Discover and read the best of Twitter Threads about #RiskReward
Most recents (5)
☝️Top 10 Rules every Beginner Trader MUST Know (as me). // thread of 10/
1/ Fear of Missing out 😱
Do not #FOMO! You will always have another opportunity with safer entry & good risk reward. Just be patient to wait for the price to come at you!
1/ Fear of Missing out 😱
Do not #FOMO! You will always have another opportunity with safer entry & good risk reward. Just be patient to wait for the price to come at you!
2/ Do an analysis & stick to it 🧐
After you analysed the market and entered the position, you may start changing the analysis, so that you will fool yourself. Stick to your initial plan #TA
After you analysed the market and entered the position, you may start changing the analysis, so that you will fool yourself. Stick to your initial plan #TA
3/ Never Revenge a Trade 😤
If you having series of losses, you better get off the market for some time, rather than start revenge #trading in order to get instant profits, as you might loss even more!
If you having series of losses, you better get off the market for some time, rather than start revenge #trading in order to get instant profits, as you might loss even more!
1 New to investing?
2 Confused by #fintwit jargon?
3 Do we trust people presenting “valuation” to know what they don't know?
(Hint: “my-laser-eyed-golden-skin-ape-pic-is-worth-at-least-twice-your-diamond-skin-ape-pic” = relative pricing. Not valuation)
Follow #PiggyBack🧵
1/X
2 Confused by #fintwit jargon?
3 Do we trust people presenting “valuation” to know what they don't know?
(Hint: “my-laser-eyed-golden-skin-ape-pic-is-worth-at-least-twice-your-diamond-skin-ape-pic” = relative pricing. Not valuation)
Follow #PiggyBack🧵
1/X
Equity = Assets - Liabilities
But what asset and liability values are we going to use?
The answer as always: it depends on what we are going to use it for.
Here is a summary of equity metrics, from the most conservative:
2/X
But what asset and liability values are we going to use?
The answer as always: it depends on what we are going to use it for.
Here is a summary of equity metrics, from the most conservative:
2/X
Price/”Net-Net” Working Capital (P/NNWC)
Classic Graham/Dodd strategy
Assumes: Use only most liquid current assets, deduct subjective discounts.
Conditions (often missed in screens):
1) Not consuming assets (melting ice cube/negative cash-flow)
2) Historical profitability
3/X
Classic Graham/Dodd strategy
Assumes: Use only most liquid current assets, deduct subjective discounts.
Conditions (often missed in screens):
1) Not consuming assets (melting ice cube/negative cash-flow)
2) Historical profitability
3/X
#tradingtips #entry #riskreward 1/5
If price is extended from ema or makes New Highs and you slap the ask, you already skew your risk reward (in case of short you slap bid at new lows)
You have to let entry come to you for best risk reward, find pullback in the trend!
If price is extended from ema or makes New Highs and you slap the ask, you already skew your risk reward (in case of short you slap bid at new lows)
You have to let entry come to you for best risk reward, find pullback in the trend!
#tradingtips #entry #riskreward 2/5
When you chase, you are one providing liquidity to someone who is going to exit at that price, so you will be immediately down or negative in your position.
Even though our mind is wired to give us FOMO and we click the market buy..its wrong
When you chase, you are one providing liquidity to someone who is going to exit at that price, so you will be immediately down or negative in your position.
Even though our mind is wired to give us FOMO and we click the market buy..its wrong
#tradingtips #entry #riskreward 3/5
rather than skewing your risk reward chasing 5 plays....wait for a pullback in trend on 1 play and have size with conviction with clear support/risk off level...same if shorting...wait for resistance level bounce
rather than skewing your risk reward chasing 5 plays....wait for a pullback in trend on 1 play and have size with conviction with clear support/risk off level...same if shorting...wait for resistance level bounce
#tradingtips #riskreward #scaleinscaleout 1/4
So a conviction play that you are swinging you can also trade around the core. Core being you size that you never touch.
Risk Reward is based on timeframe you are trading.
If you looking for swing, it is off 1 day/1week charts
So a conviction play that you are swinging you can also trade around the core. Core being you size that you never touch.
Risk Reward is based on timeframe you are trading.
If you looking for swing, it is off 1 day/1week charts
#tradingtips #riskreward #scaleinscaleout 2/4
or 1 Hr charts..
For overnights/or intraday 10 min / 1hr can be used.
Risk is always support/trendline/ema etc stop level. Reward is based on timeframe you are trading.
or 1 Hr charts..
For overnights/or intraday 10 min / 1hr can be used.
Risk is always support/trendline/ema etc stop level. Reward is based on timeframe you are trading.
#tradintips #riskreward #scalein #scaleout 3/4
Example
Trading 1K shares of $DMTK
73->82, Scale out 200 shares there, another 200 at 87
If it crashes back to 70 add back 400 shares , u still had 600 core, back to 1k position, goes 83 sell 300 scale out, 300 at 87 and then so on
Example
Trading 1K shares of $DMTK
73->82, Scale out 200 shares there, another 200 at 87
If it crashes back to 70 add back 400 shares , u still had 600 core, back to 1k position, goes 83 sell 300 scale out, 300 at 87 and then so on
I have received lot of queries on #OptionsTrading.
Specially on the trades that I take on expiry day where option prices move 10 times in last one hour. Let me tell you that this happens only 1 in 3-4 weeks.
Few pointers that I look at.
Specially on the trades that I take on expiry day where option prices move 10 times in last one hour. Let me tell you that this happens only 1 in 3-4 weeks.
Few pointers that I look at.
Expiry day trading in options few tips. I hope it will help others.
So what I look for is following 3 things.
1. Open Interest Build Up on expiry day
2. Trend of the market from start of the day
3. how to trade
3. Time when breakout or breakdown of critical levels happen
So what I look for is following 3 things.
1. Open Interest Build Up on expiry day
2. Trend of the market from start of the day
3. how to trade
3. Time when breakout or breakdown of critical levels happen
#OpenInterest Build Up
#Optionwriting has become very popular & there is heightened activity of the same on expiry day. This is clearly visible through OI buildup in specific strikes where OI goes up significantly & price goes down. Now these strikes become our boundaries
#Optionwriting has become very popular & there is heightened activity of the same on expiry day. This is clearly visible through OI buildup in specific strikes where OI goes up significantly & price goes down. Now these strikes become our boundaries
