Zerodha Varsity from @Nithin0dha's team is the best book for a newcomer to read and increase his basic knowledge about options, especially for the Indian markets.
Link: https://t.co/Lq6NpggqLP
Want to master Option Selling for free?
Here are the best resources.
A thread 🧵👇
Collaborated with @niki_poojary
Zerodha Varsity from @Nithin0dha's team is the best book for a newcomer to read and increase his basic knowledge about options, especially for the Indian markets.
Link: https://t.co/Lq6NpggqLP
The @tastytrade financial network. It's a foreign channel that focuses mostly on selling options.
They teach all strategies for free with their backtests.
Big on Straddle/Strangles selling.
Links: https://t.co/f5G5vU62aa
Power of Stocks - Subhasish Pani
What you'll learn:
1. How to form a trading plan.
2. How to scale an account with risk-reward in option selling.
3. Technical analysis logics you can use daily.
15 Learnings:
https://t.co/bv2mbhSaLn
15 Learnings from Power of Stocks: \U0001f9f5
— Aditya Todmal (@AdityaTodmal) January 23, 2022
Collaborated with @niki_poojary
You should know technical Analysis basics like:
- Support/Resistance
- Chart Patterns
- Candle Patterns
- Dow Theory (HH, LL)
This will help you start taking high-probability trades.
If you don't learn to manage your risk, making money in trading is going to be an extremely difficult endeavor
Have some rules:
1. Risk no more than 0.25% per trade as a beginner
2. Risk no more than 2% in a day for the first year
You have to decide how much you're willing to lose in a day.
Whatever the amount, divide it by 3. Just risk that amount in 3 trades in a day. Stop trading if you lose 3 times.
This prevents us from overtrading and losing more.
Beginners can learn and practice option selling with 5L capital.
You'll be able to trade 5 lots with this. If you're doing well can take leverage by buying options and selling more quantities.
(Only if you're doing well)
Target options that have over 90% probability of going to zero.
As a beginner target only 0.5% per week.
If you've been profitable for 6 months, try for targets like 0.75% to 1% a week.
If the market is in a range, can sell options on both sides outside the range and make a profit. (strangle)
If the market has given a breakout or breakdown then avoid non-directional trading
I started selecting strikes initially which were very low premiums. But had a higher probability of going to zero.
In order to become a really good trader, you need to have "profit cushion".
Once you get the profit can sell strikes based on:
- Support/Resistance
- Premium Based Strike Price
Get a sense of when and how to do adjustments.
I personally found trading in stocks is totally useless. Not worth the effort you put in.
Unlike an index, stocks can move > 10% and beyond in the F&O segment
Not worth the stress they cause
Find your comfort whether it's Nifty or Bank Nifty.
Personally, I have seen the switch from Nifty to Bank Nifty being quite difficult for some traders.
Might as well start practicing Bank Nifty from the get-go.
- Not building a portfolio when the market corrects 30%
- Venturing in stock options due to their luring premiums
- Intend to recover all losses from the same stock thereby ending up marrying a stock
Beginners would be doing great if they just manage to even break even after their first year.
Most people are wiped out in the initial years.
Later on, one can gradually move from 2-4% per month returns.
This is an area which we want to learn the most and focus upon in the next 2 years.
However, a simple rule to follow, if you're making 4% a month, don't lose more than 2% in any single week.
Big no! We are aware of greeks and have spent time learning them, but they have not helped us in a single trade.
If you know your support & resistance and when to exit, then no need to know Greeks.
Although we don't give much importance to option data as it doesn't work nowadays.
Opstra & NSE websites are enough, additionally, our friends really like Icharts and trading tick.
We've started to use Icharts properly now.
If you enjoyed this thread:
1. Follow us @Adityatodmal & @niki_poojary for more threads on Price action, Option Selling & Trading growth.
We've got you covered.
2. RT the first Tweet to share it with your audience.
I appreciate it!
More from Aditya Todmal
The most successful stock trader from America & the winner of all the trading competitions he competes in.
20 Powerful tweets to learn from @markminervini
A 🧵thread...
Jesse Livermore
Never let a loss exceed 8% changed his trading game for the
Key early decisions to make for your trading
Never listen to
20 Powerful tweets to learn from @markminervini
A 🧵thread...
Jesse Livermore
Some important quotes by Jesse Livermore... pic.twitter.com/UklL86oTvb
— Mark Minervini (@markminervini) June 16, 2021
Never let a loss exceed 8% changed his trading game for the
The big turning point in my trading came when I made a decision and vowed to NEVER EVER let a loss exceed 8%. During the next 5 years I averaged 220% per year for a total compounded return of 33,500%. It's been 28 years since and I have never broken that discipline not even once!
