New Youtube Video :

Top 7 Books that Every Trader Must Read to Become a Successful Trader !

I have personally benefited a lot from these books and I am sure you'll also benefit in the same manner :)

https://t.co/A7aS4JgDrW

#trading #youtube #books

How to identify momentum stocks for intraday trading

Explained in detail with examples with a scanner to scan stocks(link in youtube description)

https://t.co/wf4EOV9Ktt

#trading #youtube #markets

Options Thread

How options allows to change and adjust view dynamically.
Let’s understand with a live example.

Example : Nifty is at 11921 and you are bullish on Nifty.

1) Buy Naked 11900 CE(call) at 167

Breakeven : 12068
Max Loss : Rs 12555
Max Profit : Unlimited

2) Now your view changes from bullish to slightly bullish so you can convert naked call into a bull call spread by selling 12100 CE at 72

Breakeven : 11996
Max Loss : Rs 7100
Max Profit : Rs 7800

#OptionsTrading #trading

3) Now your changes from slightly bullish to slightly bearish. You can convert the bull call spread into a ratio spread by selling more 2 calls of 12100 CE

Breakeven : 12224
Max Loss : Unlimited above 12224
Max Profit : Rs 18550

#OptionsTrading

4) Now if your view changes to sideways then you can buy 2 lots of 12200 CE to convert the ratio spread in a butterfly spread.

Breakeven : 11936 to 12182
Max Loss : Rs 2600
Max Profit : Rs 12300

#OptionsTrading

Trading Mistakes & Lessons Learnt 🧵

1) I always keep my mistakes & lessons learnt in front of my screen while trading.
Bcz we as traders tend to commit the same mistakes everytime.

So seeing your learnt lessons everyday ensures that you avoid them.

#trading #mistakes

2) In 2017, I analysed all my trades and saw that I have majorly lost in stock futures and profits came only via index trading.

I accepted that I am not great at stock trading & been trading index only majorly since then & have never missed a day trading BankNifty

3) I decided to adjust all of my past losses to 1 % of capital to see the effect of capping the downside.

I would have had a gain of more than 230 % if I had capped losses at 1% of cap.

Lesson: Keep losses per trade less than 1% of capital no matter what !

4) While trading index options, I lost sometimes due to IV rise,flash crash, and option freezes.

Lesson: Never take markets lightly & Always keep protective stops in the system (and not in your mind) to keep loss in control in case of blackswan.

5) Being an option seller, I have a tendency to manage my position by rolling up/converting to calendar etc.

So many times I have wasted 1 or 2 weeks just to close a loss making trade at cost😢

Lesson: I do manage now but exit as soon sold options become ITM or 2 x in value.

One of all time favourite motivational song & I listen to it almost daily😊

Underrated song but a true nasterpiece with amazing lyrics & music👌🏻

https://t.co/Omhz4gyJqI

Let me know if you had heard this song before & how did you find it!

#music #inspiring

Thread: Risk hai toh ishq hai ?

1) A lot of people talking about today’s freak trade in 37100 PE in BNF

We as traders are always exposed to various types of risk and it’s a part of our business.

Let me highlight certain risk faced in past years & also ways to manage it

2) Gap Risk

18th may 2009

Markets opened at 9:55 AM as this was the market opening time at that time
Nifty immediately hit an 20 % upper circuit at 10.01 am and the markets froze.
So markets were open only for 6 minutes.

There are many such instances of overnight gaps

3) Vega Risk

On 24th August 2015, the Indian markets declined close to 5.92%.

Nifty around 490 points but something unusual happened on that day.

Far otm Call options shot up inspite of such a huge fall😲

Vix shot up 64%

4)Gamma Risk

26th sept 2019

It was an expiry day and 30000 CE went from 50 to 1000+ in minutes and eventually closed at 0

This move caused lot of leveraged traders to lose a significant amount of their capital
Many such instances of gamma risk on expiry day

5) Flash Crash

31st may 2019

Flash crash in Banknifty of 1000+ points.

Friday’s high of the Bank Nifty was 31,783 and the low point of the index was 30,623

Such flash crash has been seen in many stocks as well on other instances

Linda Raschke’s 12 Technical Trading Rules

Which book u mentioned here. Book by the Bollinger himself?
There are quite a few resources describes it better. Just go through the following link
https://t.co/slmKEjT6g6

Picked up these 2 books from the bookstore couple of days back...

Did not think much of it.

But as I stated reading them, both have been absolutely delightful..

No wonder I am tweeting this so late while enjoying these books..

Will be immersed in them for the next few days.

Engrossed in reading this wonderful book - 'The Anarchy' by Mr. William Dalrymple.

Chronicles the remarkable rise of 'East India company' while Mughal Empire was crumbling and the crucial role of economics in it.

Would highly recommend it to all investors and entrepreneurs...

@morganhousel @BlasMoros Big fan of @BlasMoros.

I'm a fellow interdisciplinary learner. Long way to go to reach Blas, but you may like a bunch of these detailed book summaries I've posted (including your