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Trader knight
@Traderknight007 3 years, 3 months ago 1039 views

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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

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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

A THREAD ON SL, TSL AND RE-ENTRIES-

WHERE TO PUT THE SL-

1. NEAREST PIVOT/SWING POINTS-

Normally I use this method for placing sl, In this method we use swing point for placing the SL.

As normally the stock would not try to go below previous swing point if it is to go in our direction.

2. ATR method-

Sometimes the Stock do not have any nearest pivot at time of buy, So we use this method as it gives us a level on basis of current volatility of the stock.

I use 1.5 ATR away sl , say the ATR at point of entry is 30, so I place sl
1.5 X, or 45 rs away from entry

In below example the entry is 120, ATR=5, SL= 1.5X ATR= 7.5 OR 113.

Nearest pivot was too far away, that’s why this method is used in these cases.

4. Anchor candles-

Anchor bars are those which have extreme Volume, gaps or wide Ranges.

Here, we place our sl below those candles which has the above characteristics.

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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

Trailing Stop loss.

The most underrated yet most important tool in trading.

Trader knight
@Traderknight007

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.

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Trader knight
@Traderknight007

A thread on Trend-lines

// What are trend-lines?

Trend-lines are support and resistance lines which are formed by connecting Important swing points.

The beauty of using them is that We can use them when stock is not Respecting the Horizontal S&R zones, they can indicate us when the trend may change.

// Things To consider while Making trendlines?

• A trendline formed by using 3 Major-Swing points is a potential trendline, But we will also use 2 points to form a trendline, will discuss how, as you read further.

• Trendline can be formed by two ways-

1. Wicks-

In this method we only connect the wicks to make a trendline, this is a precise way of making a trendline.

// Why only connect the wicks?

There are two type of levels - Precise and Less precise (Which we call zones).

So what we are doing is by only connecting the wicks we are making a precise level where we can take trades, either Mean reversion or Breakout trades.

Examples-

Dr. Ellie Lockhart is ...
@BootlegGirl

OK, I guess I have a thing to say about the stock market. I have done kind of what these Reddit folks are doing with it, in that I have invested in the stock market when I was not at all rich, using parts of my paycheck that it probably wasn't wise to risk. I don't now. (thread)

But, like, it worked out okay for me. I even shorted some stuff. I didn't coordinate with anyone or whatever, but I don't think on the individual level the stock market is *inherently* malicious. If you're privileged, you're going to be exposed to it (through 401ks, etc.)

And I don't think it's wrong for people to try to make money off of it outside of the 401k/retirement context that's socially normal, *especially* if they're desperate like I was. There *are* strategies that you can use that, while risky, aren't exactly like gambling

Like, gambling is risky in a different way. You are always working with a fairly consistent set of probabilities in gambling, and they're never in your favor (outside of grey area gambling like between friends, where you could hypothetically actually still card count)

Anyway, like, on shorts: I don't think they're evil. I think they're dangerous. For an individual, a short always carries a small risk of individual bankruptcy. There's USUALLY not even a huge upside to them; they're not mystical or magical, they're basically reverse "longs"

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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/

Gurleen
@GurleenKaur_19

A Thread on~ O V E R T R A D I N G

Sitting and observing the numbers flicker on the screen might be very exciting.

But have you ever felt like you might've done better? Or you're just too tired of waiting that you punch an order right in?

That's a Bad Idea.

So, Let's understand the reasons behind it and try to find a way out.

1. Not having a trading plan makes you clueless.
Your impulses start to take control of you.

2. Having a trading plan; But still taking impulsive/ random trades.
Because of adrenaline rush or gambling instinct.

3. Revenge trading
When you try to force a trade in order to recover from a previous loss.

Vikrant
@Trading0secrets

Trendline is basically use for majoring trend 📈 of any stock.

It is also useful for indentify demand & supply ....

Here it's applications 👇

➡️It is formed when a diagonal line can be drawn between a minimum of three or more price pivot points.

And that all three points must tested equally.

example 👇 #sis

➡️ Trendline is mainly useful for identifying trend 👇

⚡Uptrend - #happiestmind

⚡Downtrend - #bluedart

➡️ It is also useful for support & resistance.

Ex - ⚡ #happiestmind

⚡ #omaxe

➡️ If three point 📍have not be touched clearly then it is wrong ❌

Ex - ⚡ #bluedart

⚡#zeemedia

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Vibhu Vashisth
@VIBHU_Tweet

Santkumaras-The four adorable kids of the Universe.

The Kumaras r the four sages who roam the Universe as children from the Puranic texts of Hinduism named,Sanaka, Sanatana,Sanandana& Sanatkumara.They r described as the first mind-born creations &sons of the creator God Brahma.

Brahma,who had received the knowledge of Puranas from the Universal being(God Himself), imbibed this to his 4 Kumaras.
Sanat Kumaras then taught the Puranas to Narada.Narada transmitted it to Krishna Dwaipayana who in turn scripted them in monumental epic documents of 18 Puranas.

The Vishnu Purana is recorded in two parts,the Vishnu Purana & Naradiya Purana.The teachings of Sanaka of the Kumara brothers r contained in the Naradiya Purana which is also divided in two parts, the first part containing the teachings of Sanaka &second part,teachings of others.

Born from Brahma's mind,4 Kumars took lifelong vows of celibacy against their father's wishes.They r said to wander throughout materialistic &spiritualistic universe without any desire but with the aim to teach.All 4 brothers studied Vedas from their Childhood&travelled together.

