Trader Ghanshyam earned Rs. 1.42 Cr in May 2022 (Rs 17 Cr annualized) from Bank Nifty trading

Discussion in 'Traders Corner' started by Michael Gonsalves, Jul 24, 2022.

  1. Michael Gonsalves

    Michael Gonsalves Member Staff Member

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    Trader Ghanshyam has reported an earning of Rs. 1.42 Cr in May 2022 from trading in Bank Nifty options (Rs 17 Cr annualized). He committed some errors which curtailed the profit. He has stated that the bulk of the profits have come from a simple strategy that he regularly employs

    Ghanshyam is probably one of the most profitable traders on Dalal Street presently. He trades exclusively in the Bank Nifty which, due to its volatile nature, provides numerous opportunities to agile traders to make money.

    There are other traders also who are profiting from the Bank Nifty. We saw the example of Scalper Vijay Thakre who almost effortlessly made Rs. 20 Lakh in a single day on capital of Rs. 40 Lakh. Thakre's technique to profit from micro movements in the Bank Nifty on an intra-day basis. He has sharp reflexes (see article)

    P. R. Sundar is also famous for reporting heavy earnings. He last reported an annual earning of Rs. 12 crore in FY 2021-22. He follows simple strategies such as the Straddle, Strangle and Ratio Spreads. He also does trades by way of Covered Calls and Cash Secured Puts. He periodically recommends trades to us.One of his latest recommendations of a results trade in HDFC Bank generated good gains.

    Ghanshyam has revealed that in the month of May 2022, he earned a profit of Rs. 1,42,17,627. Unfortunately, he committed some silly errors such as buying Puts instead of Calls which caused him to lose nearly Rs. 80 Lakh. Otherwise, the profit would have been much higher.

    He stated that a bulk of the profits have been derived from systematically following a mechanical trading strategy, known as the 9.20 strategy. He has explained the entire strategy in detail (see Bank Nifty Option 9.20 Trading strategy explained by Trader Ghanshyam).

    It should be noted that other experts have also advised us to follow systematic strategies while trading instead of trading in a random manner. These strategies have the potential to yield handsome profits of up to 100% CAGR (see Trading in a systematic and unemotional manner yields best results. Here are three simple strategies).

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    If one extrapolates the monthly earning, it means that Ghanshyam's annual earning will be in excess of Rs. 15 crore, which is quite awesome.



    Why 99% Option Buyers Lose Money

    Ghanshyam has also explained in detail the reasons why most traders fail miserably and are unable to make any money. The substance of the video has been nicely summarized by a viewer known as Alok Bajpai as follows:

    "Key Learnings:

    - Always trade with 1/5th of the amount at max in your trading account. This will help with trading psychology and your risk tolerance (able to hold trades for longer with the right position of SL instead of placing it arbitrarily) will automatically improve because you would’ve traded with a lesser quantity and thus will face smaller losses even if SL hits.

    - Option sellers aim for only 2% profit in a day. Option Buyers are way too greedy and aim for 50%- 100% profit in a day and even after that they overtrade and lose their profit and even capital sometimes.

    - You can be a successful option buyer if you follow: good money management (position sizing); risk management (SL at the right place, based on technicals); trade only when there’s momentum (that’s what scares option sellers); have the guts and discipline to close the terminal after your profit is booked and not get too greedy just because it’s a trending day; know how to take the right entry based on technicals, so that the premium price doesn’t even come close to your entry point and you always stay in green in your position; know how to use trailing stop loss based on technicals (low of hammer etc) on a really trending day and with the right position sizing; have the right mindset to only make profit from the market and not to recover previous losses.

    - Remember market has been here since before you were born and will be there after you’re gone and option sellers will continue to make money with a target of just 2% in a day and option buyers will continue to wipe out their capital due to their greed (because they aim for 50%-100% in a day, everyday), lack of right mindset, discipline, risk and money management.
    - Market’s very nature is to move up and down so never think that today’s opportunity will not arrive tomorrow or ever again. Capital market is a tortoise’s game and those who have patience and discipline are the only ones who end up wining like our very own Ghanshyam Sir. He’s the perfect idol to have if you’re an option buyer and want to not just make wealth out of it, but also give back to the society when you’re able to and in whatever way you can to help someone. :)
    "

     
    Last edited: Jul 24, 2022
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