Post-Trade Analysis Can Improve Your Options Trading Profitability

Retail traders have come to favor futures and options trading in particular, and the number of unique traders in this segment has increased dramatically from 7.1 lakhs in FY19 to over 45 lakhs in FY22 — a surge of more than 500%.

Only one in ten individual traders were successful in FY22, according to a study by the Securities and Exchange Board of India (SEBI). This is despite the fact that retail participation in the F&O segment has been increasing. The bulk of F&O dealers have suffered enormous losses, at an average of ₹1.1 lakhs.

The root of the problem is a general lack of availability to post-trading analysis tools.

Not many traders follow up with their former partners. For those that do, it is nearly hard to look past the evident insights provided by the current options trading analysis software solutions, such as the gains or losses incurred. However, you can’t increase your trading performance just by using these specifics.

Rather, you must take a close look at what functions well for you, what doesn’t, and what aspects lead to profits and losses. This secret knowledge is exclusively available through the Samco trading app, or Andekha Sach. The best part is that you can get these insights for free. Therefore, you don’t have to be concerned about sacrificing earnings to pay more for such analytical tools.

Analyzing your executed options transactions might help you identify biases and hidden patterns in your positions that you might have missed in the hectic world of active trading. It also assists you in analyzing your trading choices critically and provides important solutions to topics such as:

  • What market conditions were you operating in?
  • What assumptions did you base your options strategies on?
  • How did these elements interplay with the actual market movements?
  • Which of your options strategies are more successful than others?
  • How accurate was your assessment of the market outlook?

The answers to these questions help you understand your trading psychology and evaluate how effective your strategies are. Also, in a market that is as volatile as the futures and options segment, you need to be able to learn from your historical performance and adapt your strategies as needed. This helps you make the shift from a reactive to a predictive approach.

Let me know your thoughts in the comments.

If you found this interesting and want to read more, check out our detailed blog.