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How to build a successful trading mindset?
A thread 🧵
There is a lot of talk about trading mindset or psychology. But what exactly is trading mindset?
#StockMarket #trading
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Why?
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Because though the problems are similar, what triggers an individual to go down the wrong way or repeat the same mistake is different.
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Placing random trades - Many know they are not supposed to trade randomly but wait for the proper setup. But every now and then, random bets are placed.
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Start the diet you always wanted to, the workout routine you planned. The confidence you gain from doing it will spread to other aspects of your life incl trading.
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Is it coz you are waiting for that one big trade that can change your life or because you are too impatient to make small consistently? If yes, where are those thoughts coming from?
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Asking oneself hard hitting questions that are uncomfortable is part of the process.
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And it is not impossible. It takes time and a lot of conscious effort but it can be done.
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If you liked the contents of this thread, follow @KillerTrader_ for more such content.
Re-tweet and like for a wider reach and to keep me motivated to continue sharing.
#trading
More from Killer Trader 📉📈
Yesterday, shared about various types of volume profile analysis and how to prepare for next day. Read here
How to analyze Nifty using various types of volume profile:
— Trader Abhishek (@KillerTrader_) September 5, 2022
A thread \U0001f9f5
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We had discussed that a "p" shaped profile and close at highs indicates longs are in control of the market.
It also indicates high chances of uptrend continuation next day.
But
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How to trade a failure of trend continuation? Yesterday, we saw a "P" shape profile in Nifty and close at highs.
But we failed to continue upmove today.
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We opened positive but the opening breakout not sustaining is first cue to understand that bulls are lacking initiative to push prices up further.
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For confirmation, one can use orderflow as well to see real time supply demand flowing into the market.
At open today, we saw fresh sellers coming in a bullish opening.
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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