BC TRADING

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Trader knight
@Traderknight007 4 years, 4 months ago 731 views

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Why 90% of the traders even after winning 90% of the times gives it back to the markets?

Has this ever happened to you, That you are up 10% on the month and you feel crazy, but the next morning you give it all back to the markets?

What Causes You to Give It All Back?

Thread-

1. Euphoria-

It is the state of mind in which we can not perceive risk, In state of euphoria nothing can go wrong.

So when you are in this state of mind, you feel invincible and there is nothing in the world which can stop you from making money.

That’s why when most of the traders after a winning streak put a Huge position and then Boom, all the luck goes for a toss.

Think about it why most of the traders loose big money when the market starts to go in bear mode from bullish mode, because

when the markets are in a bull market, even if you take trades based on your neighbor recommendation most of them will be right

"Felling too good is not good for your trading"

Winning gives you dopamine rush, And when you trading to get right often you are just feeding your ego

The evolved trader recognizes that winning simply means that you landed on the right side of probability. That’s all. There is no reason to get excited.

It’s just probability and you have an edge that gives you an advantage in the randomness of probability.

And when you lose, you have only landed on the wrong side of probability relative to your concerns.That’s all. It’s just probability

It is not about you.Consistent profitability is simply showing you that your system is working

It is not about your capacity to be right and win

2. Lust-

It is not the desire for wealth that is the problem – it is the lust or worship of wealth or money that leads to trouble

The major problem with winning is that it ignites the lust for money

And because it is such a powerful emotion

it can easily overwhelm the discipline, patience, and impartiality needed for effective trade management.

These are the two beliefs which you have to change in order to make your trading from a lucky streak towards a balanced profitable way.

The potential of a successful trading mind is in the balance

Lastly, You have to choose between those things which will benefit you in the long term rather than short term craving.

More from Trader knight

Trader knight
@Traderknight007

Overthinking - The art of creating problems which weren't even there.

Thread on How Over-analysis leads to decision Paralysis-

What is Analysis paralysis?

In simple terms, analysis paralysis is a person's tendency to over-analyze or over-think upon a decision to such an extent that he/she fails to make a choice resulting in a paralyzed state of inaction.

How a retail trader trades-

A trader named Rahul, He know all the basics of markets, He also has made a system which gives signals on nifty, he has also encorporated good Risk management and Position sizing into his system.

One day he gets a signal to buy Nifty at 13500 with stop at 13450, he wanted to take the trade, but he wanted to get sure that the trade he has take should be a winner.

So he says just let me check the RSI if its above this level I will buy , he checks it and it was above his

level, then again he wants to check another indicator named MACD, he wanted to get sure man, Now he do the most intelligent thing to get sure he gets right.

He goes to twitter and ask his twitter Friend Trader knight he ask him that should I buy nifty at 13500,

Trader knight
@Traderknight007

Are we Inherently Risk takers or Risk averse?

A thread-

You might have heard this word “Mental capital”

What does it mean actually ?

In the context of markets, It's the Risk that our mind is able to digest seeing the P&L.

If we breach this ceiling of Risk ,Our mind goes berserk, and we are not able to take rational decisions.

So can we increase this Mental capital level?

Let's dive into my story of how My mental capital levels changed over time, that will answer the question that are we inherently Risk takers or Risk averse.

When I started trading a few years back, with about 3 lakh capital, I was not a greedy person, and I had limited expectations from the markets.

Like every other beginner, First 1.5 years were great, made a lot of money,

which I wasn't even expecting to make, turned that 3 lakh to more than 12+ lakhs in that period.

This was only possible by taking huge leverage, which i didn’t know at that time was a big mistake i was doing.

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Trader knight
@Traderknight007

Pyramiding 2.0

A thread-

What is pyramiding?

It is simply adding to your winners.

Why use pyramiding?

1. It makes your winners bigger than your losers.

• Because you are adding positions when your trades are going your way, you are increasing your gains but your losers will be small comparatively.

2. You lose less during Draw-down time ( it saves you from losing big during whipsaws )

• Many times when the market is in sideways mode, Entering a trade with full risk might not be the best idea.

• So, you test the waters with a small position first, it could be ⅓ or ¼ of your total risk.

• So if the Breakout fails or whipsaws come, then you will only lose a small part of your overall risk.

• Then when position starts to go in your favor you can add to it.

3. It helps you to concentrate on a few trades,

They say that don’t put all your eggs in one basket, but don’t put them in too many either.

• See, Everyone can see charts and find breakouts, pullbacks etc.

Trader knight
@Traderknight007

How position sizing can affect your trading performance-

Assuming that you are trading a Trend-following system with Big RR and low win-rate.

For example, assume that you risk one percent per trade on a 100,000 account
and you have 20 straight losses.

