My 🔟 Biggest Investing Mistakes 🧵

I asked, “What company is worth less than $10 billion today but you think could be worth $500+ billion in a few decades?”

I received 710 answers

Here are 20 top stocks that have 50x+ potential:

1: Alteryx - $AYX

Market cap: $5.1 billion

What it does: Big data analytics

2: Boston Omaha - $BOMN

Market Cap: $900 million

What it does: Berkshire Hathaway 2.0

3: Beyond Meat - $BYND

Market Cap: $7.9 billion

What it does: Plant-based meat

4: Desktop Metals - $DM

Market Cap: $2.3 billion

What it does: 3D Printing

My inflation strategy:

Own businesses with recession-proof demand and pricing power

What are the first metrics that you look at when evaluating a new stock?

5 YouTube videos that will make you a better investor:

1/ How to read an income

2/ How to read a balance

3/ How to read a cash flow

4/ How to judge a management

I asked, “What are the first metrics that you look at when evaluating a new stock?”

I received 322 replies

Here are 10 great metrics to look at first (and how to find them):

1/ Market Capitalization

Why: Shows the current size/scale of the business

Where: @YahooFinance (image), @theTIKR , @KoyfinCharts ...etc

2/ Sales Growth Rate

Why: Shows the business model works & current growth rate

Where: @stockcardhq (image), SEC filings, @theTIKR...etc

3/ Free Cash Flow

Why: Is business generating cash or burning cash?

Where: @YahooFinance (image), SEC Filings, @stockrow1...etc

4/ Returns on capital (ROE, ROIC, ROA)

Why: Shows capital efficiency of business

Where: @stockrow1 (image) , @ycharts , @YahooFinance...etc

1/ How to review quarterly earnings 🧵

A step by step guide using $DXCM as an example

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2/ The BIG question: Is the thesis on track❓

Other question:

❓Is revenue growing?
❓Are margins stable/expanding?
❓Profits?
❓Balance sheet?
❓New opportunities?
❓New threats?

3/ I open 4 browser tabs

Tab 1 - Current company earnings report / shareholder letter

Tab 2 - Previous company earnings report / shareholder letter (check guidance)

Tab 3 - Analyst estimates

Tab 4 - Call Transcript

4/ Tabs 1 & 2 - Find the current & previous earnings report

I search "Dexcom Investor Relations"

I click on "press release"

Open the newest quarterly earnings report and last quarter

It can also be a shareholder letter/presentation

5/ Tab 3 - Find the quarterly analyst estimates

Open up $DXCM in yahoo finance

The "news" section usually has a link to reports on whether the company beat/met estimates

The "analysis" tab is a good source, but sometimes it updates to the next quarter too quickly

A THREAD:

BEST OPTIONS STRATEGY FOR CONSISTENT INCOME -

OPTIONS WHEEL STRATEGY

Everything to know about this strategy I'm posting in this thread.

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Step 1: Stock Selection

1. For this strategy you're going to have to choose some stocks that you think will be doing well in the future/long term.

2. Stock must be in an uptrend.

3. Stock options should be liquid enough to trade in.

4. List of stocks attached

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Step 2: Which option to sell?

1. Sell put at a support according to charts.

2. Sell put at a strike far away from the spot where you think the probability of the stock falling will be very very low.

3. Sell put at a price where you're willing to buy the stock at.

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Step 3: What to do when in profit/loss?

1. If in profit you can just roll up the puts thereby increasing the ROI or shift to other stocks to make more profit.

2. If in loss take delivery of the shares equivalent to the lot size in cash market.

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Step 4: What to do after taking the delivery?

1. Sell calls to lower your cost price of the stock. For eg, you took delivery of Reliance at 1900, sell 2100 CE which is about 10% away.

2. Keep doing this till your CE expires ITM and then give delivery of your stock away

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@javia_savan You answered it yourself 🙂
Adjustment cost is way too high for bnf. Sometimes bnf does exceed nifty in vol crush, but nifty overall is more consistent.

How to Avoid Big Losses In trading ?

1. Avoid Stocks Below 200 ema
2. Sell Stocks in Stage 4 Down Trend
3. Dont Trade Stocks that are moving in Circuits
4. Avoid News based Trading

A thread With examples🔖

Retweet to Educate Your Trading Friends !
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A Study Shows that 90% of the winning Stocks stay above 200 ema before a big Advancing Phase

1. Simply Not Holding or Buying Stocks below 200 ema Saves a lot of time and Money.
2. You can looses opportunity Cost if you buy stocks below 200 ema.
3. TimeFrame: Daily 200 ema

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B. Sell Stocks in Stage 4 Down Trend

1. Stocks Exhibiting this are in complete Bear Grip
2. The 30 week ema acts as reference for stage analysis
3. These Stocks can be short sold on pullback to 30wema
4. Happens after Topping Phase
5. TimeFrame : Weekly , 30 Week Ema

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C. Dont Trade Stocks that are moving in Circuits

1. Mostly these stocks are Speculatve and Operator Driven.
2. You never know what is the top of the trend and may get Stuck with Huge Losses

Example : TTML , Alok , Ruchi etc
This is Pyramid Structure and news driven also
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D. Avoid News based Trading
1. Whenever a postive News comes in Market People Jump in Buying the Stocks without thinking .
2. Most of the the times the news is factored in or gets factored after heavy buying
3. Your Money may get Stuck

Example : PnbBousing , AdaniPower
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