Are private investors just a bunch of happy gamblers who should let the “real deal” aka professionals invest for them instead? Idk, maybe, maybe not. Peoples own choice, right? But I have an opinion about how media undervalue private investors.
THREAD: STOP UNDERVALUE THE PRIVATE INVESTORS
The misunderstanding of private investors - primarily known as amateur investors when talked about - done by media and professionals is too much.
Are you ready? Hope you will enjoy this one and bring your voice into the debate👇👇
Are private investors just a bunch of happy gamblers who should let the “real deal” aka professionals invest for them instead? Idk, maybe, maybe not. Peoples own choice, right? But I have an opinion about how media undervalue private investors.
There are many smart persons out there, which have a great skill to hold the same (or more ) knowledge and understanding than professionals.
Why? Because the world has developed so much and the information-level have changed💨
Earlier on you would not get access to accounting; it could be sent by Bloomberg terminal, send by post and even cost money. Now every accounting for every public company is available for free right after disclosure.
Professionals had exclusive access to the board, and even the founders, the professionals had access to industry experts and could connect the dots faster.
Now every interview with the company, blog post by an industry leader or a Q&A with founders is available realtime.
Professionals have a great network (and they really do), which earlier on was an edge. But now the private investors have a great network as well (thank you SoMe!). Look at Twitter, Reddit, Discord, Facebook groups... Crazy scale on crowdsourcing!
@chamath said it great here:
“r/wallstreetbets is now the largest hedge fund in the world.
Excepts it’s completely decentralized and entirely democratic.”
https://t.co/vgzpxrqTmz
r/wallstreetbets is now the largest hedge fund in the world.
— Chamath Palihapitiya (@chamath) January 30, 2021
Excepts it\u2019s completely decentralized and entirely democratic.
I think the HF, banks and PE-people still have a significant advantage in speed and execution (and network)!. But if both parties – private and Professionals – are longterm, I think the edge a lot smaller than many think.
They live with their math-models, they have never been “hustling” on a company, they have never disrupted anything themselves. They have never tried to make a campaign on SoMe, getting funding, setting up a company from the bottom or dealt with a PR-crisis, etc.
The above is more like an entrepreneur, but it not limited to that. A software developer has (hopefully) more knowledge about this sector than an HF-analyst, which measure the sector by “old” financial-reports.
And common for the above is that they probably have a greater network than everybody else (=outsiders) inside their sector. That is an edge.
It is a little bit funny how every professional think they can judge a sector or company better than private. Still, the private can definitely not do a better job at investing than the Professionals. Ironic, right?
I think the media and Professionals undervalued how competent people are out there, how willing people are to share their info and work together. And least: How much information there are available.
More from Trading
Want to master Option Selling for free?
Here are the best resources.
A thread 🧵👇
Collaborated with @niki_poojary
1. Best book of knowledge for a beginner?
Zerodha Varsity from @Nithin0dha's team is the best book for a newcomer to read and increase his basic knowledge about options, especially for the Indian markets.
Link:
2. Best Youtube channel on Options Trading?
The @tastytrade financial network. It's a foreign channel that focuses mostly on selling options.
They teach all strategies for free with their backtests.
Big on Straddle/Strangles selling.
Links:
3. Top Indian YouTube Channel for Options?
Power of Stocks - Subhasish Pani
What you'll learn:
1. How to form a trading plan.
2. How to scale an account with risk-reward in option selling.
3. Technical analysis logics you can use daily.
15
4. What are the preconditions to start option Selling:
You should know technical Analysis basics like:
- Support/Resistance
- Chart Patterns
- Candle Patterns
- Dow Theory (HH, LL)
This will help you start taking high-probability trades.
Here are the best resources.
A thread 🧵👇
Collaborated with @niki_poojary
1. Best book of knowledge for a beginner?
Zerodha Varsity from @Nithin0dha's team is the best book for a newcomer to read and increase his basic knowledge about options, especially for the Indian markets.
Link:
2. Best Youtube channel on Options Trading?
The @tastytrade financial network. It's a foreign channel that focuses mostly on selling options.
They teach all strategies for free with their backtests.
Big on Straddle/Strangles selling.
Links:
3. Top Indian YouTube Channel for Options?
Power of Stocks - Subhasish Pani
What you'll learn:
1. How to form a trading plan.
2. How to scale an account with risk-reward in option selling.
3. Technical analysis logics you can use daily.
15
15 Learnings from Power of Stocks: \U0001f9f5
— Aditya Todmal (@AdityaTodmal) January 23, 2022
Collaborated with @niki_poojary
4. What are the preconditions to start option Selling:
You should know technical Analysis basics like:
- Support/Resistance
- Chart Patterns
- Candle Patterns
- Dow Theory (HH, LL)
This will help you start taking high-probability trades.
