How my capital crossed 4 crores trading options

Recently my trading capital crosses 4 cr with not a single drawdown month.

There were a few key factors which played part.

Find out below 1: Understanding market phases

No market regime lasts forever. However, one has to quickly adapt and identify the changing regimes and trade as per that.

Have a look at this

https://twitter.com/itsAdityaT/status/1609051261101543425?s=20

HOW TO SAVE TAXES IN TRADING AS AN INDIVIDUAL?

I'll list down all the perfectly legal ways in which you can save taxes on the profits you earned from the stock market. 1: Split your money between family members.

If you are trading with a good capital size, to lower taxes, you can always split your money in you family member's account. This greatly reduces your taxes.

HOW CAN A BEGINNER GET STARTED INTO OPTION SELLING?

I've got "n" number of DMs from complete newbies asking me to guide them. So this is it.

THIS IS THE ONLY THREAD A NEWBIE WILL NEED TO START OPTION SELLING! 1: Learn the basics of stock market.

First step is to learn all the basics of stock market. Option selling is a part of the market not anything different.

It's just used to play out your market view. So knowing the basics is a must in the first place.

I've taken over 20,000 trades in my life.

Here are the top 8 things I learned. 1: The more indulge into taking random trades, the more I lose.

The most difficult part is to stick to the best setups/scenarios and not doing anything when there's not good setup with favorable RR.

This is the most important concept which made me great money in 2022.

This is the skill which is GUARANTEED to make you a better trader Banknifty moves in 2 phases.

1: Consolidation
2: Trends

An understanding of both of these phases will take your trading to the next level.

"INVEST 10k every month and in 20 years you will have 1cr" - Standard Mutual fund Pitch

I'VE NEVER SEEN ANYONE GET RICH FROM BUYING MUTUAL FUNDS!

You're being scammed into buying mutual funds in majority of the cases

Find out how and what's the alternative? 1. Fixed management fees

You have to pay fixed fees of 2-4% of your capital in mutual fund and it automatically gets deducted from your capital.

You have to pay these fees regardless of whether you make a profit or loss which makes it the worst ever investment possible.

POWER OF COMPOUNDING IN OPTION SELLING

Compounding can turn 20 lakhs into 2449 crores!

And the best part is you don't have to make big Roi.

Find out how 1: The first goal is to have a longer time view and also the long term mindset.

Because the real power of compounding is only felt in a longer time period as opposed to a shorter timeframe.

Most of the successful traders here are option sellers.

Ever wondered why?

Why we have chosen option selling?

Find our below 1: Being wrong and still making money.

We as option sellers can be wrong with our market view and still end up making money because of the power of theta decay and adjustments to some extent.

Adjustments work better as get closer to expiry since decay is the highest.

Are you afraid to sell options with low premiums and low vix?

Calendar Spread is one such strategy which is designed to make good money in low vix.

It has very low risk and is easy to execute.

Plus anyone can follow it with few basic rules and adjustments. I had made a view on @ITRADE191 's calendar spread strategy and will explain it here in the simplest words so maximum number of people can benefit.

HOW TO SAVE TAXES IN TRADING?

Many are still not aware of the immense tax benefits of a corporate account for trading hence I'll write a comparison for Individual vs Corporate Account.

A Thread🧵 1: Flat tax

For a Corporate account( pvt ltd) you have to pay a flat tax of only 25% no matter what your income is.

For an individual taxes have to be paid as per their respective slabs. It can be 30% or even 42%.

Many beginners are not aware of the most basic yet the most favored option strategies by top traders.

50K Workshop for free!

Here are the basic option strategies used by top traders.

A thread🧵 1: Short strangles

This is my personal favorite strategy and is the most favored by the best option sellers.

This involves selling one otm call and one otm put.

You will make money if market expires inside this range.

DARK SIDES OF OPTION SELLING

We have seen why option selling is good but also there are 2 sides of a coin.

Listing down some of the most common mistakes people make in Option Selling that results in huge losses. 1: Not having a direction.

Most of the people get involved purely in neutral strategies and lose heavily when market starts to move as they are not experienced enough to carry out the adjustments.

Having a slight sense of direction increases your odds of winning.

Workshop worth 5 LAKHS absolutely for FREE.

I've posted some amazing stuff about trading which in itself is a workshop.

Posting some of my best threads here. 1: Benefits of Option selling.

Why are most of the successful traders option sellers?

Writing down my reasons for choosing it.

https://twitter.com/itsAdityaT/status/1530425284012679168?s=20&t=m5y8QJTfvBYEVJ1jnjF7vQ

If I were 18 again and wanted to start trading.

Here's what I would tell myself(Part 1)

A thread🧵 1: Trading is a game of large numbers

The law of averages always plays out in trading. No single day or a single trade has any importance.

What matters it the performance over a period of time. Over thousand of trades.

HOW TO USE TECHNICAL ANALYSIS TO FORM A WEEKLY VIEW

A thread🧵

Got many DMs about how I form my weekly view in Banknifty and how do I analyze it.

In this thread I'll show you how I do it so that anyone can analyze Banknifty and other instruments the right way. 1: Weekly timeframe

One Should start analyzing with a weekly time on candlestick charts.

MY TOP 10 POINTS TO BECOME A BETTER TRADER

A Thread🧵

Listing down some of my top learnings which has helped me improve my trading to a great extent and will help you too. 1: Always stay on the right side on trend.

The biggest money is made by being with the trend, not against it.

Traders who made it big were always trend followers.

HOW TO ADJUST A SHORT STRADDLE?

A thread🧵

Short straddle is the most basic strategy but many people are unaware about various types of adjustments that can be used to adjust a straddle when it goes wrong and come out with profits. 1: Make One side Risk free.

When you initiate a short straddle and the market starts to go in one direction you can easily make it risk free by simply buying Slightly Otm option of the tested side.

HOW TO SAVE TAXES IN TRADING AS AN INDIVIDUAL?

A THREAD🧵

In this thread I'll list down all the legal ways in which you can save taxes on the profits you earned from the stock market. 1: Split your money between family members.

If you are trading with a good capital size, to lower taxes, you can always split your money in you family member's account. This greatly reduces your taxes.

HOW TO ADJUST A SHORT STRANGLE?

Gone are those days where a short strangle used to expire worthless without any adjustments.

Adjustments are a must when your initial view goes wrong which it will.

Listing down all the ways to adjust a short strangle WITH EXAMPLES below. 1: Rolling up/down:

If you've sold a short strangle and one side premium spikes, you can book the profitable side and roll it up to match the premium of the other side.

JESSE LIVERMORE is considered the greatest trader of all time.

He was the richest person in the world during his time.

I've read majority of his books and picked out learnings which are relevant even today with examples of the current scenario. 1: Remember that stocks are never too high for you to begin buying or too low to begin selling.

This principle still holds true today in trading, especially trend following.

Most people think if a stock has run up too much, then it's price is high and it will reverse.

The absolute best trading software top traders use!

Also sharing the terminal which I personally use and the top 5 ones. 1: NEST trader by OMNESYS

This is by far the best trading software I've ever used. This is also my favorite trading software among all.

It's very easy to use and extremely quick.

Brokers that provide NEST: JM,IIFL,Phillip capital, Upstox, Sas, tradesmart and many more.