10 Powerful concepts every trader should know (to become better) and more: ๐งต
Collaborated with @niki_poojary
Collaborated with @niki_poojary
1/ Conviction
Separates novice and professional traders.
When the odds are in their favour, the best traders bet large.
Consider the best trader we know & how he takes advantage of this. Examine your most profitable trades.
Utilize only when the chances are in your favour.
Separates novice and professional traders.
When the odds are in their favour, the best traders bet large.
Consider the best trader we know & how he takes advantage of this. Examine your most profitable trades.
Utilize only when the chances are in your favour.
2/ Execution power
You will gain nothing if you do not put your ideas/analysis into action.
Gradually increase from:
1. From lower to higher premiums.
2. From low to high ROIs.
Gradually increase your execution power with time.
You will gain nothing if you do not put your ideas/analysis into action.
Gradually increase from:
1. From lower to higher premiums.
2. From low to high ROIs.
Gradually increase your execution power with time.
3/ Size of position
You will be able to manage any type of wealth if you learn to think in 10 lakh terms.
If you think about position sizing in this way, scaling-up is simple.
The only thing left is to think in multiples of ten lakhs.
You will be able to manage any type of wealth if you learn to think in 10 lakh terms.
If you think about position sizing in this way, scaling-up is simple.
The only thing left is to think in multiples of ten lakhs.
4/ Money Management
It makes no sense to risk less while you're doing well and producing money.
Can you make more money with your current ideas? Yes!
When capital is at its peak, you should take on greater risk.
When the drawdown exceeds 5%, the risk is reduced.
It makes no sense to risk less while you're doing well and producing money.
Can you make more money with your current ideas? Yes!
When capital is at its peak, you should take on greater risk.
When the drawdown exceeds 5%, the risk is reduced.
5/ Risk Control
You must decide how much you are willing to lose in a single day.
Divide whatever much you have by 3. Simply risk that amount in 3 trades every day. If you lose 3 times in a row, you should stop trading.
Prevents u from overtrading and losing additional money.
You must decide how much you are willing to lose in a single day.
Divide whatever much you have by 3. Simply risk that amount in 3 trades every day. If you lose 3 times in a row, you should stop trading.
Prevents u from overtrading and losing additional money.
6/ Psychology
We must not allow our emotions to influence our trading.
It is difficult to trade well without proper mentality. You will have negative psychology if you witness large mtm fluctuations.
Keep these swings as low as possible.
Don't give in to fear and greed.
We must not allow our emotions to influence our trading.
It is difficult to trade well without proper mentality. You will have negative psychology if you witness large mtm fluctuations.
Keep these swings as low as possible.
Don't give in to fear and greed.
7/ Self-control
Greed and fear continue to rule us, making us worse. We may reach our goals in the long term if we practise trading discipline.
Losing traders frequently lack any sort of discipline.
Do the opposite of these traders who are losing money.
Greed and fear continue to rule us, making us worse. We may reach our goals in the long term if we practise trading discipline.
Losing traders frequently lack any sort of discipline.
Do the opposite of these traders who are losing money.
8/ Edge
We cannot be profitable in the long run unless we have a competitive edge.
Option selling is mostly profitable owing to the likelihood of success. But this alone is not an edge.
An edge is produced when a good risk-reward ratio is applied to high probability setups.
We cannot be profitable in the long run unless we have a competitive edge.
Option selling is mostly profitable owing to the likelihood of success. But this alone is not an edge.
An edge is produced when a good risk-reward ratio is applied to high probability setups.
When you grasp all of the points from 1 to 7, you can fairly assume that you have an edge in trading.
9/ Reduced drawdowns
The lesser your drawdowns, the faster you may attain ATH capital and, eventually, generate more money.
Larger drawdowns have a longer time period to rebuild your account, which is highly uncomfortable.
If we lose less, this time period will be reduced.
The lesser your drawdowns, the faster you may attain ATH capital and, eventually, generate more money.
Larger drawdowns have a longer time period to rebuild your account, which is highly uncomfortable.
If we lose less, this time period will be reduced.
10/ Practice
The only way to become a competent trader is via practise.
There is no such thing as the Holy Grail, therefore quit looking for it.
It is preferable to begin practising any new method with one lot.
With ease, you may begin scaling higher.
The only way to become a competent trader is via practise.
There is no such thing as the Holy Grail, therefore quit looking for it.
It is preferable to begin practising any new method with one lot.
With ease, you may begin scaling higher.
If you found this useful, please do RT first tweet.
Follow to never miss them.
See past threads here:
@AdityaTodmal & @niki_poojary
Follow to never miss them.
See past threads here:
@AdityaTodmal & @niki_poojary
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