How this Software Engineer Turned $2,500 into $200k with Options
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- čas přidán 17. 09. 2022
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Gradually built my portfolio; Just had my 5th profitable month and with what I've learned in the market, given enough time, all I can say is that nothing beats expertise when it comes to managing one's trades.
Well most likely! Experts get into trade with a well defined plan. They know their exact entry and exit points, with having a stop loss while amateurs may not have a trading plan, even if they do, they tend to stray from the defined plan. For example, going short after initially buying securities because the share price is declining-only to end up getting whipsawed.
@@larrydimon7811 Honestly I really wish I could say the same for myself .... I've been into binary options and Fx for months and my portfolio has been a total mess, I mean I barely even make profits.
I resonate to this. Trading is a mental game and it’s way more demanding and intricate than it’s assumed most of the time but peeps won't realize early till they experience getting burned firsthand!…
bot!
@@tylerhatfield3892 How so?
You can just go about calling people robot … I’m definitely not one!
If you’re so stunned, do your own dd.
My mentors profile is all online.
And more people turned $200,000 into $2500😂
I love what little kid said. Should have listened couple of tears ago. Great lesson.
"Yeah, I know. I know what that is."
WELL MAYBE WE DON'T, TOM! Let the man speak!
💯
Exactly!!
Jumping into the "I know, I am knowledgeable, look at me" mindset too often, we all know you know Tom, but it's not about you.
He is a good man for sharing his knowledge with his daughter! Well done
I agree. Nishant is such a wonderful trader.
And us!
Great video! I'm part of your group and have had a lot of success.
Love this video. Absolutely brilliant!
Good job Tom and Nishant
Great interview! Some feedback (take it or leave it lol): interviewer needs to give the interview time to speak and express his thoughts completely. On multiple occasions the interviewee is interrupted with “I get that” and “I know” etc- surely your viewers most of whom are early in their trading careers do not know and would like to listen to simple explanations to help develop their intuitive understanding of trading concepts. Other than that appreciate what tasty has put out content wise nonetheless !
I think this is thoughtfully done. You’ll understand their conversation if you watched all of Tasty’s other videos and grasped the fundamentals. So it’s almost like, should he explain every concept every video, or just incentivize you to go consume more of their content?
I felt the same way about the interviewer at a couple of moments during this interview
5:55 Longevity
9:30 Morning routine
13:50 Strategy
17:30 Learning options
18:40 Time decay
21:30 Rising star moment
22:25 $2.5k to $25k to $210k
24:00 Bad streaks
26:30 Top 3 rules
28:30 Trade 30% of portfolio; 70% cash
30:00 Takeaway
He just does TA to guess his directional bias, then opens an ATM debit spreads about 30 DTE. Closes the order if it’s 94% up, or if it’s 50% down with 15 DTE. He uses futures and opening more debit spreads to manage his portfolio beta.
I think he said he just monitors the futures but does not trade it
I wish the interviewer would stop cutting off the guest. Otherwise great interview.
A lot of gems were given here. Thanks Nishant! Great interview, but did wish they would stop cutting him off...let him talk and drop knowledge on us.
Happy to hear you liked the interview. I know there was hardly anytime because the segment was scheduled for 17 min and we in fact went overboard to 30 min. I agree, really zero time to go into any details. Maybe you can write to Tom and ask him to have me on again on a longer segment :)
@@TheMeanTrader Appreciate your comment! I learned a lot in the 30 mins chat you had with Tom. I might have some questions for ya, I'll keep you in mind for sure. Thanks!
@@TheMeanTrader Nishant do You teach option trading?
@@TheMeanTrader Hello, so majority of your positions are bullish debit spreads, 30dte ?
@@davecao3409No. It depends on the market conditions and direction. For eg. for the last several months, I have been taking 100% bear put spreads.
Great interview. I found his rules for handling losers of particular interest.
Brilliant! Simply brilliant!! New fan of this channel. Let’s see where I get in a decade.
This should be an hour long interview
What an incredibly intelligent and passionate person, really inspiring. I wish you endless success sir
This was phenomenal! please do another where he goes over long vol success! We need more long vol success stories!