— Mark Minervini (@markminervini) April 26, 2021
Key early decisions to make for your trading
A few key decisions early in my trading career and my financial life completely changed for the better in just a few years.
— Mark Minervini (@markminervini) June 13, 2021
1. No big losses
2. No averaging down
3. No chasing extended stocks
4. No giving back decent profits
5. Always get odds on my money
Never listen to
Only losers discourage dreamers. Only those who never achieved big things discourage those attempting to achieve big things. Only those who think small discourage those who think big. Never believe discourages. The have no credibility! Believe winners. Believe in YOU! \U0001f447 pic.twitter.com/JdAhRy3lRJ
— Mark Minervini (@markminervini) June 14, 2021
One of the best directional traders, who always identifies directional moves early on and rakes in big bucks.
@niki_poojary is a pro trader and is sitting with an ROI of about 60% for the year.
Here are 7 of her best threads from 2022 to make you a pro today (completely free):
By the end of this thread, you'll learn 5 lessons:
1. 10 most Powerful Intraday Setups with Screeners
2. Systematically become a good trader
3. Bollinger band set-up
4. Fibonacci retracements
5. Create a Trading Plan using only Price Action
...and a few more
Let's go ↓
Create a Trading Plan using only Price
10 Powerful Intraday Setups with
1:4 RR Bollinger band
@niki_poojary is a pro trader and is sitting with an ROI of about 60% for the year.
Here are 7 of her best threads from 2022 to make you a pro today (completely free):
By the end of this thread, you'll learn 5 lessons:
1. 10 most Powerful Intraday Setups with Screeners
2. Systematically become a good trader
3. Bollinger band set-up
4. Fibonacci retracements
5. Create a Trading Plan using only Price Action
...and a few more
Let's go ↓
Create a Trading Plan using only Price
Do you want to know how to create a Trading Plan using only Price Action?
— Nikita Poojary (@niki_poojary) October 26, 2022
Here's a breakdown of 11 simple yet powerful steps to create one: \U0001f9f5
Collaborated with @AdityaTodmal
10 Powerful Intraday Setups with
10 most Powerful Intraday Setups with Screeners: \U0001f9f5
— Nikita Poojary (@niki_poojary) November 8, 2022
Collaborated with @AdityaTodmal
1:4 RR Bollinger band
A set up which has a minimum Risk/Reward (R/R) of 1:4
— Nikita Poojary (@niki_poojary) October 2, 2022
This set up can be used for intraday, option selling, option buying, as well as investing.
Maximum profit strategy by Subasish Pani.
Bollinger band set-up: \U0001f9f5!
Collaborated with @AdityaTodmal pic.twitter.com/aEIUVQF2XY
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Trump is gonna let the Mueller investigation end all on it's own. It's obvious. All the hysteria of the past 2 weeks about his supposed impending firing of Mueller was a distraction. He was never going to fire Mueller and he's not going to
Mueller's officially end his investigation all on his own and he's gonna say he found no evidence of Trump campaign/Russian collusion during the 2016 election.
Democrats & DNC Media are going to LITERALLY have nothing coherent to say in response to that.
Mueller's team was 100% partisan.
That's why it's brilliant. NOBODY will be able to claim this team of partisan Democrats didn't go the EXTRA 20 MILES looking for ANY evidence they could find of Trump campaign/Russian collusion during the 2016 election
They looked high.
They looked low.
They looked underneath every rock, behind every tree, into every bush.
And they found...NOTHING.
Those saying Mueller will file obstruction charges against Trump: laughable.
What documents did Trump tell the Mueller team it couldn't have? What witnesses were withheld and never interviewed?
THERE WEREN'T ANY.
Mueller got full 100% cooperation as the record will show.
BREAKING: President Donald Trump has submitted his answers to questions from special counsel Robert Mueller
— Ryan Saavedra (@RealSaavedra) November 20, 2018
Mueller's officially end his investigation all on his own and he's gonna say he found no evidence of Trump campaign/Russian collusion during the 2016 election.
Democrats & DNC Media are going to LITERALLY have nothing coherent to say in response to that.
Mueller's team was 100% partisan.
That's why it's brilliant. NOBODY will be able to claim this team of partisan Democrats didn't go the EXTRA 20 MILES looking for ANY evidence they could find of Trump campaign/Russian collusion during the 2016 election
They looked high.
They looked low.
They looked underneath every rock, behind every tree, into every bush.
And they found...NOTHING.
Those saying Mueller will file obstruction charges against Trump: laughable.
What documents did Trump tell the Mueller team it couldn't have? What witnesses were withheld and never interviewed?
THERE WEREN'T ANY.
Mueller got full 100% cooperation as the record will show.
