My course on the basics of #stockmarket is live on https://t.co/8Jbd0ujLKq! Thanks, @malpani for helping create such a nice platform that promotes learning :D

Link: https://t.co/tHYK9XBovd

P.S. in case you've watched the course vids before, I will be adding more videos soon!

Thread on Importance of Mean Reversion

U must have remember the charts of auto sector breakout on last monday,potentially poised to be the next leader in the rally.
But since then it just fell bad and deep
Breaking the breakout bar low

1/7

The seemingly convincing breakout retest structure in abv daily chart takes a cocpletely different picture in u open the chart in weekly TF

shooting start at the resistance line of a triangle and at a major supply zone

2/7

Major stocks such as heromoto, maruti, eichermot and babajauto are already trading below the breakout level it established on monday when sector broke out

3/7

This poses a serious question on the risks associated with breakout.

Popularity behind the breakout is the fact that it doesnt need any skills to spot it, even a 90% blind man can spot it in any chart, because the price just sticks out from the rest by a very big margin

4/7

But think about a completely diffferent method where the price makes a clean move and the risks assicated with it is cubstantially less.

Price available so cheap and at support

5/7

Sharing few Technical indicators with @shail_bhatnagar and @virendraonNifty on @CNBC_Awaaz which i usually follow..!!
You can Retweet or share to your friends as well if you feel these are good for new trader in the market.
Market is supreme and it teaches us every day.

It's the weekend!

Grab a cup of coffee, in this thread I will explain

1. What is index investing?
2. Why S&P 500, Nasdaq 100 and DIJA are different?
3. How to create your own indexes?

Let's dive right in.

You may have noticed at the start of every book, there is a page which lists out various chapters and the page number for each chapter.

This is called the index of contents of the book.

It helps you understand what is where and give you a general idea how to read the book.

Similarly in the world of finance, we have financial indexes that are used to indicate where the overall market is trading.

Is it high or is it low?
Is it cheap or is it expensive?

These questions can be answered by looking at the index.

Fun Fact: The first ever financial index created was the Dow Jones Industrial Average in year 1896

The world created a financial index before cars, airplanes and electricity were the norm!

Stocks in 1896 used to look like this, an index was helpful to understand economy levels

If you want to read more about the history of stock market, you can go through this