30 books I wish I read before Investing my hard-earned money:

1. You can be a Stock Market Genius by Joel Greenblatt
2. Common Stocks, Uncommon Profits by Phil Fisher
3. Margin of Safety by Seth Klarman
4. The Crowd by Gustave Le Bon
5. Winning the Loser's Game by Charles Ellis

A Mega-Thread on a 111-year-old conglomerate and one the most debated stocks of the Indian stock markets #ITC (Earlier known as Imperial Tobacco of India) @ITCCorpCom

(Would appreciate a retweet as it helps educate more investors and inspires us to work harder on such threads.)

1) ITC first set foot in 1910 at Calcutta based on agricultural products and services.

2) A year later in 1911, it began sourcing leaf tobacco from South Indian Farmers to mass-produce consumer cigarettes, a landscape it would dominate for over a century!

3) In 1911, They set up a stall at the Delhi Darbar to promote Scissors, one of ITC's initial cigarette brands.

The constant need for promotions ultimately led to the relocation of the company from Calcutta to Delhi.

4) The first step of ITC’s Indianization was initiated in 1954 with 6% Indian shareholding. It steadily rose to 40% by 1971!

5) ITC was the first Indian company to prioritize consumer research, laying the ground for its legendary R&D center that is now half a century old.

6) It is rebranded today as ITC Life Sciences and Technology Centre and continues to play a pivotal role in developing its diverse product range across varied sectors.

Mega-Thread: 50 Pearls of Wisdom from Rakesh Jhunjhunwala on Life and Stock Markets

Would appreciate a Retweet or like as it helps educate more investors and inspire us to work harder on more upcoming threads👇🧵

1) Never in my life have I have made an investment when a stock is popular.
In fact, I like to invest when the stock is not popular.

2) If a girl is beautiful a suitor will come.
If a stock is beautiful, a suitor will come.
So I don’t search for suitors when I invest.

3) Respect the market.
Know what to stake.
Know when to take a loss.
Be responsible.

4) Emotional reactions are a sure way to make a loss in stock markets.

5) Anticipate trends and benefit from them.

6) Traders must go against human nature.

7) Successful investors are opportunistic and optimistic ones.

8) Growth comes out of chaos.

9) The market is above individuals. The market is rational. An individual can never be smarter than the market.

10) Maximize profits and minimize losses.

11) Invest in a business,
not a company.

12) When in doubt, listen to your heart.

Top 10 Useful Stock Market Related Apps:
1) Screener
2) Rate Star
3) BSE India
4) Valuepickr
5) Tickertape
6) Stock Edge
7) Investopedia
8) Tijori Finance
9) Markets Mojo
10) Moneycontrol

From selling snacks on the street to building a multi-billion-dollar empire

Mega-Thread on the story of Haldiram's

Would appreciate a Retweet or like as it helps us educate more investors and inspire us in producing more such content.

1) Ganga Bhisen Agarwal, affectionately known as Haldiram by her mother, started The Haldiram Empire in 1937 before India gained independence.

2) He was born into a Malwadi family in Bikaner and married Champa Devi.

3) He started out selling Bhujia, as per his aunt's recipe in his father's namkeen and snacks shop.

4) However, he and his wife later fled home owing to a family quarrel.

5) Later he started by selling on the street mong daal namkeen prepared by his wife.

6) Haldiram opened his first business in Bikaner in 1946. He began selling his Bikaneri Bhujia there.

7) He recreated the Bhujia by including moth flour and made it thinner. His sales and income improved dramatically because of all of these adjustments.

8) Later on, Haldiram attended a wedding in Kolkata, and only he got the idea to set up his shop there.

9) With this step, the first branching out of the Bikaner Bhujia business was started.

Few apps/tools we use for stock research:

1) @Tijori1
2) @mystockedge
3) @screener_in
4) @TickertapeIN
5) @Trendlyne
6) @Investopedia
7) @moneycontrolcom
8) Research Bytes
9) Google Finance
10) Valuepickr

Do comment below with a tool/app that you use the most for research.

