BC TRADING
Saved by @Mollyycolllinss

1/ I love learning about the markets. There are some brilliant people Iโ€™ve found on Twitter who have provided great insights (among others):

@JeffSnider_AIP
@LynAldenContact
@LukeGromen

But this thread is (mostly) about @profplum99

๐Ÿ‘‡๐Ÿ‘‡๐Ÿ‘‡๐Ÿ‘‡๐Ÿ‘‡

 2/ Mike has an encyclopedic knowledge of market history. This interview by @DiMartinoBooth (who I also have a lot of respect for) puts that on clear display.

https://t.co/4hSd2TG4du

Mikeโ€™s explanation of passive investing and its effects on the markets was eye-opening.
3/ According to research conducted by Anadu et al for the Federal Reserve Bank of Boston, passive funds made up 48% of US equity assets under management in March 2020. That number was just 14% in 2005. Meaning 8.6% annualized growth over 15 years.

https://t.co/ReuBiCAcPn
4/ Per Mike, โ€œpassive funds have this really simple algorithm: if you give me cash, I buy.โ€ No fundamental valuation, just buying the current market-weighted index, which means a stock gets greater representation in your fund the higher its current market value.
5/ Employers and pension fund managers are predictably contributing to IRAs through fixed salary percentages on a monthly basis. And passive funds typically hold tens of basis points of cash on the sidelines because, per Mike, โ€œitโ€™s toxic to their business model.โ€
6/ I called one of my best friends, an investment advisor who Iโ€™ve known since grade 7 and said, โ€œI gotta get a numberโ€”give me a number!โ€ He immediately responded, โ€œ4โ€โ€”his hockey jersey numberโ€”and then proceeded to tell me that active funds have four to 16% of their AUM in cash.
7/ So, thousands of percentage points higher than passive funds. Meaning trillions of dollars are being inefficiently (from an EMH perspective) pumped into the markets through a sheer desire to reduce feesโ€”delaminating price from fundamental reality in an exponential function.
8/ All fuelled by MMT, negative real interest rates, towering debt levels, hyper-financialization, and millennials YOLOing stimulus checks into whatever the hell they want because theyโ€™re fed up with a system that appears unlikely to ever afford them a house with a fenced yard.
9/ Short interest is at an all-time high but the shorts are getting bankrupted because the whole thing is strapped to @elonmuskโ€™s rockets ๐Ÿš€โ€”so far, the #Challenger hasnโ€™t exploded yet, just Melvin Capital Management in its battle with #reddit traders over the value of #GME
10/ Took some #Bitcoin off the table a couple days ago. Thanks @profplum99. Need to attempt rationality in this market. The numbers are too big in the #USDT debacle and I donโ€™t have any good reason to believe reserves are even close to backed 1:1.

Still a Bitcoin believer though
11/ With high volatility and variance/polarization, the markets and citizenry spend little time at the mean, but the older I get the more I realize #balance is important, as eloquently put by one of the best investors of 2020, @chamath, in his interview last year with @RaoulGMI
12/ I watched Mikeโ€™s debate with @nic__carter and came away convinced that my #Bitcoin thesis was still right. I immediately wrote a summary of the interview, mostly detailing my objections to Mikeโ€™s points (supported strongly by Nicโ€™s great performance). https://t.co/zaDGja6433
13/ Only after I wrote that thread and declared my bias confirmed did I read the Crypto Anonymous paper and watch recent interviews with the executives at #Tether and #Deltec. โ€œHmm,โ€ I thought, โ€œwhy are so few Bitcoiners taking this seriously?โ€

Maybe Mike had a point...
14/ The likely Tether fraud absolutely needs to be taken seriously, but I still believe in #Bitcoin. The deeper I go in my study of the markets, the more I see relativismโ€”ie, comparing one unhinged thing to anotherโ€”and the less I see any fundamental grounding to economic reality.
15/ Itโ€™s like we went from a #Newtonian understanding of the world where gravity kept things in check to an #Einsteinian one where things now go boom in atomic positive feedback loopsโ€”eg, the only way out of a gargantuan debt bubble is by issuing exponentially more.
16/ I believe #Bitcoin can theoretically solve this, acting as a ballast in this wildly unstable economic experiment. @nic__carter was right: we have only been on this pure #fiat experiment for 50 years.
17/ In sum, thank you @profplum99. Iโ€™m learning a lot from you and will continue to listen with an open mind.

