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In a continuation of our Face2Face video, we are back in conversation with Mr. Vivek Bajaj, co-founder, StockEdge, Elearnmarkets, and Ms. Jyoti Budhia, an expert trader who will focus on strategies related to stocks and option chain trading, and the right kind of mindset that retail traders need, to make sustainable profits with minimal losses.
In this video, we will pick up where we left off, as Ms. Budhia will pick up some practical examples to showcase price action trading when it comes to stocks and an options chain. Ms. Budhia will explain about the type of timeframe she looks to trade in and the logic behind it.
We will see a case study where Ms. Budhia discusses one of the trades she picked up from an equity derivatives option chain of NIFTY. We will see how Ms. Budhia identifies a trade on a live option chain, and on that single screen of an option chain, Ms Budhia will break down the entire process to us.
Ms. Budhia will look through the various options contracts available and show us the parameters on the basis of which she picks out proper trades, like option expiry, open interest, etc. We will see how she narrows down one single trade to act upon in a live options chain, for both call and put options.
With proper calculations on actual figures, we will see the mindset through which Ms. Budhia chooses the trade to act upon. We will observe her reasoning behind the identification of the correct support and resistance levels which can help retail traders narrow down the right kind of prices to minimize their losses.
Finally, Ms. Budhia will also touch upon how she choses the entry and exit points for her trade. Next, we see how her actions change as per the price action on the charts and how she strategizes to reduce her losses as much as possible, rather than focus on the profits that she cannot control.
With this case, Ms. Budhia will simplify the process of trading an option through an option chain for retail traders and the parameters we need to prioritize to simplify the process. Lastly, with the case study on the NIFTY option chain that Ms. Budhia explained previously, we will see how the charts of NIFTY justify her actions and give her trade a proper direction.