BC TRADING

Saved by @Shubham51ngh

Trader knight
@Traderknight007 4 years, 4 months ago 1166 views

Save to PDF Share See On Twitter

A thread on Risk and Returns

Trader X -

Net-worth - 5 Cr
Trading capital - 25 lakh

Trader Y -

Net-worth - 30 lakh
Trading capital - 25 lakh

Trader X take risk of 2% per trade and he makes about 30-40 % Return on trading capital per month,

Whereas Trader Y only risk 0.25% per trade and he makes about 3-4 % on Trading capital per month.

Trader Y saw how much trader X is making with the same amount of capital that he has.

He is frustrated with his mediocre results as compared to Trader X, though he don’t know the fact that Trader X Is only trading with 5 % of his total net worth.

Trader X has much more risk taking ability in Rupee terms as compared to the Trader Y because he has higher net-worth.

Trader X will not have much impact when he goes into deep Drawdowns , 40-50% where as if the Trader Y goes below 15% DD , it will have deep psychological impact on him.

Even if the Trader X makes 100% return on his trading capital , turns 25 lakh into 50 lakhs ,

it will be only 5% gain on his total net-worth.

Where as Trader Y who is using almost 80% of his total capital on his net-worth as Trading capital, so even if he makes 5% on his trading capital , it will have significant impact on his Net-worth.

Learning-

1. Don’t compare your trading results with anyone, because you don’t know there total capital, there source of income , Risk taking levels, Mindset

2. Anything is possible in markets, True, but it’s also a fact that The more % you make the more risk you have to take,

Sometimes you just don’t see that risk, but its there.

If someone making 10-20% in a day, then you accept it or not they are also taking the similar risk, Leverage is a good tool,but like Driving a car at 200 might not take you to the hospital this time, but eventually it will.

3. Market is a Money making machine, not in a single day, not In a single trade but only over a long period of time.

As @anandableanand say " There are old traders and there are bold traders, but there are no old and bold traders".

Cheers,

Trader knight

More from Trader knight

Trader knight
@Traderknight007

Are we Inherently Risk takers or Risk averse?

A thread-

You might have heard this word “Mental capital”

What does it mean actually ?

In the context of markets, It's the Risk that our mind is able to digest seeing the P&L.

If we breach this ceiling of Risk ,Our mind goes berserk, and we are not able to take rational decisions.

So can we increase this Mental capital level?

Let's dive into my story of how My mental capital levels changed over time, that will answer the question that are we inherently Risk takers or Risk averse.

When I started trading a few years back, with about 3 lakh capital, I was not a greedy person, and I had limited expectations from the markets.

Like every other beginner, First 1.5 years were great, made a lot of money,

which I wasn't even expecting to make, turned that 3 lakh to more than 12+ lakhs in that period.

This was only possible by taking huge leverage, which i didn’t know at that time was a big mistake i was doing.

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.

Advertisement

Trader knight
@Traderknight007

A mega thread, this contains some of my popular threads which may help you in your trading.

Thanks for reading :)

A thread on Pyramiding- pic.twitter.com/8EOSSFMZ2w
— Trader knight (@Traderknight007) December 27, 2020

Don't change your trading

"Don't change the trading rules after every trade."

If you do change them frequently then this thread is for you.

Let's talk about the law of large numbers and how it benefits traders to be profitable.

[Thread]\U0001f447\U0001f447\U0001f447 pic.twitter.com/pEUr0wH354
— Trader knight (@Traderknight007) November 29, 2020

Trendlines

A thread on Trend-lines pic.twitter.com/GsLGzl8A3c
— Trader knight (@Traderknight007) January 2, 2021

Scaling in-out

A thread on SCALING IN - OUT METHOD - pic.twitter.com/bJ1N5ZjAiK
— Trader knight (@Traderknight007) January 9, 2021

Trader knight
@Traderknight007

"The 200 EMA play."

As most of you may know, that 200 EMA is mostly used to find the Value zone at any time frame, many times we see reversals happening at this zone.

Thread on How to use 200 EMA as a trading setup.

I use this setup mostly on daily and weekly time frames.

