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
"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]👇👇👇


Most people start tweaking the rules, chart settings and the indicator settings because now they think they have found the holy grail.

But they again end up changing them after next losing trade.

If you believe in the law of large numbers then;

Changing the buying rule from buy 1 point above the breakout to buy above 5 points or any tweak like that will not make much difference in the long run.

Law of large numbers is best illustrated by the example of a coin flip :

It has a 50% chance of landing on heads.

If we flip the coin twice, we have almost exactly equal chances of any scenario happening: heads twice, tails two evenly split.

The probability of getting 5 heads and 5 tails on ten flips is just 8% but that probability keeps increasing as we increase the sample size.

If one flips the coin 100 times, the probability of getting 50 heads and 50 tails (P=0.5) increases to 70% and so on.

When the market conditions are not in favour of a strategy, it's normal that it will suffer from drawdown.

In this period most traders can't face the heat,
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
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Trader knight
Trader knight
@Traderknight007
Objectivity- Undistorted by emotions or personal bias.

What is objective Trading?

Trading in which decisions are taken on pre-decide rules, decisions in objective trading are not decided by Feelings or opinions.


What is subjective trading?

It is discretionary trading, in which one uses his intuitions and Analysis to take trading decisions.

Is one superior to other?

The rules in a mechanical system are going to be decided by you, the plan is going to be made by you,

the positions sizing and all other aspects are going to be made by you.

So your psychology is going to filter the information coming towards you, even in a mechanical system as well as in discretion.

WHATS THE USE OF OBJECTIVITY-

I am a Discretionary - Rule based trader.


So, I take trades based on my analysis, my entries are discretion based, but the exits , position sizing and Risk management rules are pre decided.

WHY USE SUBJECTIVE TRADING?

The biggest benefit that objective trading do is that it makes the chances of you thinking less during the time of taking an execution decision.

As a beginner trader you will not have much experience, and you will inevitably do a lot of mistakes.
TRADING
Trader knight
Trader knight
@Traderknight007
A THREAD ON SL, TSL AND RE-ENTRIES-


WHERE TO PUT THE SL-

1. NEAREST PIVOT/SWING POINTS-

Normally I use this method for placing sl, In this method we use swing point for placing the SL.

As normally the stock would not try to go below previous swing point if it is to go in our direction.


2. ATR method-

Sometimes the Stock do not have any nearest pivot at time of buy, So we use this method as it gives us a level on basis of current volatility of the stock.

I use 1.5 ATR away sl , say the ATR at point of entry is 30, so I place sl
1.5 X, or 45 rs away from entry

In below example the entry is 120, ATR=5, SL= 1.5X ATR= 7.5 OR 113.

Nearest pivot was too far away, that’s why this method is used in these cases.


4. Anchor candles-

Anchor bars are those which have extreme Volume, gaps or wide Ranges.

Here, we place our sl below those candles which has the above characteristics.
TRADING
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.
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Abhishek Kar
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


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


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


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
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Gene Kim
Gene Kim
@RealGeneKim
Many of you have seen the famous Westrum Organizational Typology model, so prominently featured in State of DevOps Research, Accelerate, DevOps Handbook, etc.

This model was created Dr. Ron Westrum, a widely-cited sociologist who studied the impact of culture on safety


Thanks to Dr. @nicolefv, I was able to interview him for an upcoming episode of the Idealcast! 🤯

It was a very heady experience, and while preparing to interview him, I was startled to discover how much work he's done in healthcare, aviation, spaceflight, but also innovation.

