I am a Part Time Trader for more than 7 years and I have been using most of these tricks in my own #trading.
Here are some free hacks for a Part Time Traders to generate additional returns along with their Job/Business 🧵:
1/ First select in what instrument you will trade or invest:
This question can be answered depending on the skills and your edge in trading.
I have my edge in Option Selling and Positional Trading.
So divided my capital in half in these two.
Note: It is not necessary to jump into Futures and Options Trading just looking at lucrative profit screenshot.
Always protect your capital and don't take huge risk.
Generate returns that give you peace of mind.
2/ Let's say you pick up Option Trading as edge.
Then you should have a proper setup that you will trade. It can be intraday or positional.
For Intraday, put alerts and Stoploss order in the system always.
For Positional as well, use alerts at Target Level or Stoploss.
3/ Let's say you pick up Cash Trading.
Then you will have to do all the chart analysis one day before. Then wait for your entry to get triggered in any stocks.
For that simply use alerts and you get notify if entry is triggered.
For exits, if you have any target or Stoploss then also use alerts.
Also, few brokers allow you to set GTT order. This order will execute only when price has reached your trigger level.
Using this, you won't waste your time tracking market during the entire day.
3/ There are Free Alerts Platform and App that you can use:
- Investing.com app can help you to keep unlimited alerts in the system.
- Few brokers like Zerodha, Upstox also allow users to keep alert.
- In @in_tradingview free version you can keep only limited alerts.
Few reality checks:
- Don't expect huge returns, like Rs 40k to Rs 1 crore in Part Time Trading.
- Frankly, Intraday trading will be difficult for part-time traders, so try Positional Trading first.
- Keep Stoploss/GTT Order in the system and don't hope that trade will reverse.
These are the simple steps which you can use to generate some additional source of income being a Part Time Trader.
If you found this useful, please RT the first tweet.
Most of the beginners don't know the actual meaning of various corporate action in the stock like Dividend, Bonus, Split, Rights, etc.
Let's decode meaning of all these corporate action and what implication it has on company's stock price and valuation in this thread 🧵:
1/ Cash Dividend:
A cash dividend is the distribution of funds or money paid to stockholders generally as part of the corporation's current earnings or accumulated profits.
Stock price also goes down in same Dividend value as on Ex-Dividend Date.
2/ Stock Dividend:
A stock dividend is a dividend payment to shareholders that is made in shares instead of cash. The stock dividend has the advantage of rewarding shareholders without reducing the company's cash balance.
So far, no Indian company has given stock dividend.
There are various Options Greeks like: Delta, Gamma, Vega, Rho, Theta.
A complete guide on how these #Option Greeks impact option price.
1/ Delta:
Delta is a measure of the sensitivity of an option’s price changes relative to the changes in the underlying asset’s price. In other words, if the price of the underlying asset increases by 1 points, the price of the option will change by delta amount.
Call option has positive delta, and put option has a negative delta.
As the options become ITM, the value of delta tends towards +1 for call and -1 for put.
Delta is important greeks to determine the hedge ratio for investors who want to hedge their portfolio.
This indicator helps in identifying stocks that are showing strength against benchmark (Nifty or any Index). It can help you to hold and ride the winners.
Here is the top seven #thread 🧵that I have shared in 2021:
Second thread is my favourite of all.
1/ Option trading strategy:
Share a positional option trading strategy for #Nifty. It is purely based on technical analysis and doesn't require you to check Option Chain, OI, etc. It requires Rs 50,000 margin after hedging your position.