So ,what to look for -

1. First check whether the index is in uptrend or not, simple way to know this is if the index is above 20 and 50 DEMA then its in uptrend.

2. So if the index is in uptrend we will try to find the stocks for buying and if the index is in downtrend , find stocks for selling.

3. Now the best setup would be if the stocks is getting close to 200 EMA after a long time, buying/selling would be more furious in that case.

4. The best condition will be if the stock first touches the 200 EMA and shows rejection from that , it would be the ideal condition.

5. We have to buy above above the high of the rejection candle.

6. Stop loss can be 2 ATR away from the entry, ATR will be based on previous candle of the entry.

7. And trail sl with every 1R move in our favor.

Example 1 - Canara bank

Trader knight
@Traderknight007

Pyramiding 2.0

A thread-

What is pyramiding?

It is simply adding to your winners.

Why use pyramiding?

1. It makes your winners bigger than your losers.

• Because you are adding positions when your trades are going your way, you are increasing your gains but your losers will be small comparatively.

2. You lose less during Draw-down time ( it saves you from losing big during whipsaws )

• Many times when the market is in sideways mode, Entering a trade with full risk might not be the best idea.

• So, you test the waters with a small position first, it could be ⅓ or ¼ of your total risk.

• So if the Breakout fails or whipsaws come, then you will only lose a small part of your overall risk.

• Then when position starts to go in your favor you can add to it.

3. It helps you to concentrate on a few trades,

They say that don’t put all your eggs in one basket, but don’t put them in too many either.

• See, Everyone can see charts and find breakouts, pullbacks etc.

More from Trading

Abhishek Kar
@Abhishekkar_

FREE MINI STOCK MBA
If you wish to learn abt trading,psychology,options,business etc
You can go through this thread.
Other than this I do post videos on my YT channel : -Abhishek Kar & Tradiostation
-Intraday views on FREE telegram : Abhishek Kar Official
RT will be appreciated

1. Threads to learn Options
https://t.co/wabkek43I8

2. https://t.co/OIDenHKdWN

3. Some core rules to investing
https://t.co/37d1pygp7P

4.Summing up 2020 Trading lessons
https://t.co/jSUb1lSGbQ

5.Effects of margin change on

\U0001d413\U0001d421\U0001d42b\U0001d41e\U0001d41a\U0001d41d \U0001d41f\U0001d428\U0001d42b \U0001d40e\U0001d429\U0001d42d\U0001d422\U0001d428\U0001d427\U0001d42c
The entire thread will have some quick pointers on options trading. These bullet points are based on experience and learning and even if you are completely new,will help you to build some perspective. So,lets go :
— Abhishek Kar (@Abhishekkar_) December 29, 2020

6. Exciting story about a trader who destroyed a Bank
https://t.co/CsEEhIsD3q

7. Some Thought Provoking facts about stock markets
https://t.co/IjxpX5Wx24

8. A dose on Trading and investing

\U0001d413\U0001d42b\U0001d41a\U0001d41d\U0001d41e\U0001d42b \U0001d430\U0001d421\U0001d428 \U0001d41d\U0001d41e\U0001d42c\U0001d42d\U0001d42b\U0001d428\U0001d432\U0001d41e\U0001d41d \U0001d401\U0001d41a\U0001d42b\U0001d422\U0001d427\U0001d420\U0001d42c \U0001d401\U0001d41a\U0001d427\U0001d424
This thread is about the trader who with his reckless trading destroyed the entire Barings bank. In case you would like to read more such informative threads,do not forget to retweet and share as acts as encouragement
— Abhishek Kar (@Abhishekkar_) October 11, 2020

9. Top 5 resources to learn everything about stocks
https://t.co/6KnIySBGIG

10. Some Pro Tips on Trading
https://t.co/EiSGikt7jv

11. Wisdom on stuffs you should not do
https://t.co/bI2dH0XTSS

12. Reasons why you are losing the

\U0001d5e7\U0001d5db\U0001d5d8 \U0001d5e7\U0001d5e2\U0001d5e3 \U0001d7f1 \U0001d5e7\U0001d5db\U0001d5e5\U0001d5d8\U0001d5d4\U0001d5d7
The following thread will have top 5 for everything you need in the world of stock market and as learner who wants to REALLY grow. Make sure you #retweet the thread and let it reach the maximum number of people as sharing is caring.
— Abhishek Kar (@Abhishekkar_) July 21, 2020

