This is Master thread of all the useful tweets (imo) that i have shared in the past. Going through them may provide some knowledge on options, volatility, greeks & trading psychology. Will keep updating in the future.
In 1997 my family travelled to Chicago to attend a trader's conference.
"Samurai Trader's Symposium".
It was hosted by the author of the book "Zen in the Markets: Confessions of a Samurai Trader" by the late Edward Allen Toppel.
The book is mostly about Trading Psychology, which had a big impact on my dad's trading when he first started out. The Author, Eddie as we called him, was a top trader on the Chicago exchange at the time. He became a close friend to our family.
He was amazed at how his book could have such a profound impact on someone. But this was a time when knowledge wasn't in abundance like today. He himself found it tough at times to follow his own rules, but this is because markets can be tough at times & our ego gets in the way.
Hello! This is a master thread that contains my past threads on options, trading psychology and my own experiences in the market. I hope they provide you with valuable and practical insights.
10 mistakes in my 14 years of trading as an option seller
How to become a successful trader
(for beginners) 🧵
1. We need adequate funds to begin our trading journey. If you don't have enough funds, my suggestion would be to borrow money from relatives or close friends. In the long run you will realise that your relationship will only grow stronger.
2. To understand what trading is all about, it is necessary to learn from experts. There are many successful traders, who have almost stopped trading & have made it their life mission to teach beginners through workshops & telegram channels. Learn from them.
10 things that have helped me stay profitable as a full-time trader for nearly two decades 🧵
1) Following the market. Market speaks to us in one language: Price. Be it volatility or direction, the ideology has always been simple: to follow the price as closely as possible. Whenever I have astrayed from the objectivity of price, have been severely punished by the market.
2) Exiting losers & accepting mistakes. This is something basic & every trader knows it by heart. But to apply it is still a challenge & our basic human psychology interferes with it. Being a full-time trader helps in this aspect, as we can't really afford to lose big.
The most tough environment for option sellers is the transition between high to low Vix. One gets well accustomed in handling the regular IV spikes & the high theta decay that follows afterwards.
During low Vix the spikes are less frequent & less intense. With less premiums one is always afraid of gamma moves, which in the recent past 2 years have been plenty.