I've read 4+ of his papers, so I thought I was familiar with his work. (Here's one paper: https://t.co/7X00O67VgS)

I was startled to learn he has also studied in depth what enables innovation. He wrote a wonderful book "Sidewinder: Creative Missile Development at China Lake"


Dr. Westrum writes about China Lake Research Labs: "its design and structure had one purpose: to foster technical creativity. It did; China Lake operated far outside the normal envelope... Sidewinder & others were "impossible" accomplishments,

I love this book because it describes traits of organizations that routinely create and maintain greatness: US space program (Mercury, Gemini, Apollo), US Naval Reactors, Toyota, Team of Teams, Tesla, the tech giants (Amazon, Google, Netflix, Google)
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Peter McCormack \U0001f451
Peter McCormack 👑...
@PeterMcCormack
1/ Feels like a good time to tell the story of how I went from broke to a millionaire to broke again in 2017/18 again...

Yesterday was brutal for some people...

Losing life-changing money sucks, losing any money sucks...you can chase the market or you can change your strategy.

2/ The original thread is gone but you can read it here.

https://t.co/cLLNs75rB0

tl;dr
- Traded $32k to $1.2m
- Thought I was a genius
- Made poor investments
- Didn't conserve capital
- Peaked at 150 BTC
- Lost nearly all of it

2 weeks from losing my house + no income. Oops.

3/ I am going to assume you are in it for the money rather than the tech. Yeah, you might Tweet about the amazing blockchaining of cross-border payments and oracles yadda yadda...really, you are in it to make money.

If you are really in it for the tech, go and build something.

4/ Okay, so if you want to make money, trading is super hard, you are trading against:
- Better traders than you
- People who can move markets
- Unknown information

And if you are trading with leverage you might blow up your account with the volatility.

5/ If you are not trading, you are investing. Okay, so what are you investing in?

I made the decision that the crypto with the best opportunity of existing in 10 years is #Bitcoin:
- Solves a genuine problem
- The right tech
- A proven track record
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The Chartians
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.
TRADING
Aditya Todmal
Aditya Todmal
@AdityaTodmal
I gathered the best Youtube videos to learn Expiry trading for free.

If you want to master expiry trading, open this thread: 🧵

Collaborated with @niki_poojary

Here's what you'll find in this thread:

1. ATM strikes to zero
2. Big Gaps on Expiry Day
3. How to trade expiry when Nifty is behaving differently
4. Using Data points to trade expiry
5. Play for a flat move
6. How to profit post 3 pm exploiting the close price?

Let's go ↓

1. How to develop a framework to trade in ATM strikes on expiry day? Subhasish Pani on @vivbajaj Sir's channel.

One of call or put at ATM is going to go to zero.

Whichever is moving rapidly has a higher probability of going ATM/ITM. Sell the slower

2. How to trade a big gap up on expiry day?

If market bias is bullish and a gap-up happens, it comes for selling.

Can buy puts at the breakout of an inside candle as the market has a good probability of at least heading toward the previous day's

3. How to trade in Bank Nifty if it has already moved 160 points from its high to low by 11:30? @ThetaGainers

Sell near otms with double stop loss.

Avoid if stuck in a very small range.

Get out of both by 1
TRADING , ALL

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So it's now October 10, 2018 and....Rod Rosenstein is STILL not fired.

He's STILL in charge of the Mueller investigation.

He's STILL refusing to hand over the McCabe memos.

He's STILL holding up the declassification of the #SpyGate documents & their release to the public.

I love a good cover story.......

The guy had a face-to-face with El Grande Trumpo himself on Air Force One just 2 days ago. Inside just about the most secure SCIF in the world.

And Trump came out of AF1 and gave ol' Rod a big thumbs up!

And so we're right back to 'that dirty rat Rosenstein!' 2 days later.

At this point it's clear some members of Congress are either in on this and helping the cover story or they haven't got a clue and are out in the cold.

Note the conflicting stories about 'Rosenstein cancelled meeting with Congress on Oct 11!"

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HORANADU ANNAPOORNESHWARI, CHIKMAGALUR (KAR)
#bharatmandir

Annapoorneshwari is the Devi of nutrition and food. The literal meaning of Annapoorneshwari is “Feeding one and all”. Anyone who comes here is offered meals and shelter within the premises.
@LostTemple7


Maharshi Agastya is believed to have done pratishtha here.

