Can we become Financially independent by Trading Options? #Face2FaceEmerge
Hello, friends! I’m your friend Vivek Bajaj, Co-founder of Elearnmarkets and StockEdge. Freedom from the job, this phase is going a lot in the market nowadays. Those who are doing a job in the market, feel that the grass is greener on the other side. This means, that if I become a full-time trader, it'll be so good. I’ll leave the job, work for myself and make money by trading
This thinking isn't bad. If I talk about myself, in 2005 after doing an MBA I joined JM Financial as a Commodity Analyst. So obviously I was doing a job, but my objective was different. I joined because I wanted to be a businessman and until you work for someone else, you don’t understand how to create a business.
But ‘when should I leave?’ used to be in my mind always It had been 4 months, 5 months, 6 months, 8 months, and finally left in the 9th month. I can’t take it anymore. Now I’ll go back and do something of my own. And when the desire to do something of my own came, the first thought which crossed my mind was to become a trader since I know research, I understand crude oil and gold as well. So I can earn a living by trading also. So the thought process is good but when I went to implement it, I got to know how difficult it is I couldn't figure out what was going on for a few months. What I expected to happen is not happening; instead, something else is happening.
So yes, it does take time. It took me 6-9 months but finally, I got a trade that gave me money, and inner confidence that I can do it. So this journey of doing it while on the job, leaving the job, doing it again, and finally becoming a trader. I have lived it. So the guest with whom I’ll talk today on Face2Face, I don’t know what he's going to do later but he’s trading while on the job and making money. So this is a very satisfying thing for me because it isn’t that easy. And friends if you are also in some kind of job and business and you want freedom from that or you want to set up an alternate business for yourself which can be trading in the share market also, this video is going to be very very relevant for you, watch it till the last. You’re going to enjoy it. I’ll welcome my guest for today’s Face2Face Emerge, Mr. Manoj Mishra. Hello! Hello sir, thank you very much! Thanks a lot, sir! How are you, Mr. Manoj? Very good, sir. How are you? I’m good too.
I like one thing very much that you're sitting in your office and work is also going on with the market. So you’ve created a very nice set up for yourself. Very interesting! But the model which we use is basically option selling. So what we do in this is, we trade once a week. And if your range doesn't break, which is very rare. So 90%, we’re on the game. So I have a job, which I look after and the market is not much debated. But yes when you think it is risky, we’ll discuss a few methods today like Iron Butterfly, Iron Condor. We’ll make it. Many problems don’t come
But if you’re doing with the job then buying option cannot be handled. Everyone knows it takes a lot. So if you're into buying then either do option buying or the job, these two can’t be managed together. Selling is the only model or long-term investment is the only model which can be managed with the job But I believe that investing is a term whose return will be enjoyed by your coming generation In trading, you enjoy your own money because money is in your hand after its expiry. You gave a very interesting thought. Ultimately you earn money and from that money, you invest so your long-term wealth gets created which will be borne by your next generation. Yes, if it’s right. They’ll enjoy way too much, you’ve worked hard and the next generation will loot that hard work.
But its a very good thing you said that ultimately to make money by trading is also very important otherwise, the huge amount of money that will come out of well, where will you get that money from? So the job obviously has a limitation plus there's so much of a taxation environment in India that finally the money left will be covered for house expenses. But the luxurious lifestyle which all of us aspire to live will require an additional income. So for the last 2-3 years, share market has given an additional income to the people but risk. I’ll not leave you this easily today because leaving a job is an easy decision but the risk behind it, not that I’m saying that you're leaving the job, I’m speaking generally.
This is a very easy decision to work while on the job or leave the job and work but what is the risk type? So what you'll make us understand should be something like, I know what my risk is, and I’m ready to take a calculated risk, I can’t take an unreasonable risk because the one who is in the job doesn't have a big capital base, that’s why he is doing the job no. Otherwise, he would have done the business. Correct sir. So before we get into that discussion with you Manoj Ji, we’ll know about you? where are you from? what do you do? What is your background? And then we’ll get into the discussion. My hometown is Ratlam, and my education has been mostly from Indore and I have done my MBA in Operations from Dev Area Campus where you took your education from And I did jobs outside Indore also, I was in Reliance in Bombay, I stayed in Noida also. For many days I was in India Cellular in Indore. After that, I shifted to Bhopal, which is the current company which I’m working with. This is a medical emergency services firm
which provides the 108 Ambulance Services and in this all our call centers are PAN India. So handling all those call centers And working as the National Head here in the company. You said one point here, risk. So I want to say that the biggest risk is the risk that you don’t take any risk. That will land you nowhere, so it's better to take the risk because you’ve got only 1 life. You’ll either win or learn on that. There's no column to lose. I believe in this. Correct! A wise man has said if there’s risk and love then one is bound to lose.