More from Trading

10-K Diver
10-K Diver
@10kdiver
1/

Get a cup of coffee.

In this thread, I'll help you understand Geometric Expectations.


2/

Imagine we have an investment opportunity.

If the investment goes well, we get to double our money.

But if it goes badly, we'll end up losing three fourths of it.

There's a 50/50 chance of either outcome.

The question: is this a good bet or not?

3/

A simple way to approach this question is to calculate the bet's "expectation".

For every $1 we bet, there are 2 possibilities:

1. The lucky case, where we double our money and end up with $2, and

2. The unlucky case, where we lose (3/4)'th to end up with just $0.25.

4/

Each of these outcomes is equally likely.

So, on *average*, every $1 we put in turns into ($2 + $0.25)/2 = $1.125.

This is a *positive* 12.5% return.

Such bets are called *positive expectation* bets. On average, we expect to *make* (rather than *lose*) money on them.

5/

Suppose we could take many turns betting at these odds.

In any one turn, we could of course lose money.

But because our bet has positive expectation, *over time* we expect to make money.
TRADING
Emperor\U0001f451
Emperor๐Ÿ‘‘
@EmperorBTC
CHEAT-SHEET

Multiple Confirmation short.

A Short Entry that we shared in 2020.

Study it point wise.

1. Bearish Candle type and lowering of volume on Price rise.

2. OBV divergence.

3. Accumulation with Bearish candles and Volume increase on Price decrease.

STUDY IT!


Explanation

1. When price increases with a decreasing volume, it's bearish.

2. OBV, On Balance Volume should be correlated with price.
If price increases without similar increase in OBV, it's bearish.

3. During consolidation, if the volume increases during dumps, it's bearish
TRADING
Advertisement
Abhishek Kar
Abhishek Kar
@Abhishekkar_
๐“๐ก๐ซ๐ž๐š๐ ๐Ÿ๐จ๐ซ ๐Ž๐ฉ๐ญ๐ข๐จ๐ง๐ฌ
The entire thread will have some quick pointers on options trading. These bullet points are based on experience and learning and even if you are completely new,will help you to build some perspective. So,lets go :

-When new,prefer trading monthly options over weekly options to reduce risk
-Set up your trades with greater than 50% Probability Of Profit
- Use implied volatility in your decision making process
-Book some trades at 50% of max profit i.e. locking of profit incase u are buyer

-Donโ€™t adjust losing defined risk strategies. A lot of people get into the bad habit of averaging and run the risk of losing a lot
-Diversify your portfolio across product, direction, and time,this has to be considered while you are planning to put in multiple strikes in folio

-Short Strangles are one of our go-to strategies because of their high probability of profit and increased profit potential.A little effort with understanding of volatility would help
-Allocate no more than 5% of your account to any one trade

-Trade small, trade often to increase your number of occurrences. Some might deny but this works
-In options you might have heard of spreads.Multiple options legs create an options spread. For example, a short strangle consists of selling a call and selling a put simultaneously.
TRADING
The Chartians
The Chartians
@chartians
There are more than 5,000 YouTube channel related to stock market learning.

These are Top 5 underrated YouTube channel that will definitely help you in trading and investment.

1st one is our favorite, and you shouldn't miss subscribing to it.

A Thread ๐Ÿงต:

1/ KA Charts:

This channel belongs to our mentor @KA_charts who has helped us immensely in the stock market, haven't seen anyone yet who understands and read PRICE ACTION.

He handles a fund size of more than 300CR.
One of the best YouTube

2/ Strategic Stocks:

This channel is highly underrated, this channel backtests all the popular strategies of all the top twitter traders for eg 5EMA of Subhashish Sir, Ghanshyam sir 9:20AM option strategy, every top free strategy out there is

3/ Power of Stocks - Subasish Pani

Do we even need to tell you guys anything about this man. We have all seen his journey from making 2000-4000 a day to now making 1 CR a day. Genuine skin in the game guy.

