How option scalpers make money? #Face2FaceConcepts

TL;DR

Shiva, an enterprising trader, shares his experience and advice on successful trading, risk management, and the strategy of scalping.

Transcript

shiva the trader the scalper it is very exciting story i think a lot of people will resonate uh with your story where people uh had some passion earlier but i am seeing shiva you are a very enterprising person you always have thought about going to the next level do you think that's a personality trait which defines a successful trader yes and luck... Read More

Key Insights

• 🌸 Diversified backgrounds and affordable loss mindsets can contribute to successful trading.
• ❓ Understanding market patterns and adapting strategies accordingly is essential.
• 🌸 Treating profits and losses equally and booking them at appropriate levels demonstrates discipline.
• 🥳 Using previous day profits or a percentage of deployed capital as a stop-loss can help manage risk.
• 🤑 Traders should be cautious when trading with limited capital or borrowed money.
• 😀 Discount brokers face challenges in retaining clients due to high capital losses.
• 🛩️ Scalping in options trading involves entering and exiting trades quickly to capture small price movements.

Questions & Answers

Q: How can traders survive and succeed in the market?

Shiva believes that to succeed in trading, it is crucial to have a diversified background, a mindset that allows for affordable losses, and the ability to understand market patterns.

Q: Why do many traders fail in the market?

According to Shiva, many traders fail because they enter the market with limited capital and run out of funds quickly. Some even make the mistake of trading with borrowed money, which can be detrimental to their financial well-being.

Q: What is the biggest challenge for discount brokers in retaining clients?

The biggest challenge for discount brokers in retaining clients, as highlighted by Shiva, is that many traders lose a significant portion of their capital within 90 days. This leads to a focus on replenishing the account rather than making consistent profits.

Q: How does scalping work in options trading?

Shiva describes scalping as a trading strategy where traders enter and exit trades quickly, usually focusing on in-the-money and near-the-money options. The aim is to make small profits by capturing small price movements.

Summary & Key Takeaways

• Shiva emphasizes the importance of a diversified background and a mindset that allows for affordable losses in successful trading. He warns against trading with money that cannot be affordably lost, as it often leads to financial struggles.

• Shiva highlights the need to understand market patterns and adapt trading strategies accordingly. He advises traders to treat both profits and losses equally and have the discipline to book them at appropriate levels.

• Shiva shares his risk management method of using the previous day's profit as a stop-loss for the current day. He recommends using a percentage of deployed capital as a stop-loss when the previous day resulted in a loss.