The Bhagwata Purana lists the Kumaras among the 12 Mahajanas(great devotees or bhaktas) who although being eternally liberated souls from birth, still became attracted to the devotional service of Vishnu from their already enlightened state.

Anshul Pandey
@Anshulspiritual

Rig Ved 1.36.7

To do a Namaskaar or bow before someone means that you are humble or without pride and ego. This means that we politely bow before you since you are better than me. Pranipaat(प्राणीपात) also means the same that we respect you without any vanity.

1/9

Surrendering False pride is Namaskaar. Even in devotion or bhakti we say the same thing. We want to convey to Ishwar that we have nothing to offer but we leave all our pride and offer you ourselves without any pride in our body. You destroy all our evil karma.

2/9

We bow before you so that you assimilate us and make us that capable. Destruction of our evils and surrender is Namaskaar. Therefore we pray same thing before and after any big rituals.

3/9

तं घे॑मि॒त्था न॑म॒स्विन॒ उप॑ स्व॒राज॑मासते ।
होत्रा॑भिर॒ग्निं मनु॑षः॒ समिं॑धते तिति॒र्वांसो॒ अति॒ स्रिधः॑॥

Translation :

नमस्विनः - To bow.

स्वराजम् - Self illuminating.

तम् - His.

घ ईम् - Yours.

इत्था - This way.

उप - Upaasana.

आसते - To do.

स्त्रिधः - For enemies.

4/9

अति तितिर्वांसः - To defeat fast.

मनुषः - Yajman.

होत्राभिः - In seven numbers.

अग्निम् - Agnidev.

समिन्धते - Illuminated on all sides.

Explanation : Yajmans bow(do Namaskaar) before self illuminating Agnidev by making the offerings of Havi.

5/9

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$\u2745\u1710\u170b\u1713\u170e$

❅ᜐᜋᜓᜎ...
@uglyluhan

First thread of the year because I have time during MCO. As requested, a thread on the gods and spirits of Malay folk religion. Some are indigenous, some are of Indian origin, some have Islamic

i wonder if you can make a thread bout witchcraft in malaysia.. or list of our own local gods/deites..
— r a y a \U0001f319 (@lcvelylilith) February 20, 2020

Before I begin, it might be worth explaining the Malay conception of the spirit world. At its deepest level, Malay religious belief is animist. All living beings and even certain objects are said to have a soul. Natural phenomena are either controlled by or personified as spirits

Although these beings had to be respected, not all of them were powerful enough to be considered gods. Offerings would be made to the spirits that had greater influence on human life. Spells and incantations would invoke their

Animist ceremonies of a religious or magical nature were normally held for the purpose of divination or making a request. This would either be done at a keramat or at a shrine similar to the Thai spirit houses or Chinese roadside shrines pic.twitter.com/I1hliyi0x3
— \u2745\u1710\u170b\u1713\u170e (@uglyluhan) June 16, 2019

Two known examples of such elemental spirits that had god-like status are Raja Angin (king of the wind) and Mambang Tali Arus (spirit of river currents). There were undoubtedly many more which have been lost to time

Contact with ancient India brought the influence of Hinduism and Buddhism to SEA. What we now call Hinduism similarly developed in India out of native animism and the more formal Vedic tradition. This can be seen in the multitude of sacred animals and location-specific Hindu gods

Khatvaanga
@khatvaanga

Sri Gurubhyo Namah.
Some tweets on Adi Shankaracharya and in particular the Guru Parampara of @sringerimath. [I had done this series earlier 5 years ago on account of Shishya Sweekaram].

Adi Shankara established the Sringeri Peetham as the 1st of 4 amnaaya peetams.

The four being
1. Sarada Peetam at Sringeri.
2. Govardhana Peetam at Puri
3. Kalika at Dwaraka
4. Jyothir at Badarikashramam.

He installed his 4 most prominent shishyas as heads of the peetams.

Sureshwaracharya was assigned to Sringeri as its head.

Sringeri is a corruption of Rshyashrunga giri.

Rshyashrunga maharshi [and his father Sri Vibandhaka Maharshi] did their tapas at this place.

It is at Sringeri that Shankara spent 12 of His precious 32 years!!

That gives you and idea how much He loved this place.

Rshyashruga maharshi had a horn on his forehead, a result of being born to a deer. His mere presence was enough to shower rains!!

Rshyashrunga was one who led Putrakamesthi Yaagam of Dasaratha Maharaj and which resulted in Sri Rama's birth!!

Patrick McKenzie
@patio11

Most software founders, particularly in B2B, need to get radically better at sales. @Steli , who is the best person for explaining the scrappy stages in the beginning and then building out a team with scripts and processes, wrote a guide to:

For technical founders it is irrationally, obscenely hard to reverse years of programming (ba dum bum) that sales is a value-destroying activity. Sales is CLEARLY a value-creating activity, contingent on you have a value-creating product.

The world will not drop what they are doing to adopt your work. This is particularly true in B2B, where simply building a better mousetrap won't overcome the activation energy required to get people with additional non-mice problems to prioritize changing mousetraps today.

This is very non-obvious for founders because founders are not often people who *want* to be sold to. We often come from a background where trying out tools is a bit of a fun hobby. We like looking at all the options, making charts, and ripping out partially complete tests.

"This week I unsuccessfully trialed four software options for automating that thing that has been killing us. Our actual production process remains the same as last week. Don't worry; this was a great use of time." is not a thing you want to write in a progress report to manager.

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