Such an authentic and simple man. Thanks for sharing your background and passion.
I misread that as autistic. Lol. Yeah he doesn't hide anything. Love this interview
That was a very enjoyable interview. I wish Tom wouldn't cut the guest off because he understands what the guest is gonna say before he can finish saying it. Maybe I'm the only one but I would love to learn what he had to fully say. Not everyone is an options genius.
Glad to see that many traders enjoyed the interview. The segment was slated for 17 minutes, and it still went over to 30 minutes. That is why you find Tom putting on the brakes every now and then. I do agree that it did not give me any time to explain things in detail. Maybe I will return back in the future on a different segment.
I just commented on the same thing. Does this interviewer feel he is an underdog..
@@TheMeanTraderI’d love to see some training videos from you that we could show our kids. Min always ask questions that, as a new trader, I lack the understanding or skill to answer with succinct clarity.
Great video, I love it when you interview investors
Amazing man, thanks for sharing- very inspiring!
the man is living the American dream... Great interview Tom, keep it up, very enjoyable!!
Great interview. Glad to see other rule based trading strategies have success.
Bhai, you are awesome. So proud.
25k options challenge + now an other book as well. Good to see you here man.
Thank you for sharing your story 🙏
Great episode Tom!!!! Love this one
Which is most advisable for a new trader trying to grow optimally, futures or options, and why?
I wish I could see that he is talking about to see the details. What trading platform does he use?
Awesome...what I learned, have rules, cut your losses do not lose winning trades... I pray for you and yours for all the success $ good health. Thank you.
great interview. thx guys
Reaching a near term target and withdrawing a good chunk is a terrific idea......
Does anyone have the link to the show about teaching your kids? Can't find it anywhere
I also trade debit spreads. Is it possible to get a copy of Nishant's rules for trading? Thanks
How would that work in 2022 if you trade the indexes? Isn’t it a bullish strategy?
Great insights from your guest
2020 and 2021 were bullish years. Nishant didn't answer the question about his performance in 2022. This year would be a real test of that system.
He hasn't been making much money this year but also not losing a lot either. I think he was able to get 1000% return over the last 2 years. The markets have been very unstable lately
A sign of a quality system isn't just making more money than the market, it is losing less money during bear markets.
@@scottydog9997 Yes exactly. Which is why I really like the way Nishant sets up his trades.
That guy is awesome. I wish I had a mentor like that, that would of helped teach me how to code, etc.
Just to clarify, are you only trading bought verticals on index etfs atm? Thank you
Hi, I have a watchlist of approx, 250 stocks which includes index etfs too. All my trades come from that watchlist.
could b your best interview
Nice to hear about Mr.Pant. Amazing, wonder if TheCreator is ok with someone breaking the tasty mantra :). So vertical spreads mainly debit spreads.. wish one could get to know about Nishan'ts methodology over time.
I wouldn’t say I am breaking any rules. Tasty is all about a data driven and statistical approach to trading. I rely on a rules based trading method too. It is just slightly different. There are so many ways of generating wealth with options and they all can be “the right way”
I enjoyed your interview. Thanks for sharing. Will you please share your 20 stocks watchlist? What is your site that was mentioned below?
I am not allowed to post links, but try searching for any of these terms: B0B781VTZX, 25koptionschallenge, TheMeanTrader
Why did the interviewer keep cutting him off? Let the man speak
I also made 15k to 400k in same time frame from june 2019 to oct 2021. But i must admit i lost most in last 1 year
Been a tough year
sorry man, but why on earth where you trading such large positions after hitting 400k? It's much better to trade much smaller lots. That way you will never blown up an account, unless you have 100 losing trades in a row.
Whats your strategy
Nishant is the man.
LOVE Rising Star format. You guys should make for all your Rising Star episode a follow up after x years with the Traders. Like 3 Years maybe , to see how the evolved. Maybe an Idea for a new format. Rising Star Reloaded ;-)
Tony , Did you invest in Stocks Edge?
Well done, sir. Your OTM probability target was quite instructive.
