BC FINANCE
Saved by @CodyyyGardner

Insights of a noob:

10 things I've learned from 18 months in the financial services industry.

👇🧵

 1/ The financial industry is set up to extract value from you - the key is to learn how to extract value from it.
2/ An understanding of compounding is essential - it can be your best friend, or your worst enemy.

Negative compounding is a thing, it occurs from the buildup of fees and taxes over time (there is a link to an article which explains this in more detail in point 9).
3/ Behaviour is everything - you are an emotional creature not a robot.

@MavenAdviser summed it up perfectly in a recent podcast, 'financial success takes place between your ears, not on a computer screen'.
4/ Behaviour is everything - familiarise yourself with @behaviourgap.

Over the long term markets do not lose money, however investors do.

A study found that over a 20 year period ‘the average investment return was 11.81%. The average investor return was 4.48%.’
5.1/ Behaviour is everything - you are not an investment guru.

You are not god's gift.

You can't predict the future.

Market timing is futile.

Day trading may sound exciting and you may feel like the Wolf of Wall Street - most of the time you are just mugging yourself off.
5.2/ Buy the market, invest regularly, keep your costs low, hold for the long term.

If you want to have an extra focus on a particular asset/market, dabble in that on the side, do not make it the centre of your portfolio (if you are unsure why, see point 4).
6.1/ Behaviour is everything - selling when the markets are low and buying back in when they start to rise again is financially destructive.

It may be the worst possible decision an investor can ever make, potentially wiping out a huge chunk of their net worth in one go.
6.2/ Unfortunately I have seen this strategy multiple times in my short career.

Take a breath, step back and THINK.

If you are going to buy back in when the markets start to rise again, then YOU have acknowledged that it is just a TEMPORARY decline!

DON’T DO IT!
7/ 'Volatility is the price of admission’ @morganhousel.

Learn the difference between volatility and risk and you will soon realise that the real risk is not being in the market.
8.1/ 'The goal of the media is to make every problem your problem' @naval.

This rings especially true for the financial media.

Sensationalist writing sells - unfortunately level headed, evidence based commentary does not. Learn to tune out the noise and crack on.
8.2/ The Evidence Based Investor, @RobinJPowell, is a great place to start for useful insights.
9.1/ Your savings rate, more than your investment choices, will determine your path to financial freedom.

Spend less than you earn.

Pay yourself first.

Keep a close eye on fees and tax.
9.2/ @TheEscapeART1ST has a great article called ‘3 numbers that can make you a millionaire’.

It drives home the importance of your savings rate and the impact of negative compounding (touched upon in point 2).

https://t.co/d30XxFjsWu
10/ Don’t put your eggs in one basket. Diversify.

Whilst the concentration of capital can yield large returns, it can also lead to 100% loss of your money.

Do your future self a favour and avoid 100% capital loss.
If you made it this far, thank you for reading.

I’m still new to the industry and have a lot to learn, however I hope you may have found something here of value.

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Sneh Kagrana
Sneh Kagrana
@sneh_kagrana
How Does Zero Cost EMI work?

What is the catch here? How do Companies involved make money here?

A Thread🧵👇

Please "RT" if you like the thread.


1/ You are looking for a mobile phone worth Rs.10,000 on Amazon and as you move ahead to place the order, you are offered an option to pay that amount spread across 6 months. 6 EMIs of Rs.1667. No interest charges or processing fees.

2/ The next thought you have is - ‘obviously there is some catch here’. Why would someone give me an option to pay over 6 months? That too without any fees/charges!?

The catch is - it is more to do with marketing and sales than finance.

3/ There are 3 entities involved in this transaction. The platform (Amazon), Mobile Brand (Samsung), and the finance company (Bajaj Finance).

4/ Imagine you are a student who just got an internship with a stipend of Rs.5000. Shelling out Rs.10000 may not be possible for you. But if you have to pay Rs.1667 a month for 6 months, you feel like you have got a deal! Samsung gets to sell more. Amazon gets more commission.
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Niranjan Avasthi
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@avasthiniranjan
A simple thread to understand relationship between US Dollar and Emerging Markets.

The relationship between the performance of Emerging Market stocks and the US Dollar is one of the tightest macro relationships that exists in investing.

1/15

The weekly return correlation between US Dollar and MSCI Emerging Market Index is -0.70 over last 10 years. Which means when US Dollar weakens, Emerging Market stocks rally and vice versa.

