Yesterday's incident taught me a good lesson.
:
If ur networth is in 2+ crores, I recommend to keep aside 1 cr in FD or different asset class other than trading capital.
I consider myself really very lucky
Below are the details of what happened yesterday with me..
@sumitkbehal
On this page there is nothing Calculus and differentials..
A bit of algebra and using Area and circumference of Circle determination of Radius is done.
And it has nothing to do with Trading..
Active Investing Method!!!
How to build a Long-term High Performing Portfolio by just investing optimization time of less than 1 hour per Quarter.
A thread 🧵:
Used SL.. Went to 45min meeting
Price and trigger gap 2 Rs
SL got jumped.
When I saw 4% loss after meeting
It screwed up my psychology...
Closing terminal with 7% Loss.
But I am still comfortable.
Coz in Jan beginning I was trading with 80% capital of my net worth
Doing this type of trading in 25L account.
Selling hedges every day.
0.12% per day is easy..
240 trading days
30%+ per annum ROI can be generated doing this..
Considering 3-4 Days 0.5-1% Loss days in a year..
#FoodForThought
Some important risk management points for only Options Buyers who have less than 1L capital and want to trade, to save themselves from blowing-up capital.
A Thread 🧵:
Trading Capital in the starting of Year 2023 : 1.45Cr
Trading Capital in the End of Year 2023: 2.25Cr
After taking out all advance taxes & Software fees.
ROI 2023: 55%
Some more Income Tax has to be paid.
So Net ROI would be <sub 50%.
I will have to improve significantly..
I was very excited for Daily expiries..
But Now I feel too exhausted trading expiries everyday.
And it feels like a job.
Extremely Difficult if you are trading and having a job.
Feels like doing 2 jobs and can't give your 100% to either of them.
Many people don't know what happened in USDINR on 3rd April.
83.25PE May Expiry spiked from 0.22 to 2.5
While 83 PE spiked from 0.16 to 4.5 Rs
Imagine a Hedged spread trade
83.25PE buy and 83pe sell trade.
Debit spread of 0.06 it went to Negative 2 Rs.
1 lot requires less
Many new traders ask me why I trade in multiple underlying and only on expiry.
Same returns can be made if you master 1 Underlying like just Banknifty.
Here is why?
A thread 🧵:
The more I earn money, the less motivated I am to earn more and more inclined to start my spiritual journey and try to detach away from this materialistic world..
Does this happen with anybody else too?
Very important learning for every trader:
In 2021
When I was just targeting 2% peweek I was able to make 1.62% /week on avg
Highest Weekly Return was 3%
Lowest was -4%
In 2022
Targeting 4% per week I was only able to make 1.23%/week on avg
Highest Return was 6%
Lowest was -7%
Thank you to some trader friends for asking me personally about my mental state.
In absolute terms I have faced biggest loss of my trading journey yesterday.
Percentage wise I have seen and passed through worse DDs.
Lets see when this DD is over.
You are sad because you just made 5L in this month bcoz usually you make 20L a month.
And there are people who are bursting with happiness & positive energy with 50K monthly salary and partying hard.
#perspective
Ghanshyam/Abhishek/BoomingBulls/Siva jaise logo ko mat pakdo Bhai..
@khanzubare
Sikhaane do option Buying.
Option Buyers chaie market me.
Hum option sellers ke paise nhi ban rhe ab..
Sab tumhari galti h
For all TOP Profile traders who already have 10cr+ capital
Plz rethink on how you are living your life. Plz do the math..
Even if u make just 15%/yr on ur capital.
& consider 6% inflation rate.
Ur money wont be over for next 80+ yrs.
Considering 25+ lLacs Expenses per yr in 2022.
Iron Fly using Diaogonal Spread
If you like this thread then ReTweet the first tweet of this thread to save it for your reference later and share it with others so that these option selling strategies are known to the masses.
Please share.
Thank you.
I am short overnight on USDINR80CE 3k qty
Overnight I realized, one bad news which makes INR tank to 82/USD I wud b at loss of 60L almost 50% my capital.
