BC TRADING

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Trader knight
@Traderknight007 4 years, 2 months ago 715 views

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Why 90% of the traders even after winning 90% of the times gives it back to the markets?

Has this ever happened to you, That you are up 10% on the month and you feel crazy, but the next morning you give it all back to the markets?

What Causes You to Give It All Back?

Thread-

1. Euphoria-

It is the state of mind in which we can not perceive risk, In state of euphoria nothing can go wrong.

So when you are in this state of mind, you feel invincible and there is nothing in the world which can stop you from making money.

That’s why when most of the traders after a winning streak put a Huge position and then Boom, all the luck goes for a toss.

Think about it why most of the traders loose big money when the market starts to go in bear mode from bullish mode, because

when the markets are in a bull market, even if you take trades based on your neighbor recommendation most of them will be right

"Felling too good is not good for your trading"

Winning gives you dopamine rush, And when you trading to get right often you are just feeding your ego

The evolved trader recognizes that winning simply means that you landed on the right side of probability. That’s all. There is no reason to get excited.

It’s just probability and you have an edge that gives you an advantage in the randomness of probability.

And when you lose, you have only landed on the wrong side of probability relative to your concerns.That’s all. It’s just probability

It is not about you.Consistent profitability is simply showing you that your system is working

It is not about your capacity to be right and win

2. Lust-

It is not the desire for wealth that is the problem – it is the lust or worship of wealth or money that leads to trouble

The major problem with winning is that it ignites the lust for money

And because it is such a powerful emotion

it can easily overwhelm the discipline, patience, and impartiality needed for effective trade management.

These are the two beliefs which you have to change in order to make your trading from a lucky streak towards a balanced profitable way.

The potential of a successful trading mind is in the balance

Lastly, You have to choose between those things which will benefit you in the long term rather than short term craving.

More from Trader knight

Trader knight
@Traderknight007

Why It's Hard To Run Profits And Limit Your Losses-

A thread-

In trading one of the important things we learn is that we should cut our losses short and hold on to the profits.

Most of us plan to implement the same from the next trade.

BUT!

When we take the trade, If the trade goes in profit we panic more then we would have panicked if the trade would have gone wrong.

Strange right, why would someone panic if the trade is going in profit.

New traders may not go through this emotion as they may have not gone through the Fear which a little more experienced (still not profitable) trader goes through.

Let’s name this little experienced trader Rahul.

So, lets say Rahul takes a trade, he buys Reliance at 2000, with SL at 1980.

He is ready to “ FOLLOW THE PLAN” of holding the profit and exit if trade goes wrong.

Now, Reliance goes to 2010, Rahul is happy, panicked, Feared.

Trader knight
@Traderknight007

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
4. SCALE IN - ALL OUT ( I use this one)

Why traders use Pyramiding ?

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.

BUT, not necessarily it should be more profitable than ALL IN- ALL OUT, Where one enters all at once and sell all at once.

HOW TO DO PYRAMIDING-

There are various methods which are used by traders for pyramiding ,while keeping the basic concept of adding onto the strength.

1. PYRAMIDING AND TRAILING BASED UPON STRUCTURE-

In this method we scale in or pyramid the qty when the stock breaks above

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Trader knight
@Traderknight007

Life is a continuous journey of going through peaks and troughs of Happiness and struggle.

We can only see the Happy part of other lives, but ignore what they might have gone through to achieve that.

But let me tell you, even if someone is at ease right now, doesn't mean that he will continue to be at ease for their whole life.

The struggle will come again and we will have to go through it ,whatever we do, whoever we are , we have to cross that river of pain.

Even,In trading there are times when nothing works out, you go through long time and money draw-downs.

Even if you think you are a master, you have to go through it.

If you are struggling right now, don't lose hope as the tables will turn.

But remember to work as hard as you can and do as much good work as you can in your ease or Joyful time of life, because the tables will turn again.

Thank you for reading.

Trader knight.

Trader knight
@Traderknight007

"Start your Trading day with a fresh and empty mind."

Ever faced stress and strong emotions after having loss day and under-performance for a long time after that?

Thread on Emotion and how to control them with help of trading journal

Poker players calls it TILT.

Tilt is pretty much any reason for you to trade sub-optimally.

Greed and fear are tilts in trading.

When normally you have a stressful day (not in trading) and you go to bed with a bad mood, the next day you wake up fine without much stress .

