Thread on "The Final Checklist"
by Peter Lynch.

Strong Monopolies:
(Updated List)

IRCTC 100% market share in rail network.

HAL 100% market share in its segment.

IEX >90% market share in power trading.

Zydus wellness >90% market share in sugar free product.

Eicher motors >85% market share in more than 250cc bikes category.

Wabco >85% market share in braking systems. (Medium & Heavy vehicles)

MCX >85% market share in commodity trading.

Coal India >80% market share in coal production in India.

ITC >75% market share in cigarettes.

Honda Siel >75% in portable power generators.

Hindustan Zinc >75% market share in primary zinc industry

Asahi India Glass >70% market share in automotive glass.

NRB Bearings >70% market share in needle roller bearings

Suprajit Engineering >70% market share in Cables 2W

Greaves cotton >70% market share in Diesel Engine 3W

Garware technical fibres >65% market share in fishing nets.

Pidilite >65% market share in adhesives

Jamna Auto >65% market share in Leaf Spring

CAMS >65% market share in RTA within mutual fund industry.

Time Technoplast >65% market share in polymer based industrial packaging.

Concor >65% market share in domestic container cargo transport.

Exide >60% market share in lead batteries.

Naukri >60% market share in the Indian job market space.

Praj >60% market share in ethanol plant installing.

ACE >60% market share in Mobile & Tower Cranes segment.

Strong Monopolies:

IRCTC 100% Market share in Rail Network.

IEX >90% market share in power trading.

Zydus wellness >90% market share in sugar free product.

Eicher motors >85% market share in 250cc bikes category.

MCX >85% market share in commodity trading.

Coal India >80% market share in coal production in India.

ITC >75% market share in cigarettes.

Honda Siel >75% in portable power generators.

Hindustan Zinc >75% market share in primary zinc industry.

Asahi India Glass >70% market share in automotive glass.

NRB Bearings >70% market share in needle roller bearings.

Pidilite >65% market share in adhesives.

CAMS >65% market share in RTA within mutual fund industry.

Time Technoplast >65% market share in polymer based industrial packaging.

Concor >65% market share in domestic container cargo transport.

Exide >60% market share in lead batteries.

Naukri >60% market share in the Indian job market space.

Praj >60% market share in ethanol plant installing.

Indiamart Intermesh >55% market share in the online B2B Classified space.

Borosil Renewables >55% market share in Lab glass.

Vst Tillers >50% market share in
Power tillers.

Delta corp >50% in online poker games.

Vinati Organics >50% market share in IBB.

Underrated but recommended.
Worth Re-reading. #books

~ Atomic Habits.
~ Megatrends.
~ The psychology of money.
~ Stocks to riches.

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 job market 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)

7 takeaways from 7 of the best books on stock market ever written.

~ One up on wallstreet.
~ Common stocks uncommon profits.
~ Poor charlie's almanack.
~ The intelligent investor.
~ Security analysis.
~ The most important thing.
~ The snowball.

One up on wall street by Peter Lynch.

1) Know what you own, and know why you own it.

2) Selling your winners and holding your losers is like cutting the flowers and watering the weeds.

3) Owning stocks is like having children - don't get involved with more than you handle.

4) In dieting and in stocks, it is the gut and not the head that determines the results.

5) Remember, things are never clear until it's too late.

6) Big companies have small moves, small companies have big moves.

7) When you sell in desperation, you always sell cheap.

Common stocks uncommon profits by Philip Fisher.

1) If the job has been correctly done when a common stock is purchased, the time to sell it is - almost never.

2) Usually a very long list of securities is not a sign of the brilliant investor, but of one who is unsure of himself

3) Take extreme care to own not the most, but the best.

4) Don’t be Influenced by What Doesn’t Matter.

5) In the field of common stocks, a little bit of a great many can never be more than a poor substitute for a few of the outstanding.

How to get rich trading (without getting lucky)

Complete beginner’s guide to wealth of Rs 10 Cr in 10 years

Step 1: start trading live

1/n

Nothing can substitute experience of live trading

No amount of back-test, studies or indicators can substitute training your mind with screen time

As a beginner, In live trading, you will make losses almost everyday

2/n

So here are the conditions which you can’t violate in first year
If you can’t follow these rules, this document is not for you

Start with trading capital of Rs 1 lakhs

Max loss per trade 0.25%, i.e. 250 Rs

Max loss for the day, 1%, i.e. Rs 1000

Max 6 trades in a day

3/n

I know, these conditions will cripple you in terms of what all you can trade and how

But just like any start up, trading is also about making it through initial gruelling constraints of life

You will also learn, how to turn these adverse rules to your advantage

4/n

Btw, you can sell directional banknifty options, obviously you can buy options, can do cash stock trading and much more under these conditions

Think about it, you will be do all kinds of instruments, just that PNL will not be roller coaster ride or exciting like a casino

5/n

Circle of Competence 101

Warren Buffett and Charlie Munger often reference the importance of knowing the boundaries of your circle of competence.