Once, Shiva and Parvati had an argument. Shiva declared everything in the world including food to be Maya or illusion. To prove him wrong, Devi Parvati disappeared resulting in entire Earth becoming still.


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Most software founders, particularly in B2B, need to get radically better at sales. @Steli , who is the best person for explaining the scrappy stages in the beginning and then building out a team with scripts and processes, wrote a guide to:

For technical founders it is irrationally, obscenely hard to reverse years of programming (ba dum bum) that sales is a value-destroying activity. Sales is CLEARLY a value-creating activity, contingent on you have a value-creating product.

The world will not drop what they are doing to adopt your work. This is particularly true in B2B, where simply building a better mousetrap won't overcome the activation energy required to get people with additional non-mice problems to prioritize changing mousetraps today.

This is very non-obvious for founders because founders are not often people who *want* to be sold to. We often come from a background where trying out tools is a bit of a fun hobby. We like looking at all the options, making charts, and ripping out partially complete tests.

"This week I unsuccessfully trialed four software options for automating that thing that has been killing us. Our actual production process remains the same as last week. Don't worry; this was a great use of time." is not a thing you want to write in a progress report to manager.
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Time for a Thread🧵On yesterday’s “F&O Pe Charcha - Diary Of An Option Seller” with @Mitesh_Engr by @Paytm Money

Why Gain/loss ratio is important that the batting average
• More than the Win Loss ratio check the total Gain /loss ratio
• If your avg loss is 1% and avg gain is +5% then even if you are losing in 7 positions and winning in 3 out of 10 still you will be net profitable

Treat Trading as a business:
• Stick to a single strategy. Eg: A restaurateur usually wouldn’t be changing his recipe on a daily basis
• Mitesh Sir only works on BO or BD strategy, as he is a versatile trader

• Any trader should atleast experience 3 scenarios i.e. bull, bear & consolidation
• Target 4% per month i.e. 48% p.a.
• Option buying requires skill, everyday there wont be huge momentum, so buying options won’t yield good results, but high chances of falling into a bad habit

Stock Selection:
• In F&O segment there are ~150 stocks
• Not everyday all stocks will move
• Only 5-7 stocks move upside or downside
• Focus only these momentum stocks
• Check which one is moving
• Range BO/BD never disappoints. BO/BD from a rectangle (consolidation)
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Thread: *Post-Liberal reading list*
1/ Religion and the Rise of Capitalism - R.H. Tawney
Unto This Last - John Ruskin
Liberty, Equality, Fraternity - James Fitzjames Stephen
The Great Transformation - Karl Polanyi
The Quest for Community - Robert Nisbet

2/ Family and Civilisation - Carle C. Zimmerman
Science, Politics and Gnosticism - Eric Voegelin
Liberty Before Liberalism - Quentin Skinner
The Great Debate - Yuval Levin
Lincoln and the Politics of Christian Love - Grant Havers
Where We Are - Roger Scruton

3/ The Humane Vision of Wendell Berry - Various
The Unsettling of America - Wendell Berry
Moral Matters - Mark Dooley
Red Tory - Phillip Blond
Blue Labour - Eds. Ian Geary and Adrian Pabst
Together for the Common Good - Eds. Nicholas Sagovsky & Peter McGrail

4/ The Politics of Virtue - John Milbank & Adrian Pabst
Localism in a Mass Age - Eds. Mark T. Mitchell & Jason Peters
The Antimodern Condition - Peter King
The Principle of Duty - David Selbourne
Nostalgia - Anthony Esolen
A Common Human Ground - Claes G. Ryn

5/ The Politics of Gratitude - Mark T. Mitchell
A Time to Build - Yuval Levin
Remaking One Nation - Nick Timothy
Despised - Paul Embery
Defending Identity - Natan Sharansky
Between Kin and Cosmopolis - Nigel Biggar
The Virtue of Nationalism - Yoram Hazony
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