- By #🧔Bandi-Shreyas
- Money management ( Risk Management ) is the only thing.
- How much profit am I ready to give up to reduce risk ?
- How much loss am I ready to take for making profit?
- It is Risk-Reward not anything else.
- “Profitable trading” is different from “Good trading”.
- In every trade, there is someone who took the exact opposite trade.
- You think they are idiot, they think you are idiot.
- Fallacy : some think that an event that never happened won’t happen.
- What Shreyas does is an iron condor with margin benefit instead of hedge everyday.
- Beforehand, decides how much points are going to get.
- Adjustments are just bad trades.
- Not here to make more profit than anticipated.
- Risk never changes.
How do I trade
- No indicators I use.
- Past week swing highs & swing lows. (due to people psychology)
- Can trend line can be drawn ? Are we making lower lows ? Or higher highs ?
- Round figures are psychological figures.
- 5m chart past weekly also day chart.
- Sell above & below swing highs & swing lows.
- PRICING very important.
- demand supply & urgency gives movement.
- pricing of strikes is important.
- I also look at OI.
- see Intraday vs Strike chart buffer.
- see overall buffer.
- sentiment can be interpreted. ( PCR ratio )
[!INFO]+ INFO POINT OF MAXIMUM CONGESTION
- Total number of puts + calls are highest.
- The market tends to move towards the point of maximum congestion.
- Futures OI important
- Speculation vs profit booking can be known through futures OI.
- Add max oi on CE & PE & add it.
- Here, 18200 CE & 18000 PE gives 200 points. This is how much risk is priced into the time.
- WEDNESDAY & THURSDAY are where we could capture maximum.
- FRIDAYS less decay.
- Monday & Tuesdays are fewer positions.
- MOST IMPORTANT is to know how much profit & loss
- Sometimes we feel regret after stop loss but learn to feel good about it.
- It will help you not to go bankrupt.
- Thing don’t go your way, runaway.
Imbalance between Put & Call Premiums
― OptionsMaddy
- On expiry day #🧔Bandi-Shreyas allows only maximum 2:1 premium imbalance.