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)
Train ---- Play tournaments --- Rest
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
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
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?
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
Same with trading. Best of luck ! 🙏
https://t.co/oqCwSz8kfW
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 https://t.co/1Q8tOQ2U6a
— Subhadip Nandy (@SubhadipNandy16) July 16, 2021
More from Subhadip Nandy
This friend had trouble making money in options though he was directionally right. Let us see how a basic understanding of greeks would have helped him, This thread will be about two attributes of option pricing, extrinsic value and theta
An option has two parts, intrinsic and extrinsic value. Think of a pack of Lay's potato chips. When you buy and open the pack, what you find is some chips and a lot of air. Intrinsic value is the chips, extrinsic value is air
https://t.co/8ZPv4ZnCiL
https://t.co/icWmqSLENW
https://t.co/vHA6azEmbQ
Sir, today #niftybank was continue making new high, but 31700 CE was struggling to go up. I bought at 140, some how managed to sell it at 200. I m ok, in identifying directional edge but options behave differently.
— Vikash Shrivastava\U0001f1ee\U0001f1f3 (@VikashS28) May 27, 2019
An option has two parts, intrinsic and extrinsic value. Think of a pack of Lay's potato chips. When you buy and open the pack, what you find is some chips and a lot of air. Intrinsic value is the chips, extrinsic value is air
https://t.co/8ZPv4ZnCiL
https://t.co/icWmqSLENW
https://t.co/vHA6azEmbQ
IV - A thread
In financial mathematics, implied volatility of an option contract is
that value of the volatility of the underlying instrument which, when
input in an option pricing model ) will return a theoretical value equal to the current market price of the option (1/n)
Implied volatility, a forward-looking and subjective measure, differs
from historical volatility because the latter is calculated from known
past returns of a security. .
https://t.co/iC5wVf7kvj (2/n)
To understand where Implied Volatility stands in terms of the underlying, implied volatility rank is used to understand its implied volatility from a one year high and low IV.
https://t.co/NFPOidRRcH
https://t.co/qNqinEqaKY
(3/n)
Options traders are always looking at the IV and IVR/IVP. For option
buyers, a low IV environment is best to initiate positions as the
subsequent rise in IV actually helps their positions . Even if the IV
remains flat, the position is not hurt by volatility (4/n)
Option sellers on the other hand are looking for high IV scenarios, where
the subsequent fall in IV ( known a vol crush , most often seen after
earnings/events) helps their positions. Here also, if the IV does not
rise, it does not hurt a seller's positions (5/n)
In financial mathematics, implied volatility of an option contract is
that value of the volatility of the underlying instrument which, when
input in an option pricing model ) will return a theoretical value equal to the current market price of the option (1/n)
Implied volatility, a forward-looking and subjective measure, differs
from historical volatility because the latter is calculated from known
past returns of a security. .
https://t.co/iC5wVf7kvj (2/n)
To understand where Implied Volatility stands in terms of the underlying, implied volatility rank is used to understand its implied volatility from a one year high and low IV.
https://t.co/NFPOidRRcH
https://t.co/qNqinEqaKY
(3/n)
Options traders are always looking at the IV and IVR/IVP. For option
buyers, a low IV environment is best to initiate positions as the
subsequent rise in IV actually helps their positions . Even if the IV
remains flat, the position is not hurt by volatility (4/n)
Option sellers on the other hand are looking for high IV scenarios, where
the subsequent fall in IV ( known a vol crush , most often seen after
earnings/events) helps their positions. Here also, if the IV does not
rise, it does not hurt a seller's positions (5/n)
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1/“What would need to be true for you to….X”
Why is this the most powerful question you can ask when attempting to reach an agreement with another human being or organization?
A thread, co-written by @deanmbrody:
2/ First, “X” could be lots of things. Examples: What would need to be true for you to
- “Feel it's in our best interest for me to be CMO"
- “Feel that we’re in a good place as a company”
- “Feel that we’re on the same page”
- “Feel that we both got what we wanted from this deal
3/ Normally, we aren’t that direct. Example from startup/VC land:
Founders leave VC meetings thinking that every VC will invest, but they rarely do.
Worse over, the founders don’t know what they need to do in order to be fundable.
4/ So why should you ask the magic Q?
To get clarity.
You want to know where you stand, and what it takes to get what you want in a way that also gets them what they want.
It also holds them (mentally) accountable once the thing they need becomes true.
5/ Staying in the context of soliciting investors, the question is “what would need to be true for you to want to invest (or partner with us on this journey, etc)?”
Multiple responses to this question are likely to deliver a positive result.
Why is this the most powerful question you can ask when attempting to reach an agreement with another human being or organization?
A thread, co-written by @deanmbrody:
Next level tactic when closing a sale, candidate, or investment:
— Erik Torenberg (@eriktorenberg) February 27, 2018
Ask: \u201cWhat needs to be true for you to be all in?\u201d
You'll usually get an explicit answer that you might not get otherwise. It also holds them accountable once the thing they need becomes true.
2/ First, “X” could be lots of things. Examples: What would need to be true for you to
- “Feel it's in our best interest for me to be CMO"
- “Feel that we’re in a good place as a company”
- “Feel that we’re on the same page”
- “Feel that we both got what we wanted from this deal
3/ Normally, we aren’t that direct. Example from startup/VC land:
Founders leave VC meetings thinking that every VC will invest, but they rarely do.
Worse over, the founders don’t know what they need to do in order to be fundable.
4/ So why should you ask the magic Q?
To get clarity.
You want to know where you stand, and what it takes to get what you want in a way that also gets them what they want.
It also holds them (mentally) accountable once the thing they need becomes true.
5/ Staying in the context of soliciting investors, the question is “what would need to be true for you to want to invest (or partner with us on this journey, etc)?”
Multiple responses to this question are likely to deliver a positive result.