What was his OTM target 🎯?
here is what is learned here. Risk management and money management. What i learned here is the decision making part. PLAN YOUR TRADE AND TRADE YOUR PLAN. IT IS ALL ABOUT FOLLOWING ABOUT YOUR RULES. THE QUESTION THEN BECOMES, WHERE IS YOUR RULE? Like Erik rising star said , if you are not successful , it is all on you. Software engineer, i thank you very much you helped me on my rules Sir. Mr. Tom , you are still amazing and I thank you very much Sir.. I am building my business and follow my rules 110% .. My decision are very decisive and automatic.
sk
How do you all trade so many trades every year? How many stocks do you trade with ? And how do you take the trades??
When does a dollar wide spread turn to 97 cent? At expiry?
Hi Tom ,which company u invested in India🙂
60 books on options ? I couldn't even make a list of 60 books on options let alone read them.
Maybe that is why we are not where he is. Lol
How to do this strategy.can anyone guide me
13:50 his strategy
Genius!! I'd love to get at this point at trading for growth... And also get my daughter into trading 😅
When withdrawing a set proportion of your profits regularly do you ever put any of that to work in growth stocks or stocks that are cheap on a fundamental level or have great ROE to grow your capital at a greater rate than banks offer over significant time periods?
Of course, I have many other investments like real estate, 401ks, IRAs, long term portfolio. I set a fixed amount of money for each investment and don't usually move it around.
Great Vid bro, i would of liked to hear Anton talk about QQQ, SPY, SPX, IWM 0dtes & not futures. I don't think he quite understood your question. Allot of us trade the ETFs & indexes & not futures ✌️
Why does Tom keep cutting nishant off?
Which company did u invest in India ? I will join their course
Slight martingale risk mgt mentioned at the end?
Awesome video! :-)
Transparency and honesty! I love it!
He should have me on his show. I took $2500 and turned it into $34,000 in 6 days, and then lost $29,000 on the 7th day of trading, because I was so convinced that after a very strong downward move for an hr, that it would bounce off support and reverse back up to at least the 20 day average, but it just kept inching down the entire day. I damn near had a panic attack at the end of the day when I saw how much I lost and couldn’t sleep that night! 😩😭🤦🏽♂️
sorry to hear that, but you should never ever put your self in a position where you can lose $29K in one day. I have never blown up an account because I never go big on trades. Even if it takes me an entire year to hit 100k, I'm fine with that, I don't need to hit it in one day.
You could be the debut guest for a new segment, “Falling Stars”
Rule no 1 never lose money
So you still had a 100 percent week?
Some of Us in the audience do not understand I hope in the future you let him explain his strategies
Exactly!!!!!! He's explaining the strategy to the audience, we know you know. You should know we don't know Jeeeeezzz.
Which options has the maximum volume. S&P or Nasdaq
S&P
Wow, great interview, but I wish he had more time to talk about his process and how he developed his strategy. I wonder if he has a CZcams channel or email 🤔
I go by the nickname TheMeanTrader on youtube and other social media channels.
Thank you
Hello, I would like to know more about this eductional company in India which Tom mentioned.I am based in India,New delhi and would love to join a course in option trading. Regards Rahul Grover
THIS ROCKS
Nishant your a star 🌟 brilliant interview!
Good chat. thanks!
Someone else that has the same strategy as me, I tried all the others but debits really clicked for me, though I will also do condors during earnings season
I just want to know how many of you here are option sellers?
Oh i know this guy. I've read his books. He's all about debit spreads
I started learning about options from Nishant
His ad used to flash on Facebook and I signed up for a month. He is a swing trader using debit spreads to double his money.
Need to listen to all the clear rules use by the rising star
I would love to try the Tasty Trade system. Please provide a demo. It's been years since I first inquired about that.
They literally provide all the information you could ever need for free on their CZcams channel.
@@adamclayton1017 I will not go live with real money using a system I cannot test drive. There are many like me, as well. Demo, please.
There is no official “Tasty Trade System.” I pitched Tom a number of years ago about getting into publishing - like putting this knowledge on paper - and his response was “I have zero interest in doing that!” Nice guy though!
