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Saved by @curiousat3am

The most common problem faced by day-traders and it's easy solution which is extremely difficult to implement.
A thread.
( uses concepts I have discussed many times before in separate threads)

 Problem : I have a good system, I understand charts and/or price action, but I simply can't make money. I hold my losses too long or ( this is most common) I get out of profitable positions too fast and cannot sit for the whole move
At many firms at NASDAQ, day-traders are seen as elite sportspersons playing in a difficult taxing game. That's why, they have regular sessions with sports psychologists. They are advised to follow the basic routine of sportspersons.
Train ---- Play tournaments --- Rest
The cycle repeats
We retail day-traders here neither rest nor train.

Rest = taking time off markets
Train = trading in markets in training mode

Understanding REST is easy, simply take time off markets and spend time with family or do something you love
But what about training ?
Paper trading or trading on a simulator is never good training as it never gives you the same psychological issue while actual trading. Deep down you know this is fake, you are not making or losing actual money
As you are never making or losing money, you will not be able to be in the same psychological state / pressure which comes in actual trading. Your decisions while paper trading or simulated trading will be vastly superior or actual trading
The solution:
Trade 1 lot ( I am speaking about intraday options trading, cash traders can do this with a simple share of any stock) following your system/process for one month. This sounds easy, right?
Try implementing this, you will understand the massive psychological discipline and strength it requires. Majority fail to do this over a month and go back trading their normal volumes and thus face the same issues all over again
If you are in a trading slump for long and aim to claw back, give yourself 3 months.
First month = 1 lot
2nd month = 2 lots
3rd month = 4 lots
4th month = follow money mgmt/position sizing with a small bet per trade
I have used this "one lot" rule twice in my trading career to resolve my psychological issues while trading. In my time on twitter, have advised this method to probably hundreds and thousands of traders over the past few years.
So far, very few traders ( around 5 or 6) have followed this method diligently as I have outlined and come back to me with the results. Not surprisingly, all of them were profitable to various degrees
There is no short-cut solution is you are facing the same problem. No guru, no webinar/seminar/handholding/setup/system will be able to solve this issue.
As one of my students rightly said " when we go to a gym, the trainer can show us all the moves. But it's us who have to appear at the gym everyday and do the exercises if we have to improve our body"

Same with trading. Best of luck ! 🙏
Anthony Saliba, the only options trader to be interviewed in the first Market Wizards book was the original one lot trader. Indian fintwit has nicknamed me also as one lot, what a great title ! Thanks

https://t.co/oqCwSz8kfW

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Showing one example on how we see VolXplosion.
iBulHSgFin came under VolXplosion on 24th Feb, Check the price charts and the OI analysis. Price blasted today after OI buildup of two days.
Self explanatory


A single day long or short buildup can flutter to deceive. Analyse minimum 2 days to 5 days

SBI is now on watchlist
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I am seeing many users using the VolXplosion as a daytrading concept. It does work , but the main juice is on positional plays. You will be much better off if you take this trades from a positional standpoint

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Nifty fut : rising Lows and Highs, showing a megaphone or broadening formation on 15 min charts. Though a bearish pattern, here it seems has broken out. 11k CEs on monthlies seems badly trapped. As long as the CE is > 140, will maintain a strong bullish stance


EOD charts. Rising after strong accumulation and volumes. COI going up with rise in price. Can have a fast upmove anytime now till 11300. View negated below 10900


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BNF also strong accumulation yesterday. This model is also showing continuous accumulation since 16th. Almost same levels given in earlier tweet


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My presentation on Money Management was based on a lot of sources as I mentioned. For traders interested on those sources , here they are

#OptimalF
Portfolio Management Formulas: Mathematical Trading Methods for the Futures, Options, and Stock Markets by Ralph Vince

The Mathematics of Money Management: Risk Analysis Techniques for Traders by Ralph Vince

#SecureF

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The Trading Game: Playing by the Numbers to Make Millions by Ryan Jones

https://t.co/U0c65EbEog.
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This question might have rose in your mind too, that why VIX was lower than yesterday despite the huge selloff today.
This is what I think happens . A thread.


What is VIX ?
https://t.co/VOkAwGRsHL


What is IV ( implied volatility ) ?

Now my explanations. IV is simply demand and supply. IV is back calculated from option prices and not given by the BSM model. When demand for options ( by buyers) are high, IVs will be high. When supply of options ( by sellers) are high, IV will be low.

Now look at this chart. Nifty fut and VIX are plotted together ( red line is the VIX). Yesterday's massive breakdown forced traders to hedge their positions by buying puts ( could be cash holdings, could be future longs, could be sold puts). This excess demand spiked up IVs /VIX
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Perhaps you have the idea that calling me " 1 lot Nandy" is somehow derogatory and a easy poke at me. Allow me to explain why I look at this moniker as a badge of honour


I have traded 1 lot continuously twice in my life. The first in 2003 after I blew up on my INFY trade. I traded 1 lot ACC fut consistently and made 50k in a month

The 2nd time in 2013. When I suffered continuous losses for 5-6 months due to a variety of psychological issues. Then I traded 1 lot Nifty options consistently for 3 months. After that 2 lots for next 1 month and slowly increased

I have shared these two incidents on my various interveiws and regularly share this in detail with my handholding students when I talk about trading psychology.

This logic of trading 1 lot to iron out trading issues I learnt from the interview of Anthony Saliba, who traded 1 lot in options for 6 months. BTW, Saliba was the only options trader to have been profiled on the original Market Wizards ( I read his interview and used his logic)
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