Full 90-day Plan(12-Week Plan)
Option Trading is getting attractive day by day. More learning content is available for newgen traders on web helping them to develop profitable trading habits. We are presenting you the 90 days(12-week) trading plan to become successful in Option Trading in Stock Market.
Week 1-2: Education
- Read books and articles on index options trading, such as “Options as a Strategic Investment” by Lawrence McMillan and “The Options Playbook” by Brian Overby.
- Watch online tutorials and webinars on index options trading to gain a deeper understanding of the basics.
- Start a journal to document your learning and reflect on your progress.
Week 3-4: Strategy Development
- Identify your goals and risk tolerance as an options trader.
- Research different index options trading strategies and select those that align with your goals and risk tolerance. Some proven strategies for index options include:
- Covered Call: This strategy involves selling call options on stock or index that you already own, in order to generate income from your holdings.
- Bull Call Spread: This strategy involves buying a call option at a lower strike price and selling a call option at a higher strike price, with the goal of profiting from a bullish market.
- Bear Put Spread: This strategy involves buying a put option at a higher strike price and selling a put option at a lower strike price, with the goal of profiting from a bearish market.
- Write a detailed trading plan that outlines your selected strategies, entry and exit rules, and risk management plan.
- Here is an ebook containing 30+ Proven Option Trading Strategies – Download
Week 5-6: Demo Trading
- Open a demo account with a reputable online broker to practice your index options trading skills.
- Use the demo account to test your selected strategies and refine your trading plan.
- Keep a record of your demo trades and analyze your results to identify areas for improvement.
- Open FREE Demat Account here- FREE Demo Account
Week 7-8: Market Research
- Start following the markets and keep up with the latest news and developments that may impact your index options trades.
- Read market analysis and commentary from trusted sources to gain insight into market trends and outlook.
Week 9-10: Live Trading
- Open a live index options trading account with a broker.
- Start trading with small positions to gain experience and build confidence.
- Keep a record of your live trades and compare your results to your demo trades.
- Best Broker for Live Trading Account – Open here
Week 11-12: Risk Management
- Implement risk management techniques, such as stop-loss orders, option spreads, and position sizing, to reduce your risk.
- Evaluate your risk management plan regularly and make adjustments as needed.
Week 13 Onwards: Continued Learning and Practice will lead you a successful trader
- Keep learning about index options trading by reading books, articles, and participating in webinars.
- Stay up to date with market news and developments.
- Refine your index options trading strategy as you gain experience and knowledge.
- Continue to practice discipline and stick to your trading plan.
Some additional resources that may be useful include:
- Online forums and discussion boards where you can connect with other index options traders and learn from their experiences.
- Trading software and tools, such as thinkorswim or Tradestation, to help you analyze market data and make informed trading decisions.
- Option pricing calculators to help you determine the value of index options and potential profit and loss scenarios.
- Two Ebooks for proven strategies The MAD Strategy- BankNifty Options Weekly Expiry and DBOB Strategy – Daily BankNifty Options Trading
Remember, becoming a successful intraday index options trader takes time, patience, and practice. Stay focused, disciplined, and persistent, and you’ll be on your way to success.
All the Best!