BC TRADING
Saved by @Shubham51ngh

"90% of the traders lose money, But do they lose it all the time?"

Most of them do make money, its just that they give it all back.

Lets analyze why and how a trader makes and loses money
[Thread]:

 Below is the equity curve which is most traders dream.
This is equity curve of an average trader:

Most traders do make money, but they give it back to the markets .

Because of trading errors.

What are trading errors?
Trading errors are those errors which happen because of wrong Position sizing, Leverage , etc.

I am not making this up, check your P&L, 90 % of your losses would have come from less then 10% trades.

Most of these happen because of No knowledge, No plan, bad position sizing .
Now, we know what's the problem, lets talk about the solution.

1. Learn the Basics first-

If you don’t get the basics clear then how can you make money?

Learn How to use Support and resistances
Learn How to use trend lines
Learn about trend, it will solve 90% of your problem
2. Plan-

The number 1 problem is that you don’t have a plan,
And by plan I mean set of written rules.

If you don’t have a plan then you really aren't serious enough to consider making any money.

So, Make a plan.

How does a plan looks like?
3. Position sizing-

Money management is that part of your system that answers "How much?" throughout the course of the trade.

How much essentially means how big a position you should have at any given time throughout the course of a trade.
Attaching a thread on how position sizing affect the account-
https://t.co/H9UBHy0CSt

you can see that risking the appropriate amount of money is necessary for your equity curve growth.

There are two type of position sizing strategies,

1. Martingale
2. Anti-martingale
1. Martingale strategies increase the risk per trade when equity decrease.
2. Anti martingale strategies increase risk per trade when equity increases.

There are further many anti martingale strategies
I will be explaining this further in upcoming days as this thread will get super long if I do it now.

Tip-

When you start to trade ,trade small for the first 20-30 trade , at-least 1/3rd of the risk what you think you will trade.
This will give you confidence and you can follow the plan effectively when you do not have fear of losing.

4. Be ready for Black swan events.

What are black swan events?

Big gap-downs, Flash crash, Big news, Market or stock hitting Upper or lower circuit.
Think about can your account be wiped in these conditions?

If yes, then correct the parameter due to which you can have big draw-down.

4. Next is psychology, Read the book trading in the zone, that will cover all your psychology related problems.
Attaching some threads which can help you.

Thread on law of large numbers-
https://t.co/Hg0BnWGYrV

Tweets on psychology-

https://t.co/1CJT0sZcUs

https://t.co/8rIYnkLKTa

These are some of the things that can help you become a better trade.

Thank you for reading till here.
Tagging some accounts from where you can learn almost everything -
@PharmaBull20_22 - Best short term trader
@sanstocktrader - Most humble person and finest price action trader
@kirubaakaran - one of the Best system trader
@sakuag333 - System trader and rising star
@AnandableAnand - Experienced System and discretionary trader
@sohamtweet - Bade bhai and Finest algo trader
@jitendrajain - All rounder, system trader.
@quatltd - Best algo trader in stocks.
@ST_PYI - Price action master and super humble person.

More from Trader knight

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.
ALL
Trader knight
Trader knight
@Traderknight007
Like humans , stocks too have different nature and if you are trading every stock the same way then this thread may be for you.

A thread on Nature of stocks and how it can help you to improve your trading results.


First start with what is the nature of stocks ?

I broadly categorize stocks in two categories-

1. The momentum stocks-

These are the stocks where most of the moves are swift in nature, or we can say that the pullbacks in a trend are smaller.

2. The AKBC stocks-

These are the stocks where most of the trending moves comes with deep pullbacks.


Examples-


So the purpose of categorizing these stocks, is that we Trade those stocks/instruments which are more suited to our style.

Say if you are a mean reversion player and you are trading in the momentum stocks category then you are more bound to lose over large number of trades.
TRADING , ALL
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Trader knight
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.
TRADING
Trader knight
Trader knight
@Traderknight007
When tops are formed , two things happen The public is buying and the big boys are selling, and vice-versa when bottoms are formed.

In simple words Volume climax is the last "AHA" movement for the public before the stock make a top or bottom.

