Short Strangle

Net credit with a sideways stance

A thread 🧵

#options #trading

THREAD: SAVE YOUR TAX ON TRADING INCOME

Investors and traders want to make big money in the stock market. But what about paying taxes. All of them would like to save some chips.

In this thread, you will learn a few smart ways to save on your taxes

1. Set-Off Your Losses

Losses from speculative trading can be set off against speculative gains made during a year.

You can carry forward these losses for 4 years.

These losses can’t be set off against non-speculative trading income.

Losses from Short Term Non-Speculative trading can be set off against STCG as well as LTCG for the same year.

However, losses from Long Term trading can be set off against LTCG only.

An investor can carry forward such losses for a period of 8 years.

2. Plough Back Your Profits

Exemption on LTCG of up to 1 lac. So, you can plough back these gains to increase your capital.

Example ~

Investment = 5 lacs
Time period = 1 year
Profit = 1 lac

Book this profit after one year and re-invest after a few days.

No tax liability for this 1 lac but this time your new capital invested will be 6 lacs.

Almost every trader trades breakouts, yet very few are able to trade them properly.

In this article, we’ll be covering every aspect of breakout trading.

What are they?
Why do I prefer trading breakouts and not pullbacks?
And much more.
https://t.co/Mk5QW86x8s

Four Powerful Techniques to Trail Stop-Loss and Maximize Gains.

Are you still suffering from the problem of taking profits too early or getting stopped out too early?

Then this thread is for you.

This writeup will introduce you to some powerful techniques of trailing stop-loss which will help to stay in a trending stock for more time and hence maximize your gains.

Let's dive right in! 🧵

I have spiced up these techniques with some tweaks to make them more effective in riding the juiciest part of the trend.

Trailing is a technique that works well in a strong trending phase of the market.

The market is said to move in four phases – accumulation, markup, distribution, and markdown.

The markup and markdown are the trending phases so, trailing would work best during these phases.

The four techniques that I am going to discuss are:

1. Moving Averages Stops

2. Super Trend Stops

3. Swing Lows Stops

4. Percentage Stops

What! Do you already know about them?

I bet after going through the text below you will learn some new tweaks.

SJS Enterprises Ltd: Business Analysis

"A high ROCE cash-generating business, with a moat"

A thread 🧵

1. Company's Background:

• Incorporated in 1987, Company is a leading decorative aesthetic parts supplier to Auto and Consumer durables Companies in India.

• It is basically a design to delivery player in the industry.

• The end markets served are 2W, PV, CD, CV, Medical devices, Farm equipment & sanitary ware.

• It supplied over 115 million parts with more than 6,000 SKUs in FY21 to around 170 customer locations in approximately 90 cities across 20 countries.

• Product offerings include decals and body graphics, 2D & 3D appliques/dials, 3D lux badges, domes, overlays, aluminum badges, IMD/IML, lens mask assembly & chrome-plated injection molding plastic parts apart from 2-W & PV aftermarket accessories under ‘Transform’ brand.

2. Products:

One of the few aesthetics product manufacturers in India which offers advanced technology products such as Capacitive Overlays, Optical plastics, 3D Dials, and IML/IMD’s.

Almost every trader uses moving averages, but most of them do not know how to use them properly.

In below article, we will be covering some important ways in which you can use moving averages to enhance your trading.

https://t.co/mo73RAVvWB

🏆 TRADE EXECUTION 🏆

You do NOT have to know what's going to happen next in order to make money. We MUST identify our edge, and act on the edge with proper sizing and risk management.

In this thread I will go through multiple different trade situations and how to process them.

First and foremost, my RULES (tailor to your liking):

- No more than 10% of account in a trade (usually 5-7%)
- No more than 1 full position at a time
- No averaging down
- HARD stop loss @ -10% (you can always re-add the position)
- I do not hold overnight (100% cash)

Scaling in profit situations:
(I like to sell in 1/3's most of the time)

1. 15-20% scale 1/3

2. Scale next 1/3 into momentum on next leg (35-40%) or if it starts to reverse I will sell remaining position +10% or have breakeven stop

3. Next leg scale into momo. or stop out +20%

Stopping out:

KEEP LOSSES SMALL. If your max loss is -10% and average gain is 20%, then you can lose more trades than you win and STILL be profitable.

You must think of each trade as "playing an edge." The trade either works or it doesn't. Accept it.

My goal is to get an entry as close as possible to my trigger. That way if it goes against me, my loss is minimal. I am not looking for any sort of confirmation to take losses.

Suppose I enter just past my call trigger, but the very next minute, it drops back below. I'm OUT.