That one percent is of your remaining equity and at the end of 20 losses, you would be down to 81,790.60.

Now if you got a 30R winner and you are risking one percent of your balance of 81,790.60, your new equity would be 106,327.9,

You’ve had 20 losses and one winner though you are still up 10Rplus your equity is up by 6.3R percent.

Now, let’s say you risk five percent per trade on your balance. At the end of 20 straight losses, you would be down to 35,772.89 or down 64 percent.

If you risk five percent on this amount and get a 30R winner, you would be up to 89,621.48. You are up 10R, but because of your position sizing, your equity is still down over 10 percent.

#positionsizing
#Trading
#nifty50

This is why position sizing is the most important factor in trading if you get it right and you have an edge, you will do good.

Thanks for reading till here.
@AnandableAnand @jitendrajain @quatltd @sohamtweet

Trader knight
@Traderknight007

"Start your Trading day with a fresh and empty mind."

Ever faced stress and strong emotions after having loss day and under-performance for a long time after that?

Thread on Emotion and how to control them with help of trading journal

Poker players calls it TILT.

Tilt is pretty much any reason for you to trade sub-optimally.

Greed and fear are tilts in trading.

When normally you have a stressful day (not in trading) and you go to bed with a bad mood, the next day you wake up fine without much stress .

So where did the emotion go?

The brain absorbs and digests all the emotions.

But, when you have a big emotional and loss day , and then a sleepless night, the brain cant digest those emotions as easily.

The next day you wake up to trade , you don’t feel quite right, you feel fear.

So, now you are not starting with an empty cup.

Now your tilt threshold level ( the level where your decision making ability reduces and you take bad decisions ) decreases.

Now, you will be angry a little faster then normally and feel fear more then you do.

So,how to empty your mind after having a bad or even a good day?

By using a Trading journal.

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$Anarchist \U0001f4a3Federation \u2764\U0001f5a4$

Anarchist 💣Federation ...
@AnarchistFed

While watching the GameStop stuff has been mildly hilarious (I mean who doesn't like watching the financial elite squirm?) it's pretty clear that a whole bunch of folk have convinced themselves this is ACTUALLY some kind of revolutionary activity. It isn't. 1/

Sure, it's highlighted yet another way in which the bastards profiteer but that's about it, stick it on the pile with the fifty other pro tips to keep the poor, well poor... It's todays banter and tho a few folks might have egg on their faces, literally nothing will happen. 2/

GameStop's three largest shareholders have earned £1.5bn+ during this. They sit at the top of some 200 institutions which are rolling. Meanwhile the ersatz rebels are now watching the bubble, realising there is profit to be made and having a wibble. 3/

No doubt some TRULY believe they are taking part in some kind of revolution but frankly it's utterly absurd and the vast majority are in it for the lulz and to cash in quick.

I'm sorry to tell you this, but you don't own GameStop.

4/

The reality is, the scale of the economic disparity and corruption is simply vast. Billionaires loosing a few millions means nothing. They buy one less yacht and you continue to live meal to meal.

The "Free Market" changes a few systems and the abuse continues. 5/

Brian Feroldi
@BrianFeroldi

1/ How to review quarterly earnings 🧵

A step by step guide using $DXCM as an example

⬇️

2/ The BIG question: Is the thesis on track❓

Other question:

❓Is revenue growing?
❓Are margins stable/expanding?
❓Profits?
❓Balance sheet?
❓New opportunities?
❓New threats?

3/ I open 4 browser tabs

Tab 1 - Current company earnings report / shareholder letter

Tab 2 - Previous company earnings report / shareholder letter (check guidance)

Tab 3 - Analyst estimates

Tab 4 - Call Transcript

4/ Tabs 1 & 2 - Find the current & previous earnings report

I search "Dexcom Investor Relations"

I click on "press release"

Open the newest quarterly earnings report and last quarter

It can also be a shareholder letter/presentation

5/ Tab 3 - Find the quarterly analyst estimates

Open up $DXCM in yahoo finance

The "news" section usually has a link to reports on whether the company beat/met estimates

The "analysis" tab is a good source, but sometimes it updates to the next quarter too quickly

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Sarang Sood
@SarangSood

THREAD ON DELTA (The most important GREEK)

Many traders don't indulge in understanding GREEKS because they think they are very complicated.

There are 4 primary greeks:

Delta
Gamma
Theta
Vega

In my experience, understanding DELTA is enough to take benefit of greeks.(1/n)

Delta measures the rate of change of options price based on the directional movement of the underlying.