So where did the emotion go?

The brain absorbs and digests all the emotions.

But, when you have a big emotional and loss day , and then a sleepless night, the brain cant digest those emotions as easily.

The next day you wake up to trade , you don’t feel quite right, you feel fear.

So, now you are not starting with an empty cup.

Now your tilt threshold level ( the level where your decision making ability reduces and you take bad decisions ) decreases.

Now, you will be angry a little faster then normally and feel fear more then you do.

So,how to empty your mind after having a bad or even a good day?

By using a Trading journal.

Trader knight
@Traderknight007

Richard dennis made "$80 Million " in 1986. That kind of money making put him squarely at the center of Wall Street .

How Richard dennis became one of the greatest trend follower of all time.

Thread-👇👇👇

1. Personality-

Though he made big profits in the year of 1986, but Profits and risk comes hand in hand.

He was down $10 million in a single day that year before bouncing back, a rollercoaster ride that would have made mere mortals lose serious sleep.

Yet Dennis cockily said that he slept like a baby during all that volatility.

His money making style was to go for the home runs and swing for the fences,But dennis was never a gambler.

Dennis was believer of the Empiricism philosophy.

Empiricism is rooted in the notion that knowledge is derived from experiment, observation, and experience

2. Family-

Dennis family was not of market operators. Dennis was always honest about his father’s “hatred” of the market, explaining,

“My grandfather had lost all his money in the stock market in the Depression. The urge to speculate kind of skipped a generation.”

More from Trading

10-K Diver
@10kdiver

1/

Get a cup of coffee.

In this thread, I'll help you understand Geometric Expectations.

2/

Imagine we have an investment opportunity.

If the investment goes well, we get to double our money.

But if it goes badly, we'll end up losing three fourths of it.

There's a 50/50 chance of either outcome.

The question: is this a good bet or not?

3/

A simple way to approach this question is to calculate the bet's "expectation".

For every $1 we bet, there are 2 possibilities:

1. The lucky case, where we double our money and end up with $2, and

2. The unlucky case, where we lose (3/4)'th to end up with just $0.25.

4/

Each of these outcomes is equally likely.

So, on *average*, every $1 we put in turns into ($2 + $0.25)/2 = $1.125.

This is a *positive* 12.5% return.

Such bets are called *positive expectation* bets. On average, we expect to *make* (rather than *lose*) money on them.

5/

Suppose we could take many turns betting at these odds.

In any one turn, we could of course lose money.

But because our bet has positive expectation, *over time* we expect to make money.

Trader knight
@Traderknight007

A thread on SCALING IN - OUT METHOD -

What is scaling in - out?

1. Scaling in is adding on to the positions when they move in our favor (Pyramiding).

2. Scaling - out is exiting the portion of the position when the trade moves in our favor.

I have explained about pyramiding in previous tweets.

// Why use scaling out instead of exiting all position at once ?

When you are using ALL - out method where you exit positions at once, mostly you use wider Trail SL as you want to capture big moves and exit all when trail sl hits.

The problem with this method is that either you make too big or many times your medium size winners turns out to become Scratch trades.

So, when we use the scaling out method, we are trying to capture most of our medium size trades , so that they do not turn into scratch trades.

// How to use scaling out method -

Say we have to got a signal to enter in a trade, and we have to buy 1200 qty according to our Position sizing.

So, we have to divide this 1200 qty into parts, how much? It depends on you.

We can divide into 3 parts, each part 400 qty.

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Conservative Trader
@AnandableAnand

How to get rich trading (without getting lucky)

Complete beginner’s guide to wealth of Rs 10 Cr in 10 years

Step 1: start trading live

1/n

Nothing can substitute experience of live trading

No amount of back-test, studies or indicators can substitute training your mind with screen time

As a beginner, In live trading, you will make losses almost everyday

2/n

So here are the conditions which you can’t violate in first year
If you can’t follow these rules, this document is not for you

Start with trading capital of Rs 1 lakhs

Max loss per trade 0.25%, i.e. 250 Rs

Max loss for the day, 1%, i.e. Rs 1000

Max 6 trades in a day

3/n

I know, these conditions will cripple you in terms of what all you can trade and how

But just like any start up, trading is also about making it through initial gruelling constraints of life

You will also learn, how to turn these adverse rules to your advantage

4/n

Btw, you can sell directional banknifty options, obviously you can buy options, can do cash stock trading and much more under these conditions

Think about it, you will be do all kinds of instruments, just that PNL will not be roller coaster ride or exciting like a casino

5/n

$Greg Duncan \U0001f981$

Greg Duncan 🦁
@GregDuncan_

Many traders have no consistency when sizing their positions.

