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Saved by @SAnngeri

Trading Mistakes & Lessons Learnt 🧵

1) I always keep my mistakes & lessons learnt in front of my screen while trading.
Bcz we as traders tend to commit the same mistakes everytime.

So seeing your learnt lessons everyday ensures that you avoid them.

#trading #mistakes

 2) In 2017, I analysed all my trades and saw that I have majorly lost in stock futures and profits came only via index trading.

I accepted that I am not great at stock trading & been trading index only majorly since then & have never missed a day trading BankNifty
3) I decided to adjust all of my past losses to 1 % of capital to see the effect of capping the downside.

I would have had a gain of more than 230 % if I had capped losses at 1% of cap.

Lesson: Keep losses per trade less than 1% of capital no matter what !
4) While trading index options, I lost sometimes due to IV rise,flash crash, and option freezes.

Lesson: Never take markets lightly & Always keep protective stops in the system (and not in your mind) to keep loss in control in case of blackswan.
5) Being an option seller, I have a tendency to manage my position by rolling up/converting to calendar etc.

So many times I have wasted 1 or 2 weeks just to close a loss making trade at cost😢

Lesson: I do manage now but exit as soon sold options become ITM or 2 x in value.
6) “Option sellers eat like a chicken but shit like an elephant”

So always always manage risk especially while selling options.

Eg. Corporate tax rate cut day, demontisation, surgical strike, 2020 fall etc were brutal moves & if not managed properly can take years of profits.
7) I used to carry naked far otm puts overnight position on largecap stocks thinking I was safe but on 18th Aug 2017 Infy was down 13% as CEO resigned.
Luckily I had only 1 lot but learnt a good lesson

Lesson : Always hedge your overnight position
8) From the lesson learnt from INFY trade I got saved later in my career

I had a position in Yesbank but it opened 10% gapdown next day but I got saved as position was completely hedged.

Lesson: Learn from your mistakes,note them in journal & never repeat it again!
9) If possible also write about your biggest losses and how you felt that time so that you make sure you never go thru that emotional pain again by repeating earlier mistakes.
10) I committed the same mistakes for years.
Inspite of knowing that I shouldn’t commit them.
Bcz we as humans tend behave in a certain manner everytime.

So , it’s best to keep your lessons/mistakes hand written in front of you and read everyday before trading.
11) We as traders get complacement when we are on a winning streak & my largest losses have come after my largest winning streaks

Lesson :
Never get complacement & always remember that market is supreme🙏
So stay humble always !
12) I have also written about my largest losses & the reason for the drawdown.

Was it my fault ?
Did Market conditions change?
How I felt during the drawdown ?
What could I have done better ?

Lesson :
All this gives you the confidence to sail your next drawdown smoothly.
13) I think the key component in trading success is stock selection and limited focus.

-Select any 1 liquid instrument and analyse it’s historical behaviour in detail and build a rule based strategy around it.
-Stick to your strategy and never miss a trade in it.
14) Know all major levels, how the instrument moves generally & behaviour of that particular stock.
- Generate additional insights & incorporate the feedback & insights back in to your trading strategy.
- This sheer focus will give you the results you have been craving for.

End

More from Sourabh Sisodiya, CFA

Sourabh Sisodiya, CFA
Sourabh Sisodiya, CFA
@sourabhsiso19
One of all time favourite motivational song & I listen to it almost daily😊

Underrated song but a true nasterpiece with amazing lyrics & music👌🏻

https://t.co/Omhz4gyJqI

Let me know if you had heard this song before & how did you find it!

#music #inspiring
MUSIC
Sourabh Sisodiya, CFA
Sourabh Sisodiya, CFA
@sourabhsiso19
New Youtube Video :

Top 7 Books that Every Trader Must Read to Become a Successful Trader !

I have personally benefited a lot from these books and I am sure you'll also benefit in the same manner :)

https://t.co/A7aS4JgDrW

#trading #youtube #books
BOOKSTOREAD
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Sourabh Sisodiya, CFA
Sourabh Sisodiya, CFA
@sourabhsiso19
Thread
How to manage strangles dynamically incase of a violent move or IV spike ?

1) Yesterday and infact entire last week if you had created strangles you would have experienced that during upmove only call side were increasing but puts weren’t decaying.

#trading #Options

2)In morning I had created a short strangle
200 lots 25000 PE sell at 102
200 lots 27000 CE sell at 161

You can sell from below image that if I had waited in this strangle till day end I would have lost around -4.5 L

So lets see what all adjustments did I do logically.


3)After creating strangles the premiums strarted increasing as puts were not decaying and calls were increasing.
So I had kept 100 lots buy on 26500 CE at 400(day high)
My buy got executed at 400 around 12:15 pm & I exited 25000 PE at 75


4) I had kept more 100 lots buy at 435 (recent high made during upmove till now)

The buy got executed at 12:15 pm
So my current open postions now were

200 lots 26500 buy at average 420
200 lots 27000 CE sell at 161


5) Logic:
As short strangles are basically short vol so if there is a movement on one side with no decay then one can start buying atm calls.
What this does is it converts your strangles into ratio spread and if move continues eventually into a debit spread
SOURABHS STRANGLE ADJUSTMENT STRATEGY
Sourabh Sisodiya, CFA
Sourabh Sisodiya, CFA
@sourabhsiso19
Options Thread

How options allows to change and adjust view dynamically.
Let’s understand with a live example.

