Over the last 18 months, I have scaled my income to around ₹10,00,000 or 10 lakhs per week with drawdowns below 10%.
How?
@niki_poojary taught me how to form a weekly trading plan.
I'm going to share what I've learned in this thread.
Here's the simple 10 step process: 🧵
How?
@niki_poojary taught me how to form a weekly trading plan.
I'm going to share what I've learned in this thread.
Here's the simple 10 step process: 🧵
1. Check on the daily chart if Bank Nifty is in a higher high or lower low:
A higher-high (HH) is a bullish pattern, it signifies that it is difficult for the market to go down.
If that has formed on the daily chart, the market will give all the surprises on the upside.
A higher-high (HH) is a bullish pattern, it signifies that it is difficult for the market to go down.
If that has formed on the daily chart, the market will give all the surprises on the upside.
If the market is in a higher high mode, look for good opportunities to sell puts.
Usually, at a higher high, traders buy on breakouts and also buy the dips.
If you want a good Risk-Reward, you can sell puts on a dip. (Only if it's showing some reversal)
Usually, at a higher high, traders buy on breakouts and also buy the dips.
If you want a good Risk-Reward, you can sell puts on a dip. (Only if it's showing some reversal)
2. Take High Probability Trades
Simply knowing a higher high or lower low does not make money. It gives you a bias for the week.
Still, you should try to take higher probability trades that align with your view of the market.
This will get you consistency and a good mindset.
Simply knowing a higher high or lower low does not make money. It gives you a bias for the week.
Still, you should try to take higher probability trades that align with your view of the market.
This will get you consistency and a good mindset.
3. Support & Resistance
I would say Support Resistance is the most important and favorite thing for @niki_poojary.
She keeps updating these levels with charts on her Twitter handle during live markets daily.
Attaching some examples will do a detailed thread on this later.
I would say Support Resistance is the most important and favorite thing for @niki_poojary.
She keeps updating these levels with charts on her Twitter handle during live markets daily.
Attaching some examples will do a detailed thread on this later.
4. Trading Patterns
Since Greed and Fear are always present in traders, they tend to react in similar ways when price forms a few patterns.
Some of her favourite patterns:
1) Rectangle Pattern
2) Triangle Patterns
3) Continuation Patterns
We always bet on these.
Examples ↓
Since Greed and Fear are always present in traders, they tend to react in similar ways when price forms a few patterns.
Some of her favourite patterns:
1) Rectangle Pattern
2) Triangle Patterns
3) Continuation Patterns
We always bet on these.
Examples ↓
5. Option Chain Analysis
She mainly uses the option chain to see whether some seller is trapped or not.
Their panic causes a wild one-way move in the markets.
Whenever this happens, we bet really big and usually, they become the highest profit days for us.
She mainly uses the option chain to see whether some seller is trapped or not.
Their panic causes a wild one-way move in the markets.
Whenever this happens, we bet really big and usually, they become the highest profit days for us.
6. Calculating premiums needed to make desired return
If you are targeting 52% ROI per year or 1% weekly return, you don't need to sell high premiums really.
You only need to collect 40 points a week.
Can find good opportunities for otm options and sell those to make profit.
If you are targeting 52% ROI per year or 1% weekly return, you don't need to sell high premiums really.
You only need to collect 40 points a week.
Can find good opportunities for otm options and sell those to make profit.
7. Don't come too close to the spot
One of the biggest reasons people lose money even after making it is they come too close to the spot.
Usually, whenever that happens, one spike or move will throw you out and give you a good points loss.
It's hard to recover and profit from.
One of the biggest reasons people lose money even after making it is they come too close to the spot.
Usually, whenever that happens, one spike or move will throw you out and give you a good points loss.
It's hard to recover and profit from.
8. Risk Management
Unless a gap happens, you should not be losing more than a percent under any circumstances. (medium risk takers)
One should always keep an eye on the risk they are taking.
No meaning of losing big just because you *think* markets are bullish or bearish.
Unless a gap happens, you should not be losing more than a percent under any circumstances. (medium risk takers)
One should always keep an eye on the risk they are taking.
No meaning of losing big just because you *think* markets are bullish or bearish.
9. Bonus Tips
Don't be a daredevil on hard days.
Hard days are usually days where premiums are not melting, Monthly expiry weeks, US data overnight days, and so on.
If you don't make money on such days or weeks, at least stop losing money first.
Don't be a daredevil on hard days.
Hard days are usually days where premiums are not melting, Monthly expiry weeks, US data overnight days, and so on.
If you don't make money on such days or weeks, at least stop losing money first.
10. Attaching the previous 15 weekly analysis threads of @niki_poojary here for easier study.
Also, do watch out for her analysis and compare it with yours this week.
@niki_poojary
If you found this useful, please do RT first tweet.
Follow to never miss them.
See past threads here:
@AdityaTodmal
&
@niki_poojary
@niki_poojary
If you found this useful, please do RT first tweet.
Follow to never miss them.
See past threads here:
@AdityaTodmal
&
@niki_poojary
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