Sep 2020 marks my 3 years journey in the financial markets.
Documenting my journey in this tweet thread with the purpose of helping someone who might be in a position I was at various points in my journey.
It all started with a google search "How do rich people get rich"
Documenting my journey in this tweet thread with the purpose of helping someone who might be in a position I was at various points in my journey.
It all started with a google search "How do rich people get rich"
Sep 2017: Googled "How do rich people get rich". Search results lead me to
1. Recommendation to read Robert Kiyosaki's "Rich Dad, Poor Dad"
2. Use the power of compounding to create wealth.
1. Recommendation to read Robert Kiyosaki's "Rich Dad, Poor Dad"
2. Use the power of compounding to create wealth.
Sep 2017: Read Rich Dad Poor Dad. Also googled more on point 2 and ended up in stock market.
Started reading up on investing and started experimenting with MFs. Experimented so much that at one point I had 18 MFs! Used to check MF NAV updation in AMFI site at 9pm every night.
Started reading up on investing and started experimenting with MFs. Experimented so much that at one point I had 18 MFs! Used to check MF NAV updation in AMFI site at 9pm every night.
Feb 2018: Market corrected. I chickened out of most of my MFs in Mar 2018. This was my first brush with volatility. Earlier had thought I had the stomach to absorb it. Realized I haven't understood myself well enough. Anyway, now I had graduated to reading up on stocks.
Apr 2018: Started to invest (that's what I thought :D ) in stocks, as I read articles floating around about buying into the correction in mid & small cap stocks. This was a stage when I had started reading FA and had no clue what TA is. This was my portfolio on 9th July 2018.
Sep 2018: The NBFC correction happened. Chickened out once more. Exited majority of my stock and remaining MF holdings. I consider myself lucky though that I exited stocks like Sadbhav (at ~270) and Yes Bank (at ~340). Felt investing is not my cup of tea. Improvement needed.
Sep 2018: After 2 corrections in 9 months, I doubted whether one can get rich in stock market. Realized to make a living out of the markets, I need to make money even when market falls. Felt the jargons used in moneycontrol articles having price charts could predict market moves.
Realized it is called Technical Analysis. Bought Ashwani Gujral's "How to make money trading candlesticks". Super excited after reading about price patterns, I felt I finally found the secret sauce of profitable traders - find patterns and trade it.
Found a head & shoulder pattern in Titan on 1W chart and shorted it in Futures expecting big fall intraday. Thought any timeframe chart can be used to trade intraday. My account back then was ~1.3L. Got margin call by end of day. My first big loss(~25% of my then trading capital)
Realized the importance of risk management (RM) and position sizing. Read the RM chapter in AG's book I had earlier skipped thinking it to be unimportant.
By this time, started to realize backtesting is important. Started to manually backtest an intraday strategy based on NR7.
By this time, started to realize backtesting is important. Started to manually backtest an intraday strategy based on NR7.
Dec 2018: Started trading NR7 based strategy intraday in stock FUT after paper trading in Oct 18 and Nov18. Faced drawdown on mental and monetary capital in Dec18 and Jan19. Intraday trading along with full-time job ain't easy. Realized importance of automating my trades.
Jan 2019: Felt I need a strategy that I backtest for a lot of years. Built a supertrend based positional trading strategy in Nifty after manually backtesting it for 4 years (~140 trades). Felt on top of the world that this strategy had an "edge". Started trading 1 lot.
Mar 2019: Exited a trending long trade early trying to time the top and missed the big profit. Months of frustration (whipsaws) followed. Felt if I have tighter TSL I would not be tempted to time the top. Got whipsawed even more. Went back to wider TSL.
June 2019: Results were not bad. But this strategy wouldn't generate monthly income I dreamed of. Started deploying this strategy on BNF, USDINR and Crude. Realized tracking multiple instruments along with job is not feasible. Missed entry/exit used to emotionally drain me out.
Dec 2019: While continuing trading the Nifty ST73 strategy, managed time to learn Python to backtest and auto-trade. Discovered couple of strategies that had an edge (post charges) and deployed. Realized that expectancy is not all that matters. Drawdown figures matter as well.
Jan 2020:This month was trough of my PnL graph. Auto-trade strategies were lossy. My positional trend following strategy was lossy. I wondered whether my stay in the market is worth the trouble?It was a lonely journey. Thought about why I started in the first place. Kept going.
March 2020: Turning point of my trading journey. My trend following strategy gave windfall returns. ~30% on my total trading capital.
PERSEVERANCE PAYS OFF.
GRIT PAYS OFF.
DETERMINATION PAYS OFF.
PATIENCE PAYS OFF.
Joined Twitter! Stopped feeling trading is a lonely journey.
PERSEVERANCE PAYS OFF.
GRIT PAYS OFF.
DETERMINATION PAYS OFF.
PATIENCE PAYS OFF.
Joined Twitter! Stopped feeling trading is a lonely journey.
May-Jun 2020: Kept my search for regular monthly income strategy going. Realized most traders on twitter who made it big are into options selling. Realized positional trading in index FUT is no lesser risk than index options selling (atleast intraday with SL).
May-Jun 2020: Developed, backtested and coded a system around intraday option selling. Thanks to a person for the idea.
System = strategy + position sizing + risk management
Numbers in graph are pre brokerage, slippage and transaction tax (BST)
System = strategy + position sizing + risk management
Numbers in graph are pre brokerage, slippage and transaction tax (BST)
Since 22nd Jun 2020 - eat, sleep, run algo code, repeat.
It's been a roller coaster journey. Doing all this along with a full-time job made things more challenging. Hope I'll continue to be disciplined, open minded and continue to keep learning.
(numbers in graph are post BST)
It's been a roller coaster journey. Doing all this along with a full-time job made things more challenging. Hope I'll continue to be disciplined, open minded and continue to keep learning.
(numbers in graph are post BST)
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