Discover and read the best of Twitter Threads about #MwmNuggets
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#MwMnuggets
Euphoria is the worst emotion for a trader to succumb to, even worse than greed.
What happens with euphoria is that traders have such a great day in the mkts that they proclaim themselves kings and queens of the trading world. Sounds common? 😊(1/n)
Euphoria is the worst emotion for a trader to succumb to, even worse than greed.
What happens with euphoria is that traders have such a great day in the mkts that they proclaim themselves kings and queens of the trading world. Sounds common? 😊(1/n)
MNumerous analysts (predictors of market) do not trade and its a known fact. But for a moment, lets talk about the folks who trade for real.
They normally trade 10 lots and now, since they’re “kings and queens,” they’re going to start off with 50 lots and go up from there (2/n)
They normally trade 10 lots and now, since they’re “kings and queens,” they’re going to start off with 50 lots and go up from there (2/n)
After all, they’re now “the world’s greatest traders” and can do no wrong.
This happens to traders frequently, and the resulting act of insanity is just like doubling each bet on a roulette wheel.
People can sit on red and keep doubling up on each bet until they win. (3/n)
This happens to traders frequently, and the resulting act of insanity is just like doubling each bet on a roulette wheel.
People can sit on red and keep doubling up on each bet until they win. (3/n)
#MwMnuggets
As the saying goes - "faint hearts seldom win the fair maiden"
Here is a small story --
It seems a mouse complained to God: “I am not enjoying my life. I have to always fear the cat.” (1/4)
As the saying goes - "faint hearts seldom win the fair maiden"
Here is a small story --
It seems a mouse complained to God: “I am not enjoying my life. I have to always fear the cat.” (1/4)
God sympathized with the mouse and converted it into a cat. Now as a cat, it complained, “I have to always fear the dog.”
God sympathized with the cat and converted it into a dog. Now as a dog, it complained, “I have to always fear the man.” (2/4)
God sympathized with the cat and converted it into a dog. Now as a dog, it complained, “I have to always fear the man.” (2/4)
God sympathized with the dog and converted it into a man. Now as a man, he complained, “I have to always fear you - the God.”
God converted the man back to a mouse and said, “It makes no difference what I turn you into.... (3/4)
God converted the man back to a mouse and said, “It makes no difference what I turn you into.... (3/4)
#MwMnuggets
Recently tweeted about 'why predicting the markets direction/how long & how far it will move is a futile endeavor in the long run'
Now, many have this question in their mind "How to avoid personal biases during trading & follow the market without any bias?"
(1/7)
Recently tweeted about 'why predicting the markets direction/how long & how far it will move is a futile endeavor in the long run'
Now, many have this question in their mind "How to avoid personal biases during trading & follow the market without any bias?"
(1/7)
Answer: To remove our personal biases and let the mkt tell us what to do is to 'give up control' 😊
As we are wired to control situations/events/people naturally, controlling 'how much' money to make from the markets will be an obvious/no-brainer route to fall upon
(2/7)
As we are wired to control situations/events/people naturally, controlling 'how much' money to make from the markets will be an obvious/no-brainer route to fall upon
(2/7)
But to give up control, we need to give up the notion that we are actually in charge of how much money we make.
For profitable trading, we need to move into the mental state of letting the market determine the profits, not us.
(3/7)
For profitable trading, we need to move into the mental state of letting the market determine the profits, not us.
(3/7)
#MwMnuggets
Markets are ranging in the last 2 weeks and there are predictions about mkt moving down or up. After a contraction, the expansion has to happen - we all know that but we dont know when 😃
Mkt movements, returns and volatility are cyclical in nature
(1/6)
Markets are ranging in the last 2 weeks and there are predictions about mkt moving down or up. After a contraction, the expansion has to happen - we all know that but we dont know when 😃
Mkt movements, returns and volatility are cyclical in nature
(1/6)
We also have a bunch of traders who spend a lot of time trying to figure out why price moves. It feels good intellectually right?
But, we have analysts for that. Leave the intellectual mumbo-jumbo (verbal diarrhea) to those paid for their words and not their deeds.
(2/6)
But, we have analysts for that. Leave the intellectual mumbo-jumbo (verbal diarrhea) to those paid for their words and not their deeds.
(2/6)
Focus all your energy exclusively on 'what' the price is doing. Remember, we are traders. A trader does not get paid to understand or explain why something has happened? 😃
As soon as we make a prediction about where the mkt is going, we sacrifice our freedom
(3/6)
As soon as we make a prediction about where the mkt is going, we sacrifice our freedom
(3/6)
#MwMnuggets
Top traders who last lead well balanced lives ☺️
If we do not take care of our needs when we are away from the markets, then our mind will act to fulfill those needs while we are in the mkt.
Think about it for a second ☺️
(1/7)
Top traders who last lead well balanced lives ☺️
If we do not take care of our needs when we are away from the markets, then our mind will act to fulfill those needs while we are in the mkt.
Think about it for a second ☺️
(1/7)
If we dont play or add excitement to our 'out of the mkt' life (now i can hear some mind voices - 'what is out of the mkt life? I breathe mkt 24/7 ), then those needs will be met while we are in the mkt.
This eventually leads to disaster, to say the least
(2/7)
This eventually leads to disaster, to say the least
(2/7)
Being 'out of the mkt' intentionally (not the off mkt hours ☺️) is actually a trading task.
