BC TRADING
Saved by @Shubham51ngh

"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]:

 Below is the equity curve which is most traders dream.
This is equity curve of an average trader:

Most traders do make money, but they give it back to the markets .

Because of trading errors.

What are trading errors?
Trading errors are those errors which happen because of wrong Position sizing, Leverage , etc.

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 .
Now, we know what's the problem, lets talk about the solution.

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
2. Plan-

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?
3. Position sizing-

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.
Attaching a thread on how position sizing affect the account-
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
1. Martingale strategies increase the risk per trade when equity decrease.
2. Anti martingale strategies increase risk per trade when equity increases.

There are further many anti martingale strategies
I will be explaining this further in upcoming days as this thread will get super long if I do it now.

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.
This will give you confidence and you can follow the plan effectively when you do not have fear of losing.

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.
Think about can your account be wiped in these conditions?

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.
Attaching some threads which can help you.

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.
Tagging some accounts from where you can learn almost everything -
@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
@AnandableAnand - Experienced System and discretionary trader
@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.

More from Trader knight

Trader knight
Trader knight
@Traderknight007
Like humans , stocks too have different nature and if you are trading every stock the same way then this thread may be for you.

A thread on Nature of stocks and how it can help you to improve your trading results.


First start with what is the nature of stocks ?

I broadly categorize stocks in two categories-

1. The momentum stocks-

These are the stocks where most of the moves are swift in nature, or we can say that the pullbacks in a trend are smaller.

2. The AKBC stocks-

These are the stocks where most of the trending moves comes with deep pullbacks.


Examples-


So the purpose of categorizing these stocks, is that we Trade those stocks/instruments which are more suited to our style.

Say if you are a mean reversion player and you are trading in the momentum stocks category then you are more bound to lose over large number of trades.
TRADING , ALL
Trader knight
Trader knight
@Traderknight007
A thread on SCALING IN - OUT METHOD -


What is scaling in - out?

1. Scaling in is adding on to the positions when they move in our favor (Pyramiding).

2. Scaling - out is exiting the portion of the position when the trade moves in our favor.

I have explained about pyramiding in previous tweets.

// Why use scaling out instead of exiting all position at once ?

When you are using ALL - out method where you exit positions at once, mostly you use wider Trail SL as you want to capture big moves and exit all when trail sl hits.

The problem with this method is that either you make too big or many times your medium size winners turns out to become Scratch trades.

So, when we use the scaling out method, we are trying to capture most of our medium size trades , so that they do not turn into scratch trades.

// How to use scaling out method -

Say we have to got a signal to enter in a trade, and we have to buy 1200 qty according to our Position sizing.

So, we have to divide this 1200 qty into parts, how much? It depends on you.

We can divide into 3 parts, each part 400 qty.
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Trader knight
Trader knight
@Traderknight007
THE TRADER'S EDGE: THINKING IN PROBABILITIES

Casinos make consistent profits day after day and year after year, doing something random

At the same time, most traders believe that the outcome of the market's behavior is not random,yet can't produce consistent profits

Thread 🧵


What casino owners ,professional traders know is that probable outcomes can also produce consistent results if you " Have an edge" and trade on a large enough sample size.

The best traders treat trading like a numbers game.

1. To illustrate, let's look at the game of blackjack-


In blackjack, the casinos have approximately a 4.5-percent edge over the player.

This means that casinos will make profit over a large enough sample size, even after several winning streaks and big profits of many players.

At the end of the day, week, month, or year, the casino always ends up with approximately 4.5 percent of the total amount wagered.

That 4.5 percent might not sound like a lot, but let's put it in perspective.

Suppose a total of $100 million dollars is wagered collectively at all of a casino's blackjack tables over the course of a year. The casino will net $4.5 million.

What casino owners and pro traders understand about the nature of probabilities is that each individual hand played
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Trader knight
Trader knight
@Traderknight007
How to use Moving averages like a Pro.👇

https://t.co/7VbuGovmee
STOCKSLEARNINGS , ALL , TRADING LESSONS
Trader knight
Trader knight
@Traderknight007
A mega thread, this contains some of my popular threads which may help you in your trading.

Thanks for reading :)


Pyramiding


Don't change your trading


Trendlines


Scaling in-out
TECHNICALS , TRADING1 , TA NOTES

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Aneesh Philomina Antony
Aneesh Philomina Anton...
@ProdigalTrader
If u are looking to enter a scrip just before the breakout
what would u look for?
How would u identify scrips just before breakout?

Here are a few pointers
Carefully understand the them and use at ur own discretion
(All comments r compiled from a question i posed)

1/23

Price is testing the same resistance repeatedly since long.
But now in recent times it's forming multiple candles near the same resistance with low volume.
Observe it and see for opposite move.
As soon as u get a positive candle, get in to it.

