The casual conversation starts to know what's Mark's take on failures.
Whether he has faced many failures at the beginning of his trading journey.
(2/N)
When people think about what it means to become a
“Successful Trader”
They think they should attend a workshop.
Need not be!
You can become a better trader just by listening to 1-hour teachings from 2-time US Investing Champion Mark Minervini sir!
Thread 🧵
(1/N)
The casual conversation starts to know what's Mark's take on failures.
Whether he has faced many failures at the beginning of his trading journey.
(2/N)
"I will not see failures as failures; I see them as results."
"We get either a good or bad result for every action. Every result comes with a lesson, my aim is to pick it and adopt it in life."
(3/N)
He lost around $2,000 to $4,000 first time.
He lost $20,000 to $30,000 second time.
He lost big money when he followed his broker's advice to average a losing stock.
(4/N)
M - Investing on ourselves is important. One study medical to become a doctor even though he is not paid during the study time.
(5/N)
If you experience something new in the market, then you should it to your playbook.
So, very few things surprise me at the market nowadays as my playbook contains most of the lessons.
(6/N)
M - A company valuation may not be accurate. Even the CEO of the company doesn't know what's going to happen a year from now.
I look at only 3 things to pick good growth stocks:
1) Earnings
2) Sales
3) Margins
(7/N)
M - It is vital. Hence I dedicated the first two chapters of my first book to risk management principles.
In simple words - Average Gains should be more than Average Losing in a trader's life.
(8/N)
M - Identifying such stocks is easy, but it is a difficult task to hold them in the bear market.
In the bear market, these new leader stocks don't bleed much (compared to the index).
(9/N)
M - In a bear market, some major stocks corrects 50-80%. One should stay away from such stocks.
One should pick stocks that display less correction in a bear market. They will become future leaders!
(10/N)
M - Higher gap b/w the Risk-Reward Ratio is better.
Better RR provides a cushion for traders to sustain with less accuracy.
I look for RR, which helps me make money even when my accuracy is only 25%.
(11/N)
M - I make more money in a bull market.
I sit with a major portion of cash in a bear market.
(12/N)
M - It takes only a "little effort" to get good results compared to mediocre ones.
So I prefer to put that extra effort into getting better results!
(13/N)
I was completely lost in listening to this awesome conversation.
If you like it, please retweet and share it with your friends 😃😃
Follow me @indraziths
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A THREAD ON @SarangSood
Decoded his way of analysis/logics for everyone to easily understand.
Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen
1. Keeps following volatility super closely.
Makes 7-8 different strategies to give him a sense of what's going on.
Whichever gives highest profit he trades in.
2. Theta falls when market moves.
Falls where market is headed towards not on our original position.
3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result
He believes in a market operator, if market mover sells volatility Sarang Sir joins him.
4. Theta decay vs Fall in vega
Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.
Decoded his way of analysis/logics for everyone to easily understand.
Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen
1. Keeps following volatility super closely.
Makes 7-8 different strategies to give him a sense of what's going on.
Whichever gives highest profit he trades in.
I am quite different from your style. I follow the market's volatility very closely. I have mock positions in 7-8 different strategies which allows me to stay connected. Whichever gives best profit is usually the one i trade in.
— Sarang Sood (@SarangSood) August 13, 2019
2. Theta falls when market moves.
Falls where market is headed towards not on our original position.
Anilji most of the time these days Theta only falls when market moves. So the Theta actually falls where market has moved to, not where our position was in the first place. By shifting we can come close to capturing the Theta fall but not always.
— Sarang Sood (@SarangSood) June 24, 2019
3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result
He believes in a market operator, if market mover sells volatility Sarang Sir joins him.
This week has been great so far. The main aim is to be in the right side of the volatility, rest the market will reward.
— Sarang Sood (@SarangSood) July 3, 2019
4. Theta decay vs Fall in vega
Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.
There is a difference between theta decay & fall in vega. Decay is certain but there is no guaranteed profit as delta moves can increase cost. Fall in vega on the other hand is backed by a powerful force that sells options and gives handsome returns. Our job is to identify them.
— Sarang Sood (@SarangSood) February 12, 2020
