On average, the market performs the poorest in September.

𝗧𝗛𝗘 𝗢𝗣𝗧𝗜𝗢𝗡𝗦 𝗧𝗛𝗥𝗘𝗔𝗗-𝟮
So we had discussed a few pointers in the previous thread about options,its time now we discuss further implications and applicability in this thread which will help you in NEW YEAR.
Let’s go and dive into the world of options trading.

-The amount of decay can be measured by theta. This is why you can be right on stock price direction and still lose money. The time decay portion of the option price overpowers the directional move in the underlying stock price.

-During result days due to the heightened uncertainty, there is opportunity for options sellers because of the expensive premium. When entering into an earnings trade, it is optimal to initiate the trade as close in time to the event as possible.

-Keep some cash on sidelines. This would help in adjustments,margin expansion,face losses and also during new opportunities which suddenly arise. A lot of people do the mistake of going all in and regretting later.

-Everything in trading has a trade off.

Unlimited profit comes at the expense of low probability of profit. Give up some profit potential, and you gain a higher probability of profit.
-By using portfolio beta weighted delta, you can accurately gauge your overall portfolio risk. If your portfolio is leaning too far in..

𝐑𝐮𝐥𝐞𝐬 𝐨𝐟 𝐈𝐧𝐯𝐞𝐬𝐭𝐢𝐧𝐠 𝐓𝐡𝐫𝐞𝐚𝐝
The entire thread summarizes some important rules with respect to investing. Inspired by legendary traders,these will not only help you to grow wealth,but also make a smart investor. Hope you would like the thread & shower some love

Rule 1: Bulls, Bears Make Money, Pigs Get Slaughtered so chose your category wisely
Rule 2: It's OK to Pay the Taxes,Dont just wait for a 10% LTCG always. Sometimes you know it won't pay you
Rule 3: Don't Buy All at Once,Have patience market will give enough opportunities

Rule 4: Buy Damaged Stocks, Not Damaged Companies. Understand the diff b/w undervalued stocks and no value stocks. Everything cheap is not bargain,it could be trap.
Rule 5: Diversify to Control Risk,make sure you don't put everything into one stock,one sector or one asset class.

Rule 6: Do Your Stock Homework. You spend 5 hours to buy a cream on Amazon but research for 1 hr based on buying a stock on twitter! Well,do your homework.

Rule 7: No One Made a Dime by Panicking .Invest 2-10% and leave rest. If it falls,pain will be low,if moves,no FOMO haunt

Rule 8: Buy Best-of-Breed Companies,This doesnt mean you have to invest in the most expensive companies,all it means is you need to buy co.s with good earnings,promoters and sustainability
Rule 9: Defend Some Stocks, Not All
Rule 10: Bad Buys Won't Become Takeovers,STOP hoping

𝐀 𝐭𝐡𝐫𝐞𝐚𝐝 𝐨𝐧 𝐈𝐧𝐝𝐞𝐱 𝐅𝐮𝐧𝐝𝐬
This thread will help you to understand the index funds really well. If you want more of such threads in future,do comment the topic you want me to cover and don't forget to RETWEET! Let's start :

Who started it?
John Bogle, commonly referred to as Jack, is known as The Father of Index Investing and The Father of Index Funds. Bogle was born in Montclair, New Jersey on May 8, 1929.

What was the first index fund?
After graduation, Bogle went to work for Wellington Management from 1951 to 1974, but was fired because of a merger decision he made. In 1974, he found the Vanguard Group Inc., and in 1976 he introduced the first retail index fund the Vanguard 500

Why should we trust Bogle and not telegram rockets?
Although Bogle was initially mocked for his introduction of the index fund, he proved to be a true visionary and was even named as one of the “World’s 100 Most Powerful and Influential People” by Time Magazine in 2004

What is Vanguard's position right now?
Vanguard has grown to become one of the world’s largest investment management companies, with more than five trillion in global assets under management. Although Mr. Bogle died in January of 2019, his philosophy of index investing is ALIVE.

Top 5 trading blogs to read:
1-Trading with Rayner
2-New Trader U
3-Trading QnA by Zerodha
4-Factor Trading
5-SMB Capital
RETWEET for more such top 5 lists in future.

Banknifty has formed : BKBA pattern
Bhangarh ki bechain Aatma Pattern
Even kids know what happens next!

I always analyse 20 stocks but trade only 2/3 of them in a month.

I prefer to trade stocks which hits 52 week high/ATH.

Trade strongest stocks of the market.

Filter stocks which hits 52 week high/ATH after 1-2 months of consolidation.

A Thread 🧵on how bond yields impact stock market ?

Must read for beginners in #StockMarket.

(RT to maximize reach.)

#Bonds #BondYields #StockMarket #Investing

What is #bond ?

Bonds are issued by governments and corporations when they want to raise money. By buying a bond, investor is giving the issuer a loan, and issuer agrees to pay the investor back the face value of the loan on a specific date, and to pay periodic interest as well.

What is bond yield ?

Bond yield, on the other hand, is the return that an investor gets on that bond or on a particular government security.

#Investing #StockMarket #Bonds

Relation between #InterestRates, #BondYield and #BondPrice :

A fall/rise in interest rates in an economy pushes up/pulls down bond prices. However, bond yields fall/rise in this situation.

Effect of Bond Yields on Economy & #StockMarket :

Rise in bond yields denotes higher interest rates in economy. This increases borrowing costs for companies & consumers. This ultimately reduces overall demand in economy & negatively impacts #StockMarket.