4/ TastyTrade:

Everything about Future and Option Trading is being shared by them. It can be a complete library for a trader who want to learn F&O trading. If you want to understand the vast of world of options look no further.
TRADING
Varsity
Varsity
@ZerodhaVarsity
A ๐Ÿงตon the basics of block and bulk deals.

Block and bulk deals are large purchases of stocks by investment banks, mutual funds, hedge funds, pension funds, FIIs, and promoters. Tracking block and bulk deals can help give you a sense of what these large players are thinking.

A single transaction where shares more than Rs 10 crores or the number of shares traded are more than 5 lakh is considered a block deal.

Block deals are carried out in separate trading windows. This trading window operates in two shifts of 15 minutes each:

Morning trading window from 8:45 AM to 9:00 AM.
Afternoon trading window from 2:05 PM to 2:20 PM

Block deals happen in different windows to reduce volatility and sudden price movements. Given that they are traded in a separate window, they do not show up on the volume charts.

Brokers facilitating the transaction are required to inform the exchange. You can track bulk and block deals on NSE & BSE:
https://t.co/pwTyzWTnUL

https://t.co/g9BbHiEag3
FINANCE , MARKETINFO , BLOCK DEALS

You May Also Like

Max Fagin
Max Fagin
@MaxFagin
November is here, and that means a massive shift is coming. And by "massive" I am of course referring to the redefinition of the kilogram unit of mass that the world has been building up to for more than 100 years. Let me explain:


1/ I've had an unhealthy fascination with metrology (the study of measurement) ever since my 2nd year as a physics major when I took a class devoted to duplicating historic physics experiments, so please indulge me for going into heavy detail (get it?) about the kilogram.

2/ So what actually *defines* a unit of measurement? If you're American, you probably know a mile is 5280 feet and a foot is 12 inches and an inch is 2.54 centimeters etc. But where does this chain of definitions end? Is it turtles all the way down?

3/ It's actually not! For all units (even the imperial units used in America) the answers all end with the Systรจme International (SI) unit definitions established and maintained for over 100 years by the Bureau International des Poids et Mesures (BIMP) in France.

4/ At the base of this tower are the SI base units. Just 7 SI base units define every other unit in existence. They are:

Kilogram, kg (mass)
Meter, m (distance)
Second, s (time)
Kelvin, K (temp)
Ampere, A (electric current)
Candela, cd (luminous intensity)
Mole, mol (quantity)
SCIENCE
Angad Singh
Angad Singh
@Singh7575
๐™Ž๐™๐™–๐™ง๐™ž๐™ฃ๐™œ ๐™ข๐™ฎ ๐™ฌ๐™ž๐™จ๐™™๐™ค๐™ข ๐‘พ๐’๐’'๐’• ๐’ƒ๐’† ๐’”๐’–๐’“๐’‘๐’“๐’Š๐’”๐’†๐’… ๐’Š๐’‡ ๐’•๐’๐’Ž๐’๐’“๐’“๐’๐’˜ ๐’– ๐’“๐’†๐’‚๐’… ๐’•๐’‰๐’† ๐’”๐’‚๐’Ž๐’† ๐’”๐’•๐’–๐’‡๐’‡ ๐’Š๐’ 50๐’Œ ๐’˜๐’๐’“๐’Œ๐’”๐’‰๐’๐’‘ ๐’๐’“ ๐’”๐’๐’Ž๐’†๐’๐’๐’† ๐’Ž๐’‚๐’๐’‚๐’ˆ๐’Š๐’๐’ˆ ๐’š๐’๐’–๐’“ ๐’Ž๐’๐’๐’†๐’š ๐’˜๐’Š๐’•๐’‰ ๐’”๐’‚๐’Ž๐’† ๐’๐’๐’ˆ๐’Š๐’„
Simple and effective way 2 make Money


Idea 1:- Use pivot level like 14800 in case of nifty and sell 14800straddle monthly expiry (365+335) exit if nifty closes on daily basis below S1 or above R1

After closing below S1 if it closes above S1 next day or any day enter the same position again vice versa for R1

Idea2:- Use R1 and S1 corresponding strikes multiple
Incase of R1 15337 take 15300ce
N in case of S1 14221 use 14200pe
Sell both and hold till expiry or exit if nifty closes below S1 or above R1 around closing
If the same bounces above S1 and falls below R1 re-enfer same strikes

Use same criteria for nifty, usdinr and banknifty

(This is must)Use this margin rule for 1lot banknifty pair keep 4Lax margin
For nifty one lot keep 3Lax
For usdinr 100lots keep 4Lax

I bet you if you do this on consistent basis your ROI will be more than 70% on yearly basis.

