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BTech IIT Kanpur 2001/Presently currency trader in a bank, interested in NIFTY, FNO MCX, NCDEX. twitter for fun, not to offend, Apolitical
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12 Dec 20
How to get rich trading (without getting lucky)
Complete beginner’s guide to wealth of Rs 10 Cr in 10 years
Step 1: start trading live
Nothing can substitute experience of live trading
No amount of back-test, studies or indicators can substitute training your mind with screen time
As a beginner, In live trading, you will make losses almost everyday
So here are the conditions which you can’t violate in first year
If you can’t follow these rules, this document is not for you
Start with trading capital of Rs 1 lakhs
Max loss per trade 0.25%, i.e. 250 Rs
Max loss for the day, 1%, i.e. Rs 1000
Max 6 trades in a day
Read 30 tweets
8 Dec 20
Beginner's guide to position sizing
You should not risk more than 0.25% of your trading capital on a single trade
You will come across ppl who risk 1-10% capital, but it's not prudent or required
In book "market wizard", most professional traders are risking 1-2% max
But they are professionals doing it for years.
If you risk 0.25%, u have to be wrong 400 times in a row to completely finish your capital.
For beginners, 25% accuracy is not difficult to achieve.
Assuming 1:2 risk to reward ratio
After a series of 10,000 trades,
You will be looking at Drawdown of 6.25%.
May be, after charges, DD of 10%
That becomes your worse case scenario
Once your accuracy level improves from 25% to 35-40%, you can increase position size to 0.5% but it will take minimum a year's time
Read 6 tweets
21 Nov 20
As for someone who was not allowed to trade/invest in equities (because of job n insider trading laws etc)
I found many great insights in MW book, abt non equity trading
Here is 5
Dennis Richard, whom I consider my guru for 2 insights
A. trading has to be rule based
B. Turtle trading experiment, anyone can be excellent trader, if rules r followed with reasonable discipline
Backtesting insights like degree of freedom, curve fitting n pitfalls of BT
Paul Tudor Jones
Greatest trader alive who is still trading,
Predicted black monday n made insane money on single day
His below video is a must watch
He showed that commodities forex n bonds are the place to be
His books (esp hot commodities) is a must read
Read 6 tweets
20 Nov 20
Market crashes, when almost no one is expecting it to crash.
Right now, 30% guys I speak to, are expecting a sharp correction.
So at best it will consolidate here or time wise correction. Crash won't happen.
So side ways movement for next 2 months?
Another way a sharp correction can happen is event driven Like lehman / ILFS collapse
That, imho can happen any day in India or globally.
So many bankruptcies are being filed, it will have cascading impact on financial sector.
Just a thought, LEHMAN collapse happened in September 2008 and NIFTY took nose dive from 4400 to 2200, a 50% correction in 50 days. Less than two months. Made a low in Nov 2008.
Read 7 tweets
7 Nov 20
Popular advice, don't watch TV
Obviously if u are algo or systems guy, u should not watch TV or even your fluctuating MTM on screen
For everyone else, TV is the biggest free tool u can use for your trading.
Obviously trading calls/advice is useless but that's just
1% of TV.
what about rest of it?
How many of us know about LTRO or OMO?
Watch TV everyday esp events like RBI policy and within few months all terms will start making sense to u.
Oh u don't need these terms for ur banknifty straddle. Is it?
Sooner u realize that every thing
Is interconnected, better off u will be as a discretionary trader.
Entire giant financial machine is interconnected with butterfly effect
In every dealing room /treasury /fund house there are many TVs visible to all dealers.
Many of the CFOs in corporate world have TV
Read 10 tweets
14 Oct 20
Why did Chanra-swami suddenly stopped helping Harshad?
Also cornered him by freezing his accounts, assets, both brothers in jail, 72 CBI cases and 2000 Cr notice against his wife?
A thread into history 1991
Rajiv Gandhi assassinated suddenly in election campeign
Narsimha Rao was brought back from retirement to head a trusted minority Govt of Congress
Other trusted guys are MMS (Finance minister) and Chidambaram (Commerce minister)
Rao's right hand man was Chandra-swami (or other way around)
On becoming PM, Rao stopped visiting Sonia
and wanted to break free of Gandhi family. But it was weak minority Govt so he had to take everyone along
Here in mumbai, Harshad was doubling money every month and all businessmen and politicians were after him to double their money
Politicians also included Rao and many
Read 12 tweets
13 Oct 20
Sharing my BUY INDEX OPTION
Will try to update it daily going forward.
I know, lot of questions, FAQ in next tweet in this thread
Bro why suddenly sharing? are you selling webinar, trying to fleece me
A: not selling anything, please keep your money in your central pocket. Though, I would loved to be trolled by you
Sharing as I am loving this like/retweet follower game atm
Bro dont be B#
, tell me the strategy:
A: i am open to sharing all my strategies, but his is someone else's work so i cant share this one. However if you follow daily its easiest strategy to follow crack. Good luck
Whats CALMAR and MADCOW of this bro
Read 9 tweets