2/23

1. Volume buildup (vol > when resistance point created) along with, increase in OI, increase in delivery % on HTF
2. On LTF, price stalling around breakout area for at least 1-2hr.
3. No major events.

3/23

Stock reaching breakout LVL with HL-HH
Contraction of price and volume near it especially near 20 days ma.
If there is any breach of the latest HL it should be followed by a bullish candle with good volume.
Left side of the chart has a rally with a very steep slope of ma.

4/23

Number of wide range green bars with high volumes.
If stock is at its ATH then it adds more conviction bcz there wont b supply after that point

Consolidation below the resistance, volume of the candles & strong bullish candle closing at near highs just below the resistance

5/23
TRADING , ALL
Aaron D.
Aaron D.
@MrBrownEyes2020
So what will be the aftermath of this GME event?

These are simply my guesses, I don't actually know.

Wallstreet will likely push for licenses being necessary to trade, or put more limits on how many trades you can make, or some other way to screw the average person trading. 1/

FYI, you can only make 4 trades in a day, but if you have more than $25,000 in your account you can make as many as you want.

The system is rigged against the poor, and weighted heavily in favour of the rich. 2/

Will the government shut down the market?

It's possible, but I doubt it.
It would open up new precedents and the optics would be terrible- i.e. shutting down the market because greedy hedgefunds fucked up, and normal people are taking them to the cleaners. 3/

If the government gives in to Wallstreet, they lose all credibility, because this story is basically David vs Goliath, where the Reddit guys are the good guys, and the hedgefunds are the bad guys.

4/

Likely they will implement similar rules to Europe, that stops naked short selling.

Anything more than that, I'm not sure.
I think the media will push the threat of the government shutting down trading, in order to scare people into selling, to give short sellers a way out. 5/
TRADING
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Aditya Todmal
Aditya Todmal
@AdityaTodmal
DJ @ITRADE191 multiple chart analysis for INTRADAY TRADING.

1. Core setup
2. Pivot points trades
3. PDH/PDL trades
4. Open interest addictions combined with rejections on charts.
5. Website to confirm bias

Very quick read.

Share if you liked for the benefit of everyone.

•Main setup of @ITRADE191
He used this setup daily for all trades.

1. EMA crossover 10/20
2. Supertrend 10/3
3. Vwap
4. RSI >


•Volume always greater than


•Candle Rejecting from


•Pivot settings
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Yash Mehta
Yash Mehta
@YMehta_
Option Trading is very difficult to master as there are so many things to understand.

Here is a master thread related that will help a beginner to understand about Options Trading.

A complete course worth Rs 50K for free.

1/ A detailed thread on basics of Option Greeks and how it impacts Options


2/ Basic Option Trading Strategies:

There are many option strategies to trade. But keeping your strategy simple is the key.

In this thread, all the basic option trading strategies are being


3/ What are the things that you should look at before taking any Option


4/ Is Option Selling Possible with Rs 1 Lakh Capital?

Even a beginner can start trading in option selling with capital as low as Rs 1 Lakh.

What are the techniques one can use and how to mitigate the infinite loss risk is shared in this
TRADING
Aditya Todmal
Aditya Todmal
@AdityaTodmal
I gathered the best Youtube videos to learn Expiry trading for free.

If you want to master expiry trading, open this thread: 🧵

Collaborated with @niki_poojary

Here's what you'll find in this thread:

1. ATM strikes to zero
2. Big Gaps on Expiry Day
3. How to trade expiry when Nifty is behaving differently
4. Using Data points to trade expiry
5. Play for a flat move
6. How to profit post 3 pm exploiting the close price?

Let's go ↓

1. How to develop a framework to trade in ATM strikes on expiry day? Subhasish Pani on @vivbajaj Sir's channel.

One of call or put at ATM is going to go to zero.

Whichever is moving rapidly has a higher probability of going ATM/ITM. Sell the slower

2. How to trade a big gap up on expiry day?

If market bias is bullish and a gap-up happens, it comes for selling.

Can buy puts at the breakout of an inside candle as the market has a good probability of at least heading toward the previous day's

3. How to trade in Bank Nifty if it has already moved 160 points from its high to low by 11:30? @ThetaGainers

Sell near otms with double stop loss.

Avoid if stuck in a very small range.

Get out of both by 1
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Ramsay Rippers \U0001f354
Ramsay Rippers 🍔...
@RamsayRippers
🧵EMA + VWAP STRATEGY

Every trader has a go-to strategy that works best for them. My trading is all about keeping it simple stupid and revolves around two indicators - Exponential moving averages and vwap.

