BC TRADING

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Abhishek Kar
@Abhishekkar_ 4 years, 3 months ago 1110 views

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𝐑𝐮𝐥𝐞𝐬 𝐨𝐟 𝐈𝐧𝐯𝐞𝐬𝐭𝐢𝐧𝐠 𝐓𝐡𝐫𝐞𝐚𝐝
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

Rule 11: Don't Own Too Many Names,Diversification is fine but don't overdiversify like 40-50 stocks. It would diminsh the returns on portfolio.

Rule 12: Cash Is for Winners,Holding on to cash is never bad,sometimes during dark times it helps to buy things at bargain

Rule 13: Expect, Don't Fear Corrections. Corrections and fall are a part of cycle but remember markets historically after a pause have always moved up. Its good to trip positions in expectations but not fear.

Rule 15: Don't Forget Bonds. Diversifying some part here is good.

Hope the thread helped you to build a perspective. In case you liked, RT will be appreciated for better sharing and reach. Will be putting up more informative threads on trading and investing,based on response.
Keep learning
Keep sharing
Keep growing
#AKAL

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Abhishek Kar
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The stock which always gives you loss?

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On average, the market performs the poorest in September.

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Abhishek Kar
@Abhishekkar_

𝐓𝐡𝐫𝐞𝐚𝐝 𝐟𝐨𝐫 𝐎𝐩𝐭𝐢𝐨𝐧𝐬
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

-Don’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.

Abhishek Kar
@Abhishekkar_

𝐓𝐨𝐩 𝐑𝐞𝐚𝐬𝐨𝐧𝐬 𝐰𝐡𝐲 𝐓𝐫𝐚𝐝𝐞𝐫𝐬 𝐅𝐀𝐈𝐋!!
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 winners… yet they hold their losers.

Abhishek Kar
@Abhishekkar_

Make Money In All Markets
Rocket

Stock goes up:

- own stock
- own call options (biggest gainer!)
- sell put options

Stock goes down:

- short stock
- own put options (biggest gainer!)
- sell calls

Stock doesn’t move:

- selling out of the money puts and calls

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Meet Shah
@ms89_meet

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.

Aditya Todmal
@AdityaTodmal

A THREAD:

BEST OPTIONS STRATEGY FOR CONSISTENT INCOME -

OPTIONS WHEEL STRATEGY

Everything to know about this strategy I'm posting in this thread.

(1/12)

Step 1: Stock Selection

1. For this strategy you're going to have to choose some stocks that you think will be doing well in the future/long term.

2. Stock must be in an uptrend.

3. Stock options should be liquid enough to trade in.

4. List of stocks attached

(2/12)

Step 2: Which option to sell?

1. Sell put at a support according to charts.

2. Sell put at a strike far away from the spot where you think the probability of the stock falling will be very very low.

3. Sell put at a price where you're willing to buy the stock at.

(3/12)

Step 3: What to do when in profit/loss?

1. If in profit you can just roll up the puts thereby increasing the ROI or shift to other stocks to make more profit.

2. If in loss take delivery of the shares equivalent to the lot size in cash market.

(4/12)

Step 4: What to do after taking the delivery?

1. Sell calls to lower your cost price of the stock. For eg, you took delivery of Reliance at 1900, sell 2100 CE which is about 10% away.

2. Keep doing this till your CE expires ITM and then give delivery of your stock away

(5/12)

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Trader knight
@Traderknight007

FEAR - It’s the re-experience of failure in advance.

Many traders face the issue of Not entering in trades because of fear.

A thread on How to pull the trigger when the opportunity knocks.

Lets First start from knowing the cause of this "FEAR" of pulling the trigger.

A traders goes through many phases before becoming Profitable.

The first phase is the " APUN HI BHAGWAN HAI" phase-

When we first begin Trading, we don’t know any concepts, we don’t know about the risks , the dangers.

So we start trading, and like most guys by beginners luck we start making good, we start to calculate how much money we will make in next 1yr, 5 yrs, Greed start to Hop in.

We get introduced to Various instruments, F&O, LEVERAGE.

We take big positions as we don’t have any FEAR cause we haven't seen those bad phases yet.

Now we get the Big blow, account down -50%, or in many cases wiped out.

The first phase ends here.

Now we know How the market can kick our ass, we now know the risk that comes with those big positions.

"THE LEARNING PHASE"-

Now we know that we were just lucky initially and now we have to learn why we get those losses, so we start learning concepts , fundamental, Technicals.

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@Vibzzz

@AdityaTodmal @niki_poojary I think the best Indian channel for Options Selling is @ThetaGainers, by far!

Nikita Poojary
@niki_poojary

Thread: Free Options Trading Course for Beginners with small capital.

Reference: Option trading marathon series, part 1 from Mr. Subasish Pani ft. @PushkarRThakur

Collaborated with @AdityaTodmal

1/ Trading journey of Mr. Pani

• He has an experience of 7 years.

• He has made a profit of Rs. 20 cr. over these years with a capital of Rs. 2 cr.

• However, it's not easy to make such profits.

• More difficult, is to retain those profits and build more on it.

2/ How he ventured to options selling

• He started with futures and option buying however after a certain point when his capital grew, he faced scalability issues and hence he resorted to options selling.

3/ Investing becomes imp once the capital grows:

• Since his trading profits have grown well, he has started investing (investing is always for LT).

• For folks who dnt have much info regarding investing can simply buy Nifty 50 stocks & keep rebalancing as Nifty 50 does.

4/ Covered calls strategy for the portfolio:

• Pledge the portfolio and receive margin ~80% which he would then use to sell OTM CEs of the stocks which are in his portfolio.

• This helps in generating fixed income from the portfolio.

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(end)

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