Arun Bau

🎓 Chartered Accountant
🥉 CFA Level 3 Cleared
📈 Equity & Options Trader
🧑🏻‍💻 Mentored 5K+ Students
⚡ Trade & Invest Mindfully

[Arun Bau @ArunBau1]

The worst mistake traders make after a big loss trade is to immediately try to recover it.

9 out of 10 times it backfires and makes the loss even bigger.

#losstrade
#trademindfully

[Arun Bau @ArunBau1]

In trying to catch a reversal trade during strong trending markets, you can blow up your account.

Every pullback isn't a reversal trade opportunity.

#trendingmarkets

[Arun Bau @ArunBau1]

Trading will not show linear results like a job.

It feels like nothing happened over the years, and suddenly, it can take off 📈

#traderslife

[Arun Bau @ArunBau1]

You'll hardly find 2 consecutive smooth trending days📈📈

After a smooth trending day, there are high chances that next day you'll get trapped if you want to catch the trend ❌

#trendingmarkets

[Arun Bau @ArunBau1]

1. Don't add more to a losing trade ❌

2. Add more to a winning trade and trail stoploss ✅

At least do one of these to sustain in trading.

1 > 2

#avoidaveraging

[Arun Bau @ArunBau1]

India VIX used to make some sense back then.

Now there isn't any logic to it

It suddenly falls 20% and goes up 10% the next day📉📈

It moves in tandem with Index whereas ideally it should go opposite to the index momentum.

#indiavix

[Arun Bau @ArunBau1]

Most traders don't need new strategies.

They just need

More focus and mental clarity.

[Arun Bau @ArunBau1]

On expiry day:

Butterfly strategies are much better than Strangles.

Read caption to know the reason in detail.

#Optionselling
#expiryday

[Arun Bau @ArunBau1]

On expiry day:

Butterfly strategies are much better than Strangles.

Butterfly has very limited loss with high reward whereas

Strangles got very low reward but there is always a risk of stoploss slippage which can make them lose significant capital even if it happens rarely.

[Arun Bau @ArunBau1]

Not more than 3 to 4 trades a week 📈

For 6 - 12 months

You have no idea how it improves your trading discipline and performance💯

[Arun Bau @ArunBau1]

In trading 📈 you can be flexible with your strategies and analysis at times;

But

Be rigid and careful with risk management all the time 💯

[Arun Bau @ArunBau1]

If the RCB franchise can win the Cup in 2024 after long waiting 🏆

You can also become an independent and profitable trader this year.😌

Don't lose hope ⚡

#RCB #EeSalaCupNamde #trading

[Arun Bau @ArunBau1]

As you gain experience in trading📈

You care less about being right about your analysis 🚀

And care more about managing risk, position size, and number of trades you enter✅

Also, you'll become a bit calmer😌

[Arun Bau @ArunBau1]

March 14 - Expiry Butterfly running in Nifty with 1:10 RR.

Even if we get 3% of that's that's a decent ROI.

Expiry trades became less stressful from the time i moved to butterfly with very limited risk

Max risk per expiry is 1%

#expirydaytrading

[Arun Bau @ArunBau1]

Most of my 9:15 AMs look like this.

I don't currently feel the urge to be in front of the trading screen waiting for the markets to open .

Mainly because I don't create any risky unhedged open positions.

In case of any key alert trigger, can be easily adjusted from mobile ✅

[Arun Bau @ArunBau1]

I think investors are now not so fearful about corrections and bear markets 📈 like how they used to before 2020.

Most of them can handle these corrections without much panic 💯

Experience matters✅

[Arun Bau @ArunBau1]

Squared off all my positional stocks in profit last week before the big correction move.

Average holding period - 6 months

Currently just stitting on cash and not entering in any swing position.

Cash is also a position✅

Waiting for good recovery setups.

[Arun Bau @ArunBau1]

The correction in all indices especially small and midcap are much needed after unusual rally last year.

Even a 10 to 20% correction is not significant in small and midcaps.

Look out for good buy them dip opportunities for every 10% fall - From mutual fund pov.

[Arun Bau @ArunBau1]

Even among your winning trades📈there will only few which actually outperforms.

The real skill is to identify those and don't exit them.

If needed you can add more to it at right pullback.

[Arun Bau @ArunBau1]

1. Closing your loss-making trades can be tough.

2. Holding your profitable trades can be even more challenging.

But at least the 2nd one won't wipe off your capital.

Think about it and choose your tough task.