Mr. Vijay Kedia built a net worth of over Rs. 800 crores.
But you probably never read past that headline.
So I binged hours of interviews to learn his investing principles and strategies.
Here are 20 lessons on investing from @VijayKedia1 Sir:
Collaborated with @AdityaTodmal
As the entry price, horizon and risk appetite would be far different than yours.
Rather lets draw inspiration and try to learn his stock picking skills.
Now let's DIVE IN👇
- Soon, beginner’s luck started to fade out and loses started to mount, to an extent where his mother was about to sell her ornaments.
- Although he was able to dodge the situation.
- This incident taught him the biggest lesson to have a stop-loss.
- In 1990, he made his first investment by putting in his 10-years savings of Rs 35,000 in this stock, based on a news trigger that tractor industry will witness a turnaround.
- It worked and fetched him 4-5 times which he calls it as a fluke.
ii. Courage, and
- He picked 5% stake in Aegis Logistics at Rs.20.
- The stock didn't move the next year.
- Finding a gem isn’t enough, finding the courage to stick through without fear & disappointment is.
- Eventually, the stock rallied to Rs. 300.
- One cannot get a small company that is cheap and has prime return ratios too.
- Focus on the core qualities of the business model.
- Look at the underlying story of the stock and the industry.
- Management should be transparent.
He chooses a small cap & mid cap companies which has the following ingredients:
• S: Small in size
• Mi: Management with medium experience
• L : Large in aspirations
• E: Extra large market potential
-Small in size refers to the company’s market share to the total market size of the industry.
-Don't be under the wrong notion that small in size means with reference to market capitalization.
- Management must be aggressive, transparent, and dedicated.
- He looks for management who would have gone through about 2-3 up & down cycles.
- Management should be motivated to grow the company and add value for all stakeholders.
- For a company to grow from small to medium size, the management should have large aspirations.
- If management aims to become a billionaire only then the shareholder will become a millionaire.
- For a company to grow from small size to medium or from medium to large, the market and the underlying asset should have that potential.
• C: Chamchas
• Ha: Health
• NG: Next Generation
• E: Ego
Neither be an optimistic during an uptrend nor be a pessimistic in a downtrend.
His investment mantra is to – ‘Buy like a bull, sit like a bear and watch like an eagle.
- Finding the right companies is not enough if you don't own a substantial piece of it.
- He doesn't fear the quantity because his aspiration in future is to allocate is even bigger than what it is today.
For more details: https://t.co/OgbcIijTGq
- Presents various types of risk rewards.
- Know your type and act accordingly.
- Don't fall in the trap of upgrading your lifestyle.
- Cut down your expenses on depreciating assets.
-One should be prepared to get immersed into this business of investing to reap the fruits out of it.
Do check out on youtube!
Link for the videos which are used here as snippets:
More from Nikita Poojary
Sizing is the key, you'll make big money only if you own a significant size without compromising on risk.
Here are 10 of them, and they are for free: 🧵
Collaborated with @AdityaTodmal
1/ For a faster growth, one needs to have a bigger size:
• What difference would it make if a stock moves by 300%?
• But then, what if you had only 1% capital allocation?
• Despite the stock performing spectacularly, your account won't reflect the same, due to small sizing.
2/ Three types of position sizing:
1. Fixed absolute Rupee amount that one is willing to risk.
2. % risk of the total capital.
3. Basis the edge.
Risk tolerance should be taken into consideration while determining appropriate position sizing.
3/ Fixed absolute Rupee Amount:
• Eg: Total capital is Rs. 10 lacs and the max risk per trade is Rs. 7500
• Lets say a stock is trading at 1200 and your SL is 1120 (i.e. your risk per unit us Rs. 1200-1120 =Rs. 80)
• Optimum qty: 7500/80 = 94 units
4/ Percentage risk of total capital:
• Lets say you want to risk 1% of the total capital on each trade.
• Considering the total capital of Rs. 10 lacs, you shall risk Rs. 10,000 i.e. 1% of 10lacs on each trade.
• Quantity to be traded/invested calculation remains the same.
