Zerodha Varsity from @Nithin0dha's team & the @tastytrade financial network.
Links:
https://t.co/iYpilaaaoV
https://t.co/iooGW9CrCZ
THREAD: 14 of the best resources/topics for anyone who wants to start option selling as a career. 🧵
Collaborated with @niki_poojary
Zerodha Varsity from @Nithin0dha's team & the @tastytrade financial network.
Links:
https://t.co/iYpilaaaoV
https://t.co/iooGW9CrCZ
Power of Stocks - Subhasish Pani
What you'll learn:
1. How to form a trading plan.
2. How to scale an account with risk-reward in option selling.
3. Technical analysis logics you can use daily.
15 Learnings:
https://t.co/bv2mbiajZv
15 Learnings from Power of Stocks: \U0001f9f5
— Aditya Todmal (@AdityaTodmal) January 23, 2022
Collaborated with @niki_poojary
You should know technical Analysis basics like:
- Support/Resistance
- Chart Patterns
- Candle Patterns
- Dow Theory (HH, LL)
This will help you start taking high probability trades.
If you don't learn to manage your risk, making money in trading is going to be an extremely difficult endeavor
Have some rules:
1. Risk no more than 0.25% per trade as a beginner
2. Risk no more than 2% in a day for the first year
Whatever the amount, divide it by 3. Just risk that amount in 3 trades in a day. Stop trading if you lose 3 times.
This prevents us from overtrading and losing more.
Beginners can learn and practice option selling with 5L capital.
You'll be able to trade 5 lots with this. If you're doing well can take leverage by buying options and selling more quantities.
(Only if you're doing well)
Target options that have over 90% probability of going to zero.
As a beginner target only 0.5% per week.
If you've been profitable for 6 months, try for targets like 0.75% to 1% a week.
If the market is in a range, can sell options on both sides outside the range and make a profit. (strangle)
If the market has given a breakout or breakdown then avoid non-directional trading
I started selecting strikes initially which were very low premiums. But had a higher probability of going to zero.
In order to become a really good trader, you need to have "profit cushion".
- Support/Resistance
- Premium Based Strike Price
Get a sense of when and how to do adjustments.
I personally found trading in stocks is totally useless. Not worth the effort you put in.
Unlike an index, stocks can move > 10% and beyond in the F&O segment
Not worth the stress they cause
Find your comfort whether it's Nifty or Bank Nifty. Personally, I have seen the switch from Nifty to Bank Nifty being quite difficult for some traders.
Might as well start practicing Bank Nifty from the get-go.
- Not building a portfolio when the market corrects 30%
- Venturing in stock options due to their luring premiums
- Intend to recover all losses from the same stock thereby ending up marrying a stock
Beginners would be doing great if they just manage to even break even after their first year.
Most people are wiped out in the initial years.
Later on, one can gradually move from 2-4% per month returns.
This is an area which we want to learn the most and focus upon in the next 2 years.
However, a simple rule to follow, if you're making 4% a month, don't lose more than 2% in any single week.
Big no! We are aware of greeks and have spent time learning them, but they have not helped us in a single trade.
If you know your support & resistance and when to exit, then no need to know Greeks.
Although we don't give much importance to option data as it doesn't work nowadays.
Opstra & NSE websites are enough, additionally, our friends really like Icharts and trading tick.
Learn to create a weekly trading plan. Here's a thread on creating one after analyzing @niki_poojary's account.
https://t.co/aVh21muOYi
The best traders have a trading plan.
— Aditya Todmal (@AdityaTodmal) February 13, 2022
But 98.8% of the new traders, don't know how to make one.
I analyzed @niki_poojary's account, to learn how we can create a plan on our own.
Here's the simple 8-step process:\U0001f9f5
Follow to never miss them.
See past threads here:
@AdityaTodmal & @niki_poojary
More from Aditya Todmal
Everyone wants to accelerate their trading in 2023
Yet, 99% don't know the best strategies to trade better.
14 free trading strategies to crush this year:
Collaborated with @niki_poojary
Will be covering these three types of strategies:
1. Intraday Trading Strategies
2. Positional Trading Strategies
3. Uses of Indicators
I have found these three accounts to have top-notch quality:
1. @RijhwaniSheetal
2. @jigspatel1988
3. @YMehta_
1. 6 Intraday Strategies 🧵
How to Filter Stocks for Intraday
Intraday BNF strangle based on OI data.
A few setups to make intraday trading easy.
Yet, 99% don't know the best strategies to trade better.
14 free trading strategies to crush this year:
Collaborated with @niki_poojary
Will be covering these three types of strategies:
1. Intraday Trading Strategies
2. Positional Trading Strategies
3. Uses of Indicators
I have found these three accounts to have top-notch quality:
1. @RijhwaniSheetal
2. @jigspatel1988
3. @YMehta_
1. 6 Intraday Strategies 🧵
How to Filter Stocks for Intraday
How you can filter stocks for Intraday trades - \U0001f9f5
— Sheetal Rijhwani (@RijhwaniSheetal) August 15, 2021
As a kid, we would do homework before school the next day - you have to do homework here too. A specific sector performs on a particular day and studying things a day before will help you spot that particular sector. (1/11)
Intraday BNF strangle based on OI data.
Thread on
— Jig's Patel (@jigspatel1988) July 4, 2021
"Intraday Banknifty Strangle based on OI data"
(System already shared, today just share few examples)
(1/n)
A few setups to make intraday trading easy.
A few setups/strategies that can make your intraday trading easy. I follow them personally:
— Sheetal Rijhwani (@RijhwaniSheetal) September 12, 2021
Add these stocks in your watchlist for next few days -
-If a stock closed exactly at resistance with good volumes or it has been consolidating near resistance for a long time. (1/10)
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The entire discussion around Facebook’s disclosures of what happened in 2016 is very frustrating. No exec stopped any investigations, but there were a lot of heated discussions about what to publish and when.
In the spring and summer of 2016, as reported by the Times, activity we traced to GRU was reported to the FBI. This was the standard model of interaction companies used for nation-state attacks against likely US targeted.
In the Spring of 2017, after a deep dive into the Fake News phenomena, the security team wanted to publish an update that covered what we had learned. At this point, we didn’t have any advertising content or the big IRA cluster, but we did know about the GRU model.
This report when through dozens of edits as different equities were represented. I did not have any meetings with Sheryl on the paper, but I can’t speak to whether she was in the loop with my higher-ups.
In the end, the difficult question of attribution was settled by us pointing to the DNI report instead of saying Russia or GRU directly. In my pre-briefs with members of Congress, I made it clear that we believed this action was GRU.
The story doesn\u2019t say you were told not to... it says you did so without approval and they tried to obfuscate what you found. Is that true?
— Sarah Frier (@sarahfrier) November 15, 2018
In the spring and summer of 2016, as reported by the Times, activity we traced to GRU was reported to the FBI. This was the standard model of interaction companies used for nation-state attacks against likely US targeted.
In the Spring of 2017, after a deep dive into the Fake News phenomena, the security team wanted to publish an update that covered what we had learned. At this point, we didn’t have any advertising content or the big IRA cluster, but we did know about the GRU model.
This report when through dozens of edits as different equities were represented. I did not have any meetings with Sheryl on the paper, but I can’t speak to whether she was in the loop with my higher-ups.
In the end, the difficult question of attribution was settled by us pointing to the DNI report instead of saying Russia or GRU directly. In my pre-briefs with members of Congress, I made it clear that we believed this action was GRU.