So this means we can know in advance (theoretically) how much an option will move with the underlying & so we can prepare our strategies accordingly. (2/n)

Value of delta varies between 0 & 1 for calls and -1 & 0 for puts. This figure tells how much an option price will change, when the underlying moves 1 point. So example a delta of .2 of call indicates that for every 1 point change in the underlying, the price will move .2 (3/n)

For option writers who want to trade in neutral strategies like straddle, strangle, ratios, calendar etc, delta can be very helpful. So be it any complex strategy, knowing the NET DELTA can give you an idea of how your strategy will perform in different scenarios. (4/n)

Net delta is just the sum of the deltas of all the bull options (call+ & put-) minus the bear options (call- & put+).

So if we can track this, we will always be in the know of how much exposed our position is. It makes it easier then to adjust our position. (5/n)

TraderLion
@TraderLion_

20 lessons from trading legend Stan Weinstein:

Volume is a gauge of how powerful the buyers are... Never trust a breakout that isn't accompanied by a significant increase in volume.

1/20

$Emperor\U0001f451$

Emperor👑
@EmperorBTC

Crypto Day-Trading Secret Strategy.

SIMPLE. HIGH PROFIT. NO NONSENSE.

One of the best strategies for Scalping crypto.

Share it to help all beginners.

(A THREAD)🚀🚀

We will use three basic indicators.

1. Pivot Points
2. Stoch RSI
3. VWAP

Note- This strategy will have a MUCH higher probability of success if basic Price action, volume and Candlestick pattern is kept in mind.

USE THE STRATEGY:

I will introduce the tools and then explain the strategy.

I Will talk about the calculations to arrive at the indicators separately.

IMPORTANT- Don't use the indicators alone.
Eg. Stoch RSI has less than 26% hit rate so you can't use it alone to trade.

Tool 1- Pivot Points:

They are reversal points based the historical prices.
Go to the indicators tab and type 'Pivot point standard'

The settings to be used have been disclosed in the pic below.

Note- You can choose your own settings but I have disclosed the ones I use.

This is what they will Look like.

Ignore All notations and just remember.
ALL the lines are Support or Resistance lines
(Lines of Interest)

It doesn't matter if it's been denoted as P,R or S.

We will learn how to use them below, practically.

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This is NONSENSE. The people who take photos with their books on instagram are known to be voracious readers who graciously take time to review books and recommend them to their followers. Part of their medium is to take elaborate, beautiful photos of books. Die mad, Guardian.

Beautifully read: why bookselfies are all over Instagram https://t.co/pBQA3JY0xm
— Guardian Books (@GuardianBooks) October 30, 2018

THEY DO READ THEM, YOU JUDGY, RACOON-PICKED TRASH BIN

If you come for Bookstagram, i will fight you.

In appreciation, here are some of my favourite bookstagrams of my books: (photos by lit_nerd37, mybookacademy, bookswrotemystory, and scorpio_books)

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Jig's Patel
@jigspatel1988

How to trade on Expiry day with Nifty straddle?
(System trading on Expiry)

Triple straddle is one of the best and accurate methods for expiry day

If nifty trading at 15720 then will sell three straddles above 50 points from ATM, below 50 points and ATM.

Ex.
Sell straddle 15700(ATM), 15650(ATM-50), 15750 (ATM+50)

Stoploss of 80% on every leg and run your trade till 3 PM

Once SL hit in any Leg just keep holding other leg till expiry with SL (Never or less chance to hit both SL on expiry day)

Trading timing at 9:20 the Morning

meilong
@meilong15

一个北大毕业的殡葬工自述武汉封城期间的经历，凄惨。这应该才是武汉的真实情景，跟很多人的叙述是吻合的。

https://t.co/QYTO1SYedG

Jaya_Upadhyaya
@Jayalko1

SRI KUMARIAMMAN, KANYAKUMARI (TN)
#bharatmandir #navratri2021

Created by Maharshi Parasurama and also one among the 108 Shakthi Peethas in the world. The name Kanyakumari stands for Kanya(Virgin) and Kumari(girl).
Devi took this form to vanquish the demon Banasura
@GunduHuDuGa

Once, Banasura(grand son of Mahabali) obtained a boon from Shiva that he could be vanquished only by a virgin.
So, Devi took the form of a kumari and started meditating with the desire to marry Shiva at Suchindram.
Pleased Shiva fixed the midnight hour for marriage with Devi.

Devarshi Narada knew that the marriage would end the chance of killing Banasura. So, he assumed the form of a cock and crowed. Shiva returned back to Suchindram thinking that it was dawn.
Angered, Devi cursed that all food and articles meant for wedding turn into sand and shells

When Banasura heard about Devi’s beauty, he tried to take her by force. Devi, then, killed him and granted the wish of Devas to remain there always protecting them.
The murti of Devi stands with a rosary in hand. Her diamond nose-ring is said to be visible even from the sea.

Once an ancient mariner mistook it for a lighthouse and sailing towards it, his ship wrecked upon the Kanya Kumari rocks. In order to prevent such a tragedy from happening again, the eastern door of the shrine is opened only on five special occasions throughout the year.

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