Why Gain/loss ratio is important that the batting average
• More than the Win Loss ratio check the total Gain /loss ratio
• If your avg loss is 1% and avg gain is +5% then even if you are losing in 7 positions and winning in 3 out of 10 still you will be net profitable
Treat Trading as a business:
• Stick to a single strategy. Eg: A restaurateur usually wouldn’t be changing his recipe on a daily basis
• Mitesh Sir only works on BO or BD strategy, as he is a versatile trader
• Any trader should atleast experience 3 scenarios i.e. bull, bear & consolidation
• Target 4% per month i.e. 48% p.a.
• Option buying requires skill, everyday there wont be huge momentum, so buying options won’t yield good results, but high chances of falling into a bad habit
• In F&O segment there are ~150 stocks
• Not everyday all stocks will move
• Only 5-7 stocks move upside or downside
• Focus only these momentum stocks
• Check which one is moving
• Range BO/BD never disappoints. BO/BD from a rectangle (consolidation)
👉Free trading scanners
👉Powerful lessons from Power of Stocks videos
👉Mr. Radhakishan Damani's inspiring journey as a trader, investor and entrepreneur & much more
🧵 The 10 best threads from April 2022 (that you may have missed):
10 Powerful learnings on Directional trading:
The best traders are all directional traders.— Aditya Todmal (@AdityaTodmal) April 1, 2022
We should be investing our time into learning what the best traders are doing.
I have traded with @niki_poojary for the past year, who is an aggressive directional trader.
Here are my 10 learnings trading with her: \U0001f9f5
Best Threads from Q1
How to develop a right mindset and draw inspiration from Pro traders
"Nothing can stop the man with right mental attitude from achieving his goal, nothing on earth can help the man with the wrong mental attitude" - Thomas Jefferson— Nikita Poojary (@niki_poojary) April 2, 2022
Thread: Psychology, being grateful, draw inspiration & the trading RoI's\U0001f9f5
Collaborated with @AdityaTodmal
12 Powerful concepts from Power of Stocks (by Subashish Pani)
More from Genericlearnings
- A stock moving with a healthy momentum and reasonably good trajectory.
- I assume that It may come down to touch it's primary support trend line as it did in the past.
-If it do so, It will be a "must buy" opportunity.
a) 30°-45° inclined trend line is considered sustainable.
b) Steeper trend line angle can not sustain for a long period of time.
c) Exceptions are always there.
d) To beginners : Explore more related to trend line inclination angle and relate this with above chart.
There are plenty of trading systems available on the internet and there are many trading systems providers.
But how do you know which ones are going to be potentially profitable?
1/ PREMISE OF THE STRATEGY:
The most important factor in any trading system is the premise or philosophy or logic on which it is built.
The systems must be able to identify certain repetitive behaviors which are inherent to any market.
An example could be #trend or #momentum or #mean reversion etc.
The magnitude of these behaviors could vary over time but they are natural to any markets.
Better yet, you should have multiple systems that attack these behaviors...
This is what I call the Hybrid Approach !!!
2./ SIMPLER, THE BETTER:
Once you have understood the logic behind the system, make sure it's based on simple rules.
If there are more rules, it’s a red flag that the systems are probably over-optimized or curve fit to past data which is unlikely to work in the future.
Most of my strategies have no more than 5-6 rules.
Keep it Simple, Stupid!
Artificial Inteligence = 🖥️ + 🧠
When can you expect your fridge & mobile phone to revolt against you? (Spoiler Alert: Not in the foreseeable future).
Please Do 're-tweet' the Thread & help me spread the knowledge to more people.
1. The Language
In order to understand Artificial intelligence, machine learning, deep learning, we need to start at the very basics.
Humans speak and understand a wide variety of 'natural' languages (this is what computer science community calls them): like English, Hindi, Marathi, Bengali, Tamil etc.
But have you seen a peculiarity of human languages? They do not have a precise meaning associated with a given sentence. On an average, every English word has 2 meanings. This makes human conversations confusing, with the need for multiple turns & clarifications. Example 👇:
Person 1 conversing with Person 2 face to face:
Person 1: Lets go watch The Dark Knight. Its our marriage anniversary!
Person 2: I dont like going out at night. Its too scary & depressing.
Person 1: Oh, what i meant was watching the movie "The dark Knight".
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We’ve all grown up listening to stories of Shri Krishna. This one is a famous story of Shri Krishna in Guruvayur Temple, also called Dakshina Dwaraka.
