๐“๐ก๐ซ๐ž๐š๐ ๐Ÿ๐จ๐ซ ๐Ž๐ฉ๐ญ๐ข๐จ๐ง๐ฌ
The entire thread will have some quick pointers on options trading. These bullet points are based on experience and learning and even if you are completely new,will help you to build some perspective. So,lets go :

-When new,prefer trading monthly options over weekly options to reduce risk
-Set up your trades with greater than 50% Probability Of Profit
- Use implied volatility in your decision making process
-Book some trades at 50% of max profit i.e. locking of profit incase u are buyer
-Donโ€™t adjust losing defined risk strategies. A lot of people get into the bad habit of averaging and run the risk of losing a lot
-Diversify your portfolio across product, direction, and time,this has to be considered while you are planning to put in multiple strikes in folio
-Short Strangles are one of our go-to strategies because of their high probability of profit and increased profit potential.A little effort with understanding of volatility would help
-Allocate no more than 5% of your account to any one trade
-Trade small, trade often to increase your number of occurrences. Some might deny but this works
-In options you might have heard of spreads.Multiple options legs create an options spread. For example, a short strangle consists of selling a call and selling a put simultaneously.
-Any in-the-money short call is at risk of exercise prior to the ex-dividend date.This is because the long call holder will want to buy the stock just prior to the ex-dividend date so that they can receive the dividend payment.This is a fact which a lot of option traders overlook
-Buying out-of-the-money options statistically has the lowest probability of profit. The stock price has to move in your favor fast enough to overcome time decay
-Traders can always fall into the trap of trying to double down on position to recover losses on a previous trade
-As expiration approaches, swings in the option price will become exaggerated as gamma increases
-Selling options too cheap gives you an unfavorable risk/reward profile. You end up with more risk than reward.Additionally,they are more susceptible to vega risk.
There is a lot more to add which in days to come will come in form of thread. In case you liked it,a RT will be appreciated for better reach.
In case u missed the last thread,here it is https://t.co/KBY4VEcV4J
Keep learning
Keep sharing
Keep growing
#AKAL

More from Abhishek Kar

๐‘๐ฎ๐ฅ๐ž๐ฌ ๐จ๐Ÿ ๐ˆ๐ง๐ฏ๐ž๐ฌ๐ญ๐ข๐ง๐  ๐“๐ก๐ซ๐ž๐š๐
The entire thread summarizes some important rules with respect to investing. Inspired by legendary traders,these will not only help you to grow wealth,but also make a smart investor. Hope you would like the thread & shower some love

Rule 1: Bulls, Bears Make Money, Pigs Get Slaughtered so chose your category wisely
Rule 2: It's OK to Pay the Taxes,Dont just wait for a 10% LTCG always. Sometimes you know it won't pay you
Rule 3: Don't Buy All at Once,Have patience market will give enough opportunities

Rule 4: Buy Damaged Stocks, Not Damaged Companies. Understand the diff b/w undervalued stocks and no value stocks. Everything cheap is not bargain,it could be trap.
Rule 5: Diversify to Control Risk,make sure you don't put everything into one stock,one sector or one asset class.

Rule 6: Do Your Stock Homework. You spend 5 hours to buy a cream on Amazon but research for 1 hr based on buying a stock on twitter! Well,do your homework.

Rule 7: No One Made a Dime by Panicking .Invest 2-10% and leave rest. If it falls,pain will be low,if moves,no FOMO haunt

Rule 8: Buy Best-of-Breed Companies,This doesnt mean you have to invest in the most expensive companies,all it means is you need to buy co.s with good earnings,promoters and sustainability
Rule 9: Defend Some Stocks, Not All
Rule 10: Bad Buys Won't Become Takeovers,STOP hoping
๐“๐จ๐ฉ ๐‘๐ž๐š๐ฌ๐จ๐ง๐ฌ ๐ฐ๐ก๐ฒ ๐“๐ซ๐š๐๐ž๐ซ๐ฌ ๐…๐€๐ˆ๐‹!!
This thread is about the top reasons why most traders fail. If you want more finance and business related threads on regular basis,don't forget to retweet and share with your friends.

1. Negligence of risk management
While we can't foresee what the business sectors will do before long, hours, or days, however we do have full power over our danger levels at some random time. Risk management not just includes stop loss but also avoiding unnecessary trades.

2. Not having it planned out
A philosophy, or set of rules, is necessary. The business sectors can be tumultuous and confounding, particularly for somebody without a particular game plan that can be utilized over and over. Hence,planning essentially is going to help in any case.

3. Wanting to be always right
Numerous unpracticed informal investors center a lot around their triumphant rate. There will be times when you'll question your trading abilities, or even think whether trading is the correct occupation for you. No one is right always,cut losses.

4. Bad risk-to-reward ratio
There are two reasons traders end up with a poor risk-to-reward ratio:
a. They don't have an exit plan and rather essentially respond to the market without doing maths.

b. They can't hold their winnersโ€ฆ yet they hold their losers.
๐‚๐จ๐ฏ๐ข๐ ๐š๐ง๐ ๐ข๐ญ๐ฌ ๐ข๐ฆ๐ฉ๐š๐œ๐ญ ๐จ๐ง ๐ˆ๐ง๐๐ข๐š๐ง ๐ž๐œ๐จ๐ง๐จ๐ฆ๐ฒ
The entire thread will talk about covid and it's effect on our economy. The data will be backed by facts. If you want more informative threads in the future,don't forget to RT and share with friends.

1. The worst affected sector:
The worst affected of the lot will be travel industry. The incomes produced by movement and the travel industry, which contributes 9.2% of the GDP, will negatively affect the GDP rate. UNWTO assessments portray a fall of 20โ€“30%in global travellers.

2. Positive replacement from China:
A chance to partake in worldwide stockpile chains, multinationals are losing trust in China. In'Make in India', a few changes are required,and if that takes place, manufacturing and API base companies will shift to India giving a growth blast.

3. Construction sector can see loss of revenue :
We saw an appalling mass migration of such coasting populace of travelers by walking,amidst of countrywide lockdown. Wage workers specially working in construction,may not turn back so quickly. Many have preferred farming too!

4. Bankning and Finance sector
For a moment stop comparing ground realities with stock market action. Nonperforming credits relating to retail and MSME sections are on the ascent. In its Financial Stability Report,RBI has also said it fears defaults of many loans in next 2yrs!

More from Trading

1/ Feels like a good time to tell the story of how I went from broke to a millionaire to broke again in 2017/18 again...

Yesterday was brutal for some people...

Losing life-changing money sucks, losing any money sucks...you can chase the market or you can change your strategy.

2/ The original thread is gone but you can read it here.

https://t.co/cLLNs75rB0

tl;dr
- Traded $32k to $1.2m
- Thought I was a genius
- Made poor investments
- Didn't conserve capital
- Peaked at 150 BTC
- Lost nearly all of it

2 weeks from losing my house + no income. Oops.

3/ I am going to assume you are in it for the money rather than the tech. Yeah, you might Tweet about the amazing blockchaining of cross-border payments and oracles yadda yadda...really, you are in it to make money.

If you are really in it for the tech, go and build something.

4/ Okay, so if you want to make money, trading is super hard, you are trading against:
- Better traders than you
- People who can move markets
- Unknown information

And if you are trading with leverage you might blow up your account with the volatility.

5/ If you are not trading, you are investing. Okay, so what are you investing in?

I made the decision that the crypto with the best opportunity of existing in 10 years is #Bitcoin:
- Solves a genuine problem
- The right tech
- A proven track record

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