Mastering the Art of Intraday Nifty Option Trading: My Success Story

As an experienced trader in the Nifty Options market, I have honed my strategies over time to achieve consistent returns even in highly volatile conditions. In this article, I will share my successful intraday trading strategy that helped me earn Rs 200 in profit during a critical trading session on 31/01/16.

The Turbulent Nifty 31/01/16 Expiry

On the hour leading up to the Nifty 31/01/16 expiry, the market reached a point of extreme volatility. This was a critical moment for traders, as the last hour trade can often make or break your day. Recognizing this, I decided to take advantage of the opportune circumstances by executing a Nifty PUT option trade.

Strategy: I began by purchasing 6750 lots of Nifty PUT at a strike price of Rs 1, and then sold them at a strike price of Rs 3. The volatility of the Nifty market during the last hour was palpable, which made for an exciting trading session.

A Pivotal Trade

My trade was a decisive one. Here's the detail of the trade I executed:

- Date: 31/01/16
- Trade: 6750 lots of Nifty PUT
- Bought Price: Rs 1
- Sold Price: Rs 3

Within an hour, my initial investment of Rs 7391 (6750 lots at Rs 1) had grown to Rs 20602 (6750 lots at Rs 3). This remarkable 279% profit margin showcases the power of seizing opportunities in volatile market conditions.

Reflection on My Trading Journey

My journey in Nifty options trading is not a short one. Initially, I focused on targeting high premiums based on my position. While I was successful in the short term, over time, I noticed the increasing number of losses outweighing the profits. This is a common issue in a market as unpredictable as the Nifty, where market sentiment can be driven by a myriad of factors including news events and global economic conditions.

Adapting to Intraday Trading

Recognizing the limitations of my previous strategy, I shifted to intraday trading. My approach now is focused on taking multiple small profits rather than relying on one big trade. Here are the key principles that guide my intraday strategy:

Trade Frequency: In a volatile market, I may execute around 10 trades, expecting about 8 to be profitable and 2 to be unprofitable. Risk Management: On a flat day, I limit my trades to just 1-2, ensuring that potential losses are minimized. Adaptability: Being flexible in adapting to changing market conditions is crucial for success in Nifty options trading.

While I am not a professional trader, I have found this strategy to work effectively over time. It is a blend of experience, risk management, and a keen understanding of the market patterns.

Tools for Successful Trading

Tools play a significant role in facilitating successful trading. I primarily use the Tradejini Mobile Trading App, which allows me to execute trades quickly and efficiently. The app provides real-time market data, enabling me to make informed decisions at a moments' notice.

Conclusion

In the world of Nifty options trading, success often hinges on adaptability and the ability to read the market correctly. By learning from my experiences and continuously refining my strategies, I have been able to achieve consistent earnings. Whether you are a seasoned trader or just starting, my story and insights can serve as a valuable guide.

Happy trading!

Note: Always conduct thorough research and consider seeking expert advice before trading.