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@SquareoffIn

Jun 16, 2022

⚡️Timeless lessons from the book The Psychology of Money

Financial success is not a hard science. It’s a soft skill, where how you behave is more important than what you know.

We will talk about some of the most important lessons from the book.

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1⃣ No one’s crazy!

Young households in the 1980’s were less likely to invest in the stock market in response to the poor market returns of the 1970’s.

As a result these young adults missed one of the best times to invest, The S&P 500 returned an average of 14.9% from 1980-1990

Young households in the late 1990’s were more likely to hold a high percentage of their net worth in the stock market.

They were informed by a hot market in the 80’s and 90’s. Many of them piled into stocks right before the dot com crash, and they lost decade during the 2000’s.

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Squareoff.in

@SquareoffIn

May 3, 2022

⚡️Mean Reversion VS Trend Following

Trend following and mean reversion both are two great trading forms & you really cannot say that one is better than other.

It all depends on the type of strategy & market you’re trading & personal preferences.

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1/10

What Is Mean Reversion?

Mean reversion is when a market tends to swing around its mean.

When a market has moved too much to the upside, we say it’s overbought.

The goal in mean reversion trading is to identify when a market has entered oversold or overbought territory.

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General Characteristics of Mean Reversion Strategies

Mean reversion strategies tend to have quite a high win rate.

The fact that winners are quite many, has the effect that mean reversion strategies have quite small winners and a few big losers.

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Squareoff.in

@SquareoffIn

May 2, 2022

⚡️Are you ready for full-time trading?

Trading is simple but not easy! you can buy or sell in just at the click of a button, but what to buy and when to buy is a difficult ball-game altogether.

95% of people who opt for trading eventually, QUIT!

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Keep these questions in mind before losing your capital.

1. Do you have a robust trading strategy?

To be a successful trader, you need a robust trading strategy with a statistical edge — Something that is thoroughly backtested & works in most of the market conditions.

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Let us take the example of Casino, make billions every year.

Casinos don’t beat players because they are lucky, but because the odds are in their favor.

By introducing 2 green pockets, they enjoy a winning probability of 20/38 viz a player’s winning probability of 18/38.

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Squareoff.in

@SquareoffIn

May 1, 2022

⚡️5 Tips For A New Trader-How To Turn Profitable Trader

You must have started Day Trading, 6 months passed…1 year passed….2 years passed…. you’re still not profitable or maximum at break-even.

Are you in the same situation?

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1) The law of large number(Probability) in Trading

The law of large numbers says that if the probability of something happening is X%,

the result will approach closer and closer to that probability the more attempts are made.

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If you toss the coin hundred times and record your results, you will find that the result is very close to 50%.

Same applies in Trading. Result is close to 50% on big sample of trades.

Remember, It’s impossible to be profitable every day, you should have a long term goal.

3/10

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Squareoff.in

@SquareoffIn

Mar 15, 2022

⚡️The 7 Best Traders in the World

The richest and best traders in the world aren’t trading their own accounts to pay the weekly grocery bill and monthly rent they are managing billions of dollars to grow their clients capital over the long term.

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The best traders in the world are under pressure not only to make money every month but also must keep their clients satisfied with their performance.

These top traders not only have to beat the market returns but trade in markets with enough liquidity to execute.

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These traders are in the major leagues of the markets and are rewarded for it. Maximum pressure, big trading size, and clients that demand results monthly and yearly. They are also entrepreneurs as they run firms and manage employees.

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