"90% of the traders lose money, But do they lose it all the time?"
Most of them do make money, its just that they give it all back.
Lets analyze why and how a trader makes and loses money
[Thread]:
Most traders do make money, but they give it back to the markets .
Because of trading errors.
What are trading errors?
I am not making this up, check your P&L, 90 % of your losses would have come from less then 10% trades.
Most of these happen because of No knowledge, No plan, bad position sizing .
1. Learn the Basics first-
If you don’t get the basics clear then how can you make money?
Learn How to use Support and resistances
Learn How to use trend lines
Learn about trend, it will solve 90% of your problem
The number 1 problem is that you don’t have a plan,
And by plan I mean set of written rules.
If you don’t have a plan then you really aren't serious enough to consider making any money.
So, Make a plan.
How does a plan looks like?
Money management is that part of your system that answers "How much?" throughout the course of the trade.
How much essentially means how big a position you should have at any given time throughout the course of a trade.
https://t.co/H9UBHy0CSt
you can see that risking the appropriate amount of money is necessary for your equity curve growth.
There are two type of position sizing strategies,
1. Martingale
2. Anti-martingale
How position sizing can affect your trading performance-
— Trader knight (@Traderknight007) December 1, 2020
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.
2. Anti martingale strategies increase risk per trade when equity increases.
There are further many anti martingale strategies
Tip-
When you start to trade ,trade small for the first 20-30 trade , at-least 1/3rd of the risk what you think you will trade.
4. Be ready for Black swan events.
What are black swan events?
Big gap-downs, Flash crash, Big news, Market or stock hitting Upper or lower circuit.
If yes, then correct the parameter due to which you can have big draw-down.
4. Next is psychology, Read the book trading in the zone, that will cover all your psychology related problems.
Thread on law of large numbers-
https://t.co/Hg0BnWGYrV
Tweets on psychology-
https://t.co/1CJT0sZcUs
https://t.co/8rIYnkLKTa
These are some of the things that can help you become a better trade.
Thank you for reading till here.
"Don't change the trading rules after every trade."
— Trader knight (@Traderknight007) November 29, 2020
If you do change them frequently then this thread is for you.
Let's talk about the law of large numbers and how it benefits traders to be profitable.
[Thread]\U0001f447\U0001f447\U0001f447 pic.twitter.com/pEUr0wH354
@PharmaBull20_22 - Best short term trader
@sanstocktrader - Most humble person and finest price action trader
@kirubaakaran - one of the Best system trader
@sakuag333 - System trader and rising star
@sohamtweet - Bade bhai and Finest algo trader
@jitendrajain - All rounder, system trader.
@quatltd - Best algo trader in stocks.
@ST_PYI - Price action master and super humble person.
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These setups I found from the following 4 accounts:
1. @Pathik_Trader
2. @sourabhsiso19
3. @ITRADE191
4. @DillikiBiili
Share for the benefit of everyone.
Here are the setups from @Pathik_Trader Sir first.
1. Open Drive (Intraday Setup explained)
#OpenDrive#intradaySetup
— Pathik (@Pathik_Trader) April 16, 2019
Sharing one high probability trending setup for intraday.
Few conditions needs to be met
1. Opening should be above/below previous day high/low for buy/sell setup.
2. Open=low (for buy)
Open=high (for sell)
(1/n)
Bactesting results of Open Drive
Already explained strategy of #opendrive
— Pathik (@Pathik_Trader) May 27, 2020
Backtested results in 30 stocks and nifty, banknifty.
Success ratio : approx 40-45%
RR average 1:2
Entry as per strategy
Stoploss = Open level
Exit 3:15 PM Or SL
39 months 14 months -ve, 25 +ve
Yearly all 4 years +ve performance. pic.twitter.com/nGqhzMKGVy
2. Two Price Action setups to get good long side trade for intraday.
1. PDC Acts as Support
2. PDH Acts as
So today we will discuss two more price action setups to get good long side trade for intraday.
— Pathik (@Pathik_Trader) June 20, 2020
1. PDC Acts as Support
2. PDH Acts as Support
Example of PDC/PDH Setup given
#nifty
— Pathik (@Pathik_Trader) June 23, 2020
This is how it created long setup by taking support at PDC.
hopefully shared setup on last weekend helped. pic.twitter.com/2mduSUpMn5
I might have a panic attack due to excitement!!
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Tik Tok pic.twitter.com/8X3oMxvncP
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#SEALTeam6 Trump re-tweeted this.