Hi friends
I like to ask question .
Let the experts reply and discuss .
Let the new traders benefit from the discussion.
A trader tarted recently with banknifty options trading.
What he did?
=================
he got a tip from adviser.
Buy 23000call at 45 or below wait for target 101
he bought banknifty 23000ce call option at 45 on date 17 may 2017
he was given a lucrative sure target of 101
what happened?
=====================
on the day of purchase 23000call hit 54 level of price.
next day during the opening,23000ce dropped to 4 rupees
it never went up.
the trader kept waiting and lost all the money.
He bought 25 lots at 45 cost 45000
his broker icicidirect charged him a high brokerage of over (ABOUT 113 rupees PER LOT)
RESULT
ALL THE MONEY LOST
PROBLEM
he never knew stoploss.
question
how could the trader avoid the big loss?
could he exit on 17 th itself instead of holding for 18?
are greeks etc any help?
any other vital clues of melting time decay?
thanks for any replies n solutions
I like to ask question .
Let the experts reply and discuss .
Let the new traders benefit from the discussion.
A trader tarted recently with banknifty options trading.
What he did?
=================
he got a tip from adviser.
Buy 23000call at 45 or below wait for target 101
he bought banknifty 23000ce call option at 45 on date 17 may 2017
he was given a lucrative sure target of 101
what happened?
=====================
on the day of purchase 23000call hit 54 level of price.
next day during the opening,23000ce dropped to 4 rupees
it never went up.
the trader kept waiting and lost all the money.
He bought 25 lots at 45 cost 45000
his broker icicidirect charged him a high brokerage of over (ABOUT 113 rupees PER LOT)
RESULT
ALL THE MONEY LOST
PROBLEM
he never knew stoploss.
question
how could the trader avoid the big loss?
could he exit on 17 th itself instead of holding for 18?
are greeks etc any help?
any other vital clues of melting time decay?
thanks for any replies n solutions