Many ppl want to be in the mkt to avoid personal issues - like drinking to avoid facing reality. Market is not a place to rectify our personal issues.
(3/7)
Many ppl want to be in the mkt to avoid personal issues - like drinking to avoid facing reality. Market is not a place to rectify our personal issues.
(3/7)
#MwMnuggets
Mechanical trading - a solitaire endeavor:
Many believe that, as with many endeavors, the expert fishermen can direct them to where the fish are. Fair enough thought
This doesn’t happen in trading for reasons we’ll discuss later in this thread but,
(1/14)
Mechanical trading - a solitaire endeavor:
Many believe that, as with many endeavors, the expert fishermen can direct them to where the fish are. Fair enough thought
This doesn’t happen in trading for reasons we’ll discuss later in this thread but,
(1/14)
Mechanical trading is perhaps an ultimate arena where would-be fishermen can be taught how to fish themselves in near-perfect fashion. 😊
There are certain processes to follow and more often than not, trainers/mentors are not experienced enough
(2/14)
There are certain processes to follow and more often than not, trainers/mentors are not experienced enough
(2/14)
..or lived enough through mechanical trading to pass it on to their followers.
People seriously determined to make all the necessary sacrifices (as in devoting much time and effort) could, in theory, enjoy relatively consistent near-immediate profitable returns 😊
(3/14)
People seriously determined to make all the necessary sacrifices (as in devoting much time and effort) could, in theory, enjoy relatively consistent near-immediate profitable returns 😊
(3/14)
#MwMnuggets
It has been a while since i posted something in twitter related to trading.
Many traders made money by random trading (without any plan) in the past 2-3 weeks and it is very easy to think it is because of our ability to know the direction of mkt.
(1/6)
It has been a while since i posted something in twitter related to trading.
Many traders made money by random trading (without any plan) in the past 2-3 weeks and it is very easy to think it is because of our ability to know the direction of mkt.
(1/6)
Sooner or later, we would realize that the market movements(volatility) were so huge intraday that we were lucky to be in-the-money by 50/100 points in minutes.
Even if we have a plan, there is this psychological battle that is going on..
Let me try to elucidate this..
(2/6)
Even if we have a plan, there is this psychological battle that is going on..
Let me try to elucidate this..
(2/6)
When we put on a trade, there is a psychological battle that usually kicks in. It’s that classic scene of a devil on
one shoulder and an angel on the other 😃😊
One tells us to hang in there with all our might...
(3/6)
one shoulder and an angel on the other 😃😊
One tells us to hang in there with all our might...
(3/6)
#MwMnuggets
Idea vs Execution - which is better --
Let's say we have a great idea. An idea that will change the world. It's brilliant. You can make $2B. Maybe $10B. But not everyone can translate an idea into product/service that can reach masses
(1/9)
Idea vs Execution - which is better --
Let's say we have a great idea. An idea that will change the world. It's brilliant. You can make $2B. Maybe $10B. But not everyone can translate an idea into product/service that can reach masses
(1/9)
Asn example, I'm not good at filling out my taxes. Thanks to my CA for helping me out with that.
When we have one piece of a puzzle but someone has another piece of the puzzle, then we have to let them help us. But what if they want 95% of the profit or share?
(2/9)
When we have one piece of a puzzle but someone has another piece of the puzzle, then we have to let them help us. But what if they want 95% of the profit or share?
(2/9)
Here are few examples --
Example 1:
------------
Netscape IPO happened in 1995. When i read about it, i was completely astonished. Marc Andreesen, who wrote the software, only ended up with like 5% of the company. Jim Clark and James Barksdale got a lot of the rest.
(3/9)
Example 1:
------------
Netscape IPO happened in 1995. When i read about it, i was completely astonished. Marc Andreesen, who wrote the software, only ended up with like 5% of the company. Jim Clark and James Barksdale got a lot of the rest.
(3/9)
#YearENDmusings
As we are coming to the end of the calendar year 2019, wanted to jot down few observations of my trading in 2019 and few experiments i will be doing in 2020 going forward
I have some plans/experiments lined up for 2020 and hence, this thread
(1/n)
As we are coming to the end of the calendar year 2019, wanted to jot down few observations of my trading in 2019 and few experiments i will be doing in 2020 going forward
I have some plans/experiments lined up for 2020 and hence, this thread
(1/n)
A. My positional trading observations --
1. I am a trend follower and made a little over 30%
2. 10th consecutive positive year(started trading Nifty around early 2010). Was trading US markets in 2009 and was +40% year. One decade of +ve returns 😊
(2/n)
1. I am a trend follower and made a little over 30%
2. 10th consecutive positive year(started trading Nifty around early 2010). Was trading US markets in 2009 and was +40% year. One decade of +ve returns 😊
(2/n)
3. Drawdown (max DD of the yr) were the least in the last 4 yrs
4. Stopped compounding my positional acct due to size 3 years ago and 2019 was no exception. No change in size
5. Execution efficiency is close to 94% (deviated from plan 3 times)..could not achieve 100% 😊
(3/n)
4. Stopped compounding my positional acct due to size 3 years ago and 2019 was no exception. No change in size
5. Execution efficiency is close to 94% (deviated from plan 3 times)..could not achieve 100% 😊
(3/n)