Couldn't explain easier than this

Criticisms are most welcomed.
OPTIONSLEARNINGS , MONTHLY OPTIONS SELLING , OPTIONS LEARNING
Advertisement
Aditya Todmal
Aditya Todmal
@AdityaTodmal
MASTER THREAD on Short Strangles.

Curated the best tweets from the best traders who are exceptional at managing strangles.

โ€ข Positional Strangles
โ€ข Intraday Strangles
โ€ข Position Sizing
โ€ข How to do Adjustments
โ€ข Plenty of Examples
โ€ข When to avoid
โ€ข Exit Criteria

How to sell Strangles in weekly expiry as explained by boss himself. @Mitesh_Engr

โ€ข When to sell
โ€ข How to do Adjustments
โ€ข Exit


Beautiful explanation on positional option selling by @Mitesh_Engr
Sir on how to sell low premium strangles yourself without paying anyone. This is a free mini course in


1st Live example of managing a strangle by Mitesh Sir. @Mitesh_Engr

โ€ข Sold Strangles 20% cap used
โ€ข Added 20% cap more when in profit
โ€ข Booked profitable leg and rolled up
โ€ข Kept rolling up profitable leg
โ€ข Booked loss in calls
โ€ข Sold only


2nd example by @Mitesh_Engr Sir on converting a directional trade into strangles. Option Sellers can use this for consistent profit.

โ€ข Identified a reversal and sold puts

โ€ข Puts decayed a lot

โ€ข When achieved 2% profit through puts then sold
OPTIONSLEARNINGS , ALL , OPTIONS STRATEGY
Simon DeDeo
Simon DeDeo
@SimonDeDeo
One thing that goes unremarked about Wikipedia: the vast majority of the content was written over 12 years agoโ€”which means (given turnover) that the editors dominant today were not directly involved in that creation.

Put another way, the editors who built the dominant nodes in this network...


...have little overlap with the ones who made this much more recent managerial flowchart.


Internet time runs at hundred-fold speedโ€”the difference between the people who painted what's in the Uffizi, and the people in charge of keeping those paintings from deteriorating. Very different tasks, and (one presumes) very personalities as well. @PaulSkallas?
ALL
Meet Shah
Meet Shah
@ms89_meet
List of companies with more than 50% Market Share:

1) Maruti Suzuki (passenger cars)
2) APL Apollo (structural & pre galvanized tubes)
3) CDSL (investors accounts)
4) Interglobe Aviation (air traffic passengers)
5) GMM Pfaudler (glass lined equipment)

6) Asian Paints (decorative paints)
7) Colgate (oral care)
8) Symphony (coolers)
9) PGHH (female care & vaporub)
10) La Opala Rg (opalware)
11) HLE Glasscoat (filtration & drying equipment)
12) Delta Corp (online poker games)
13) Bajaj Auto (3W segment)
14) Vinati Organics (IBB)

15) OCCL (insoluble sulphur)
16) LMW (textile machinery)
17) Bajaj Consumer (almond hair oil)
18) Indiamart Intermesh (online B2B Classified space)
19) Vst Tillers (power tillers)
20) Sanghvi Movers (overall domestic crane hiring market)
21) Emami (antiseptic & male grooming)

List of companies with more than 60% Market Share:

1) Concor (domestic container cargo transport)
2) Exide (lead batteries)
3) Naukri (Indian jobย marketย space)
4) Praj (ethanol plant installing)
5) ACE (mobile & tower cranes)
6) Pidilite (adhesives)
7) Jamna Auto (leaf spring)

8) CAMS (RTA within mutual fund industry)
9) Time Technoplast (polymer based industrial packaging)
MONOPOLIES , STOCKS , EQUITIES


Category Partner: Enkryptopedia