0% found this document useful (0 votes)
2K views4 pages

Guide to Options Trading by Mahesh Kaushik

The author, Mahesh Chandra Kaushik, introduces his fifth book on stock market investment, focusing on option trading, written in a narrative style for easier understanding. He expresses gratitude to his supporters, including his wife and readers, while sharing his journey from a common investor to a best-selling author. The book aims to guide readers in becoming successful option traders, emphasizing that trading is an art that requires practice and dedication.

Uploaded by

vishalg_4
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
2K views4 pages

Guide to Options Trading by Mahesh Kaushik

The author, Mahesh Chandra Kaushik, introduces his fifth book on stock market investment, focusing on option trading, written in a narrative style for easier understanding. He expresses gratitude to his supporters, including his wife and readers, while sharing his journey from a common investor to a best-selling author. The book aims to guide readers in becoming successful option traders, emphasizing that trading is an art that requires practice and dedication.

Uploaded by

vishalg_4
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Preface

My dear readers,
Greetings to you all.
My fifth book on the stock market is in your hands. My first three books were written from the
point of view of investment in stock markets keeping small investors in mind, and your great
admiration for the fourth book “41 Tips for Success in Stock Market” made the same, the best
seller book on stock market.
The readers among you who have gone through any of the four books on investments written
by me know that I like to explain complex subjects in simple language. Keeping the same thing
in mind, this book also has been written like a novel in the format of a story to ensure you don’t
get bored at any point while reading it.
In fact, I am not a great writer or investor. I am also a common man just like you. I started
investing in stock market in the year 2005 and I just offer my tips based on my experiences with
the market. Your liking for my blog and your faith in the same kept on getting stronger and you
only made me a writer.
I feel overwhelmed by the kind of support from all of you for my YouTube channel and the
kind of appreciation you have showered on my previous books. It was the overwhelming demand
from you readers that forced my pen to write this book on option trading.
I hope a thorough reading of this book with full attention and concentration would help you
earn money through option trading in the stock market. Still, you should keep in mind that
trading in stock market is not a science; instead it is an art and learning an art demands
practice. Hence, for reading this book also, you need to apply the same level of devotion and
hard work that you use for reading course books to succeed in your examinations.
I hope, with the help of this book, you would grow to be a successful option trader, even more
successful than Ghisu Bhai, and would definitely share your success stories with me on my email
id mahesh2073@yahoo-com.
Now, it’s time to offer my thanks. First of all, for successful completion of this work, I am
grateful to the Supreme Being that you may know by any of the names like God, Allah,
Wahe Guru or Bhagwan, but that is the creator of the entire world and that only is the
Supreme Power and He only has chosen me to guide small investors on stock markets.
With that thought in my mind, I dedicate this book also, like all my previous books, to that
Supreme Power, the Lord of this infinite Universe.
Next, I am indebted to my Gurudev Parampujya Shri Shri 1008 Satyanarayanji Falahari
Maharaj, Sartaneshwar Mandir, Lotana who has provided direction to the boat of my life with his
spiritual patronage on many occasions.
Thirdly, I am thankful to my wife Smt. Seema Kaushik who also runs a cooking channel on
YouTube in the name of Seema Ki Rasoi. She never stopped me from taking risks in stock
markets. Before discovering the successful technique for option trading, I used her account many
times for testing various methods in practice and before arriving at the final technique, I even
squandered her money on several occasions. But she always kept me motivated. She insisted that
it was only a learning process and kept me assured that I was one day going to find out the right
method for option trading that would do good to lacs of people and hence that money was being
used for the benefit of those people only. It was not possible for me to write this book without
her energy and generosity.
Fourthly, I am heartily obliged to Shri Piyushji of Prabhat Prakashan who provided me a
platform to publish printed editions of my books and played the role of a great facilitator for
making my books easily available to my followers by getting them translated in English and
other languages. Shri Piyushji kept on chasing me like a brother with his loving reminders for
completion of the book; that kept me always under pressure to take necessary time out of my
busy schedule for writing this book.
And lastly, thanks to all you readers and a lac of followers of my YouTube channel who
always expressed their affection and confidence in me with their comments that helped me
rise from a common investor to the best-selling author on stock markets.
May God bless us all!!
Respectfully yours,
Mahesh Chandra Kaushik
Assistant Revenue Accounts Officer
Office of District Collector, Sirohi, Rajasthan
Registered Office
Mahesh Chandra Kaushik,
Research Analyst
J J Colony Pindwara, 307022,
District Sirohi, Rajasthan
1.
Ghisu Bhai—An Introduction
Ghisu Bhai worked as a waiter in Chamunda Mata Ice Cream Parlour. This was a famous ice
cream parlour and his job covered tasks like taking orders from customers, serving ice cream on
their tables and returning empty cups, papers and plates left behind by the customers to dustbins
and washbasins.
Unfortunately, Mahesh Kaushik, Research Analyst (I, the author of this book), lived very close
to that ice cream parlour.
This is being termed as unfortunate, as investment in stock market is an infectious disease like
Corona or COVID-19. When you find any of your friends or colleagues earning money by
