THREAD - (Short term Options)
Many of the messages I get regarding options are referencing outside the money (OTM) calls w/ expirations a week or two out (or less)
It's no wonder these traders are often very concerned (even frantic) about the outcome of their trades.
a.k.a. Long term options typically w/ an expiration of longer than a year)
While playing OTM weekly options has the potential for huge returns, & will undoubtedly get your adrenaline pumping, it's also an easy way to lose your💰
Each trade should be a *very* small percentage of your account, and you should assume that every trade you make is going to zero.
You can still make massive returns on options that have expirations that are 2+ months, even 2+ years out without taking on so much immediate risk.
Once you take the time to fully understand the power of compounding, you'll be much less likely to want to trade vehicles with extremely high risk.
When I started placing more focus on consistency, protecting my capital, and compounding my money instead of hitting home runs, my account grew exponentially faster 📈
More from Economy
On Jan 6, 2021, the always stellar Mr @deepakshenoy tweeted, this:
https://t.co/fa3GX9VnW0
Innocuous 1 sentence, but its a full economic theory at play.
Let me break it down for you. (1/n)
On September 30, 2020, I wrote an article for @CFASocietyIndia where I explained that RBI is all set to lose its ability to set interest rates if it continues to fiddle with the exchange rate (2/n)
What do I mean, "fiddle with the exchange rate"?
In essence, if RBI opts and continues to manage exchange rate, then that is "fiddling with the exchange rate"
RBI has done that in the past and has restarted it in 2020 - very explicitly. (3/n)
First in March 2020, it opened a Dollar/INR swap of $2B with far leg to be unwound in September 2020.
Implying INR will be bought from the open markets in order to prevent INR from falling vis a vis USD (4/n)
The Second aspect is now, that dollar inflow is happening, and the forex reserves swelled -> implying the rupee is appreciating, RBI again intervened from September, by selling INR in spot markets. (5/n)
https://t.co/9kpWP7ovyM
https://t.co/fa3GX9VnW0
Innocuous 1 sentence, but its a full economic theory at play.
Let me break it down for you. (1/n)
91 day TBills at 3.03%. Interest rates are even lower than RBI has them.
— Deepak Shenoy (@deepakshenoy) January 6, 2021
On September 30, 2020, I wrote an article for @CFASocietyIndia where I explained that RBI is all set to lose its ability to set interest rates if it continues to fiddle with the exchange rate (2/n)
What do I mean, "fiddle with the exchange rate"?
In essence, if RBI opts and continues to manage exchange rate, then that is "fiddling with the exchange rate"
RBI has done that in the past and has restarted it in 2020 - very explicitly. (3/n)
First in March 2020, it opened a Dollar/INR swap of $2B with far leg to be unwound in September 2020.
Implying INR will be bought from the open markets in order to prevent INR from falling vis a vis USD (4/n)
The Second aspect is now, that dollar inflow is happening, and the forex reserves swelled -> implying the rupee is appreciating, RBI again intervened from September, by selling INR in spot markets. (5/n)
https://t.co/9kpWP7ovyM
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My top 10 tweets of the year
A thread 👇
https://t.co/xj4js6shhy
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https://t.co/A7XCU5fC2m
A thread 👇
https://t.co/xj4js6shhy
Entrepreneur\u2019s mind.
— James Clear (@JamesClear) August 22, 2020
Athlete\u2019s body.
Artist\u2019s soul.
https://t.co/b81zoW6u1d
When you choose who to follow on Twitter, you are choosing your future thoughts.
— James Clear (@JamesClear) October 3, 2020
https://t.co/1147it02zs
Working on a problem reduces the fear of it.
— James Clear (@JamesClear) August 30, 2020
It\u2019s hard to fear a problem when you are making progress on it\u2014even if progress is imperfect and slow.
Action relieves anxiety.
https://t.co/A7XCU5fC2m
We often avoid taking action because we think "I need to learn more," but the best way to learn is often by taking action.
— James Clear (@JamesClear) September 23, 2020