There lived a villager who planted coconut saplings and had promised that he would offer the 'first coconut' from each of his coconut trees to "Guruvayurappan". When the trees started to yield coconuts, he collected the first coconut from all the trees in a sack 👇
and set forth to Guruvayur.
On the way he was stopped by a robber who asked all the items in the sack. The villager told the robber that the coconuts in the sack belonged to Guruvayurappan and so he was unable to hand it over.
The robber with anger asked the villager "Is Guruvaurappan's coconut any different? Does it have horns ?".
Saying so the robber pulled the sack forcefully out of the villager's hand, and coconuts came out..👇
To their astonishment each and every coconut in the sack had horns! Even today, the coconut with horns are displayed in the temple for devotees to see.
Below Picture is not original, as we cannot take photos inside temple.
These are turn-based wargames for windows 3.x, sharing the same engine.
Battles in a Distant Desert is from 1992, and is based on the first Iraq war (Desert Storm)
and Battles on Distant Planets is from 1991, and takes place in SPACE!
I'm pretty sure this is the one I played as a kid.
They've got 3 options to play with:
* Player vs. Player
* Player vs. Computer
* Computer vs. Computer
So it's a 0-2 player game!
They also did a DOS strategy game called "STARDATE 2140.2: GALACTIC CONQUEST" in 1990, but it seems to be lost.
All the games share an experimental AI system based on neural networks.
But they are also the best decisions I’ve made in my life. Here’s what my experience has been like with two young ones.
2/ Before kids, I was all about my startup life. I built an awesome edtech company with my wife, and we sacrificed many years (filled with joy and pain) to get our nut. We traveled a lot. We ate out. We hung out with friends every weekend.
Then we decided to have kids...
3/ When our first kid arrived, we attempted to be very active parents--that didn’t work out so well. It turns out that being a stay-at-home mom or dad is way harder than we could bear, psychologically and physically.
4/ We had to accept that we were better off throwing money at the problem and got a wonderful nanny + other support, so we could go back to work. That decision currently costs us $80K/year (now for 2 kids in f-ed up bay area rates), but was right for us.
5/ For me, I try not to work between 5pm and 9pm during the week, so I can dedicate time with family. Weekends are all family time. But I have to make up those lost hours of productivity by starting work at 5am. On average I get 5 hours of sleep per night, which is not enough.
Just added Telegram links to https://t.co/lDdqjtKTZL too! Now you can provide a nice easy way for people to message you :)
Less than 1 hour since I started adding stuff to https://t.co/lDdqjtKTZL again, and profile pages are now responsive!!! 🥳 Check it out -> https://t.co/fVkEL4fu0L
Accounts page is now also responsive!! 📱✨
💪 I managed to make the whole site responsive in about an hour. On my roadmap I had it down as 4-5 hours!!! 🤘🤠🤘
RT-PCR corona (test) scam
Symptomatic people are tested for one and only one respiratory virus. This means that other acute respiratory infections are reclassified as
4/10— Dr. Thomas Binder, MD (@Thomas_Binder) October 22, 2020
...indication, first of all that testing for a (single) respiratory virus is done outside of surveillance systems or need for specific therapy, but even so the lack of consideration of Ct, symptoms and clinical findings when interpreting its result. https://t.co/gHH6kwRdZG
It is tested exquisitely with a hypersensitive non-specific RT-PCR test / Ct >35 (>30 is nonsense, >35 is madness), without considering Ct and clinical context. This means that more acute respiratory infections are reclassified as
The Drosten RT-PCR test is fabricated in a way that each country and laboratory perform it differently at too high Ct and that the high rate of false positives increases massively due to cross-reaction with other (corona) viruses in the "flu
Even asymptomatic, previously called healthy, people are tested (en masse) in this way, although there is no epidemiologically relevant asymptomatic transmission. This means that even healthy people are declared as COVID
Thread web\u2b06\ufe0f\u2b07\ufe0f— Dr. Thomas Binder, MD (@Thomas_Binder) December 16, 2020
The fabrication of the "asymptomatic (super) spreader" is the coronation of the total nons(ci)ense in the belief system of #CoronasWitnesses.
Asymptomatic transmission 0.7%; 95% CI 0%-4.9% - could well be 0%!https://t.co/VeZTzxXfvT
Deaths within 28 days after a positive RT-PCR test from whatever cause are designated as deaths WITH COVID. This means that other causes of death are reclassified as