2/15

As seen in this chart, the MSCI EM Index and the MSCI World Index ratio and the US Dollar Index are negatively-correlated.

When US Dollar weakens, EM index outperform World Index and when US Dollar strengthens EM index underperform World index.

3/15


From 1995 to 2000, the USD appreciated over 30%, while the MSCI EM Index underperformed the MSCI World Index by over 15% annualised.

Then from 2001 to 2010, the U.S. dollar depreciated over 18% while the MSCI EM Index outperformed the MSCI World Index by 14% annualised.

4/15

Then from 2011 to 2020, the U.S. dollar appreciated over 30%, while the MSCI EM Index underperformed the MSCI World Index by 7% annualized.

Overall, from 1995 to 2020, this relationship has a correlation of -0.35.

5/15
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Subhadip Nandy
Subhadip Nandy
@SubhadipNandy16
Two year back thread on MFI, someone liked this so came up in notifications . Rather than running around 100s of indicators, I have made this my go to indicator under any circumstances and have been using this for years


This thread actually had some great answers , one can learn a lot about the thought processes of different traders from the answers. Please go thru them
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Subhadip Nandy
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A small thread on intraday support resistance logics over time

The most common is Pivot , support and resistances calculated from the previous day's data

https://t.co/ILMjMay1zc

They can be calculated for daily, weekly, monthly etc.

Camarilla levels are also quite popular. This seemed to be the next best thing after the original pivots at one point of

Over the years, many other technicians have tried to devise other methods to devise intraday support resistance points. In almost all cases, the previous days OHLC were used in some variation, in some cases today's OPEN was also used as an input

I have gone through almost all of the formulas. Some work on some days, some days it doesn't.
What struck me was that in each of the cases , we were using the OHLC and doing some maths with a multiplier/divider which WE/the trader thought fits the price action of the markets

This is the same as choosing a time period of an indicator and hope the market follows my choice of time frame to give me good trades. Like say a crossover of a 5/13 moving average, or a 14 period RSI or whatever.
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1/OK, data mystery time.

This New York Times feature shows China with a Gini Index of less than 30, which would make it more equal than Canada, France, or the Netherlands. https://t.co/g3Sv6DZTDE

That's weird. Income inequality in China is legendary.

Let's check this number.

2/The New York Times cites the World Bank's recent report, "Fair Progress? Economic Mobility across Generations Around the World".

The report is available here:

3/The World Bank report has a graph in which it appears to show the same value for China's Gini - under 0.3.

The graph cites the World Development Indicators as its source for the income inequality data.


4/The World Development Indicators are available at the World Bank's website.

Here's the Gini index: https://t.co/MvylQzpX6A

It looks as if the latest estimate for China's Gini is 42.2.

That estimate is from 2012.

5/A Gini of 42.2 would put China in the same neighborhood as the U.S., whose Gini was estimated at 41 in 2013.

I can't find the <30 number anywhere. The only other estimate in the tables for China is from 2008, when it was estimated at 42.8.
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WEAPONS OF MAHADEV

Sarvaripati Shiva is one of the most fearsome manifestations of Mahadev. Assigned with destroying all of the universes at the end of time, Shiva is one of the most fearsome warriors. He is the Mrityunjaya.
Here are some weapons associated with him:


TRISHULA: the 3 pointed blades denote creation, maintenance, and destruction or the 3 Kalas – Past, Present and Future. They also represent 3 Gunas – Sattva, Rajas and Tamas).
Shiva’s trishul can only be stopped by Shiva himself.
@onlyonenetra @DetheEsha


Trishul is also said to represent Ida, Pingala, and Sushumna. These are the three basic nadis – the left, the right and the central – in the pranamaya kosha, or the energy body of the human system.
@iamkamyabuch @unever_followme


PARASHU: axe with 4 cutting edges which Shiva gave to Parashurama. In his anger, Parashurama used the parashu to get rid of the all the Earth’s tyrannical kshatriya caste twenty-one times over.
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CHANDRAHASA SWORD: The divine sword Chandrahasa literally means ‘the laughter of the moon’. Ravana gave this sword to Indrajit on different occasions especially to fight against Devas.
GIRISH: A special sword of Shiva with unique characteristics.
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The absolute best 15 scanners which experts are using.

Got these scanners from the following accounts:

1. @Pathik_Trader
2. @sanjufunda
3. @sanstocktrader
4. @SouravSenguptaI
5. @Rishikesh_ADX

Share for the benefit of everyone.

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3. Fake

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