What was the moment that change your trading in the good direction?
when I really learned to exploit VIX
August 2019
Decided to try MIS trading. Before that I also did intraday sometimes but the product was still CNC. I used to pay 100% amount by myself.
Result at the end of the month was a loss of few hundred rupees. But it stiuck my mind that eben if I improvise and make money this way, Iâll soon end up spending all of that at hospital and medicines because of the stress it gives if the trade starts to move opposite. CNC is stress free and I can hold for as long as needed.
So back to CNC and never dared to look beyond that again.
you can virtually not lose moneyâŚbut how do you deal with opportunity cost?
we are here for money right?
When I blew up my account.
But Iâm making money this way. My average annual return are 18-20%
Regarding opportunity cost, my bad experiences prevent me from exitting a stock.
When I started in 2015, after beginnerâs luck of 5-6 months, my trades started going opposite. I bought stock A, sl hit, sold, bought stock B, sl hit, sold and the cycle continues for 2-3 months. When I analysed everything after that it turned out had I waited, I would have made money in all of those scrips. My selection was right and I lost only because of those sls. So I stopped putting sl and started holding.
So whenever a trade goes opposite and I feel urge to exit I think that whatâs the guarentee that the next trade will work in my favour and that stops me.
I know everyone will call it foolish but Iâm a rare species.
Made consistent profits for a week straight, and then lost it all in 15 minutes.
This introduced me to risk management and trade psychology, never looked back since then.
there is no exact one aha moments, but I can give you a collections of ahaâs throughout this journey.
âability to connect with the lower TF, 2min 1 min
âtinkering the risk reward, say 1:2, but -0.5:2
âtaking power size positions without changing the risk, else how will you take 3R
âcommissions come around -0.16R per trade, always keep that in mind.
âthere will not always be a trade everyday, but sit and watch. thatâs how you ll learn to negate things.
âexel everything
When I found this back in 2007
You are averaging 15% monthly, if i am not wrong.
But why data for 3 months. New strategy ?
Which gives a better picture of trading, a sheet like this or XIRR calculation?
I think I have heard about, checking it now.
quarterly calculations.
can google but donât know at this point of time.
i like simple calculations and need to know a few parameters by glance. like win rate, expectancy and net profit. This is real track of my data, commissions calculated at 0.16R per trade.
By this rate, you can just increase to 1 cr then exponential.
But we have to know what return we are getting on our trades. So there has to be a clear way of doing this.
how many times I thought about this? Lamborghini, superbikes , luxury , multi wives⌠Just kidding.
I am going at my own pace. Trading gives you lots of deep scars that by the time you arrive at something, you chose to be realistic, always.
But we literally never arrive, do we?
I have no stop losses at all. So far doing fine for last 6 years.
but having mental SL�
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Understanding that âShort Optionsâ is a game of maximizing occurrences. Increase occurrences and the probabilities will work in your favor.
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When I learnt that Long Options is a game of picking your moments and maximizing R:R.
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Keeping holding period small, not averaging losing trades, and delta drifting are essential for âlong optionsâ success. Theta decay is no match for a good Delta.
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Shorting the market is tougher in general market regimes, better to have higher signal standards when doing that.
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Option buying also has an inherent edge when done right.
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Sticking to a good well backtested plan is important for mental strength and confidence.
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A realization that 0.01% chance of ruin is not worth it. Hedge extra large positions. Do not take trades looking solely at âmarginâ - instead take trades based on what you can afford to lose.