13. The DARK side of stock market
https://t.co/qsteGcbquI

14. Stocks where you should NOT invest
https://t.co/2tD5q0K3UQ

15. Lessons from MILLIONAIRE trader
https://t.co/Pec6LmUtGa

16. Lessons from my

\U0001d5e7\U0001d5db\U0001d5d8 \U0001d5d7\U0001d5d4\U0001d5e5\U0001d5de \U0001d5e6\U0001d5dc\U0001d5d7\U0001d5d8 \U0001d5e2\U0001d5d9 \U0001d5e6\U0001d5e7\U0001d5e2\U0001d5d6\U0001d5de \U0001d5e7\U0001d5e5\U0001d5d4\U0001d5d7\U0001d5dc\U0001d5e1\U0001d5da
In the following thread you will understand a few dark truths about stock trading as a profession.
Sadly everyone touches the only green side but there has to be a balance. Don't forget to #retweet for wider reach.
— Abhishek Kar (@Abhishekkar_) July 6, 2020

$Stockifi | Investors \u0915\u093e \u0926\u094b\u0938\u094d\u0924!$

Stockifi | Investors क...
@stockifi_Invest

30 books I wish I read before Investing my hard-earned money:

1. You can be a Stock Market Genius by Joel Greenblatt
2. Common Stocks, Uncommon Profits by Phil Fisher
3. Margin of Safety by Seth Klarman
4. The Crowd by Gustave Le Bon
5. Winning the Loser's Game by Charles Ellis

6. The Zurich Axioms by Max Gunther
7. The Most Important Thing by Howard Marks
8. Thinking, Fast and Slow by Daniel Kahneman
9. The Intelligent Investor by B. Graham
10. A Zebra in Lion country by Ralph Wanger and Everett Mattlin
11. Learn to Earn by Peter Lynch

12.Poor Charlie's Almanack - The wit and wisdom of Charles T Munger
13.Speculative Contagion by Frank Martin
14. The Long and the Short of it by John Kay
15. More than you know by Michael Maubossin
16. Influence - The Psychology of Persuasion by Robert Cialdini

17. The Psychology of Judgment and Decision making by Scott Plous
18. The Real Warren Buffett by James O'Loughlin
19. Devil take the Hindmost by Edward Chancellor
20. Risk Intelligence by Dylan Evans
21. The Emotionally Intelligent Investor by Ravee Mehta

22.Accounting for Value by Stephen Penman
23. Common Stocks and Common Sense by Edgar Wachenheim III
24. Big Money Thinks Small by Joel Tillinghast
25. Memos from the Chairman by Alan C Greenberg

Advertisement

Trader knight
@Traderknight007

A thread on Trend-lines

// What are trend-lines?

Trend-lines are support and resistance lines which are formed by connecting Important swing points.

The beauty of using them is that We can use them when stock is not Respecting the Horizontal S&R zones, they can indicate us when the trend may change.

// Things To consider while Making trendlines?

• A trendline formed by using 3 Major-Swing points is a potential trendline, But we will also use 2 points to form a trendline, will discuss how, as you read further.

• Trendline can be formed by two ways-

1. Wicks-

In this method we only connect the wicks to make a trendline, this is a precise way of making a trendline.

// Why only connect the wicks?

There are two type of levels - Precise and Less precise (Which we call zones).

So what we are doing is by only connecting the wicks we are making a precise level where we can take trades, either Mean reversion or Breakout trades.

Examples-

$Anshika Sharma\u26a1$

Anshika Sharma⚡
@Anshi_________

Full Technical Analysis in Single Thread🧵

This whole course is worth 40-50K-

1- Candle sticks and how to use

2- Advanced price action

3- The dow theory

4- Moving

The Chartians
@chartians

There are more than 5,000 YouTube channel related to stock market learning.