It feels great that you’re recording and you’re there in front of the screen, it’s not like you’re hiding and recording. I’m sure people are satisfied with you at your workplace and that’s why people think that's okay, if he’s earning additional money by selling options, then let him earn. My working hours are 9-6 so anyways my time window is completed officially. So were you active in the market before option selling too? Did you invest earlier also? Yes sir, I’ve invested a lot in stocks earlier also. I didn’t have enough knowledge but I was persistent.
And then I felt that this is not the thing which will make you independent to go on a different path. There must be something else that the people do and we don't know about it. I started Mutual funds; long-term investments; entered the options market- started buying the options, and lost a lot of money. But then I felt that there is one more thing- options selling.
I didn't know about it for a long time what is the difference between option selling and buying. Like every novice trader feels that to buy call and sell put is the same thing, or to buy put and sell call is the same thing. To understand this simple line, I have lost a lot of money. It a took a lot of time, hard work, data study to understand that this fine line holds such a big value and a big price that we paid and then we’ve learned. It’ll be fun talking to you because I’m feeling that you’re going to talk honestly and from within.
So friend stay till the last because it’s going to be fun and you’ll get to learn a lot. Manoj Ji, let’s base PPT and rest, probably you’ll show us the use of opstra and other software in the practical discussion of strategies. And will continue with our talk in between. So sir, this is our model, just a minute. Please share the screen. Is it visible? Yes. So sir this is our model, what I have seen in forums, platforms, and YouTube, everybody talks about making money in the stock market to a certain extent or percentage but that percentage of gain or return will take you where? There's no calculation or measurement for this.
Everbody knows that they have to run but to run till where and what will change your life, what’s the distance, how much time it will take, what’s the path, no one discusses these. I made a lot of money but till when the money will be made, what’s the continuity or regularity which will free me from the job. If this thing is not clear then I will keep on working with the market. Neither I will be able to trade nor concentrate on the market. So its better to make one path strong and when we’re comfortable then we shall shift from the other path to this path.
This is what the model describes and we’ll carry forward with the methodology. These are the points that will be in this presentation Our first point is, what is the amount required to be financially free? Because I’m a salaried person currently, I’d definitely be having a fixed payout in my account on a monthly basis. So how much is that amount and to generate it from the market, is this calculation achievable? How much corpus do I need on that calculation? so adopt a virtual kid and save for all your life, we will talk about 1%, which is here we will make a run for this, and this is how we will manage the SEP and that side is ours, we have seen what returns we get after 12 years our amount will end up being this much, which is huge this is a big amount, and anyone who thinks this is less then there are hardly any companies with a 40% return in the stock market so there is this industry, which is alive and giving so much return it's been so many days, I am saying that my 2 expiries are always wrong, 2 are always right even if a 24% return is coming, yes there is an 18% let's talk realistically because I have been in the market for years, when you keep increasing the capital, the return is also less. Because the market has no liquidity depth it is difficult to manage such a big fund people who sell can ignore these points because this is made for the trader's benefit only we have to see how we can make the best use of it if we are selling the naked lot the margin required is around 10,4,000 to get its 1% we need to bring a return of 1,40,000 if I am bringing 50%, and if 50x20 then I will get this amount people who know that, know that I use this amount and then it later gets adjusted to that and in this, I have to bring a return of 1200 rupees if I exchange my iron condor, then with this my 50% margin is reduced have to get at least 1% but what I have seen is that people only take the calculation from here if I add then the core margin will be less we can check in opstra, by getting a higher return from here by manipulating the margin amount so how to make combinations, we will see that in opstra I don't think the market will even go to 17200 next week
2022-04-29 07:25
