Thread by @chartians

A thread🧵 on #Powerofstocks aka Subashish sir' F2F with @vivbajaj

Amazing learning video ❤️🙌

Small intiative to give out his learnings

#chartians #momentum

Introduction to Markets 👇
- By profession Subashish sir is an Engineer
- Got to know about markets through his relatives in 2011-12
- That was the first time he got to know about markets
- Bumped onto News channels and gained some interest in the markets

Journey 👇
Initially he was fascinated about the market and was wondering how money was made through it.

Journey of every trader starts from this very point. Hum aayenge aur bohot saara Paisa banake jaayege.

Subashish's parents never agreed to the fact he wanted to trade.

They always feared of him losing money and there came the sheer dedication. By profession he is a CompSci Engineer. Started accumulating capital through his salary.

Surprisingly he also took a loan. He skipped the part because majority might jump into it and lose out money.

Things to remember 👇
Remember never trade in borrowed money. It has 10X the amount of pressure and 90% chances of losing that chunk in trading.

He gave nearly 2-3 year to the markets while doing job. So if anyone is thinking to quit job and get into full-time. Think again.

He was so dedicated that during the market hours he requested his manager to let him track markets from 9-3 and would assure him to work extra hours to compensate.

His manager being into the markets too knew about it. But afterall a job is a job. You gotta do what you gotta do.

He was always confident about himself. He got to know a lot about the market and ultimately he made a killer amount in 2020 as he always traded in cash and futures.

Apparently according to him he grew his 2L to 60L just by buying options.

Remember this cannot happen everytime.

Later after the corpus grew, he being a trend trader got into option selling.

Advice : Don't come into option buying just because your capital is less.

Any style of trading should suit your comfort zone. Or else it won't give you money.

Intial Thought process 👇
- Believes in Small loss and Big profits
- Intiallly was into Strangle/straddle and made good money but he was fascinated with trend following
- He believes market is supreme and disagrees with firefighting with the market
- Decided to decode it

His logic 👇
- If Market is giving a direction then why not go with the market.
- Believes that option non directional first gives you a shakeout outside the payoff and then comes in to give you money
- He finds this to be quite confusing and hence diagareed with the fact

- His initial days of Cash/Fut trading helped him gain an idea of trend trading
- Decided he won't do fire fighting
- Was even comfortable to go all in as he Always believed that if Market gives wrong I am ready to give SL (just like us 😜❤️)
- RR is supreme as per him

He always make sure that "With the help of stoploss, he will shit like a chicken (by giving stoploss) and eat like an elephant (by eating nearly 80% premium)

But does not reject the fact that market can go against us and is ready to a dent but happens rarely

Never lets option to zero, usually books out at loss of 80% premium.

Here comes the factor of ROI and ROT. Just for the remaining 10₹ why to engage that capital.

Hence he changes and rolls over his position.

Always focused on 1:2 and more. Always !

2020 mai 20 ka put 600 par becha. Big contribution to his capital.

He believes 2017 - 2019 market is not the same now.

Daily volatility has increased. It has to move somewhere. So trading is not same like 2017-2019 Market.

Quotes - If I am given 10 hours to chop a tree I will use 9 hours to sharpen my axe.

Same applies to trading. Process is important. Pratice for 9 hours, that 1 hour will give you enough money.

STICK TO THE GAME BOYS ❤️🙌

Core of his trading style - Trend identification
- His basic idea is to bet on the slower one in the race
- Selling that will give you money regardless of RR is kept in mind
- His belief is ATM premium comes around 150-180 points at expiry
- ViX being at 20

- OTM players cannot aim for that premium, they will always settle for 25-30₹ premium
- Rather than just limiting to the premium why not go for more ?
- One leg will always go zero no matter where market goes
- Chances are that Spot is same Market will give money from both legs

Retail Always believes in buying at 15 and selling at 100, but what they don't understand is that 100 can also come back to 15 and we need to just identify that SLOW RACER 🚣

By managing risk bet on slower one and you will definetly make big money.

Trend my friend hamesha❤️i

He also says that even if you right in the direction, make sure you book out major positions at 80% premiums

100 ka 10 hogaya toh nikal jaao. Kya pata wo 10 ka 40 aajaye ?

Rather shift to other strike and sell 50₹ ka premium with 20₹ SL to get the other 40₹

Crazy 🙌❤️

He uses a 25SMA on 15min

Logic is to get 24 candles of 15 minutes over the course of entire day

Whenever a 15min candle closes below or above it. Take a trade with SL of that candles high.

Or max 30-40₹ SL

Remember chota SL, bada profit 🥳

Option prices are likely to not hit multiple SL as it's not future.

No matter how volatility is, one leg will always get zero. Identify that leg aka slow mover 🐢

There will be a day when both the legs (CE and PE) will close below the SMA - what to do ?

Dono ko thoko, let market decide where it wants to go and ride that one.

Max give 25-30₹ SL rest expiry par zero hojayega koi na koi leg.

Market will give you money ultimately 🙌

Kitna bhi learning karlo, gharpe paisa aana chahiye. It will serve as motivation.

There will be instances where there will be multiple entries. Go for them.

There will be one point when your game will change.

Try and test. If not then go with other style.

Momentum in first half of the day usually fizzles out. He always believed that second half recovery decided the trend.

First half Wale mai reversal jyada chances hai.

Call side is more safe than Put.

Trade makes money in Shorting and investors in Long 🙌❤️

So what exactly is the set-up ?

Set-up is identify the trend, manage your risk and manage your money.

It's as simple as that. Paisa banega. Risk manage Karo. Best part. No Greeks delta gamma were mentioned in the video.

Pure bills and pure learning 🙌❤️