“Sudden rises in price and volume, out of the ordinary relative strength, and movement against the general market trend are all giveaway signals which reveal the presence of a stock about to take off”

Nicolas Darvas

A brief introduction to trading/investing for beginners and why you should start right now (Thread)

A goal of mine is to introduce as many people as possible, especially my own age, to sound methods of how to trade/invest for their futures. Despite the stock market being open to all, in practice, not everyone is taught the value of it or how to use it to build wealth over time

This thread will hopefully help remove the knowledge barrier of how to get started. It will cover briefly:

Why you should invest (Start now!)
What even is stock?
Roth IRAs versus Traditional IRAs
ETFs+ Mutual Funds
How to buy/sell individual stocks.
Types of Investing/Trading

Now before we go further, I am not a financial advisor, I am speaking from my own experience and there are significant risks with the stock market so please consult a financial professional before getting involved. Alright let’s get to it.

First, why should you get involved and start ASAP, like tomorrow. The simple answer is compound interest and time.

As Traders, Technical Analysis allows us to Judge Potential, Identify Accumulation, and Manage Risk.

It allows us to see through the noise and interpret price action.

Here is How To Read a Stock Chart For Beginners (Thread)

Let's start with the basics.

When you first pull up a stock chart you will see Price and Volume plotted versus time.

Each price bar represents one period of whatever timeframe you are on

Some people like candlesticks, I personally think Open/High/Low/Close (OHLC) Bars are more intuitive

For each bar/candle, the four important data points of each period are represented:

High
Low
Open
Close.

For each bar, we want to be able to determine whether buyers or sellers are in control and how much conviction they have.

To do this we use our tools: Price and Volume

Thing about turning a price Bar 90 degrees counter clockwise so the high is now on the left and the low is now on the right.

Then picture a game of tug of war with participants representing buying pressure on the left and selling pressure on the right.

5 Ways Weekly Charts can help your Trading & Investing

📈📉 (Thread)

Weekly charts are a powerful timeframe, and regardless of your style, they can help you gain perspective on a particular setup and identify its potential

Using higher timeframes slows the action down and allows you to calmly analyze price and volume.

This will lead to better decision making.

For investors learning to analyze weekly charts and their trends can only complement your fundamental analysis.

For traders they are the "prevailing wind" and trading with this weekly trend will increase probabilities and help you remember to focus on larger patterns

1⃣ Weekly Charts show the True Trend of a Stock

Weekly charts eliminate a lot of the back and forth that occurs intraday and on daily charts. What is left is often a clear picture of the trend of a stock.

⬆️ Trending Up
↔️ Basing
⬇️ Trending Down

Technical Green Flags

Gap up after Earnings
Relative Strength vs the market
Higher Highs, lows
Retaking MAs
Respect for logical support
Stage 2 Uptrend
Breakouts through resistance on HV
Pocket Pivots
Strong DCRs
Orderly price action
Near or at ATHs
Weekly Vol Spikes

What else?

In the fall of 2018, I signed up for a class called "Introduction to the Stock Market and Technical Analysis" taught by Dr. Eric Wish

This class changed my life.

Here are 10 Lessons Dr. Wish taught me from his over 50 Years of Trading.

(Thread)

Before this class I had absolutely no knowledge about investing, trading, or how to read a stock chart

Today, trading & studying the commonalities between the greatest performing stocks is my passion, and what I’ve spent the past 1000+ days focused on

Now onto the first lesson

Financial Literacy

The first lesson Dr. Wish taught me was the importance of overall financial literacy.

Roth IRAs, interest rates, budgeting, building credit the right way.

You need to master money management before thinking moving on to trading/investing.

Overall Strategy

Throughout the class, Dr. Wish repeated his trading mantra.

As you gain trading knowledge and experience, you'll appreciate the simplicity and depth of this one sentence:

Determine the Market Trend

The vast majority of stocks follow the overall trend of the market. This is why the mantra begins with “In a Rising Market”

"At least 50% of the whole game is the general market."

-William O'Neil

This is in response to the question by @unseenvalue

If I had to buy 1 stock today, anywhere in the world, no avg. up or down, 5 year holding period (I will make that as 10 year for thesis to play out)

Since I track mainly Indian equities, restricting the choice to this space

Few points to look for
1. Strong macro tailwind rather than headwind, huge growth runway for company/segment. It can't be in a niche space & demand must not be easily substitutable
2. Strong Biz Model, high growth curve (15%+ over the period), strong ROE profile (hurdle rate 20%)

3. Low or no leverage, efficient capital allocation, (read minimal or zero fresh dilution requirements), strong cash flows and correspondingly high dividend payout ratios (consistent dividend history) and finally strong moat and with limited regulatory involvement / no reg issues

4. Promoter quality and intention must be beyond reproach, proven management with skin in the game
5. Capability to manage disruption, and if possible to even profit from it. If you can't be disrupted easily, you will eventually adapt your game to gain scale

6. There must be a possibility of non-linear growth if the scale-up hypothesis gets proven right. It's like an FD with low fixed return plus significant upside optionality. Multiple revenue streams / margin levers / IP that can provide non linearity in growth

#tradingtips
#EndofDayScans #free scans

Bullish Scan for 2nd Day Continuation
https://t.co/NywR2hxKhM

Bearish Scan for 2nd Day Continuation
https://t.co/AfNLATYnGm

Save them, Can find good plays using them for next day
I gave many winners here using same 🙏

Now you can have a look of my all screeners at one place

No need to run all screeners separately

Save this link

All screeners complied and visible under one roof

Download Stocks in list in excel too

Keep learning
Keep

Celebrating 1million followers of #Powerofstocks a youtube channel by #SubasishPani

A VIDEO 🧵: 8 CONCEPTS THAT YOU JUST CANT AFFORD TO MISS OUT!

Collaborated with @AdityaTodmal

1. How to draw support and resistance?

• Spot the U-turns i.e. the bend in the existing trend.

• He explains the change in the polarity concept here.

Example 1: How to draw support and resistance on charts

The more any Support /Resistance is tested the more it becomes weaker

2. Inside Candle

• Trade the breakout of the baby candle with its H/L as SL

• Pyramiding is done at the break of the mother candle H/L

• Try this only to the top 10 Nifty stocks.

My #FIPA combo scan

Stocks showing good quarterly business performance and strong price action.

One of the most simplistic stock scanning engine for Indian markets is at @mystockedge , its an ATM Machine.