BC TRADINGTHREAD
Saved by @TraderYogi999

It's time for a mega-thread (Updated).

This contains some of the best threads and articles on various topics related to trading, that I have posted till now.

Enjoy!😊

 A thread on closing basis Stop loss
https://t.co/VU1dEzVZqa
A thread on Experience!
https://t.co/k84QvvMFv6
Position sizing
https://t.co/FXImYRglJZ
Trading mistakes
https://t.co/z6Q8yTTq60
Volume climax
https://t.co/arvhPYsL0G
Trading mistakes (part 2)
https://t.co/EhrirKI3n3
Patience
https://t.co/Dj987wEn54
A thread on FOMO
https://t.co/0oIzYijOum
Moving averages
https://t.co/ECeIHVaIHk
How to trade breakouts
https://t.co/FZtINEi55V
A thread on Independent thinking
https://t.co/FLulnlVxb9
Trading psychology
https://t.co/S8EJhxf6P5
A thread on Inversion thinking
https://t.co/dAq114iHYT
Patience
https://t.co/4FaCny4syZ
6 things I wish I knew when I started trading
https://t.co/QjyvVCP2kE
Is Social Media the reason behind your bad Trading decisions?
https://t.co/OM2avXR3YL
Things that profitable traders do and others don’t
https://t.co/rwEEELVDEm
Pyramiding 101
https://t.co/tPkMHcDMc1
6 key trading principles
https://t.co/UZyVZXqU48
Mental models
https://t.co/6VZ7cSttkC
Why do most discretionary traders fail to make money?
https://t.co/KbfuC2Dqeg
A thread on my thoughts about M2M’s, screenshots, and more.
https://t.co/SXbl1RMdKZ
A thread on Pyramiding.
https://t.co/Z6IRPt4Txn
A thread on Law of large numbers
https://t.co/Hg0BnWGYrV

More from Trader knight

Trader knight
Trader knight
@Traderknight007
Three things which will make a difference in Your trading Results.

A thread-


1. Clarity- When the mind is free from fear and ego

The first step to successful trading is to be clear about everything you do.

BUT, the reality is that most traders don't even know what they are doing.

And because of this-

They don't have any goals.
They don't have any Trading plan
They don't know what is suitable for them
And the list goes, on and on.

If you are among the people as described above, don't worry, There is nothing wrong with you, almost 90% of Traders are like that.

So, what do you have to do to get CLARITY in your Trading-

Find one style that is suitable to your personality and double down on it.

Why?


In this world where we have plethora of information just one click away, most people are distracted and see a Glowy thing every time they go over the social media.

They Find something new every now and then, jumping from one strategy to another, searching for Holy grail.
TRADING , ALL
Trader knight
Trader knight
@Traderknight007
"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
TRADING
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Trader knight
Trader knight
@Traderknight007
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
TRADING
Trader knight
Trader knight
@Traderknight007
When tops are formed , two things happen The public is buying and the big boys are selling, and vice-versa when bottoms are formed.

In simple words Volume climax is the last "AHA" movement for the public before the stock make a top or bottom.

Thread-


What is Volume climax?

• Volume climax appears at the extreme of a trend, or when top or bottoms are formed.

• Most of the time volume climax appears when breakouts happens after a long extending move, and then fails to hold at higher levels.

• In this, at time of breakout we see big volumes (atleast 2-3X more then normal volume) coming in stock when the stock is already extended.

• More volume is not always good, though retail traders doesn’t distinguish between them.

• After the Volume climax we may see a top/bottom or at-least the trend becomes sideways.

• The best setups are those in which we see full reversal candles with big range.

Example of volume climax-

1. The stock was in Uptrend, And has give a quite good run , Stock was giving a big move as you can see in last 2 candles, they were super extended.

2. But at the top candle, the bulls lost the control and the stock closes with a weak candle,
TRADING
Trader knight
Trader knight
@Traderknight007
Richard dennis made "$80 Million " in 1986. That kind of money making put him squarely at the center of Wall Street .

How Richard dennis became one of the greatest trend follower of all time.

Thread-👇👇👇


1. Personality-

Though he made big profits in the year of 1986, but Profits and risk comes hand in hand.

He was down $10 million in a single day that year before bouncing back, a rollercoaster ride that would have made mere mortals lose serious sleep.


Yet Dennis cockily said that he slept like a baby during all that volatility.

His money making style was to go for the home runs and swing for the fences,But dennis was never a gambler.

Dennis was believer of the Empiricism philosophy.

Empiricism is rooted in the notion that knowledge is derived from experiment, observation, and experience


2. Family-

Dennis family was not of market operators. Dennis was always honest about his father’s “hatred” of the market, explaining,

“My grandfather had lost all his money in the stock market in the Depression. The urge to speculate kind of skipped a generation.”
TRADING

More from Tradingthread

Sell When Over | 9000.eth
Sell When Over | 9000....
@sell9000
Trading Education Thread time 1/8

There are really only two types of trading styles:

1. Mean Reversion Trading
2. Breakout Trading

All other "styles" are merely indicator-based trading systems.