These are Top 5 underrated YouTube channel that will definitely help you in trading and investment.

1st one is our favorite, and you shouldn't miss subscribing to it.

A Thread 🧵:

1/ KA Charts:

This channel belongs to our mentor @KA_charts who has helped us immensely in the stock market, haven't seen anyone yet who understands and read PRICE ACTION.

He handles a fund size of more than 300CR.
One of the best YouTube

2/ Strategic Stocks:

This channel is highly underrated, this channel backtests all the popular strategies of all the top twitter traders for eg 5EMA of Subhashish Sir, Ghanshyam sir 9:20AM option strategy, every top free strategy out there is

3/ Power of Stocks - Subasish Pani

Do we even need to tell you guys anything about this man. We have all seen his journey from making 2000-4000 a day to now making 1 CR a day. Genuine skin in the game guy.

4/ TastyTrade:

Everything about Future and Option Trading is being shared by them. It can be a complete library for a trader who want to learn F&O trading. If you want to understand the vast of world of options look no further.

You May Also Like

$\u0b85\u0bb8\u0bcd\u0ba4\u0bbf\u0ba9\u0bbe\u0baa\u0bc1\u0bb0\u0ba4\u0bcd\u0ba4\u0bc1 \u0b85\u0bb0\u0b9a\u0bbf\U0001f478$

அஸ்தினாபுரத்து அரசி👸...
@SivaRoobini555

#தினம்_ஒரு_திருவாசகம்
தொல்லை இரும்பிறவிச் சூழும் தளை நீக்கி
அல்லல் அறுத்து ஆனந்தம் ஆக்கியதே – எல்லை
மருவா நெறியளிக்கும் வாதவூர் எங்கோன்
திருவாசகம் என்னும் தேன்

பொருள்:
1.எப்போது ஆரம்பித்தது என அறியப்படமுடியாத தொலை காலமாக (தொல்லை)

2. இருந்து வரும் (இரும்)

3.பிறவிப் பயணத்திலே ஆழ்த்துகின்ற (பிறவி சூழும்)

4.அறியாமையாகிய இடரை (தளை)

5.அகற்றி (நீக்கி),

6.அதன் விளைவால் சுகதுக்கமெனும் துயரங்கள் விலக (அல்லல் அறுத்து),

7.முழுநிறைவாய்த் தன்னுளே இறைவனை உணர்த்துவதே (ஆனந்த மாக்கியதே),

8.பிறந்து இறக்கும் காலவெளிகளில் (எல்லை)

9.பிணைக்காமல் (மருவா)

10.காக்கும் மெய்யறிவினைத் தருகின்ற (நெறியளிக்கும்),

11.என் தலைவனான மாணிக்க வாசகரின் (வாதவூரெங்கோன்)

12.திருவாசகம் எனும் தேன் (திருவா சகமென்னுந் தேன்)

முதல்வரி: பிறவி என்பது முன்வினை விதையால் முளைப்பதோர் பெருமரம். அந்த ‘முன்வினை’ எங்கு ஆரம்பித்தது எனச் சொல்ல இயலாது. ஆனால் ‘அறியாமை’ ஒன்றே ஆசைக்கும்,, அச்சத்துக்கும் காரணம் என்பதால், அவையே வினைகளை விளைவிப்பன என்பதால், தொடர்ந்து வரும் பிறவிகளுக்கு, ‘அறியாமையே’ காரணம்

அறியாமைக்கு ஆரம்பம் கிடையாது. நமக்கு ஒரு பொருளைப் பற்றிய அறிவு எப்போதிருந்து இல்லை? அதைச் சொல்ல முடியாது. அதனாலேதான் முதலடியில், ஆரம்பமில்லாத அஞ்ஞானத்தை பிறவிகளுக்குக் காரணமாகச் சொல்லியது. ஆனால் அறியாமை, அறிவின் எழுச்சியால், அப்போதே முடிந்து விடும்.

Steve
@braidedmanga

Ivor Cummins has been wrong (or lying) almost entirely throughout this pandemic and got paid handsomly for it.