Thread-


What is Volume climax?

• Volume climax appears at the extreme of a trend, or when top or bottoms are formed.

• Most of the time volume climax appears when breakouts happens after a long extending move, and then fails to hold at higher levels.

• In this, at time of breakout we see big volumes (atleast 2-3X more then normal volume) coming in stock when the stock is already extended.

• More volume is not always good, though retail traders doesn’t distinguish between them.

• After the Volume climax we may see a top/bottom or at-least the trend becomes sideways.

• The best setups are those in which we see full reversal candles with big range.

Example of volume climax-

1. The stock was in Uptrend, And has give a quite good run , Stock was giving a big move as you can see in last 2 candles, they were super extended.

2. But at the top candle, the bulls lost the control and the stock closes with a weak candle,
TRADING
Trader knight
Trader knight
@Traderknight007
“In search of the holy grail”

A thread-


Holy grail- A strategy Which can make money all the time.

After going through two phases of a traders journey, the initial success phase, and Only why do i get loss phase, Traders enter the third phase -

THE SEARCH FOR THE HOLY GRAIL PHASE.

This phase has no limits, It can end in 1 month and it may not end till lifetime.

What exactly is this phase?

When a trader covers all the basics, they know how to lower their losses, they know the power of risk management.

And few of them may even develop their edges and systems over time.

But after some time, they feel that they are doing something wrong and there is more to trading than what they know.


THEN COMES THE HOLY GRAIL PART-

Few of them start to Read more books about trading,finding articles about “How to win 100% of the time” and listening to Youtube videos of few big traders who make big in trading.
ALL , TRADING

More from Trading

Fabiana Cecin \U0001f3f4 \U0001f339
Fabiana Cecin 🏴 🌹...
@fabianacecin
I'm having difficulty seeing the need for any other currency in the world other than G$.

If it works, and it is decentralized, then why would we need more than one global-reach currency?

If it does the job perfectly, then why do we need another?

I don't mean there won't be others. What I mean is that maybe Crypto UBI will be like the existing non-democratic crypto market ranking. There will be a first-place market cap amount, and exponential decay to the #2, #3, #4, etc.

This is in contrast to the simplistic view where we assume there will be X systems and they all have more or less the same abstract Y market cap or reach, and they all add up to an integrated system with X*Y market cap.

All you have to do is design the controls the way they want to be designed. If you don't introduce some unneeded damage in it, then there won't be the need to come up with another system that fixes the damage and actually does complete "the system" that we will use.

E.g. Bitcoin would have worked, except it introduced the damage that is Proof-of-Work, which means it is unusable and will be replaced by Ethereum, which will use PoS, thus fixing the damage.
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Trader knight
Trader knight
@Traderknight007
How position sizing can affect your trading performance-

Assuming that you are trading a Trend-following system with Big RR and low win-rate.

For example, assume that you risk one percent per trade on a 100,000 account
and you have 20 straight losses.

That one percent is of your remaining equity and at the end of 20 losses, you would be down to 81,790.60.

Now if you got a 30R winner and you are risking one percent of your balance of 81,790.60, your new equity would be 106,327.9,


You’ve had 20 losses and one winner though you are still up 10Rplus your equity is up by 6.3R percent.

Now, let’s say you risk five percent per trade on your balance. At the end of 20 straight losses, you would be down to 35,772.89 or down 64 percent.


If you risk five percent on this amount and get a 30R winner, you would be up to 89,621.48. You are up 10R, but because of your position sizing, your equity is still down over 10 percent.

#positionsizing
#Trading
#nifty50

This is why position sizing is the most important factor in trading if you get it right and you have an edge, you will do good.

Thanks for reading till here.
@AnandableAnand @jitendrajain @quatltd @sohamtweet
TRADING
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Aneesh Philomina Antony
Aneesh Philomina Anton...
@ProdigalTrader
If u are looking to enter a scrip just before the breakout
what would u look for?
How would u identify scrips just before breakout?

