BC FINANCE
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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However, a trader trying to learn Greeks face the problem of information overload. The problems are mainly 3
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2. Or the explanation is too simple just skimming the surface
3. In some cases, outright wrong info ( specially on youtube)

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The video will be from the view of a trader/practitioner and not just a theoretical discussion.

I sincerely hope starters will be benefitted from my effort 🙏
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My experiences in trading through various international locha events, high VIX and various events.
A thread

I follow the news, but never think of myself smart enough to predict what is finally going to happen. I am not a geopolitical expert, smarter brains than me are analyzing and acting on the news

Their actions are reflected on price, volume, OI. Following the data keeps me at par with the latest news

Be ready to cut your existing positions ruthlessly when data changes, be ready to absorb the loss and get out of the position. Never hold onto with hope.
Never works

Reduce trading volumes. Higher the volatility, lower the trade size.
Use lower volumes and bigger stops to counter the volatility
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Received quite a few messages from traders who lost big in yesterday's BankNifty expiry . This includes both buyers and sellers .

The common refrain is " It's operators / big players who screwed the retail , BankNifty should not move like this , SEBI should investigate "

Are you fucking kidding me ?

The volatility yesterday was minimal , max 1% upmove dowmove . If you or your strategy cannot handle this , you should not be in this game

Let me give an example :
In order to play cricket , you go thru net practice by practising batting against slow medium pace bowlers . You do this for a few days

Then you arrive for a match on a fast bouncy pitch with some tearaway quicks in the opposition. Your lack of technique and experience is brutally exposed , obviously .
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Simply buy a CE and PE of same strike before an event, whichever way rhe stock moves post event you make money

But real life is a tougher place, so this did not work in practice 🤣

Vols went up before event pricing in the risk, and since vols over estimate event impact in general, majority of the time there is a vol crush post event and straddles lose money. ( this is why sellers sell)

But the markets now is a strange place. Vols refuse to go up before an event. We have GDP data today evening and Gujarat election results within next weekly expiry. The cost is 1.3% of Nifty for the next week straddle with 8DTE .

So whoever is selling this straddle does not expect Nifty to move 1.3% from here, either up or down within next Thursday? Does not make sense.
Vols not rising before event makes it a no brainer to buy this straddle

With vols not going up before event and with such low vols, chances of further vol crush are slim. Plus, even if markets now go up further, I think traders will get a bit nervous/fearful pushing vols up.

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