investing in the stock market, you may also get infected by that stock-market-borne disease.
This disease is quite dangerous. Even if any of your friends, neighbours or any of your
enemies, instead of making money, incurs heavy losses in the stock market, you get into the grip
of this disease insisting that the other guy was unlucky, was a fool and did not know how to trade
with prudence, and you are not like him, rather you are quite clever and hence you would surely
make money.
Thus, whenever Chandu and Chinki (In my previous book “How Chandu Earned and Chinki
Lost in the Stock Market”, Chandu is my fictitious follower in the stock market and he invests
as per my guidance and Chinki is his wife) came to visit me at my residence, they would also go
to Chamunda Ice Cream Parlour to enjoy ice creams. There, Ghisu Bhai would overhear their
talks and try to pick up tips for the stocks that might help him earn unexpected returns.
As half-baked knowledge is dangerous, investments made on the basis of these tips heard on
the grapevine kept on resulting sometimes in loss and sometimes in profit for Ghisu Bhai. The
net result was nil.
However, when Ghisu Bhai found that Chandu’s driver Md. Andul Ajeej Saheb also turned a
multimillionaire with the help of regular investments in stocks, he just got puzzled. One day,
when Abdul Ajeejji, along with his wife and son Md. Kareem, came to the parlour to have ice
creams, Ghisu Bhai felt delighted and decided to take the tip from him for the stock that would
make him also a multimillionaire. That’s it! Ghisu Bhai, without wasting any time, cleaned his
table thoroughly and served his order promptly. When Abdul Ajeej Bhai offered him tip while
leaving, Ghisu Bhai said with folded hands, “Uncle, I don’t want tip from you. You have become
so successful in a very short time. Hence, instead of money as a tip, please give me tips for the
stocks that you are buying these days”. Abdul was in a hurry. While getting into his car, he just
said, “I trade only in options these days”.
Perfect! Ghisu Bhai memorised the name—option...option...option. He called his broker the
next day, “Could you please check how much balance is available in my account?”
“Around 26,150”.
“Leaving a balance of Rs. 1000, please buy shares of ‘Option’ company for the rest of the
amount”. Ghisu Bhai instructed his broker.
The broker was utterly confused to hear the instruction. The broker told Ghisu Bhai that there
was no company in the name of ‘Option’ and option was a kind of contract where two
individuals enter into a deal to buy or sell a stock at a specific price.
Now, it was Ghisu Bhai’s turn to get confused. He just wondered what the hell this option was.
He quickly cudgelled his brain and recollected the name of an adviser who was always ready to
help him for free.
He asked his parlour manager for an hour’s break, got five nice kesar-pista ice cream cones
packed, rushed to my house and pressed the doorbell. I was a bit surprised to see Ghisu Bhai,
wondering what had made him come to my house without any invitation. Had he come to borrow
some money? I was scared of that the most!
Ghisu Bhai said, “Saab, Namaste! It’s Sunday today; hence I have brought ice cream cones for
you”.
“But, dear, I never ordered for any ice cream!”
“You have not ordered, Saab. This I have brought as a gift”.
“But I don’t take ice cream at all”.
“It’s ok, Saab. Bhabhiji and children would have it. You are five members in the family; hence,
I have brought 5 cones. You also please have it today on my behalf”.
“But what’s the occasion today? Why are you so kind today?”
“Nothing Saab. You are so nice; you guide everybody for free. After all, we also have some
duty towards you”.
I was now able to make out everything. Ghisu Bhai had to earn money from the stock market
and he was here to ask for some tips. And now he would not allow me to relax even on holidays
and would keep bothering me daily. Hence, I said, “Look, Ghisu Bhai. I will not give you any
tip. If you want to buy stocks, please go and read my blogs and keep watching my YouTube
channel and then invest in small amounts using the methods suggested by me”.
“Sir, I assure you I am not here to ask for any tip. You just kindly let me know the BSE and
NSE codes for ‘Option’ company, as I have to buy shares of that company and my broker is
telling that there is no company with that name”.
I could by now understand that somebody had suggested Ghisu Bhai to trade in options and he
had assumed that to be a stock. After knowing the entire thing, I thanked Ghisu Bhai for the ice
cream cones and asked my son to keep the same in our fridge.
I respectfully offered Ghisu Bhai a seat and explained to him, “Your broker is right. Actually,
there is no company with the name as ‘Option’ and option is only a segment in the stock market.
Just as stocks are traded, the derivatives of stocks are also traded. These are referred to as futures
and options or derivative trading by the traders”.
“Sir, I want to learn this option trading”.
“Ghisu Bhai, I feel quite scared of learners like you, as I don’t appreciate the principles that
you people follow in the stock market. For example, you invest in falling stocks and then remain
locked with them for even up to six years. You also try to average that falling stock just to prove
your ego right. All these things demonstrate that you do not possess the qualities of a good
trader. If I go on to teach you futures and options, not only you would be doomed to failure but I
would also become a laughing stock”.
I could see Ghisu Bhai’s eyes getting watery. He said, “Sir, I had heard that you are the man to
selflessly help small investors in the stock market. I also sometimes watch your videos on
YouTube channel; they arouse feelings of affinity and kinship. You have made Chandu and
Abdul Ajeej successful investors in the stock market. It’s ok if you still want to send me back
disappointed...!”
I also got overwhelmed with sadness after looking at the tearful eyes of Ghisu Bhai. I
immediately apologised to him for being so blunt and said, “Hey Ghisu Bhai, you are like my kin
only. I have unselfish love for you also as much as I have for my family members or my