Scared the hell of it now.
Currency is highly Leveraged entity, please carry position size accordingly as per ur risk appetite
Bhai Abhishek Kar..
If Sonu Sharma himself hadn't been successful in Network Marketing nobody would have liked to hear his motivational speeches
If Sandeep Maheshwari hadn't been successful in changing his own life significantly in Business and personal aspects nobody would
First 15min candle Ka Low break.
Shorted with day high SL.
SL Hit.
Went long keeping the low of 15min breakout candle.
SL Hit.
Then I went short looking at the HUGE 15min bearish engulfing candle cover previous 3 candles. Keeping 70% of candle length as SL.
Guess what.
SL
If u think 1% per week is small return frm trading then take the calculator & do this 👇🏼
Your current Capital x 1.01^52 =
You will get your capital after 1 year.
1.01^52 = 1.68
1% /week is NOT 52% per annum.
U'll make 68% ROI in 1yr by just making 1% /week.
What the havoc for Farmers!!
In Indonesia there is shortage of Onions.. I pay 270 Rs per Kg of Onion..
And looking at this news, it saddens me to the core for the hardworking farmer community in India..
Govt. should solve this asap..
Very Bad Day..
All bad things happened together.
Job Meetings, Boss Calls, SL Hitting and Extremely Volatile Market.
Learning Day..
Loss 6.8L
SS shows 7.8L Loss but 1L was positional Profit booked so net 6.8L Loss.
-4.9% Loss
You should consider that you can easily lose 30% of 2 Cr which is 60L
Then your Networth will still be 2.4Cr.
You can still easily bounce back..
I know people having networth of 2Cr and trading with 1.8Cr capital..
To those guys, please RETHINK your Risk!!
Closing FY 23-24 with mere 18% ROI.
After all costs and taxes.
Worst year of my 5 year trading career.
I made many mistakes and have corrected them..
Taking this FY year as a learning year.
FY24-25 is gonna be high green ROI ye.
I promise atleast 3× ROI from this year.
Made a Model on Excel to find the money required to be financially independent to live comfortably lifetime (Not Luxuriously).
For dif stages of life
Assumption: U'r the Sole Earning member of family & Life is till 85
Summary Snapshot attached
How to Read & other assumptions?🧵:
Short Guts (Inverted Short Strangle)
View: Neutral (Non-Directional)
Limited Profit, Unlimited risk.
High Probability of profit compared to Strangle.
High Margin required but you get higher Premium credit as you are selling expensive deep ITM options
Traded Aggressively
Which was a Mistake and thus paid the price.
Horrible Both side moves.. multiple SLs hit..
Tight SLs, Loose SLs nothing was working for me.
Lost 5.1L
3.5% Loss
Bad start of the month
December 2023 is so far the BEST MONTH in my Trading Career of 5 years.
Only 1 minor loss day in entire month.
Hope to finish the remaining 5 trading days in green.
Bearish Jade Lizard (bearish Ladder)
View: Neutral to Bearish
Limited Profit, unlimited risk Upside.
High Probability of profit.
Low Margin required than short strangle.
Made 2.5%
Thanks to SL in System with 10Rs gap between SL trigger and Price.
And Big thanks to 21850PE hedge..
Have been unlucky a couple of times in last 4 months and lost huge sum.
Today luckily I was the lucky one.
Moving out 60% capital from Option selling and deploying
Only deployed 50% capital of 60% Trading capital until 2pm.
I had 65600 ce short and 65300 pe short.
When Market started going up from 2:15PM..
I deployed more capital to adjust until my position became 65600 straddle and 65300 pe short..
Watched Abhishek Kar's Full Video with caption
"Sorry.. but BOUNCE BACK"
He is saying Sorry for "not talking about his loss making days" and nothing else.
What about
1. Claiming multiple times in your different videos something like"ek trading account thik thak profit me hai but
@khanzubare
Answer is : Hedged positions
position sizing should be such that max loss is 5% of the trading capital.
Can be IronCondor, IronFly, Batman(1:4:3 ratio) etc
My suggestion: if you have a few crores, have atleast 1 cr is other asset class..