The pros have this down to a science.

Here's my dead simple, 3-step guide to position sizing (and to outperforming 99% of other traders in the process):

Step 1:

Define how much of your account you're willing to risk per trade.

Personally, I never risk more than 1% of my account equity.

If I have $100,000 account, I will never risk more $1,000.

This ensures I will never blow up my account on one single trade.

There are successful traders who risk 2-3% of their account per trade, but I find it most calming to risk 1% or less.

The first step in this process is completely up to you - only you can dictate how much risk you can tolerate.

Step 2:

Look for entries & exits that are within 5% (preferably less) of each other.

This means if I buy a stock & have a 5% stop loss, I can put a 20% equity position on & still be risking 1% of my equity.

Your account will thank you w/ 20% in a stock that goes up 100%.

Step 3:

Position size using this formula:

Total equity (100%) / Trade Stop Loss %

So, if your stop loss is 4%, here's the math:

100% equity / 4% stop loss = 25% Equity Position Size

(assuming 1% equity risk).

Here's another hypothetical calculation:

Vikrant
@Trading0secrets

Full chart learning course 🎓
In single thread 🧵

Process of trading through
price action ✨👇

1⃣Time frame - always start looking chart 📊 with higher time frame (weekly/monthly) then after go for lower one .

Positional trader - weekly/monthly

Swing trader - daily /3hours

Intraday trader - 15/30min

2⃣ demand /supply zone - then draw major/minor demand & supply zone .।।।

Ex : #SIS

3️⃣ Trading style -

⚡If you are positional trader then focus on major demand & supply zone.

⚡If you are swing trader then focus on minor demand & supply zone.

Wait for price to come on it then, 👇

4⃣find consolidation -

⚡Positional trader - consolidation should be above 1/2years.

⚡ swing trader - consolidation should be below 1/2 years

⚡Intraday trader - consolidation should above 5/10 days.

Ex - #galxo / #triveni / #vimta

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SRI KANTESH HANUMANTHA, KADARAMANDALAGI (KAR)
#bharatmandir

KANTESHA means Prabhu full of brightness.
Here, Sri Hanuman appears with a front face and sparkling eyes. Earlier, the village was also called KANTESHPURI on the name of Kantesha Hanuman.

Several thousands of years ago, Hanuman lived in this village. He once saw the Sun and mistaking it to be a fruit, began flying towards it. Since then, this village came to be known as Kadara Man Dalagi. (Kadar means rays, mandala is cluster of rays).

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**Thread on Bravery of Sikhs**
(I am forced to do this due to continuous hounding of Sikh Extremists since yesterday)

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Tomorrow again same thing happens bcoz fudus like you are creating a narrative oh Khalistan. when farmers are asking MSP. (RSS ki tatti khane wale Kerni sena ke kutte).
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And idiot Hindus place him along Maharana, Prithviraj and Shivaji as saviours of Dharma.

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@HinduMediaWiki

Speech Delay is most common in children nowadays

In ancient times, our grandparents used to follow typical natural way of caring the needs of a child. All they used were more of natural products than chemical based for the growth of child.

One of major step followed was to feed Gurbach Jadd/ Vasa Kommu/ Acorus Calamus for initiating good speech ability in a child. This stem was needed to babies on Tuesdays and Sundays in mother's milk.

Vasa is feed to baby after the 1st bath on 12th day in week. Weekly only thrice it is fed and named as :

Budhwar - Budhi Vasa
Mangalwar - Vaak Vasa
Ravi Vaar - Aayush Vasa

This stem is burnt and rubbed against the grinding stone in mother's milk or warm water to get a paste

The procedure to make it is in the link

https://t.co/uo4sGp7mUm

It should not be given daily to the child. Other main benefits are

1. It clears the phlegm in child's throat caused due to continuous milk intake. It clears the tracts and breathing is effortless.
2. Digestion

For children who haven't got their speech and is delayed than usual should feed this vasa on these days in week atleast for 6months. Don't get carried away with this dialogue
"Some gain speech little late"

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