Here are a few pointers
Carefully understand the them and use at ur own discretion
(All comments r compiled from a question i posed)

1/23

Price is testing the same resistance repeatedly since long.
But now in recent times it's forming multiple candles near the same resistance with low volume.
Observe it and see for opposite move.
As soon as u get a positive candle, get in to it.

2/23

1. Volume buildup (vol > when resistance point created) along with, increase in OI, increase in delivery % on HTF
2. On LTF, price stalling around breakout area for at least 1-2hr.
3. No major events.

3/23

Stock reaching breakout LVL with HL-HH
Contraction of price and volume near it especially near 20 days ma.
If there is any breach of the latest HL it should be followed by a bullish candle with good volume.
Left side of the chart has a rally with a very steep slope of ma.

4/23

Number of wide range green bars with high volumes.
If stock is at its ATH then it adds more conviction bcz there wont b supply after that point

Consolidation below the resistance, volume of the candles & strong bullish candle closing at near highs just below the resistance

5/23
TRADING , ALL
Investment Books
Investment Books
@InvestmentBook1
Knowledge sharing initiative Book 3: "Zurich Axioms" by Max Gunther

The book crystallizes how to think about taking investment bets (position sizing), and how to reduce risks in investing & speculation. It focuses on teaching a balance between rewards & risks.

(1/n)


Here are the key takeaways from the book:

1. Take sizeable bets in life: Taking small bets will give you a good night's sleep as you have very little to lose, but the important point is "it won't ever make you rich".

(2/n)

2. Taking size-able risk is necessary to get rich but make sure you don't go bankrupt taking that risk.

3. Don't diversify too much as gains & losses will nullify each other.

(3/n)

4. Be less greedy to make money - Book some profits when you see a sudden huge increase in wealth - fear of regret will stop you from booking profits but don't be greedy as consistent streaks of lucks are rare in life.

(4/n)

5. Cut losses when you go wrong don't start praying that your losses will recover rather act quickly take some loss and sell out.

(5/n)
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Richard Chu
Richard Chu
@richard_chu97
1/ I used to think that the biggest gains had to come from stocks that no one knew about

One of the harder lessons for me to internalize has been that oftentimes, unknown stocks stay unknown for a reason and you can still earn attractive returns from stocks everyone's bullish on

2/ While I’m not contrarian just for the sake of being contrarian, I do think it’s important to question everything.

When I started out, I would buy "quality" stocks like FB or TSLA without doing much research.

But an opinion being consensus doesn’t make it the truth.

3/ So owning the most popular stocks made me nervous. If a winner is so obvious then either it's priced in or maybe I'm missing something?

I preferred owning stocks that others weren’t aware of or were bearish on for the wrong reasons (more room for upside surprises).

4/ But there are degrees

Despite being widely popular, stocks like SHOP have been some of the best performers because they exceeded even the most bullish projections

And some stocks like TSLA are partly popular because they are great consumer products which is an important sign

5/ On the other hand, while the biggest winners can be found in micro-caps, many of which started out very undervalued with no analyst coverage, on average, they tend to underperform larger caps

Picking out the big winners earlier on is very difficult and there is no set formula
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Many readers have asked me "why do so many pulp covers feature women in ripped red blouses standing in swamps while a man fights off an unusual animal attack?"

The answer is artist Will Hulsey...


Will Hulsey was the undisputed king of the animal attack pulp cover. You name it, he'd paint it attacking you in a pool of stagnant water.


Very little is known about Will Hulsey, but he worked on a number of men's pulp magazines in the 1950s and early 1960s including Man's Life, True Men, Guilty, Trapped and Peril.


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*Heads-up that this thread will feature some extreme examples of homophobia and transphobia.*

Hey folks, have you ever wondered why trans people face constant accusations of fetishism, sexual predation and child abuse/grooming? Well, today let's talk about stochastic terrorism.

So, first we have to talk about what stochastic terrorism actually is. Remember when there was a conspiracy that there was a pedophile ring operating out of a pizza parlour basement, and a crazed gunman showed up? It's that sort of incitement that stochastic terrorism describes.

