Thread by @pawanaroraleo

After 7 years, I became active at social media and so surprised to see that wannabe Traders are learning wrong methods for trading for a living.
1)Options Selling - Surprised to see that Retailers who started trading from last 2 months, claims that they r consistenly making money

Options are hedging instruments for Institutions, Options are not supposed to be written by retail with less than 5 lakh of capital. You can make money in 11 months, but you will give back all and some more in 12th month.

And do not get misguided by few trainers when they discourage futures trading by saying "if Options risk is unlimited then futures risk is also unlimited". But they do not tell that In futures you make unlimited profits also, which is not the case with the option writing.

Example-there will be 3-4 good trends in an year and good trend trader can easily catch 300-400 points if played via futures, 3-4 times in an year. this can not happen with option selling.

1200+ points just with 4 good trades and rest of the time, even if he is breakeven then also he can make 50% returns by leverage of 1 lot of nifty future per 2 lakh of capital.

2)Scalping-Though it can be profitable, you will be tired after 3-4 years. Do you want to make bad habits which will be difficult to break after a couple of years.If you are doing it for short stint then fine, but if you are thinking to make Trading as your living. Big NO

Tell me how will you scale up, if you keep scalping for 20-30 points here and there. Trading with 2-3 lots and making 20 points each day will only fetch you a daily wage, better find yourself some white collar job.

3)Discretionary Methods- Most of the trainers I see here in twitter are teaching discretionary methods, Let me tell you- unless you take out Guilt out from the Trading it will be very emotional-draining, and there will always be guilt when trading Discretionary Methods.

What to do then -
1) Be a Trend Follower, if possible on a larger time frame.
When you will follow trend, it will forgive many small mistakes of yours and it will reward you big when your time will come.
2) Make a system as objective as possible- It will take out the guilt.

When you will do the above things, then only will you be able to scale your size to 100 -1000 times gradually,that too without any emotional hickup.
And mind you, We do not need to be profitable each day. Look at my report.

Now its entirly possible that people would have created wealth by all those methods which i just negated.
Because there are so many different opinions, that is why markets are so interesting.

Adding Few more points-
Making profits needs blood and sweat in initial few years, so if you are getting so easy by selling option strangles/Straddles think again, there must be a catch.

Option writing is like selling insurance, Insurance companies make profits most of the time, but one black swan event can push them out of business. Govt can bail out them, but who will bail you out.

Guilt Free Trading - It means that we should not have any regret that I did not book profit here/or I booked profit so early.
I should have gone long here or short there, All such extra cognitive load is very unproductive for trading and you will be so tired after the trading day

On the other hand - when your Trading rules are so crisp,where you do not face any dilemma before pulling any trade, that is when you will start to scale..
But guilt free Trading can happen only when you have clear entry and exit rules.(Systematic Trading)

And this target based Trading- TSL here, TARGET there, I have rarely found any good trader making money in the long run. Now if such targets are on a weekly/Monthly time frame, thats different but swing trading of 2-3 days with fixed targets - Difficult to sustain in long run.