He has been wrong (or lying) so often that it will be nearly impossible for me to track every grift, lie, deceit, manipulation he has pulled. I will use...

... other sources who have been trying to shine on light on this grifter (as I have tried to do, time and again:

Ivor Cummins BE (Chem) is a former R&D Manager at HP (sourcre: https://t.co/Wbf5scf7gn), turned Content Creator/Podcast Host/YouTube personality. (Call it what you will.)
— Steve (@braidedmanga) November 17, 2020

Example #1: "Still not seeing Sweden signal versus Denmark really"... There it was (Images attached).
19 to 80 is an over 300% difference.

Tweet: https://t.co/36FnYnsRT9

Example #2 - "Yes, I'm comparing the Noridcs / No, you cannot compare the Nordics."

I wonder why...

Tweets: https://t.co/XLfoX4rpck / https://t.co/vjE1ctLU5x

Example #3 - "I'm only looking at what makes the data fit in my favour" a.k.a moving the goalposts.

Tweets: https://t.co/vcDpTu3qyj / https://t.co/CA3N6hC2Lq

Advertisement

$\uff2c\uff41\uff44\uff59 \uff22\uff4c\uff41\uff5a\uff45\uff53$

ＬａｄｙＢｌａｚｅｓ...
@Lady_Blazes

Oh my Goodness!!!

I might have a panic attack due to excitement!!

Read this thread to the end...I just had an epiphany and my mind is blown. Actually, more than blown. More like OBLITERATED! This is the thing! This is the thing that will blow the entire thing out of the water!

Tik Tok pic.twitter.com/8X3oMxvncP
— Scotty Mar10 (@Allenma15086871) December 29, 2020

Has this man been concealing his true identity?

Is this man a supposed 'dead' Seal Team Six soldier?

Witness protection to be kept safe until the right moment when all will be revealed?!

Who ELSE is alive that may have faked their death/gone into witness protection?

Were "golden tickets" inside the envelopes??

Are these "golden tickets" going to lead to their ultimate undoing?

Review crumbs on the board re: 'gold'.

#SEALTeam6 Trump re-tweeted this.

Greg Olear
@gregolear

Strange things are afoot at the Circle K. Let’s sort it out.

[THREAD]

1/ Two nights ago, Rupert Murdoch called on Mitch McConnell, after hours. Since then, two Fox News-related Twitter accounts have not tweeted.

2/ Trump fired Sessions on Wednesday, replacing him with human dildo/Putin collaborator Matt Whitaker. Sessions had asked to stay until Friday and was told to leave immediately. So there was clearly some urgency to install the dildo...er, puppet.

3/ The Democrats won the SHIT out of the Midterms. Come January, the House check on Trump will leave him so hobbled, he’ll be like the dude from Misery.

4/ Trump went to Paris, ostensibly for an Armistice Day centennial event. He skipped the event, and much of the dinner tonight, because of “weather,” which everyone seems to agree is a bullshit excuse.

Sheetal Rijhwani
@RijhwaniSheetal

How you can filter stocks for Intraday trades - 🧵

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)

To prepare for the next trading day, you got to check the Index charts of all sectors. You got to keep an eye on a specific Index if you see a few factors:

- If any Index closed exactly at the resistance, you can get a trade on either side on the next day. (2/11)

- If it gave a rejection candle at resistance.

- If any Index closed exactly at support, you can get a trade on either side the following day.

- If there was a bullish signal at the support.

- If any Index gave a breakout or breakdown and then gave a good closing. (3/11)

- If any Index has taken support at 50 or 200 EMA.

Once you spot the Index, look at all the stocks in that particular Index. Pick at least 3-4 stocks from that Index and add them to your watchlist for the next day. It's ideal to check both higher and lower timeframes. (4/11)

What you should do next day? (When I am unable to check Indices and stocks a day before, I sometimes directly start with this process.)

- Start with checking the top gainers/losers list. I observe market from 9:15 to 9:45am to check the sectors performing well on that day.(5/11)

Category Partner: Enkryptopedia