Analyzed last 12 years of historical data to check if there are any patterns we can observe to find the best time to invest in stocks for long term. #Nifty50 #investing #stocks 1/10

A thread on Position Sizing #Trading is the only profession where you can see Doctors, Engineers, and many other successful professionals try their luck with stock market, these people excel in their own respective field but struggle a lot when it comes to trading.1/n

Unfortunately, everybody believes that a successful trader always has a secret Technical Skill. But the truth is Technical skill is the least important factor to be a superstar trader.

Then what separates a great trader from the group of average traders? Its their emotion.

This is how most traders think: They first think about the Entry point, at which price should I buy? At which level should I enter? At which point should I get into a trade?

But this is how you must think to be a profitable trader. You have to adapt to trading strategy that suits your psychology, assign trade management rules, keep position sizing and money management rules.

One of the main reason people lose money in stock market is because of their position size. Example: Vicky starts trading with a capital of Rs. 1,00,000 and he finds a trading opportunity and buys Spice Jet share for Rs. 100. At the max, he can buy 1000 shares of Spice Jet stock.

I have watched lot of movies but only few movies would change your perspective towards life, here’s the 10 movies that really changed my mindset

1.The Theory of Everything

Brilliant acting , truly mesmerising portrayal on life of Stephen Hawking, never felt bored even for a sec

2. Rush - it’s a film about F1 racer James Hunt & Nikki Lauda, excellent narration and incredible acting. The dialogues were truly masterpiece and it’s still stays in mind even after 9 years

3. The Founder - This movie released at the right time in my life, when I was about to quit my job and focus full time on my startup. This movie is all about single man Ray Kroc who built a billion dollar empire McDonalds. This is the best entrepreneurship movie ever made.

4. The Imitation Game - I watched this movie when I started my rule based trading journey in 2014, struggled a lot during my initial phase with code, unable to get any breakthrough, this film gave my that ray of hope. It’s about a mathematician who broke the code n won the war

5. The Pursuit of Happyness - any favourite Movie list would be incomplete without this movie. Will Smith, damn what an actor he is. I watched this movie when I was in college days, still remember the day, I was crying non stop during the interview scene. Brilliant film.

A small thread on Mindset of a successful trader. What differentiates best traders from the bad ones? Why 95% of the traders don’t make money? Trading is an unpredictable game, how could one win in that? 1/n

Many people think some magical strategy or indicators is all they need to be successful at Trading. But what really goes in the minds of a successful trader? Professor Hichman Benjelloun did a research on this.

Successful traders have poker face. If you talk to successful traders or chat with them, you can’t figure out if they are happy or sad. Having good time or bad time.

For them making money or losing money is same thing, as they say a good trader feels great after a good trade, but a great trader feels NOTHING after a great trade. They control their emotions not only in trading but also outside their trading life. They are highly disciplined

Whether they are making money or losing money, they continue with their daily routine, going to gym, cycling etc they don’t skip it because of a losing trade. It doesn’t affect them. They have probability mind set. What does that mean?

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.

For fun I made a Robinhood account. It took me 5 minutes to sign up, get approved and transfer funds for trading...

Here's some details... Read on.

...it took me another 5 minutes to get qualified for options.

If I share a sign up I get "free shares" and I can share as much as I want up to 500$ worth.

The main UI has a prepopulated "list" of stocks/crypto to watch and links to news.

Clicking a stock opens a "trade" button that looks like this.

Notice options is first, buy second.

Options took me to an approval process (which took about a minute) and now away I go trading Baba options.

Buying stock looks like this. It emphasizes fractional shares.

1/x Vanna is back & ready to turn back on the charm! Overnight the market hit our weeklong target of **3705 and pulled back... We were able to take profits & play for a bit of morning digestion. It’s been a nice +3.5% in a week w/a few extra scalps along the way...But the best

2/x part has been the gift of Vol compression, which along w/ short Vol profits, has given us significant calendar expansion & dispersion opps, as predicted. I expect this to continue this week as well, as Ivol oversupply should continue to be the dominant force until 12/11.This,

3/x paired w/ the significantly increasing Vanna & Charm flows, will make it hard for any decline until 12/14 to catch meaningful momentum. This said, the narrowing of 20 day RVol as well as the 2 stddev of the 20 day just overhead should cap any rallies, given the dramatically

4/x overextended retail (8-day SMA of P/C equity is the lowest in 20 years) & institutional positioning. This push/pull, should ultimately keep the market fairly pinned this week...Jan 8th call’s on back are incredibly cheap w/ a GA runoff event straddle of only $55, which given

5/x the potential macro-cyclical consequences of the next 2 years of fiscal stimulus seems absurd...& In terms of a more short term trade,Tesla Vol is either too high or 12/18 on back calendar spreads in the SPX are too low, as there’s no premium being priced in for the inclusion

Thread on "The Final Checklist"
by Peter Lynch.

~ Ideas can come from anywhere - Peter Lynch.

~ If you can't find any companies that you think are attractive, put your money in the bank until you discover some - Peter Lynch.

~ All you need for a lifetime of successful investing is a few big winners, and the pluses from those will overwhelm the minuses from the stocks that don’t work out - Peter Lynch.

~ Time is on your side when you own shares of superior companies - Peter Lynch.

Life is a continuous journey of going through peaks and troughs of Happiness and struggle.

We can only see the Happy part of other lives, but ignore what they might have gone through to achieve that.

But let me tell you, even if someone is at ease right now, doesn't mean that he will continue to be at ease for their whole life.

The struggle will come again and we will have to go through it ,whatever we do, whoever we are , we have to cross that river of pain.

Even,In trading there are times when nothing works out, you go through long time and money draw-downs.

Even if you think you are a master, you have to go through it.

If you are struggling right now, don't lose hope as the tables will turn.

But remember to work as hard as you can and do as much good work as you can in your ease or Joyful time of life, because the tables will turn again.

Thank you for reading.

Trader knight.