Thread by @madan_kumar

Intraday Nifty options trading - one year ended today 😊

1. Starting capital - 3L

2. Made 512% (milestone #6)

3. Acct equity = 18.37L

4. Cumulative money made = 15.37L

5. Options pts = 996 (average = 83 pts/month)

6. Current lot size = 36

marketswithmadan.com/intraday-optio…

(1/19)

Observations/Lessons/reitrations - thoughts are random..

1. Made 512% (with compounding) & 83 points per month on an average (ard 150/160 pts in futures equiv)

Never thought about any of these numbers (even in my wildest dreams) when i started. It was a crazy ride !!

(2/19)

2. Trade a system with edge + proper MM (intraday or positional does not matter) - this is the KEY

3. Good money can be made in both the forms. In options, wecan trade multiple strikes & deploy more money. Execution will start to play a big role once we move up in size

(3/19)

4. Wanted to take this opportunity to thank Arun @ramvarman for creating a nice excel sheet for conditional order (like the way we have in IB but much better) - amazing guy !!

He made my intraday trading life much simpler and easier..zero stress

(4/19)

5. Glad to show that 'Trading the mkts is all about handling drawdowns(DD)/losses" live

6. 3L to 15L was in options buying & as i have never done directional option selling ever, will do option selling from 15L to 30L 😊

Buying or selling - call will be taken after 30L

(5/19)

7. When i had some DD in May/June 2019 (sea of red, as i call it), everyone jumped on-board to ridicule that

a)"See, i told you" - Daytrading does not work(most probably the person would have failed in daytrading and hence, the comment) 😊

(6/19)

b) Options buying is a suckers game (most probably, he is an exclusive seller and hard-headed to not know that 'there are 100 ways to skin a cat' 😃)

c) Mkt condtions were conducive initially and now, your system lost edge...

(7/19)

...These are the folks who never understood the cyclical nature of the markets. Both volatility and returns are cyclical in nature)

Most of these comments came in as innuendos but over the next several months, they slowly stopped coming 😊

(8/19)

8. Hit equity curve high today in both positional (option buying) and intraday(option selling now) accounts 😊😃

9. In intraday, there is a slight advantage in option selling but it also depends on the average time of the trade.
More on this topic after few months.

(9/19)

10. Selling monthly NF options (intraday) for trend following is better than weekly options as the premiums are good in monthly

11. Many got inspired from seeing this live intraday options account and started doing it themselves..atleast dozens. So, glad to see it 🙏

(10/19)

One is better off trying something new than sitting idle and crib all day about 'why life is unfair'? Thanks for inspiring back folks !!

Wanted to quote a thirukural here - "தெய்வத்தால் ஆகாது எனினும் முயற்சி தன் மெய்வருத்தக் கூலி தரும்" - talks about 'trying' 😊😊

(11/19)

12. If you minimise the # of trades to 1 per day (avg), thenintraday feels pretty much like positional trading.

No anxiety, no stress, no managing/adjusting trades every minute - at the end of day, we need to protect our health...not just the account

(12/19)

13. We grossly underestimate the importance of small steps(progress) taken everyday towards the goal. We tend to put high value on earth-shattering event/action to define success.

Like one big trade to take the account from 50L to 1Cr...

(13/19)

But, it is actually those trades that were taken every day adds up to the account slowly

14. Act on an idea ->Learn from mistakes -> Build on it -> Repeat the process. This is what defeats uncertainty and markets are no exception.

(14/19)

15. Many of us think that compounding word does not apply to trading and its an 'investing' term. Far from the truth 😊 Any financial account should be exposed to compounding !!

16. It is easier for many of us if we walk the path someone has walked already...

(15/19)

..I have not seen anybody doing this in India consistently for an year and hence, started this experiment. So far, so good :)

Hope you guys take mechanical trading + Money mgmt + execution (holygrail) + compounding the account seriously now.

(16/19)

17. Future plan for this NF options acct experiment - to take this from here to 1Cr & will share the tradebook until that pt

18. There will be lot of missed trades, wrong trades, failures, frustrations, agony, ppl laughing/ridiculing at you and myriad number of things..

(17/19)

...But, please hang in there and follow the plan

19. Create a mechanical system ->devise MM -> bring capital -> work on things that are making your execution difficult (has to be easy) -> take all the trades -> gain psychological resilience (it happens simultaneously)..

(18/19)

Markets have been kind so far to a punter (& a below-average person) like me (am sure i got lucky) & let's see what the future holds.

Hope this thread would be of help to someone out there 👍

Happy trading all and have fun !!

(19/19)