BC TRADING
Saved by @ThomassRichards

Want to see two absolutely crazy, shady, frustrating charts? (warning: they're confusing, I'll explain)

These charts, which show stock price, volume, short interest, and short volume, tell the story of what happened over the past few days.

Left: $AMC, Right: $GME

 On Wednesday night, Robinhood and several other apps limited trading of a number of tickers to just a few shares & options. You could sell as many as you owned, but you couldn't buy any more than a couple of each ticker. It included $AMC, $GME, and a few others…
They did this because their clearing houses increased liquidity requirements more than a hundred percent. A clearing house, if you’re wondering, is what settles all of the trades made during each trading day.
So, when you buy or sell a stock, you might see the cash or the stock in your account immediately. In the background, however, it’s a lot more complex: these clearing houses settle up the books between each other to make sure everyone is squared up properly.
These clearing houses have "liquidity reqs" which are set by regulations and other partners; they literally need to have a certain amount of cash on hand for different securities.

On Wednesday night, the requirements for certain extremely volatile stocks like GME skyrocketed.
Big firms like E*TRADE and Vanguard could handle this without issue, probably in part because they manage billions/trillions of dollars but also because most of their customers weren't in these volatile stocks.

Something like 50% of RH traders were/are holding GME.
So Robinhood, Webull, and others suddenly found themselves with a liquidity crunch and hustled to get short-term loans or funding that would let them stay on the 'right side' of the regulatory requirements/not go belly up.

Even so, they limited trading of these tickers (stocks).
What happens when you can only sell but not really buy? The price plummets. So that’s what happened to basically all the "meme" stonks—GME, AMC, BB, BBBY, etc.

And short sellers took advantage of this. When the prices fell, a ton of them closed out their high-cost GME position.
Probably for a decent loss, too. But then, it seems, a ton of short sellers (possibly the same ones!) shorted the hell out of AMC. So the short interest in AMC skyrocketed. Why? Fees are lower and they're betting on the bear case (AMC failing/stock falling back to like $2).
So now it’s a war of attrition. There’s still a ton of short interest in GME, but with buying still restricted and short interest down, it seems less likely to squeeze.

On the other hand, AMC's short interest is way up. But shorts can hold (at ~5% fees, according to Ortex).
We won’t see shorts closing their AMC positions even if they're underwater on the trade for a while. They moved their trade to a cheaper bear bet while retail had the rug pulled out from under them.

We'll see how this plays out this week but it doesn’t bode super well for retail

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FEAR - It’s the re-experience of failure in advance.

Many traders face the issue of Not entering in trades because of fear.

A thread on How to pull the trigger when the opportunity knocks.


Lets First start from knowing the cause of this "FEAR" of pulling the trigger.

A traders goes through many phases before becoming Profitable.

The first phase is the " APUN HI BHAGWAN HAI" phase-

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A thread on Pyramiding-


What is pyramiding?

In pyramiding we add on to a position when it is going in our direction. Its basically opposite of averaging down.

MOMENTUM - Success of a pyramiding trade depend on this ingredient, the more the momentum the better pyramiding.


There are many way to enter and exit in a stock-

1. ALL IN - ALL OUT
2. ALL IN - SCALE OUT
3. SCALE IN - SCALE OUT
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More than anything what pyramiding do is keep your losers small and your winners - Big.

Pyramiding in my view keeps your dd smaller as your losers are very small because you enters with only a fraction of what you would have entered Normally.

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1. PYRAMIDING AND TRAILING BASED UPON STRUCTURE-

In this method we scale in or pyramid the qty when the stock breaks above
TRADING
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Jig's Patel
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Thread on Short straddle with adjustments:

Short straddle is non-directional strategy

Selling same strike price CALL/PUT option same underlying with same expiry.

Nifty Spot at 14353, So you can sell 14350 CE as well 14350 PE of 14 Jan. Expiry.

(1/n)

*RETWEET for max response

Bullish short straddle: Selling 14400 CE and 14400 PE of same expiry.

Bearish short straddle: Selling 14250 CE and 14250 PE of same expiry.

You can sell straddle as per your market view.

If you are natural view sell CE and PE at ATM strike.

(2/n)

Short straddle has limited profit potential (only premium) and unlimited risk without adjustment.

In Example, Short straddle of 14350, Breakeven is (14131.0-14569.0), need 1.7Lac Margin to sell straddle.
Maximum profit: 16k and Loss: Unlimited, Winning probability: 50%

(3/n)


If market staying near at 14350 then win. Probability increase slowly. Rewards also increase slowly.

Volatility(IV) is also play important role in selling straddle, Like If IV increase so straddle premium increase and IV cool off so premium casually comes down.

(4/n)

Short straddle adjustment:
https://t.co/59Lr64kEtK way to limit the overnight risk.
Convert short straddle in Ironfly, its nothing we have to add long strangle in short straddle it become Ironfly. It gives the good Risk Rewards.

(5/n)
TRADING
Aditya Todmal
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@AdityaTodmal
TradingView isn't just charts

It's much more powerful than you think

9 things TradingView can do, you'll wish you knew yesterday: 🧵

Collaborated with @niki_poojary

1/ Free Multi Timeframe Analysis

Step 1. Download Vivaldi Browser

Step 2. Login to trading view

Step 3. Open bank nifty chart in 4 separate windows

Step 4. Click on the first tab and shift + click by mouse on the last tab.

Step 5. Select "Tile all 4 tabs"


What happens is you get 4 charts joint on one screen.

Refer to the attached picture.

The best part about this is this is absolutely free to do.

Also, do note:

I do not have the paid version of trading view.


2/ Free Multiple Watchlists

Go through this informative thread where @sarosijghosh teaches you how to create multiple free watchlists in the free


3/ Free Segregation into different headers/sectors

You can create multiple sections sector-wise for free.

1. Long tap on any index/stock and click on "Add section above."
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Kinda like how I did in the picture below.
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Aditya Todmal
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@AdityaTodmal
Technical Analysis and 3 Strategies to deploy for Aggressive, Moderate, and Conservative Traders.

🧵 Weekly Bank Nifty Analysis for 8th December Expiry:


To form a view, let's have a look at:

1. Multi-timeframe Technical Analysis
2. Option Chain Data

Also, 3 strategies to deploy for:

1. Aggressive Traders (2.6%)
2. Moderate Risk Traders (1.3%)
3. Low-Risk Traders (0.8%)


1. Technicals

Let's start by doing some basic technical analysis.

We'll look at:

• Weekly charts.
• Daily charts.
• Hourly / 60 min charts.
• 15 min charts.

1. Weekly-

• The market has given 4 continuous green closes, so not expecting a big momentum on upside.

• This week my view is that it can take a pause.

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• Any dip will towards 41800 will be a retest, and should be used to go long.


2. Daily:

• Candlestick pattern—Hanging Man

• Chart Pattern—Breakout Failure

• A pin bar candle is very powerful but only after a downmove.

• Here it forms near the top of upmove.

• Means some sellers are present. Below 43000 can sell calls above 43600 for the week.
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