Knowing how to use it will protect you from gaps, intraday spikes, and 10x your hedging experience. Here’s the step-by-step guide: Here’s what you’ll learn in this thread: 1. What is an iron fly 2. Perks and Drawbacks 3. What should you do when you are in profit? 4. How…
Why few traders are going bankrupt after attaining huge success.Could be the following psychology.During initial days trader is generating huge ROI with less capital.
As time passes capital is growing and after certain limit of big capital it is very difficult to achieve same ROI because of low liquidity in trading.Due to low ROI trader can feel that his performance is not up to the mark as it was earlier. So, a trader can…
1.Why big traders are not taking more risk in trading?
On Thursday due to blunder my morning m2m was – 5.89 cr.If no blunder it could have around -1.2 cr only. In my early days of trading I was playing very aggressively with directional trading. 2.I have applied same psychology on Thursday with directional trading.Bought far OTM option immediately to…
Position size in trading by Mitesh Patel Trader
Mitesh Patel (@Mitesh_Engr), the well-known options Trader, has given important pointers on the importance of position sizing. Position size in trading. Base capital 50L Future contract lot average value 7L. I will buy or sell only 1 lot naked overnight with 50L capital. In worst condition if 10% gap up/down…
How to adjust short straddles
Based on the views of experts, the following is a summary of the numerous ways in which a short straddle can be adjusted: (i) Shift the tested side which has become ITM. ITM options have a delta of 1. So, if the straddle is at 15800 and the Index moves…
How to adjust straddles in the Bank Nifty by Mitesh Patel Trader
Mitesh Patel @Mitesh_Engr, the well-known options Trader, has explained how straddles in the Bank Nifty can be adjusted so that it can be closed at a profit. How to sell option?Here let me explain through simple math.Say BN at 3000030000 straddle trading at combine premium 800 ( based on current…
The Legend of Rice and Chess: A Tale of Exponential Growth
The legend of rice and chess is a classic parable that illustrates the power of exponential growth. It’s a story that has been told and retold for centuries, captivating audiences with its simple premise and astounding conclusion. The Tale A wise man, having invented the game of chess, presented…
The Power of Compounding: A Warren Buffett Masterclass
Warren Buffett, often hailed as one of the greatest investors of all time, is a strong advocate of the power of compounding. This principle, often referred to as the “eighth wonder of the world,” is the process of reinvesting earnings to generate exponential growth over time. Understanding Compounding Compounding is…
The Danger of Comparing Yourself to Others: A Path to Self-Sabotage
In today’s age of social media, where curated highlights of people’s lives are constantly displayed, it’s easy to fall into the trap of comparing ourselves to others. While a little healthy competition can be motivating, excessive comparison can lead to feelings of inadequacy, jealousy, and self-doubt. The Illusion of Perfection…
Avoiding Stupidity: A Path to Success
In a world that often glorifies brilliance, it’s easy to forget that avoiding stupidity is often a more reliable path to success. While striving for excellence is admirable, it’s equally important to recognize and mitigate the potential for errors and mistakes. The Importance of Avoiding Stupidity Strategies for Avoiding Stupidity…
The Noise Bottleneck: When More Information is Harmful
In our information-saturated age, we’re constantly bombarded with data from every corner of the globe. While access to information has undoubtedly expanded our knowledge and understanding, it has also created a new challenge: the noise bottleneck. This phenomenon, popularized by Nassim Nicholas Taleb, highlights the paradox that more information can…
The Buffett Formula: Going to Bed Smarter Than You Woke Up
Warren Buffett, the legendary investor, is renowned for his unwavering commitment to lifelong learning. His philosophy, often encapsulated in the phrase “Go to bed smarter than when you woke up,” is a testament to his belief in the power of continuous education and intellectual curiosity. Key Principles of the…
How Warren Buffett Stays Ahead of the Curve
Warren Buffett’s ability to navigate the complex world of finance and consistently make astute investment decisions is a testament to his keen intellect and disciplined approach to information consumption. Here’s a breakdown of how he stays informed: 1. A Focused Reading Routine: 2. A Filter for Information: 3. A…
Why Most Investors are Mostly Wrong Most of The Time
Last week I offered the readers of Intelligent Investor a reason for the dismal performance of Indian mutual funds. My reason was that portfolio managers don’t have the right incentives to make intelligent but unconventional investment decisions with the result that the portfolios of most funds are very much alike…
The Power of Incentives: The Hidden Forces That Shape Behavior
Understanding the Psychology of Incentives Incentives, both positive and negative, are powerful tools that can significantly influence human behavior. By understanding the psychology behind incentives, we can harness their power to achieve desired outcomes. The Basics of Incentives The Role of Intrinsic and Extrinsic Motivation The Impact of Incentives on…
The Red Queen Effect: Running to Stay Still
Understanding the Evolutionary Concept The Red Queen Effect, a term coined by evolutionary biologist Leigh Van Valen, is a metaphor derived from Lewis Carroll’s Alice’s Adventures in Wonderland. In the story, the Red Queen tells Alice, “It takes all the running you can do, to keep in the same place.”…
Mitesh Sir’s EXPIRY Option Selling 101:
• What to look for? • Strike Selection & Ratios • SL mgmt • Avoiding freezes • Monthy Expiry • Event days • How he would have traded last expiry? Edward de Bono says intelligence is like a Automobile “A powerful car may be driven badly. A less powerful car…
How to solve a 2×2 cube | Step by Step Beginners Instructions
A 2×2 is a six sided cubic puzzle similar to the 3×3 Rubik’s cube, but it only has two layers, with 4 corners on each layer. There are no center or edge pieces. You can use the same steps to solve a 2×2 as you use for the corners of…
How to adjust IronFly ?
If you use it right, Iron Fly is the most solid risk-defined strategy in trading. But most people don’t know how to adjust the strategy when it goes wrong. Here are 7 adjustments you can do to lower risk and increase profitability: 0/ Who is this for? This will greatly…
24 Lessons From Jeff Bezos’ Annual Letters To Shareholders
March 20, 2022March 20, 2022 by alokranjan Since 1997, Amazon’s stock price has risen from $5 per share to over $3,000 per share. To read Bezos’ shareholder letters is to get a crash course in running a high-growth internet business from someone who mastered it before any of the playbooks were written….