Common questions

Powered by AI

The author sees a significant connection between spiritual guidance and professional endeavors, expressing gratitude to their Gurudev for providing life direction. This spiritual support is seen as integral to the author's journey in guiding others in stock market investments, suggesting that spiritual guidance can provide stability and direction in professional life .

Ghisu Bhai symbolizes the confusion often encountered by novice traders. His misunderstanding of 'options' as a stock underscores a lack of basic market knowledge. Despite overhearing conversations about those making successful investments, his half-baked understanding leads to potentially costly decisions, showing how novices can easily be misled without a proper foundation in the intricacies of stock trading .

The relationship is depicted as initially distant, with the author reluctant to share tips. However, Ghisu Bhai's earnestness and persistence soften the author's stance, suggesting a teaching philosophy rooted in empathy and a desire to genuinely help motivated learners. Despite initial reservations, the author shows a readiness to educate when they perceive genuine commitment and sincerity in the student .

The author's wife, Smt. Seema Kaushik, played a pivotal role in the development of his stock market books by allowing the use of her account for testing trading methods, even when it resulted in financial losses. Her relentless support and motivation were crucial as she viewed these losses as part of a learning process, reinforcing his belief that it ultimately served a greater benefit to others .

The metaphor 'stock-market-borne disease' reveals the contagious and potentially irrational behaviors often exhibited by investors. It highlights how individuals enter the market after seeing others make money, ignoring potential losses and with overconfidence in their cleverness compared to unsuccessful traders. This metaphor underscores the emotional and often impulsive decisions made by amateur investors when influenced by peers .

The author uses a story format, likening the book to a novel to ensure continuous reader engagement. This approach simplifies complex stock market topics through relatable characters and anecdotes, allowing readers to grasp intricate details without feeling overwhelmed. This narrative style makes the subject accessible and keeps the audience interested by providing entertainment alongside education .

The author explains that while the book provides guidance on option trading, trading in the stock market is considered an art rather than a science, implying the need for practice and dedication akin to academic study. They stress the importance of earnest effort and keeping in mind that the market is unpredictable, emphasizing personal devotion and hard work to succeed .

The author's hesitance stems from their awareness of Ghisu Bhai's impulsive trading behaviors, such as buying declining stocks out of ego, which do not align with prudent trading strategies. There's a concern that without the right mindset, teaching options could lead to significant losses and possibly ridicule, indicating the author's caution about educating someone not ready for the complexities involved .

The author describes their journey as beginning in 2005 and notes that they are not a great writer or investor but a common individual who shares tips based on personal experiences with the stock market. The primary purpose has been to guide small investors, as demonstrated by the popularity and demand for their books and YouTube channel which encouraged them to write another book. The author aims to simplify complex subjects for better understanding .

The author emphasizes the importance of not following ego-driven principles, such as investing in declining stocks and holding onto them to validate personal decisions. A good trader should be flexible and learn from mistakes rather than trying to average down losses. The critique of Ghisu Bhai's approach indicates that discipline, adaptability, and a willingness to learn are essential qualities of a successful trader .

You might also like