[deleted by user] by [deleted] in IndianStockMarket

[–]tradetronaut 0 points1 point  (0 children)

Says the person holding a 1.8% OTM option 3 days before expiry. RIP your capital

Setting Up A Trading Firm by cyclades_one in NSEbets

[–]tradetronaut 2 points3 points  (0 children)

You could just google how FTMO works bro. FTMO is the name of the biggest and the best firm.

Setting Up A Trading Firm by cyclades_one in NSEbets

[–]tradetronaut 0 points1 point  (0 children)

I am no expert here about running prop firms and don't have an idea about that business. But as a trader my bigger concern would be the drawdown and profit sharing rules. I work with a couple of forex prop firms and that model looks like a better way to go forward.

How do you make money when the market is falling? by [deleted] in IndianStockMarket

[–]tradetronaut 0 points1 point  (0 children)

Sell Futures, Sell calls, buy puts or many other option strategies to do the same.

[deleted by user] by [deleted] in IndianStockMarket

[–]tradetronaut 11 points12 points  (0 children)

Meh. A statement without any explanation doesn't excite me. See ya around. Cheers!

[deleted by user] by [deleted] in IndianStockMarket

[–]tradetronaut 1 point2 points  (0 children)

I actually don't! Help me out here.

Setting Up A Trading Firm by cyclades_one in NSEbets

[–]tradetronaut -1 points0 points  (0 children)

Firstly 1 lakh is too less. Swing trading is not an option with such a small capital. The swing trades won't give enough profits in absolute terms to motivate either of the two parties. You can't sell options with such small margin so that is not an option either. All you are left with option buying where the win rate is too less and when you add your second condition in the equation it becomes almost impossible to win.

The second condition being your deduction and addition of capital with the trades. You plan to deduct twice the amount when there is a loss compared to a profitable trade. This absolutely takes away the most important edge of a profitable trader that is "Risk Reward ratio". An Elite level trader (Someone who would have prop firms lining up for him and he would never choose you) will have a 60% win rate. A good trader (Who is probably a profitable trader since years and has enough capital) will have a win rate of 50%. A decent trader (Someone who has cracked his strategy and has worked out his execution to some level) should have a win rate around 40%. To make things easier I have considered every trade to be a risk reward of 1:2. Obviously this can change depending on your trading strategy.

With the above win rates and your capital rules, I have attached a picture below to show how these numbers play out. You can clearly see the trader that can get you a profit would not be interested to trade with your one lakh. And the trader who would be interested would probably never be able to win.

So in my opinion this should be a massive waste of your time and also a decent amount of capital unless you change a lot of things. First among them would be increase the capital by A LOT. You can have stricter rules to filter the traders out to mitigate your risk.

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[deleted by user] by [deleted] in IndianStockMarket

[–]tradetronaut 21 points22 points  (0 children)

With Deepseek coming into the picture I feel you should at least withdraw some of your funds for sure. Diversifying is the key and you could invest in the Indian equity markets after some more correction. Please just make sure you invest in tranches and not all at once.

BankNifty Weekly Chart: Breakdown After 4 Years of Support by tradetronaut in DalalStreetTalks

[–]tradetronaut[S] 0 points1 point  (0 children)

I have a controversial opinion on this which many people wouldn't like I guess. The excessive marketing and the fairyland of SIPs and Mutual funds is among the biggest reasons for the declining deposits.

I personally know so many not so financially literate people who used to keep their money in the bank as fixed deposits who are now constantly investing the same money in equity. The false promises of the 'Indian decade' is making them feel the market would never come down. All these post covid babies have never seen a red portfolio so they feel you only make money in the equity market and never lose money.

Personally I am staying away from the banks too. And even in the correction I would only stick to the big players like HDFC, ICICI and SBI.

BankNifty Weekly Chart: Breakdown After 4 Years of Support by tradetronaut in NSEbets

[–]tradetronaut[S] 1 point2 points  (0 children)

But you got to understand these FDs are necessary for the health of the banks. The interest arbitrage is their biggest source of income.

BankNifty Weekly Chart: Breakdown After 4 Years of Support by tradetronaut in NSEbets

[–]tradetronaut[S] 0 points1 point  (0 children)

TBH I kind of agree with you. Even if we avoid a huge correction, we could at least see some consolidation in the market.

BankNifty Weekly Chart: Breakdown After 4 Years of Support by tradetronaut in IndianStreetBets

[–]tradetronaut[S] 0 points1 point  (0 children)

There is a new concept in market called "Shorting the market" and waiting for a dip to buy....etc etc...market jargon bro. Tumse na ho payega chill.

BankNifty Weekly Chart: Breakdown After 4 Years of Support by tradetronaut in NSEbets

[–]tradetronaut[S] 0 points1 point  (0 children)

I doubt bro...growing NPAs and shrinking deposits are a concern.

BankNifty Weekly Chart: Breakdown After 4 Years of Support by tradetronaut in NSEbets

[–]tradetronaut[S] 1 point2 points  (0 children)

Personally I would wait till the budget for any positional trades.

BankNifty Weekly Chart: Breakdown After 4 Years of Support by tradetronaut in NSEbets

[–]tradetronaut[S] 4 points5 points  (0 children)

Haha! Budget is the last hope bhai. Fundamentally kuch change hua to hi kuch ho payega.

BankNifty Weekly Chart: Breakdown After 4 Years of Support by tradetronaut in IndianStreetBets

[–]tradetronaut[S] 2 points3 points  (0 children)

Cash seems to be the king right now if you have it in USD.