This thread will specifically discuss Breakout Trading

2/8

Breakout Trading requires identification of four elements in order to be successful:

1. Trendlines (pattern based support/resistance)
2. Price Action (overall trending direction)
3. Volume (the amount of participants)

3/8

Trendlines serve as support/resistance like order blocks (areas w/ prior bull/bear struggle) & lead to patterns. Human psychology does not like randomness which is why there tends to be strong reaction at the extremes of historical reference points or anticipated patterns.


4/8

The mkt tends to test two extreme ends of reference areas for a time, leading to a distinct larger pattern or range. A misconception is that certain patterns are always bearish/bullish, but the dominant trend (~4-7x TF above yours) influences the eventual breakout dir more.


5/8

Still, false breaks occur quite frequently. Basic patterns like triangles often trap newer traders that seasoned traders/algos regularly exploit, especially in crypto. Frontrunning or chasing mid-candle breakout is at high risk of being exit liquidity for the counter dump.
TRADINGTHREAD
David Yocum
David Yocum
@YocumsOptions
Educational Resource Thread! 📌

Key Takeaways from Fintwit's Best Traders

If you want to be the best, you need to spend time studying the best. This article is about some of my favorite posts from the best in technical analysis and the keys to their success.

@ChartingOptions
@ThetaWarrior
@Trendspider_J
TRADINGTHREAD
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FT Trading\u2503Stock Trader
FT Trading┃Stock Trade...
@FT__Trading
I’m a full time day/swing trader for a living.
I’ve learned a lot through my time trading.
Here’s a thread going over my exact trading strategy
As well as some helpful tips/tricks.
👇👇👇

My trading strategy revolves around three things:
1. Supply and Demand
2. Trend
3. Liquidity
All are important and essential for my trade setup.

Supply and Demand: What is it?
Supply and Demand zones are areas of price where institutional buying or selling is taking place. These zones are key because price is likely to reverse at these zones since institutions want to defend or add to their position.

To find these zones, you want to look at the SPEED of price action. Supply/Demand zones are formed when price moves FAST from an area. Look for wicks or long body candles.


How to draw zones?
To draw these zones, you take the top of the body or wick of the candle PREVIOUS to the explosive candle and draw it down to the bottom. Extend the zone and there it is. (Knowing whether to use the wick or top of the body will take experience)
TEADINGTHREAD , TRADINGTHREAD
Mukund Mohan
Mukund Mohan
@mukund
My threads, data, tools I use, investment philosophy and frequently asked questions. Please review these links.

1. Overview
https://t.co/p2gjgPvhHG
2. Investing Process
https://t.co/ZpJeN0JiSV
3. Tools I use and

4. Market Analysis https://t.co/Ol9POhXMiV

5. Due diligence and deep dives on stocks
https://t.co/0oTNNsXuwr

6. General

7. My ongoing

8. List of about 20+ email newsletters in investing / technology and self help that I would

9. I do a lot of writing about IPOs and like to research new companies.

You can follow my writing and subscribe (Free) at
TRADINGTHREAD
\u26a1\ufe0fdrippy \u26a1\ufe0f
⚡️drippy ⚡️...
@drippy2hard
Let’s say you start with 1k and your win rate is 70%. You take 30% profit and 30% loss fixed. End of 100 trades you net around 45k excluding fees.

If your win rate is 60% you end up with 2k.

What’s the lesson? Be selective and keep your win rate high. You’ll win

#driptip

How to ensure win rate is high?

Buy calls at support and puts at resistance

Trade highly liquid names to avoid slippage

Take advantage of breakouts
I’ll suggest just scalp every day

Don’t wait for 30% loss, use time based stop loss. 5m trade didn’t work, get out

#driptip

How to ensure you loose less?

Stop over trading

Stop chasing or FOMO

Stop buying weeklies on Thu

Don’t wait for 30% profit target. If it’s not working, sell for 10%

Stop trading strikes with wide spread

Which setups will work for this strategy?

Find setups with higher ATR and identify a trend 30 min after market open, ride the trend

Find setups with higher relative volume first 30 mins and ride trend

Find setups right at 10m 34-50 EMA and ride trend

#driptip

How to scan with these parameters?

Use finviz
Use trading view
Use thinkorswim (it’s free)
TRADINGTHREAD

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Jim O'Shaughnessy
Jim O'Shaughnessy
@jposhaughnessy
I’m torn on how to approach the idea of luck. I’m the first to admit that I am one of the luckiest people on the planet. To be born into a prosperous American family in 1960 with smart parents is to start life on third base. The odds against my very existence are astronomical.


