The $25,000 Options
Trading Challenge
Grow $2,500 into $25,000 in a year or less using Options Trading and Technical Analysis
Copyright 2019 by Nishant Pant
All rights reserved.
ISBN: 9798694166201
Table of Contents
Disclaimer
The content in this book is for informational and educational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained in this book constitutes a solicitation, recommendation, endorsement, or offer by the author of this book to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.
All content in this book is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in this book constitutes professional and/or financial advice, nor does any information on the book constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. The author, Nishant Pant is not a fiduciary by virtue of any persons use of or access to the content of this book. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information in this book before making any decisions based on such information or other content.
There are risks associated with investing in securities. Investing in stocks, bonds, exchange traded funds, mutual funds, and money market funds involve risk of loss. Loss of principal is possible. Some high risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including a greater volatility and political, economic and currency risks and differences in accounting methods. A securitys or a firms past investment performance is not a guarantee or predictor of future investment performance.
Dedication
This book is dedicated to my beautiful and loving wife, my life and soul partner. Without her encouragement and support for everything I do and have ever done, this book wouldnt have been possible.
Who is this Book for?
This book is for self-driven investors who want to educate themselves and participate in the financial markets to grow their wealth.
This book is not a primer on Options and is not intended to teach you how to trade basic option strategies. To fully take advantage of this book, it is recommended that you have a paper trading account and some experience with trading in general. A basic knowledge of Options is required and will make understanding this book much easier.
The book explains the entire methodology that I have developed and successfully executed many times over my trading career spanning 15 years to grow a small $2500 account into a $25,000 account, following some simple rules and a lot of discipline.
Please make sure to visit the FAQ section at the end of this book which answers questions that my readers usually ask me after reading my book.
About the Author
I am an Entrepreneur, seasoned Options Trader and a Software Engineer. I have been trading options for 15 years.
I started out being interested in the stock market just so that I can keep myself updated about the companies I liked to read about anyway. Being in the field of work I am in, these were overwhelmingly tech-oriented companies.
Being an Entrepreneur has greatly helped shape my trading journey because I treat it like all other businesses I own. In my opinion, without real passion, commitment and discipline, any venture you get into is doomed for failure. Sure, you may have beginners luck but it will not be sustainable. And in business, consistency and sustainability is the name of the game.
Whats Next?
www.25koptionschallenge.com
My hope is that after reading this book, you will be equipped with the required knowledge and a powerful methodology, which if executed with discipline will yield amazing results.
However, there is no substitute for experience. If you want to continue your learning process, you can learn from my trades as I post them live for each of my 25k options challenges on my website.
I will be posting trade selection, trade rationale, trade analysis and outcomes on my website www.25koptionschallenge.com
Chapter 1
My Trading Journey
It does not matter how slowly you go as long as you do not stop
Confucious
Buying and Selling Shares
I started out buying and selling shares like anybody else, and quickly realized that I needed a massive amount of capital to make any decent money, especially, the tech companies I was trading. The Amazons, the Googles and the Pricelines were all trading upwards of $500 per share and it was impossible for a small guy to put up that amount of money and still not be able to afford even 10 shares!
Introduction to the world of options
When I was trading shares, I kept coming across articles on investing sites, which would talk about trade ideas using Options. It really intrigued me because the returns that were being projected were disproportionately higher than what you would get if you executed a similar strategy with stocks. It almost sounded scammy, so I decided to educate myself. Having an engineering background, I started out very methodically. I read 60 books about Options in 6 months.
An investment in knowledge pays the best interest.
Benjamin Franklin
I was literally reading day and night. In the bathroom, in the gym, driving to work, at work, non-stop. Some people ask me how I was able to read so many books in such a short period of time.
After I was done with my 10th book, every new book I would pick up repeated the same basic concepts over and over again, and the amount of new information that was being offered kept shrinking. Sometimes, I would finish 1 book in a single day.
Paper Trading
I finally signed up for a paper trading account with TD Ameritrade/Thinkorswim and spent the next 5-6 months just trying out every single Options strategy out there. I didn't make a lot of money, but I didn't lose it either. In fact, I came out green. That gave me the confidence that I can do it with real money.
Amazing Returns
I finally got a live trading account, and started buying calls and puts like anybody else. I must say I got lucky. Within 6 months my account grew from $10k to $100k. I was on cloud nine and already imagining making millions and retiring on a beach.
Blowing out my account
Success is a lousy teacher. It seduces smart people into thinking they can't lose
Bill Gates
The reason I got from $10k to $100k so quickly was because I was taking too much risk, without any experience and I just lucked out. But the stock market is ruthless and sometimes losing money is better than making money the wrong way. My lucky stint kept reinforcing my bad habits. Can you guess what happened next? It didn't take me more than 2 months to lose it all including my initial investment of $10k.
Going back to the drawing board
I finally decided to stop trading for a few months and go back to paper trading, until I could come up with a strategy which could generate consistent results. That was ten years ago. I made many mistakes over the last 10 years but kept learning from them. I ended up cutting out the jargon that the finance gurus throw at you, and kept simplifying and simplifying. And the result was that I was able to come up with a simple strategy which grew my account from $2,500 to $25,000 in a year.
