HOW TO SCALE IN TRADING.
A SHORT THREAD ๐๐งต
Featuring @kach0289 and @Tushargoswami_ who helped me understand some insights on scalability and being in the process of ONENESS.
Let's get it started ๐
#Like #Retweet #Follow
A SHORT THREAD ๐๐งต
Featuring @kach0289 and @Tushargoswami_ who helped me understand some insights on scalability and being in the process of ONENESS.
Let's get it started ๐
#Like #Retweet #Follow
If you're a discretionary trader, refrain from trading in multiple asset classes or instruments at a time. Like COMMODITIES, STOCKS, FX etc...
I have seen that Index is more about mean reversion and Stocks are more about Continuation.
Let's read more about it ๐
I have seen that Index is more about mean reversion and Stocks are more about Continuation.
Let's read more about it ๐
You might easily catch a breakout in stocks but the same when applied to Index. You get trapped by multiple DOJIs or something like HIGH OI WRITING.
The best is stay with one instrument and scale accordingly.
The best is stay with one instrument and scale accordingly.
It was till last year I was struggling with Index trades as my bias and analysis or perception to look at index was mainly based on how I watched and traded stocks.
And hence I could chase every breakout in Index and would get badly hurt.
And hence I could chase every breakout in Index and would get badly hurt.
Later upon some feeding of how these 2 instruments work. I decided to scale down stocks (FNO STOCKS and CASH) & scaled up in Index.
From the past 11 months i have been engorssed into index and upon expert advice by the one and only @kach0289 that index is peaceful & scalable.
From the past 11 months i have been engorssed into index and upon expert advice by the one and only @kach0289 that index is peaceful & scalable.
I decided to change gears and get to actually know how Index trading works.
Index trading is all about where the big money is or how the levels are respected.
MY BIGGEST EYE-OPENER as a stock trader - Index won't give breakouts every now and then.
Index trading is all about where the big money is or how the levels are respected.
MY BIGGEST EYE-OPENER as a stock trader - Index won't give breakouts every now and then.
But lately in the past 6-8 months i traded huge amount of cash stocks and made a decent chunk. But post January got hurt badly. These are the times when you need to know where to draw the line.
The line was drawn by me and my other admins that market can enter into a SOR MODE.
The line was drawn by me and my other admins that market can enter into a SOR MODE.
Post that it's all about clarity. Moving forward. To be in this game it's all about scalability. As @kach0289 said it's easy to make 1L to 10Cr but it's dead ass difficult to make 1000Cr to 10kCr.
This is where Index trading comes and for some Investment comes. If you can't place a sizeable bet on it. It's not worth it.
KA sir once said me - I know you share so many stocks and trades and good that you even make money.....
KA sir once said me - I know you share so many stocks and trades and good that you even make money.....
But once your corpus increases and you deal with big money you need to think wisely. Also one statement from him - "if i cant bet 2-3cr on that one trade, that's now worth my time and money"
Conclusion : Stocks will make you money, index will make you money. Any instrument will make you money. The mere fact that you need to keep in your mind is that.
IS THIS BUSINESS (IN TRADING IT COULD BE INSTRUMENT/STOCK) SCALABLE
And if it's now then it's not worth it.
IS THIS BUSINESS (IN TRADING IT COULD BE INSTRUMENT/STOCK) SCALABLE
And if it's now then it's not worth it.
Loading suggestions...