I’ve always felt that the luckiest people I know had a talent for recognizing circumstances, not of their own making, that were conducive to a favorable outcome and their ability to quickly take advantage of them.

In other words, dumb luck was just that, it required no awareness on the person’s part, whereas “smart” luck involved awareness followed by action before the circumstances changed.

So, was I “lucky” to be born when I was—nothing I had any control over—and that I came of age just as huge databases and computers were advancing to the point where I could use those tools to write “What Works on Wall Street?” Absolutely.

Was I lucky to start my stock market investments near the peak of interest rates which allowed me to spend the majority of my adult life in a falling rate environment? Yup.
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Andrew Chen
Andrew Chen
@andrewchen
👇Thread.

Published a new essay: The red flags and magic numbers that investors look for in your startup’s metrics – 80 slide deck included!


This was a deck that I created on my (longish) interview process with @a16z. It was a long path, starting with meeting folks at the firm 10 years ago. But the purpose of the deck was to explain how I would use my superpower in an investing context

Here's what I explain in the deck. As investors (whether angel or VC) we're often confronted with an up-and-to-the-right graph. Is it going to go up? Or down?


One solution to forecast these growth curves is the Growth Accounting Framework, where you add up New+Reactivated and subtract churned users. In each time period that gives you the difference in monthly actives.


The problem with this is that it's a lagging metric, not a leading one. We need to go one level deeper and look at the underlying loops that drive these numbers, to understand the quality.
STARTUPS
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Panic! in the Discord
Panic! in the Discord
@discord__panic
Neo-nazi group #PatriotFront held a photo op in #Chicago last weekend & is currently marching around #DC so it's as good time as any to compile a list of their identified members for folks to watch for

Who are these chuds?

Patriot Front broke away from white nationalist org Vanguard America following #unitetheright in #charlottesville after James Alex Fields was seen with a VA shield before driving his car into a crowd, murdering Heather Heyer & injuring dozens of others

Syed Robbie Javid a.k.a. Sayed Robbie Javid or Robbie Javid of Alexandria,


Antoine Bernard Renard (a.k.a. “Charlemagne MD” on Discord) from Rockville, MD.

https://t.co/ykEjdZFDi6


Brandon Troy Higgs, 25, from Reisterstown,
EXTREMISM
SK
SK
@sk_diary1
Andhakasuravadha Samharamurti -#story #Thread
Sculpture of Bhagwan Shiva as the destroyer of the Asura Andhaka - Cave 29,Ellora caves

Asura Andhaka hangs on to a trishula held by 6-armed Shiva.

Once Parvathi & Shiva were relaxing in the pleasant gardens of Mount Mandhara.


Bhagwan Shiva sat down there to enjoy the happiness.Parvati closed the eyes of Shiva playfully & darkness covered the whole universe.Parvati was perplexed & her palms were wet with perspiration.A few drops of her sweat mixed with sweat from Shiva’s body& fell to the ground.

From this sweat,a fierce creature was born,it started to roar.Child was born blind as Shiva's eyes were closed so was named as Andaka.Andha means darkness&also ignorance.Around the same time Asura Hiranyaksha was performing rigorous tapas Shiva for a boon of powerful son.

Bhagwan Shiva was pleased by tapas of Hiranyaksha & blessed him with darshan.Hiranyaksha asked for a powerful son,Shiva told him that he cannot have his own son,but can adopt a blind child who would become very powerful later.Shiva gave child Andaka to Hiranyaksha.

Hiranyaksha returned to his kingdom with Andaka.Later after the vadh of Hiranyaksha, Andaka is said to have lived with his cousins.He was ridiculed,so dejected Andaka went to forest.He did severe tapas for over many years towards Brahma Dev. Brahma dev appeared before him.
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Sevak Sathaya
Sevak Sathaya
@Sevakofmata
Sharing one incident... After Modi's Trichy youth conference, the very next morning when police were clearing up their mini-control room, they found 5 strange boys who were roaming there with bags. When police enquired them "Sir, we are from Subramaniapuram in Trichy.

Whatever political meeting or conference is held in this ground, we come here on the same night or morning hours to collect the Liquor bottles to sell in the scrap shop for 50 paisa to 1 rupee per bottle and we used to earn Rs 200 to Rs 400 on each such event.

Even in the last DMK meeting the very next day we collected around 1500 bottles. But for Modi's BJP meeting, we could not find even a single bottle in the whole ground. We are coming around and around and not a single bottle in any corner of the G Corner ground in Trichy,

we are much disappointed, sir!". Police seem were stunned and pleasantly surprised. This is what Modi magic does in this nation. Modi is the one who can lead our nation and make everyone prosper with hardwork in right direction and proper approach.

This funny but interesting anecdote was published by a statewide local daily Dinamalar. I have just translated and posting it here for rest of the nation;
INDIA