You can always bounce back with 1Cr side capital.
If you have 3 Crores Net worth.
1 Cr is in FD or Real Estate etc
& ur trading capital is 2 Cr, if such fiasco happens with higher magnitude..
Put 1:2 Ratio Spread
View: Slightly Bearish with No Upside risk
High POP.
Higher ROI can be achieved if underlying closes near your sold leg at Expiry.
Low Margin required
Many people asking why you are not posting verified PNL. Because I use accounts of my different family members.
For those twitterazzies for the first time,
Sharing the Zerodha PNL of FY 2022-23
Starting Trading Capital of 45L on 1 Apr22
Calendar Spread
Sell (Put or Call) currnt Expiry
Buy same strike (Put or Call) of next Expiry
View: Neutral
Limited big Profit, lower limited risk.
Higher POP
High ROI Possible
Low Margin required.
If sudden big move comes, Vega of farther expiry will help control the losses.
@BandiShreyas
There are numerous Option Buyers
Buying options for hedging their Futures Position..
Or
Buying for shifting their IronFly wings.
Or
Buying to create Debit Spread
Or
Buying to create ITM Credit spread
Or
Just Make Buying (Speculating the direction)
Etc etc..
All these add OI.
After last week's Sensex Massacre where I lost 7% capital.
I took an oath to always keep SL in system with 10Rs gap b/w trigger & price no matter what.
Cons of that:
1) Multiple times SL hit both sides in spikes
2) You get a bit irritated by going in 0.3% +ve & back to 0
Amazing Finnifty Expiry..
Made 1.9%
Started with Strangle.
Took SL in Puts, stayed only in Calls.
Then when Finnifty was below 18450 sold 18300 puts and turned into strangles again..
Turned out quite well.
Short Straddle
View: Very Neutral (Non-Directional)
Limited Bigger Profit, Unlimited risk.
Lower Probability of profit compared to Strangle.
High ROI can be achieved.
High Margin required.
Big Loss Day
Did some stupid mistakes today
Like adjusting until straddle.
Though it was right decision in the Hindside..
But got scares with the volatility..
2% Loss Day
Iron Fly
View: Neutral (Non directional)
Limited but better Profit, Limited risk
Lower POP than Iron Condor.
Higher ROI can be achieved using IF.
Low Margin required
Call 1:2 Ratio Spread
View: Slightly Bullish with No downside risk
High POP.
Higher ROI can be achieved if underlying closes near your sold leg at Expiry.
Low Margin required
Many people are sending me DMs why I am not posting about trading or P&L..
Am I done with trading etc etc !!
So for those I want to tell that I am under DrawDown for last 45days+ now.
I have reduced my trading capital by 40%.
And with half capital I am trading with max 6%
Call Butterfly
It's same as iron fly but made only by Calls.
Sometimes u get better results in Call Butterfly comparatively
View: Neutral (Non directional)
Limited but better Profit, Limited risk
Lower POP than Iron Condor
Higher ROI can be achieved using Fly.
Low Margin required
It's an easy expiry to earn some bucks without much hassle.
My strategy is simple
I just sell options worth 0.0050, 0.0075 & sometimes 0.0100 without thinking, with SL of 0.0150 in all.
I hope this thread helped you learn something new.
If you like it then RT the first thread.
@AnandableAnand
82% in 12th
8.4+/10 in NIT
MBA from IIM
Without the above, I MIGHT be financially at the same level BUT
All these has changed my personality completely (positively)
+ The diverse experiences of grinding, Competitions + working with high IQ Peers CANT be Valued in monetary terms.
@SCALPTRADER8
@HyderabadiChic3
@AshishGupta325
She has two accounts one is 25Cr+ and other is 6-7Cr one.
Many times she shows Profit of 4-5million from 25 Cr account which is less than 2% ROI.
And claims to have ROI of 8-9% made by using just 6-7Cr.
Big Fraud!!
Iron Condor using Calendar Spread
Innovative Calendar Option writing strategy.
You can read the details in the picture and decide when to use this strategy.