If you can’t understand what the other person tried explaining to you- trading isn’t for you.
@@ObligatoryPun I think you're missing the point, pal.
@Mean Reversion Trading with Options- Thank you for sharing your story Nishant, it was very inspirational. I have a question if you don't mind. When you decide to put on debit spread trade, do you take into account IV or IVR on the stock you are trading?
I totally disregard IV as the IV of the short leg pretty much cancels out the IV of the long leg
Thank you for the response.
@@TheMeanTrader how do we join your site Sir?
@@mikeh7168 can't post any links. Maybe try searching for 25koptionschallenge
This could have been a lot longer. Ended prematurely. Would have liked to hear out all the 10 rules.
Nishant. If you are listening please make a youtube video. Thanks
I have detailed all the rules in my book, called Mean reversion trading using options and technical analysis - Nishant
unfortunately I can’t post any links here.
@@TheMeanTrader do you have PDF version? or also any website, discord channel to share ideas and interact with other option traders?
@@sarkiskalfaian8502 Try searching for B0B781VTZX
Not easy to be Tom. so successful yet to so Humble
Would Nishant willing to share his methodology and trading plan in private? imitation is the sincerest form of flattery. 👍👍👍👍👍👍
@19:13 Time Decay 🥰🥰🥰🥰
this guy is a good hearted community-minded do gooder.
and thus he succeed - Karma !!!!
How is a debit and credit spread the same thing? One you receive a credit once your trade is filled, and the other your account is debited after your trade is filled. What am I missing? 14:02
You can think of it as the same thing as long as you think of it as: there's a buyer and a seller.
Debit or credit I think of it as one case you get premium up front but risk full damage if the market blows through your spread. The other case is you pay up front but if it blows through the spread you get more than what you initially paid (the reward for your foresight).
So he can say it's the same thing in that the gap between the spread - it either goes to the buyer or is kept by the seller.
I was thinking of the exact same thing and I think the reason may be that because they are ATM spreads so they trade around 50 cents for the $1 wide spread. If that's the case (and I haven't verified this yet) then you are risking 50 cents to make 50 cents whether you are buying the spread or selling. Maybe that's why Tom said that they are the same. If someone can confirm or correct my logic that would be appreciated 🙏
Agree, it’s not the same even at .50. Credit spread has time working for you debit spread does not. Tom should not have jumped in there.
Nishant, how can I get a copy of your trading plan or strategy? I think it makes a lot of sense and was able to relate to it. I'm looking to become less discretionary and more systematic in my trading, since I'm working a FT job, albeit from home.
22:38 It sounds like it was a one-trick pony strategy over and over again where he just rinse and repeat. Debit Spread was what he did for the 900% return yearly. Listen again.
Look up my book titled Mean Reversion Trading using Options. I have described the entire strategy in there.
Many people confuse trade structure for strategy. Debit spread or credit spread is simply a way of constructing your trade. (i.e It is simply a trade structure not a trading strategy). A complete trading strategy needs to have criteria for stock selection, criteria for entering trades, managing winners and losers, hedging, handling market corrections and crashes.
Great man for sharing his knowledge with not only his daughter but needy kid's,the kid's are so important.I didn't know you guy's didn't like T.A,I don't understand that,it works and works better then anything,fundamental's next,use fundamental's to help with your technicals.
they prefer Quant I think; meaning consistent black scholes model assessment.
TA’s has been proven to not work consistently and be a pseudoscience. The same goes for fundamental analysis. They don’t wanna use some mathematical voodoo to guess, so they simply use statistics to trade.
Off topic question .. what is the type of coding he does? And what type of degree would you need for that?
Seems to be some kind of a software developer , normal computer engineering degree?
You could just start with python programming language. It's actually easy and perfect for scripts like this trader.
Reading a lot of commenters here….yes, it’s possible and repeatable what he’s done. No, credit and debit spreads at .50 are not the same, with debit spread, time works for you. Agree Tom should let the guy explain more fully. If you have strict rules, his trading can work. Wish I knew if he employs his coding to get him in and out. 30 days 94% would prob be close to expiry, so that’s highly risk. Sounds like he always has his losses capped wish is major! Wish he could have shared all 10 of his rules.