It's the demonisation or incitement against a group of people or individuals with the intent that other, unaffiliated parties will act upon it; it's the releasing doctored footage and a shooter show up at Planned Parenthood as a direct result of what he's been led to believe.

So with that in mind, let's talk about Russia's extreme anti-LGBT laws that banned the "promotion" of LGBT lifestyles to children. A move that specifically marked LGBT people as a threat to children, and resulted in neo-nazis meting out vigilante "justice" against gay men.


Groups such as this would lure unsuspecting gay men via dating sites, and brutalise and humiliate them on camera. They did so under the guise of combating child abusers, one group calling themselves "Occupy
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In regards to the #CapitolCoup, I’m in a unique position. I monitored forums ahead of time and then was present for the coup itself.

These are my observations based on what I saw and the evidence that’s been collected so far. I reserve the right to adjust my analysis as needed.

Let’s talk about the organization of the coup first. Seeing some people insist that the coup must have been highly planned and coordinated.

Yes and no. This was a #StochasticCoup. We’ll see little evidence of direct communication between Trump and the insurrectionists.

Within the insurrectionists, there was not one group that executed the storming of the Capitol.

Rather, there were a number of smaller groups working independently towards the same goal. I expect you’ll see little evidence that these various groups communicated with each other.

What you will see is detailed planning and coordination within these small groups.

Then there were the joyriders, those Trump supporters who weren’t directly involved in any plotting but who were more than happy to go along for the ride once the coup was in motion.

After four years, the insurrectionists were carefully attuned to Trump’s messaging.

Every tweet and statement of his was treated as marching orders and carefully dissected for meaning.

It’s why shutting down Trump’s Twitter account was so important.
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John Hayward
John Hayward
@Doc_0
Funny, before the election I recall lefties muttering the caravan must have been a Trump setup because it made the open borders crowd look so bad. Why would the pro-migrant crowd engineer a crisis that played into Trump's hands? THIS is why. THESE are the "optics" they wanted.


This media manipulation effort was inspired by the success of the "kids in cages" freakout, a 100% Stalinist propaganda drive that required people to forget about Obama putting migrant children in cells. It worked, so now they want pics of Trump "gassing children on the border."

There's a heavy air of Pallywood around the whole thing as well. If the Palestinians can stage huge theatrical performances of victimhood with the willing cooperation of Western media, why shouldn't the migrant caravan organizers expect the same?

It's business as usual for Anarchy, Inc. - the worldwide shredding of national sovereignty to increase the power of transnational organizations and left-wing ideology. Many in the media are true believers. Others just cannot resist the narrative of "change" and "social justice."

The product sold by Anarchy, Inc. is victimhood. It always boils down to the same formula: once the existing order can be painted as oppressors and children as their victims, chaos wins and order loses. Look at the lefties shrieking in unison about "Trump gassing children" today.
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Vibhu Vashisth \U0001f1ee\U0001f1f3
Vibhu Vashisth 🇮🇳...
@VIBHU_Tweet
MAHARAJA CHHATRASAL BUNDELA was the great Bundela King who revolted against the Mughal ruler Aurangzeb.
Chhatrasal Bundela was born in year 1649 CE in Maur Hill of Bundela region to Champat Rai and Lal Kunwar. He was the descendent of Rudra Pratap of Orchha.


His ancesters were the vassals of Mughal Emperor. He drew inspiration from his father and revolted against the alien rule of Mughals. He was just 12 yrs old when his parents died in fight against the Mughal Army of Aurangzeb in 1661.

When his beloved father attained martyrdom in the year 166, the young Chatrasal was present in the last battle of his father against the Mughal and from these valiant campaigns,..

..he gathered the courage to free Bundelkhand from Aurangzeb’s rule.
He joined the Mughals initially, and was recommended by the Rajput King Mirza Jai Singh to be recruited in the Mughal Army in order to support their Deccan Campaigns.


But serving the alien rule of Mughals which brought chaos and misery to Bundelkhand was unacceptable for Chatrasal Bundela and his father’s incessant struggle against the Mughals kept the fire of independent Bundelkhand alive in his heart.
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