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Asit Baran Pati

@asitbaran

31 Oct

Good Morning Everyone. Just thought to share my last months pnl of my major accounts, with you all. Will do this on monthly basis, no point putting daily profit / loss. Have been maintaining these for last few months. Maintain a journal of the hits and misses :)

Will doo a thread on Numbers as I had promised sometime back. Numbers and stats fascinate me, am sure it will give you all some food for thought.

Objective is to provide a fresh perspective, up to you to believe it or not.
Most importantly Money can be made with buying and without leverage. You don't need bigger capital. Have made return of >90% on a 32L cap in last 4-5 months (not included above). That too infrequent

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Asit Baran Pati

@asitbaran

29 Oct

Last couple of days have been really sad learning that one of the past participants have been in loss for a while and have suffered more loss in recent times..Have been through this many a times..That gut wrenching feeling when you think you would make it, just

One more chance and then one more and it continues..Have blown up my accounts at-least 5-6 times..and every time I would start afresh, would tell myself I Know what I would..would know how exactly I will manage my trading and then old habits would make me go bust..

Till I changed the way I was trading earlier, brought some amount of discipline and method, slowly and steadily started making bit of money..This friend is paying 83% of his salary as EMI..by hearing that it just crushed my heart, went back to the point where I was losing all of

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Asit Baran Pati

@asitbaran

7 Oct

Since Earning season around the corner, just thought to share something basic. Not sure how many of you are into valuations. All my corporate career was spent in different IBs. The core working of the IBD is to prepare this heavy deck called Pitch Book

2. which gets circulated through all the MDs & Eds and we had to crunch the numbers and have to work against time for finishing the book in time. Which is basically comprised off Company profiles, Quants and Valuations (Comps-DSCFs / DDMs, SOTPs) etc. One of the core objectives

3. is to derive the fair pricing and this going in for Deals discussions with prospective clients. It was fun till it lasted but there was no life with 14 hours of slogging on daily basis. Reason for me to getting into trading. More on this on some other time.

Read 12 tweets

Asit Baran Pati

@asitbaran

29 Jul

1 - An old dear friend of me called me last weekend and wanted my advice for starting his career in trading. He wanted to know the tricks of the trade without even knowing what preparation need to be done. Lost his job, and now wants to be full time trader.

2 - Spoke to him at length and persuaded him not to get in till he understands what’s in there. Thought of sharing it with you all, if any of you are contemplating!!

Here is a write-up for wishing all the new traders who have got into the market thinking, its easy out there.

3 - I too felt the same when I had started out.

In my opinion a new era in the market has started, with all the new rules and we have to figure out how best to adapt to it. But that's the thing just because something has worked and was successful in the past not necessary it

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Asit Baran Pati

@asitbaran

19 Jul

Brief write-up on Gamma. Hope you hv few takeaways

1 - Gamma is one of the Option Greeks. It measures the rate of change of the Delta of the option with respect to a move in the underlying asset. Specifically, the Gamma of an option tells us by how much the delta of an option

2 -would increase by when the underlying moves by 1 unit. Since Delta is a first derivative, Gamma is a second derivative of the price of the option.

A : Gamma Characteristics:

Gamma is a +ve function. If we own options, we own Gamma. If we are short options, we must have

3 - short Gamma.
Gamma is what makes Delta go from mild to ferocious, from small to large. The instability of that Delta depends on the option’s Gamma

a) Long Option Benefits of Gamma

Gamma is friendliest to long option holders. It accelerates profits for every 1point, the

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Asit Baran Pati

@asitbaran

17 Jul

The markets are not sympathetic to the meek. Few professions require as much courage as trading does. Came across this Tweet that somebody has lost 74% of his capital, by taking an earnings' trade suggested by some expert. Not sure if its true or not. 1/

But if it is then, it’s really sad. I feel for the person who has lost it. I can relate to the person as I myself took trades, like these given by INDORE advisory firm (and what a name EPIC Research :)). But in the end I came to terms its me who has done the blunder no point 2/

blaming anybody else. Holding onto SynicateBank 150 CE for 20 days, losing almost 50-60% of capital. Had bought Straddle before Infy result (many seasons back), just to realize lost 4-5l, (out of 20l capital) next morning, in no time, and was 3/

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