Why interupt all the time and not let him speak. Just saying that "I understand", "we do that too", is a bit annoying. He might understand but I am not.
Wow Cool actually a new one
How can I reach out to Nishant?
search me up online - themeantrader
one is prideful the other is humble. Can you tell who's who? And do you know who is more profitable?
One is billionaire and other is good at what he does but not a billionaire
@@chiragmehta8212 You answered a rhetorical question. 😂👍
Tom-the-entertainer: so, tell us what do you do, anyway?
Successful Trader : I withdraw my money often, I look at charts because I don’t like to trade blind, I don’t overtrade.
Tom-the-broker be like 😭 (« why is this Live and on CZcams, worst Tastyworks customer EVER! »)
😂😂😂
Does this person have a twitter handle?
TheMeanTrader
Wish he could post his 10 rules
good
Suggestion for the interviewer .. let him explain things even if you understand. The interview is for the audience rather than you. No need to constantly cut him off "i understand i understand"
is there a way to learn trading from Nishant?
I have tried to reply to you here but it keeps getting deleted. Even asked one of my website members to do it, but no luck. I do believe we have exchanged emails already.
@@TheMeanTrader Hello Nishant, Your book is so insightful I am enjoying every page of it. I have query to know if there is a script from your end or one you advice with the combined technical indicators you have explained?
@@pvvivekkrish Happy to hear you are finding value in the book. Not sure what you mean by a script. I am guessing you are asking about a combined indicator that spits out trade entries based on the indicators explained in the book. Although I do use scripts to help me narrow down my watchlist, I deliberately keep trade selection a manual process by watching the overall market conditions and using the indicators explained in the book. I am not at a point where I can give it all to a BOT to do it for me :)
@@TheMeanTrader my apologies for not explaining. In trading view could be have a script or code which can combine DMI+RSI/Bollinger band and KC? we don't need a bot. As tradingview only allows 3 indicators at a time, i see several scripts in tradingview. could you please have look, it would be super helpful for many people
@@pvvivekkrish Yes, you can cheat tradingview. You can find indicators which are a combo of other indicators and it counts as one :)
I think Nashant averages down with debit. When he was talking about the 10% correction, and balancing with new trades. That's pretty much what I do but with credit. Tom said Credit is the same is Debit, and I have heard it before, so I have been translating my credit trades into debit trades. I have been doing it because of the high volatility in the markets. I want less money on the table when markets pivot. I still feel more comfortable in credit, but in time I will find the balance between debit and credit( price to time vs credit to debit).
That part was concerning. I wish he explained it a little better.
Did he mean he puts on the opposite trade once market movement settles?
If I have call spreads for an expiration (I.e I was bullish) and a correction starts I take an equal amount of put spreads to achieve a delta neutral state. The goal is to turn that expiration into a no profit no loss situation
When the correction shows signs of ending ( I use technical indicators to gauge this) I take extra call spreads to cancel out any trades that were affected despite the delta neutral state. Since I keep 70% cash at hand all times, that cash comes in handy during corrections and market downturns
What if the correction did not take place as you may have expected and now you have bought an equal number of debit spread to the downside......
Would you not get depleted by the decaying theta on both sides ie long IC ? Now that the stocks lingers sideways !
Thank you
@@Elmastari Theta has no effect on debit spreads. You make money purely by Delta movement. To address your question - Yes, that can always happen as the market is full of bear traps and bull traps alike. Once you achieve a delta neutral state you will end up with no profits or losses for that expiration which is a perfectly acceptable outcome for me
@@TheMeanTrader I'm not sure I'm understanding the point in this, achieving delta neutral after market moved against you is the same as locking in that loss? at that point isn't it better to just close the trade?
Wonder how he dealt with 2022, can’t imagine this working
Probably made a killing. He does mean reversion and everything was overpriced before the crash.
he trade put debit spreads then he is very profitable this year
im killing 2022...its really not rocket science...fed announced tapering...that was your short all rallys signals...use 30 day exp dates on your put spreads🤷♂️