More from @Pathik_Trader

Pathik

@Pathik_Trader

2 Nov

Many people feel scalability issue when it comes to trading.

Few steps which can help u to scale with ease.

1. Scale slowly and steadily.

Ex : trading with 20L then gradually increase to 30,40,60,100L.

Don't directly scale from 20L to 2 Cr.

2. Never see ur MTM in absolute terms , always see in Percentage terms.

Ex. : with 20L ur MTM fluctuates within 40k and when u scale to 40L fluctuation will be within 80k counting 2% MTM fluctuation.

See both in same way as 2% don't see it as 40K and 80K.

3. When u are scaling ur capital u need to make sure underlying u trade is highly liquid so that u don't get very high Slippage cost in ur trade.

Ex. Trade nifty, bnf, or highly liquid stocks of nifty. after some level u ll find difficulty in trading midcaps which is less liquid

Read 5 tweets

Pathik

@Pathik_Trader

31 Oct

Some of the myth about naked option selling risk!

"If there will be major gap down/up account will be wiped out!!"- that will happen only when u are over leveraged. I have face 15-18% moves and still losses in trade never went above 6% in a trade.

People argue that with reduced margin requirements we can generate more return and also get ourself protected with hedge!! - To make more return you need to increase qty and indirectly u are risking more with hedge to generate more return with same capital.

People argue mostly about huge gaps but they don't work on their position sizing.

Before punching naked option ask yourself that if stock opens next day at circuit how much i will be losing. Keep ur position size such that even at worst opening of underlying u won't lose > 5-7%

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Pathik

@Pathik_Trader

27 Sep

One of the basic theory behind gap days.

When underlying gives gap up above yesterday's range and sustains above that for one hour+ means market participants has accepted the new range and are willing to buy at higher price. So fresh buying and short covering are likely.

(1/n)

If price opens gap up out of PDR but fails to hold on to hourly low which means market participants haven't accepted new range yet.

So in that case it's likely to test PDH first if that also doesn't hold then PDC and even PDC doesn't hold price then likely to test PDL.

(2/n)

Similarly

When underlying gives gap down below yesterday's range and sustains below that for one hour+ means market participants has accepted the new range and are willing to sell at lower price. So fresh selling and long unwinding are likely.

(3/n)

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Pathik

@Pathik_Trader

26 Sep

Thread for Novice traders.

Many people asks from where do i start learning about trading?

1. Start from learning candlestick pattern.

2. Learn theories behind how demand and supply works.

3. Learn how support and resistance works.

(1/n)

4. Focus on larger timeframe first, never start with intraday trading.

5. Start with actual money once u understand above theories. Do infuse only 10% of ur planned capital first and practice with equity segment. Never touch derivatives atleast for first 1 year.

(2/n)

6. Try to learn from ur trades, what are the mistakes you are doing and try to figure out reason behind that. And try not to repeat same mistakes again.

Some of the biggest mistake novice trader does
-average out losing trade
-don't place SL
-take out profit too early

(3/n)

Read 10 tweets

Pathik

@Pathik_Trader

26 Aug

Many people pinged me in DM regarding next earning season training program, sorry to say that I have decided to not take up any training from now onwards.

Reason being Earnings Trading is not suitable for everyone. I have the confidence in my system but no one can replicate same confidence while trading with me.

My risk appetite and other person's risk appetite might be different.

So decided to only focus on trading.

Have given training to more than 70 good traders.

Always given & shared my best possible knowledge with all my trainees.

Adieu to training career. Wish all my students a very profitable trading career.

Read 5 tweets