But what is a Circle of Competence and how does it work?

Here's Circle of Competence 101!

1/ First, a few definitions.

A Circle of Competence is the set of topic areas that align with a person's expertise.

If the entire world of information were to be expressed in a circle, an individual's Circle of Competence is the small sub-circle that represents their expertise.

2/ The idea surfaced in the 1996 BH annual letter.

"You don’t have to be an expert on every company...you only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital."

3/ A Circle of Competence is built over time.

It is built through experience, reading, dedicated study, and effort.

It is dynamic, not static.

It can expand as you deepen your knowledge in new areas. It can contract if you fail to nurture your existing areas of expertise.

4/ To engage this mental model in your life, there are two key processes to go through:

(1) Identify what falls within your circle
(2) Identify the boundaries of your circle

(1) is all about figuring out what you know, while (2) is about humbly admitting what you don’t.

Learn about the STEEL SECTOR in this thread

The demand for steel is generally only 1.2 times the GDP & there is no significant growth in our GDP but still the sector has rallied relentlessly, lets try & understand

Do ‘re-tweet’ & help us educate more investors (1/22)
#Investing

The metal sector is broadly divided into 2,
-Ferrous is a category of metal that has Iron in it, Steel as an example
-Non-Ferrous is a metal, which does not have Iron content, Aluminum, copper, lead, nickel, Zinc etc.
This thread focuses on Ferrous & hence Steel (2/22)

To start, lets understand with how steel is made (its important).
Iron ore is mined, it is then first converted to Iron & Iron is then converted to Steel. There are 3 processes of making steel
-Blast Furnace
-Scrap Metal
-DRIP/Sponge
We will discuss all three (3/22)

Over the last 18 months, I have scaled my income to around ₹10,00,000 or 10 lakhs per week with drawdowns below 10%.

How?

@niki_poojary taught me how to form a weekly trading plan.

I'm going to share what I've learned in this thread.

Here's the simple 10 step process: 🧵

1. Check on the daily chart if Bank Nifty is in a higher high or lower low:

A higher-high (HH) is a bullish pattern, it signifies that it is difficult for the market to go down.

If that has formed on the daily chart, the market will give all the surprises on the upside.

If the market is in a higher high mode, look for good opportunities to sell puts.

Usually, at a higher high, traders buy on breakouts and also buy the dips.

If you want a good Risk-Reward, you can sell puts on a dip. (Only if it's showing some reversal)

2. Take High Probability Trades

Simply knowing a higher high or lower low does not make money. It gives you a bias for the week.

Still, you should try to take higher probability trades that align with your view of the market.

This will get you consistency and a good mindset.

3. Support & Resistance

I would say Support Resistance is the most important and favorite thing for @niki_poojary.

She keeps updating these levels with charts on her Twitter handle during live markets daily.

Attaching some examples will do a detailed thread on this later.

As a former professional poker player, I'm very clear about the importance of psychology in investing/trading.

You can have a very solid strategy, but if the mental aspect fails, everything fails, no matter how good you are.

Thread 👇

In this thread I will briefly describe the most important aspects of trading psychology, and give some simple tips to try to improve them.

It's good to always be aware of these aspects, to be able to detect them and act in time.

1) FEAR

This is one of the most important. It can make you get out of a position at the wrong time.

One of the main reasons you can have fear is because you are putting more at risk than you are willing to lose.

Tip: reduce the size of your position until you are comfortable.

2) GREED

Greed can be even worse than fear. It leads you to be overpositioned and to destroy your average entry.

Tip: learn to conform to what you have. Practice gratitude for everything that comes your way. Remember that the most important thing is to stay in the game.

3) TILT

This is well known in poker. There are many reasons why tilt can appear (downswings, injustice, mistakes...)

Tilt takes you away from your perfect strategy. From your A game.

After a losing streak you may think that the market is being unfair to you.