my father due to diabetes. I don't want my kids to go through what I went through. When you lose your father, it is your umbrella. Then you realize how the world works. You have no one to fall back for. So I did some research. The knowledge I gave you that everything happens from liver. So I focused on the liver. I stopped drinking. Second point is stress. Because of my life experience, I told you why this happened to me. There is a lot of frustration hidden inside. I like things my way. If my laptop is like this, I want it to be like this. I don't want anyone to make it crooked. Okay. That will irritate me. I was so immersed in my world. And it is a very useless thing. Why should I stress about it? I am getting angry at the red light. So I did a lot of research that gave me stress. Some things are beyond my control. I am answerable to my investors in the project. I can't tell them not to talk to me. I am stressed. You have to find ways to make an amicable solution. So that they are happy and I am not stressed. So I pointed it out. I was imagining a lot of things. They might be thinking. When I told him that I was not feeling well. There is no tension. The project will come after 6 months. And I was worried about that. Sometimes we think so badly about the person in front of us and he is not thinking so much. He is not thinking. I started working on my stress. I started intermittent fasting. My body is in a fasted state for 16 hours. Lunch is at 12. Dinner is at 8. There is nothing after that. And this 12 to 8 time. To the max if I am feeling hungry. I feel like snacking I will have a handful of dry fruits. Or any fruit. And not after that. The food that I was eating at that time. I am eating healthy food. And I am eating 20% of that food. And I have more energy. The body does not need so much food. It is all about the brain. I have told you my entire routine. Correct. I woke up at 4. I went to the gym. I came to Mumbai. Spent the whole day. Had dinner. Then again I woke up at 4 today. That is my routine. And I missed all this. When I was stressed. I was sick. I was always irritated. Feeling sleepy. You wake up tired. And you have to work. Could anything be worse than this? You wake up tired after resting. I have done it well on YouTube. It is a long topic. And I have made that long embarrassing video. If someone is struggling like me. He will have some sort of resource. You deal with it like this. You can see results. And by God's grace. I'm fine now. Right. I asked this because. When Rakesh Jhunjhunwala was very sick. Someone asked him. What is something in your life that you wish everyone would do? He said. I never paid attention to health. He was an investor. He was such a person who was an investor and a trader too. Yes. So that day I understood. That even after having so much money. If you did not pay attention to your health. In fact, in our industry. This thing was also very widespread that focus on your health. When I saw your video. I also felt the same. Whether it is a trader or a businessman or someone is doing a job. It is not on purpose, but health is avoided like this. Because you are so busy, then you suddenly feel that I don't have time. But if you manage, then there is time. Means if you replace any bad food with good food, then that's all you have to do. But it takes a little effort that people miss. Even I miss it. So thank you sir. It was a lot of fun with you. Sir's social media account link, I will add it in the description. And sir, give me the link of your platform too I will add that too in the description. If anyone wants to check out, then they can do it. And again, I would like to say one thing to you. If you are in this video till now, then there is nothing for a sure shot. Nothing like this happens. Only your experience happens. And through our podcast, we try that the person who has a lot of experience. In doing anything, he comes in front of you and tells you in an hour or two. From which the person who is listening or who has just started learning. In his life, he should at least know that this thing should not be done. So take this thing in that way. It is not necessary that this setup has been told. So you should follow this setup. You try it, backtest it and see. And see what is its result. And in fact, I will say that you add some of your things in it. Right? So if you liked it, then do like our video. Do tell in the comment that what was your favourite part in the whole podcast? And what did you like? And if there is any question, then you can go to sir's twitter account and ask him. You can subscribe to sir's YouTube channel. And if you want to check sir's platform, then we will give the link of that too in the description. And just keep learning such things, keep teaching everyone. And thank you sir. Jai Siyaram. Jai Siyaram. [Music]