Here's the strategy that I utilize on nearly 80% of my trades.

👇

What are Exponential Moving Averages?

EMA's are a type of moving average that places a greater weight on more recent data points.

8EMA = Exponential Moving Averages of the last 8 candle closing prices.

EMA's adjust with respect to chart time frame.

What is VWAP?

Volume Weighted Average Price - A key intraday indicator in my trading that offers the true average price based on price & volume.

Calculation: (Price x # of shares traded) / total shares traded

EMA's I use

- 8
- 21
- 50

While I do utilize the 50EMA, the 8 & 21 EMA are most important for this strategy. Some people use the 9 and 20 which are essentially the same thing. REMEMBER: EMA'S adjust with respect to time frames.

A+ Set Up Criteria - (What I look for)
STRATEGY
Andrew Chen
Andrew Chen
@andrewchen
👇 Thread. New deck getting published this week: "Consumer startups are awesome, and here's what I'm looking to invest in at Andreessen Horowitz." If you want to read it, subscribe to my newsletter here: https://t.co/262t8eh0wf


1/ A lot of new consumer technologies have been introduced to US households in the last 100 years. But it's taken many of them - like the telephone - more than 50 years to get to the majority of the US. Why is that?


2/ We had to literally teach people how to use phone. Which end goes to your mouth, which goes to your ear. Say "hello" when people call. The motivation of consumers to talk to their friends has always been there, but we had to teach the behavior


3/ If you compare phones to the latest technologies, there's been a huge shift. Things are being picked up much faster.


4/ Even while there's been all this innovation recently, physically speaking, we are still the same human beings from 100,000 years ago.
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Raman Shalupau
Raman Shalupau
@ksaitor
Maker movement is doing to startups what startups did to corporations.

Here is why 👇

Startups fixed the problem of innovation, that corporations lack.

In big, slow corporations, innovation is a RISK and distraction from the core $$$ profitable business.

Agile startups could launch, iterate fast and eventually stumble upon new growing market opportunities.

However,

When a startup reaches product-market-fit, it has to 🚀 "grow at all costs" and reach market dominance before some giant corporation can replicate their new product and distribute it to their existing giant customer base.

Startup's "growth at all costs" often means growth at the expense of charging customers $$$ money.

Hence, to be sustainable, startups have to constantly chase investor money.

Startup teams spend more time finding and pleasing investors, than finding and pleasing customers.

95% of startups die because they run out of (investor) money + no business model + crazy investor expectations.

Same way corporations die, when unable to adjust to new technology and market shifts.
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foone
foone
@Foone
It is 2018 and this error message is a mistake from 1974.
This limitation, which is still found in the very latest Windows 10, dates back to BEFORE STAR WARS. This bug is as old as Watergate.


When this was developed, nothing had UPC codes yet because they'd just been invented.
Back when this mistake was made, There was only one Phone Company, because they hadn't been broken up yet. Ted Bundy was still on the loose. Babe Ruth's home run record was about to fall.

When this bug was developed, Wheel of Fortune hadn't yet aired. No one had seen Rocky Horror. Steven Spielberg was still a little-known directory of TV films and one box-office disappointment. SNL hadn't aired yet. The Edmund Fitzgerald was still hauling iron ore.

WHEN THIS STUPID MISFEATURE WAS INVENTED, THE GODFATHER PART II HAD JUST OPENED IN THEATERS.

So, why does this happen? So Unix (which was only 5 years old at this point) had the good idea of "everything is a file" which mean you could do things like write to sockets, pipes, the console, etc with the same commands and instructions.
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ArmaniTalks \U0001f399\U0001f525
ArmaniTalks 🎙🔥...
@ArmaniTalks
A relationship begins to get stiff when excessive patterns begin to form.

Too many patterns leads to a boring, predictable, logical lifestyle.

Get the emotions involved.

Do something spontaneous out of the blue moon & flip the script.

'What's wrong with the patterns?'

Nothing is wrong with patterns.

However, there is a problem when all you have are patterns.

It's boring.

'Can you explain why?'

Sure 👇

The thing with relationships is that it's meant to be an emotional experience.

It's very difficult to logically explain love, right?

'Right.'

Well this is where you want to steer the ship the right way.

1. Too emotional is bad.

2. Too logical is bad.

Let me break it down.

1. Too emotional

If a relationship is completely ruled by emotions, then it's too volatile.

You will never reach productivity if you are aimlessly only following each others emotions.

This lifestyle tarnishes any structure for the couple.

'So why do people do it?'

Because it's fun.

You may ruled by this stage in the honeymoon phase.

Normal.

You'll be so spontaneous that it almost becomes a lifestyle.

But it's hard to level up your life when you're too spontaneous.

Avoid.
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