Almost every trader trades breakouts, yet very few are able to trade them properly.

In this article, we’ll be covering every aspect of breakout trading.

What are they?
Why do I prefer trading breakouts and not pullbacks?
And much more.
https://t.co/Mk5QW86x8s

SJS Enterprises Ltd: Business Analysis

"A high ROCE cash-generating business, with a moat"

A thread 🧵

1. Company's Background:

• Incorporated in 1987, Company is a leading decorative aesthetic parts supplier to Auto and Consumer durables Companies in India.

• It is basically a design to delivery player in the industry.

• The end markets served are 2W, PV, CD, CV, Medical devices, Farm equipment & sanitary ware.

• It supplied over 115 million parts with more than 6,000 SKUs in FY21 to around 170 customer locations in approximately 90 cities across 20 countries.

• Product offerings include decals and body graphics, 2D & 3D appliques/dials, 3D lux badges, domes, overlays, aluminum badges, IMD/IML, lens mask assembly & chrome-plated injection molding plastic parts apart from 2-W & PV aftermarket accessories under ‘Transform’ brand.

2. Products:

One of the few aesthetics product manufacturers in India which offers advanced technology products such as Capacitive Overlays, Optical plastics, 3D Dials, and IML/IMD’s.

Four Powerful Techniques to Trail Stop-Loss and Maximize Gains.

Are you still suffering from the problem of taking profits too early or getting stopped out too early?

Then this thread is for you.

This writeup will introduce you to some powerful techniques of trailing stop-loss which will help to stay in a trending stock for more time and hence maximize your gains.

Let's dive right in! 🧵

I have spiced up these techniques with some tweaks to make them more effective in riding the juiciest part of the trend.

Trailing is a technique that works well in a strong trending phase of the market.

The market is said to move in four phases – accumulation, markup, distribution, and markdown.

The markup and markdown are the trending phases so, trailing would work best during these phases.

The four techniques that I am going to discuss are:

1. Moving Averages Stops

2. Super Trend Stops

3. Swing Lows Stops

4. Percentage Stops

What! Do you already know about them?

I bet after going through the text below you will learn some new tweaks.

Short Strangle

Net credit with a sideways stance

A thread 🧵

#options #trading

1/ Short Strangles

As the name suggests, you need to sell options in this strategy

It involves 2 legs:

Short OTM CE

Short OTM PE

2/ Stance

You expect the market to trade within a narrow range. A narrow range means low volatility and hence lowering option premium due to theta decay

3/ Net Credit Strategy

Shorting options means that you will receive premium

Ex Nifty spot 16200

To create Short Strangle

Short 16300CE @92

Short 16100PE @132

Total premium received = 92 + 132 = 224

4/ Maximum Profit

The max profit is the premium received at entering the strategy, possible when the market expires within or at the selected strikes

In the Ex, expiry at or between 16100 or 16300, means options go worthless due to theta decay and you receive 224 points per lot

IRON CONDOR (IC)

If Short Strangle’s margin and unlimited loss potential is too much for you then the Iron Condor option strategy could be a perfect fit for you. It's not as complex as it sounds

A thread 🧵

#options #trading

1/ Big Brother of Short Strangle (SS)

I am sure you read our previous thread on SS where you sell slightly OTM options in a sideways market.

To create an IC

Create an SS first

Buy the next OTM CE

Buy the next OTM PE

Let’s clear with an example

Ex.

If Nifty is trading at 16300 and you expect it to trade in a narrow range of 200 points till expiry then

Sell 16400CE

Sell 16200PE

This is SS, right?

Now Buy 16500CE

Buy 16100 PE

That is IC

All strikes should belong to the same underlying, have the same number of lots, and same expiration

2/ The Credit Part – Max Profit

Stocks below EMA( 9, 21,63 ), these stocks are avoid for us, till the time they are below EMA-63

~Bandhan Bank
~Astra Zen
~APLL
~ Amara Raja
~ Escorts
~ Hero Moto
~ Indus Tower
~ M& M Fin
~ Petronet
~ Zeel

Universe : Nifty -500

@Prakashplutus
@preetiplutus

A Master thread on @Singh7575 Sir's Long Only Setups with examples on Charts!

This setup is a gift to anyone who trades long ideas and those who want to trade in CASH due to Capital Constraint. Fits best for people who don't do FNO as this picks some amazing scripts.

1⃣ Before heading on to the set-up we want to make sure the entire system credit goes to @Singh7575 . We are just here to share it and make people aware of such simple set-ups that can give money considering risk is

2⃣How to Set it Up?
This setup best fits in @tradingview /@zerodhaonline or any broker that provides charting. We only need 2 Indicators.
Indicator 1- 13EMA
Indicator 2 - 34EMA
Both indicators are compulsory and should be exponential(EMA) instead of Simple moving average.(SMA)

3⃣ How to use this Setup?
Whenever this Setup meets a condition where 13EMA crosses 34EMA from below as depicted in the chart. Whenever the 13EMA crosses 34EMA from below it is a LONG (BUY) SIGNAL.

❗️Timeframe needs to be Daily Only!

4⃣ When to Place Order?
The Condition is to place order above the Day's High when crossover happened. Place buying bid above Previous Day’s high. If on current day the stock
doesn’t cross previous day’s high, place a buying bid the next day above current day’s high. For E.g.

𝐂𝐡𝐞𝐦𝐢𝐜𝐚𝐥 𝐏𝐫𝐢𝐜𝐞 𝐓𝐫𝐞𝐧𝐝 𝐔𝐩𝐝𝐚𝐭𝐞

It's the weekend!

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

1. Peter Lynch's Six Categories of Stocks
2. How to identify the type of stock you own?
3. How to think and decide about the runway for growth of a company?

Lets dive right in.

For those who do not know (I doubt there will be many), Peter Lynch is one of the most successful fund managers of all time.

He managed a fund called Magellan at US Investment Giant Fidelity Investments and during his 13 yr tenure, he delivered an average CAGR of 29.2%.

Sadly the fund couldn't keep up post Lynch's retirement and his successors weren't able to keep up with his returns.

That's how good Lynch was!

In 1989, a year before retirement, Lynch wrote and published a book called 'One Up on Wall Street'.

Almost 32 years later, the teachings of the book remain relevant.

(Highly recommended read)

Chapter 7 of the Book Titled
"I've Got It, I've Got It - What is It?"

talks about the need to classify stocks.

Peter's argument is that you need to know what kind of stock you hold in your portfolio.

Not all stocks are the same - and he is right!