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A small Guide for all traders who trade based upon their set-ups, Tips, Twitter or some other groups. Also for people wanting to Get into the Ring!
No matter who advices whatever, always remember nobody will come to rescue when your Capital goes down because of your wrong
No matter who advices whatever, always remember nobody will come to rescue when your Capital goes down because of your wrong
positions. Treat your Capital like your own member of family. Protect it ferociously. Period!
In capital market, if you don't have adequate capital, you don't have business to be in the market. Stay Out, watch the game from sidelines. Invest in SIP, good quality stocks.
In capital market, if you don't have adequate capital, you don't have business to be in the market. Stay Out, watch the game from sidelines. Invest in SIP, good quality stocks.
Don't try to be a player. You will be butchered! Before blaming market, look within and ask yourself what you have done to be here. If things are not working out, there must be something you aren't doing right. Could be "Risk Management" , "Discipline" , "Inadequate
Capital" , "Unrealistic Expectations". Please Do introspect! Few basic checklists which if followed, will save you from most of the catastrophic failures
1. If you are a beginner always start with cash for at least an year, if profitable then get into FNO. Its not !
1. If you are a beginner always start with cash for at least an year, if profitable then get into FNO. Its not !
that rosy as it seems. Stay away if you want to be have peace of mind
2. Never take leverage for losing Positions and trying to average it down. You are not trading but floating in the river of Hope
3. Never take leverage for losing Positions and trying to average it down. You
2. Never take leverage for losing Positions and trying to average it down. You are not trading but floating in the river of Hope
3. Never take leverage for losing Positions and trying to average it down. You
are not trading but floating in the river of Hope. Hope is a bad word in Trading Business!
4. If Trading in FNO start with Index (especially Nifty), Smaller the lot, better it is. Start Small but trade often with ur back tested strategies
5. If you are trading in Options,
4. If Trading in FNO start with Index (especially Nifty), Smaller the lot, better it is. Start Small but trade often with ur back tested strategies
5. If you are trading in Options,
don't ever average the Calls - Puts of your 'Now OTM' calls - puts (after market has gone against you). Its a different dynamics trading Options. If not confident of directions, DONT TRADE, else trade with proper headging!
6. If you have any open long position, ensure its above
6. If you have any open long position, ensure its above
VWAP - PSAR (at-least in 15mnts TFs), else ensure to keep your SL based on any of the moving averages (8-21, or your proffered one) and viceversa for Shorts. Never Ever COMPROMISE your SLs. Its COST OF DOING BUSINESS. Paying cost is way better than losing capital.
7. If Your long script starts trading below previous day low, treat it as a warning signal, things might get worse. Ensure SLs.
8. Don't put all you capital in any of the stocks single strike CALL - PUT. Always start small, and try pyramiding or Delta Drifting once you get the
8. Don't put all you capital in any of the stocks single strike CALL - PUT. Always start small, and try pyramiding or Delta Drifting once you get the
Direction correct. Trade in Options where you see liquidity and decent bid-ask, don't go for volatile stocks with big lot size like Adaniees (2000 lot)
9. Don't chase GapUps - Gap Downs post Open, give 15mnt ORB atleast
9. Don't chase GapUps - Gap Downs post Open, give 15mnt ORB atleast
10. If a beginner DONT ever go for Selling taking leverage if you don't know the beast. Don't get swayed away by what's been said. Its like dealing with Dynamite, when probably you are not sure how to play Fire. Nothing is easy in market and There is no free lunch
in the market.
11. All the strategies and "wow moments" you may experience in your initially journey, may have already been discarded by the Pros. So don't take yourself so seriously. Don't treat your Beginner's luck as your skillset. Its a TRAP!!
11. All the strategies and "wow moments" you may experience in your initially journey, may have already been discarded by the Pros. So don't take yourself so seriously. Don't treat your Beginner's luck as your skillset. Its a TRAP!!
12. If you are entering the market, thanks to the Pandemic bad run, cause you think its better to be in market than being employed in any Job, just remind yourself that you spent 20 years in education and in your professional degree to be in a job, which enabled you for a
Monthly salary. Ask yourself what you have done to be in market. Don't misjudge your past corporate success would be a carry forward in Market as well. Doesn't Happen, till you give enough time and acquire the skillset.
Just wanted to give a summarized version of all that am advising people in my DMs. Not trying to spread fear, but the objective is to let you be aware of the Devils that lie hidden till you discover them.
PS: Have done all the above blunders,
PS: Have done all the above blunders,
And feel its my duty to let the RETAIL know what to expect. And its been a painful journey, Even if one person benefits from the write-up then wud consider the effort worthwhile!
Retweet for Wider Reach, if U feel it makes sense!!
Cheers! Safe Trading
Retweet for Wider Reach, if U feel it makes sense!!
Cheers! Safe Trading