Example : Nifty is at 11921 and you are bullish on Nifty.

1) Buy Naked 11900 CE(call) at 167

Breakeven : 12068
Max Loss : Rs 12555
Max Profit : Unlimited


2) Now your view changes from bullish to slightly bullish so you can convert naked call into a bull call spread by selling 12100 CE at 72

Breakeven : 11996
Max Loss : Rs 7100
Max Profit : Rs 7800

#OptionsTrading #trading


3) Now your changes from slightly bullish to slightly bearish. You can convert the bull call spread into a ratio spread by selling more 2 calls of 12100 CE

Breakeven : 12224
Max Loss : Unlimited above 12224
Max Profit : Rs 18550

#OptionsTrading


4) Now if your view changes to sideways then you can buy 2 lots of 12200 CE to convert the ratio spread in a butterfly spread.

Breakeven : 11936 to 12182
Max Loss : Rs 2600
Max Profit : Rs 12300

#OptionsTrading
OPTIONS DYNAMIC ADJUSTMENTS
Sourabh Sisodiya, CFA
Sourabh Sisodiya, CFA
@sourabhsiso19
How to manage straddles :

1) As bnf open was within yesterday range created a 29000 straddle at around 9:30 am

29000 PE sold at 528 and
29000 CE sold at 453

#trading #OptionsTrading


2) Instead of keeping SL on sold legs. I keep SL on otm options in the system

SL was on 28000 PE at 220 (day high)
SL was on 30000 CE at 165 (day high)


3) At 10:15 am, Bnf started to trend down and 28000 PE was bought at 220 and I immediately bought 30000 CE at 110


4) If you look at the straddle chart, there were lot of intraday spikes and your SL would have been hit if you had kept SL on atm sold legs


5) But after lot of intraday spikes the straddle from 980 closed at 880. A 100 point decay intraday.

But even if both your buy option got triggered you would have made around 15-20 points inspite of such violent moves on both sides.
SOURABHS STRADDLE STRATEGY

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VWAP for intraday Trading Part -1

A small thread PART -2 will be released tomorrow

Traders show your support by like & retweet to benefit all

@Mitesh_Engr @ITRADE191 @ProdigalTrader @nakulvibhor @ArjunB9591 @CAPratik_INDIAN @RajarshitaS @Stockstudy8 @vivbajaj @Prakashplutus


Chart No-1


Chart No -2


Chart No -3


Chart No -4
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@Prakashplutus
Last time I shared a basic stock screener for Investors.

Today I will share 1 Basic stock screener for traders .. 👍
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Learn to Trade
Learn to Trade
@learntotrade365
VWAP for intraday Trading Part -2

A small thread.

PART 1 - https://t.co/ooxepHpYKL

Traders show your support by like & retweet to benefit all

@Mitesh_Engr @ITRADE191 @ProdigalTrader @nakulvibhor @RajarshitaS @Puretechnicals9 @AnandableAnand @Anshi_________ @ca_mehtaravi


Chart 1


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Flamingo Trader |Ankit Saraswat
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Best candlesticks pattern for Btst:-

Bullish Tasuki Line Candlestick Pattern

👇👇👇

#StockMarket #Btst #Stocks

It consists of 2 candles.
The first candle is a long bearish red candle and the second candle is a long bullish green candle.

The second candle should open with a gap up and close above the high price of the first candle.


This pattern is mainly formed after a bearish rally or bottom formation.

In this pattern the volume of the second candle should be greater than the volume of the first candle.

It works well for btst and positional.

Can enter BTST before market closing in last 5 minutes.

SL will be below the low of the red candle.

Good time frame:- 15 minutes and 1 day (works best)

Will slowly made thread on all imp candle stick patterns for Btst.

Retweet the first tweet.
Follow us for learning Btst.
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Volatility Volume and Value
Volatility Volume and ...
@VVVStockAnalyst
This is the Ideal Place to Start Buying after the Market decline

Let the Stage1 form and then buy with patience when it moves to Stage2

Cash is a position 👌

Buy the Dip is not required to get Rich

#VVVLearning
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From today, we will memorize the names of 27 Nakshatras in Vedic Jyotish to never forget in life.

I will write 4 names. Repeat them in SAME sequence twice in morning, noon, evening. Each day, revise new names + recall all previously learnt names.

Pls RT if you are in.

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Today's Nakshatras are:-

1. Ashwini - अश्विनी

2. Bharani - भरणी

3. Krittika - कृत्तिका

4. Rohini - रोहिणी

Ashwini - अश्विनी is the FIRST Nakshatra.

Repeat these names TWICE now, tomorrow morning, noon and evening. Like this tweet if you have revised 8 times as told.

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Today's Nakshatras are:-

5. Mrigashira - मृगशिरा

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First recall previously learnt Nakshatras twice. Then recite these TWICE now, tomorrow morning, noon & evening in SAME order. Like this tweet only after doing so.

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12. Uttaraphalguni - उत्तराफाल्गुनी

Purva means that comes before (P se Purva, P se pehele), and Uttara comes later.

Read next tweet too.

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Purva, Uttara prefixes come in other Nakshatras too. Purva= pehele wala. Remember.

First recall previously learnt 8 Nakshatras twice. Then recite those in Tweet #4 TWICE now, tomorrow morning, noon & evening in SAME order. Like this tweet if you have read Tweets #4 & 5, both.
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