You May Also Like
MASTER THREAD on Short Strangles.
Curated the best tweets from the best traders who are exceptional at managing strangles.
• Positional Strangles
• Intraday Strangles
• Position Sizing
• How to do Adjustments
• Plenty of Examples
• When to avoid
• Exit Criteria
How to sell Strangles in weekly expiry as explained by boss himself. @Mitesh_Engr
• When to sell
• How to do Adjustments
• Exit
Beautiful explanation on positional option selling by @Mitesh_Engr
Sir on how to sell low premium strangles yourself without paying anyone. This is a free mini course in
1st Live example of managing a strangle by Mitesh Sir. @Mitesh_Engr
• Sold Strangles 20% cap used
• Added 20% cap more when in profit
• Booked profitable leg and rolled up
• Kept rolling up profitable leg
• Booked loss in calls
• Sold only
2nd example by @Mitesh_Engr Sir on converting a directional trade into strangles. Option Sellers can use this for consistent profit.
• Identified a reversal and sold puts
• Puts decayed a lot
• When achieved 2% profit through puts then sold
Curated the best tweets from the best traders who are exceptional at managing strangles.
• Positional Strangles
• Intraday Strangles
• Position Sizing
• How to do Adjustments
• Plenty of Examples
• When to avoid
• Exit Criteria
How to sell Strangles in weekly expiry as explained by boss himself. @Mitesh_Engr
• When to sell
• How to do Adjustments
• Exit
1. Let's start option selling learning.
— Mitesh Patel (@Mitesh_Engr) February 10, 2019
Strangle selling. ( I am doing mostly in weekly Bank Nifty)
When to sell? When VIX is below 15
Assume spot is at 27500
Sell 27100 PE & 27900 CE
say premium for both 50-50
If bank nifty will move in narrow range u will get profit from both.
Beautiful explanation on positional option selling by @Mitesh_Engr
Sir on how to sell low premium strangles yourself without paying anyone. This is a free mini course in
Few are selling 20-25 Rs positional option selling course.
— Mitesh Patel (@Mitesh_Engr) November 3, 2019
Nothing big deal in that.
For selling weekly option just identify last week low and high.
Now from that low and high keep 1-1.5% distance from strike.
And sell option on both side.
1/n
1st Live example of managing a strangle by Mitesh Sir. @Mitesh_Engr
• Sold Strangles 20% cap used
• Added 20% cap more when in profit
• Booked profitable leg and rolled up
• Kept rolling up profitable leg
• Booked loss in calls
• Sold only
Sold 29200 put and 30500 call
— Mitesh Patel (@Mitesh_Engr) April 12, 2019
Used 20% capital@44 each
2nd example by @Mitesh_Engr Sir on converting a directional trade into strangles. Option Sellers can use this for consistent profit.
• Identified a reversal and sold puts
• Puts decayed a lot
• When achieved 2% profit through puts then sold
Already giving more than 2% return in a week. Now I will prefer to sell 32500 call at 74 to make it strangle in equal ratio.
— Mitesh Patel (@Mitesh_Engr) February 7, 2020
To all. This is free learning for you. How to play option to make consistent return.
Stay tuned and learn it here free of cost. https://t.co/7J7LC86oW0
Oh my Goodness!!!
I might have a panic attack due to excitement!!
Read this thread to the end...I just had an epiphany and my mind is blown. Actually, more than blown. More like OBLITERATED! This is the thing! This is the thing that will blow the entire thing out of the water!
Has this man been concealing his true identity?
Is this man a supposed 'dead' Seal Team Six soldier?
Witness protection to be kept safe until the right moment when all will be revealed?!
Who ELSE is alive that may have faked their death/gone into witness protection?
Were "golden tickets" inside the envelopes??
Are these "golden tickets" going to lead to their ultimate undoing?
Review crumbs on the board re: 'gold'.
#SEALTeam6 Trump re-tweeted this.
I might have a panic attack due to excitement!!
Read this thread to the end...I just had an epiphany and my mind is blown. Actually, more than blown. More like OBLITERATED! This is the thing! This is the thing that will blow the entire thing out of the water!
Tik Tok pic.twitter.com/8X3oMxvncP
— Scotty Mar10 (@Allenma15086871) December 29, 2020
Has this man been concealing his true identity?
Is this man a supposed 'dead' Seal Team Six soldier?
Witness protection to be kept safe until the right moment when all will be revealed?!
Who ELSE is alive that may have faked their death/gone into witness protection?
Were "golden tickets" inside the envelopes??
Are these "golden tickets" going to lead to their ultimate undoing?
Review crumbs on the board re: 'gold'.
#SEALTeam6 Trump re-tweeted this.
