7 effective trading journal tools that you can use to make better decisions (instead of just maintaining a trading journal):🧵
Collaborated with @AdityaTodmal
80% of traders just maintain a trading journal and never evaluate.
Recording your trades on day-to-day basis is just maintaining a trade book which your broker can furnish anytime.
Hence this exercise of recording trades is simply futile.
4. Buy Date
5. Buy price
6. Sell Date
7. Sell price
10. % of cap risked
15.Set up used
Trade records on its own is just the raw data which needs to be processed to derive info out of it.
Record your 50 or 100 trades.
1. No. of wins
2. No. of Losses
3. % of winning trades ( No. of wins/Total trades)
4. Avg gain %
5. Avg loss %
6. Gain to Loss ratio ( 4./5.)
7. Reward to Risk ratio
8. Open Risk
If you have taken 50 trades in total of which let say 20 were in your favour then the no. of wins is 20 trades on 50.
Considering the above example the no. of losses = 50-20 =30 trades.
Simply divide the no. of winning trades divided by total trades.
i.e. 20/50 = 40%.
This is also known as the batting average (Reference drawn from @markminervini books).
If your capital is 10lacs, you make 20k out of it from one trade the % gain is 20k/10lacs i.e. 2% gain
Now take average of all the % gains out of your 50 trades
If your capital is 10lacs, you lost 10k out of it from one trade the % loss is 10k/10lacs i.e. 1% loss
Now take average of all the % losses out of your 50 trades
Simply divide Avg gain % to Avg loss %
Lets say you average gain works out to 15% and average loss works out to 5% then the Gain to Loss ratio is : 15/5 = 3:1
But it doesn't take into consideration the batting average
Lets say you have a 40% winning ratio, and you avg gain % is 15% and avg loss % is 5%
Then the Reward/ Risk ratio = 40*15/ 60*5 =2:1
Reference: Think and Trade Like a Champion book by @markminervini (A must read)
Check all the open positions with reference to SL.
However there's an overnight risk in case the stock/index opens with a gap.
Reduce your positions or use hedge mechanisms such that your open risk is at your comfortable levels i.e. usually between 2-5%.
The next time you record your trades on the trading journal try to analyse on the above 8 points.
Be creative and you can compute the winning %, gain to loss ratio and Reward to risk ratio for specific systems as well.
Bet more on the system that works for you.
More from Nikita Poojary
But ~90% don't know how to use their charting software optimally
Here are the 7 cool things you can do which you never knew 🧵
Collaborated with @AdityaTodmal
Many traders love @tradingview charting tool, but don't have a paid version/too lazy to follow the hacks that we shared
Traders who use @zerodhaonline as their broker platform can use @tradingview charting tool for free
Read this entire thread to know more
First things first, the default charting tool in Zerodha is ChartIQ
Change that to @tradingview by clicking on the profile settings
1. How to add indicators?
Open a blank chart & thereafter click on indicators to add whichever indicators you wish to add
2. How to customize further within an indicator?
For further settings within any indicator simply select the tool settings icon
• How options can be used
• How to trade in options & exit strategy- buyers
• Imp of theta decay
• How to trade in options & exit strategy -sellers
Time for a Thread🧵
Curated in collaboration with
• The lame textbook def of right but not the obligation etc is simply confusing
• This is how you can remember, by understanding the logic of the instruments with your view on the market
• In a nutshell: Options are instruments used to express your view on the market
• The view could be same but the instruments played by the buyers and sellers could be different
• For Option buyers:
• Its imp to set a price target
• and to set a time target as well
• Time is an important factor to be considered
• Movement should outweigh the time decay
👉Free trading scanners
👉Powerful lessons from Power of Stocks videos
👉Mr. Radhakishan Damani's inspiring journey as a trader, investor and entrepreneur & much more
🧵 The 10 best threads from April 2022 (that you may have missed):
10 Powerful learnings on Directional trading:
The best traders are all directional traders.— Aditya Todmal (@AdityaTodmal) April 1, 2022
We should be investing our time into learning what the best traders are doing.
I have traded with @niki_poojary for the past year, who is an aggressive directional trader.
Here are my 10 learnings trading with her: \U0001f9f5
Best Threads from Q1
How to develop a right mindset and draw inspiration from Pro traders
"Nothing can stop the man with right mental attitude from achieving his goal, nothing on earth can help the man with the wrong mental attitude" - Thomas Jefferson— Nikita Poojary (@niki_poojary) April 2, 2022
Thread: Psychology, being grateful, draw inspiration & the trading RoI's\U0001f9f5
Collaborated with @AdityaTodmal
12 Powerful concepts from Power of Stocks (by Subashish Pani)
Save 100+ hours & money each week
Here's 15 Coolest Money Apps:
Collaborated with @AdityaTodmal
1. GPay ( @GooglePay )
• Digital payment app powered by Google with zero fees.
• Contactless payments.
• Send or request funds.
• View offers from Google partners.
• Track your spending.
Link for the Gpay App:
Android Playstore: https://t.co/Nz0QFmRsG4
2. Tradingview ( @tradingview )
• Powerful charting tool.
• Customized watchlist.
• Social Network for people to share trading ideas.
• Customized alerts.
• Supports multiple asset classes.
Link for the Tradingview app:
Android Playstore: https://t.co/oXTLawErFK
More from Screeners
I was thinking about what kind of resources I'd want to have if someone has to start learning investing right now, the ones I wish I had two three years back.
This thread is a compilation of the best resources I have come across. 👇👇👇
Let's start with ** BOOKS **
1) The Intelligent Investor - Ben Graham :
Classic book, suggested by investors all over the world. Start with this book.
2) One up on Wall Street
Peter Lynch covers his strategies to find 10 baggers, and describes how an average Joe can do as well as the pros with simple methods and rock solid discipline and consistency backing it.
3) Common Stocks Uncommon Profits
This is a Phil Fisher classic.
It's on the other end of the spectrum as the book dives into a deep qualitative approach in value investing rather than being fully quantitative like Ben Graham's.
4) Security Analysis
Another book by Ben Graham that dives deep into analysing and understanding the valuations of any company you pick up to study.
1) Volatility, Volume & daily range compression scanner
3) GE Ratio - to track fundamentally strong stocks
4) Recently created one to track Power Play setups.
I get around 150-200 stocks daily & choose the ones with the most potential.
Sir, How do u find a set up - Do you track chart of each stock daily ? Or do u have filters , that lead you to a number of stocks , after which you scan them.— AKASH GUPTA (@lockdownmurti) August 25, 2021
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Independent and 100% owned by Joe, no networks, no middle men and a 100M+ people audience.
Joe is the #1 / #2 podcast (depends per week) of all podcasts
120 million plays per month source https://t.co/k7L1LfDdcM