There are many strategy in trading on google and youtube. But in live market it needs skill to apply them accurately. In live market emotion is our big enemy. It is very tough task to control our emotion in live market it requires a lot of practice. Only one thing save you from your emotion that is known as hedging.
Hedging can be done in several ways. There are various forms available on the subject hedging. Many trader says there is low profit in hedging but i know the profit is consistent. If you trade options naked, sometimes you win sometimes you lose but at the end of the month most probably you will be in net loss.
In example i will explain you simple hedging
suppose nifty cureent price is at 15734
then if you buy 15700 ce( call option)
then sell 15800 ce (call option)
it will become a hedge and your loss will be fixed. that is the difference between the prices of 15700 ce and 15800 ce.
Actually in hedge our emotion is under control as you dont have fear of big loss. In naked position emotion is our enemy in both the profit and loss. If your position is in loss you will hold till zero and if you are in profit you will book soon. In naked option buying time is also big enemy of trader so to cover time loss in our strategy we sell far otm so that we can gain our time loss from there.
In short it is best practice to always hedge your position so that you cant have big loss.
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