Thread: Parabolic SAR Indicator

Parabolic SAR (PSAR) indicator was developed by J. Welles Wilder.

#PSAR #Indicators #Definedge

The calculation of this indicator is a bit complex, but the concept is extremely useful. I will try to simplify it and explain the logic. I will briefly explain the concept, calculation and reading.

Let us think about creating an indicator that shows the trend.

Using the indicator, we can identify & ride the trend using the trailing stop-loss method.

For trailing the stop in uptrend, indicator needs to be placed below the candle. Similarly, it should be placed above the candle for trailing in a downtrend. We will plot it using ‘dots’.

So, the indicator & stop-loss will be rising in uptrend & falling in downtrend.

Let us define the trend as:

If Low of the candle > Stop-loss level in bull market = Trend remains bullish.

If High of the candle < Stop-loss level in bear market = Trend is bearish

Imagine you are driving a car on highway; you would like to accelerate if the road is clear. You will slow down if the road is bumpy.

THREAD ON DELTA (The most important GREEK)

Many traders don't indulge in understanding GREEKS because they think they are very complicated.

There are 4 primary greeks:

Delta
Gamma
Theta
Vega

In my experience, understanding DELTA is enough to take benefit of greeks.(1/n)

Delta measures the rate of change of options price based on the directional movement of the underlying.

So this means we can know in advance (theoretically) how much an option will move with the underlying & so we can prepare our strategies accordingly. (2/n)

Value of delta varies between 0 & 1 for calls and -1 & 0 for puts. This figure tells how much an option price will change, when the underlying moves 1 point. So example a delta of .2 of call indicates that for every 1 point change in the underlying, the price will move .2 (3/n)

For option writers who want to trade in neutral strategies like straddle, strangle, ratios, calendar etc, delta can be very helpful. So be it any complex strategy, knowing the NET DELTA can give you an idea of how your strategy will perform in different scenarios. (4/n)

Net delta is just the sum of the deltas of all the bull options (call+ & put-) minus the bear options (call- & put+).

So if we can track this, we will always be in the know of how much exposed our position is. It makes it easier then to adjust our position. (5/n)

(1/25) A number of Silicon Valley investors are putting their money and influence into a campaign to gaslight rape victims into not seeking medical treatment

despite the warnings of top law enforcement officials

and NOBODY is talking about this.

(2/25) First, a little about me. I used to be a licensed sexual assault crisis counselor, counseling victims admitted to one of three Minneapolis emergency rooms.

After I'd speak to the victim, they'd receive a medical exam from a Sexual Assault Nurse Examiner (SANE).

(3/25) During the exam, DNA and other evidence is collected with a "rape kit" to optionally be used in a civil or criminal case.

(4/25) But collecting evidence is not the ONLY reason to receive an exam.

The victim may also receive:
- counseling (hello!)
- treatment for (potentially invisible) injuries
- medications like Plan B and emergency antiretroviral therapy for HIV prophylaxis.

(5/25) Leda Health, a startup cofounded by Madison Campbell and Liesel Vaidya, is raising money to sell "do-it-yourself" rape kits that wouldn't require a hospital visit

which is possibly the most HARMFUL startup idea that I have ever heard of.

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.

William's Alligator is probably the most underrated indicator in moving average category.

Alligator follows the premise that market is sideways for 70% of the time and trending only 30% of the time.

This is where William's Alligator can be a great tool for traders.

Why William's Alligator can be a great tool for traders?

It can identify Bullish, Bearish and Sideways market pretty easily. Problem is, traders don't know how to use it effectively. Alligator has three lines:

1. Lips - Fastest Line
2. Teeth
3. Jaws - Slowest Line

Book Interpretation is when Lips Crosses above Jaws, it's a buying opportunity and when below its a shorting opportunity. And when three lines are crisscrossing, instrument is sideways.

BUT this does not make it a tradeable indicator in practice. Here is what should be done.

Firstly, when all the Alligator lines are moving up or down and are widening, this phase is called "Alligator eating with its mouth wide open". When the lines are crisscrossing, this indicates the alligator is sated.

Now, how to use it? with Basic TA and Indicator like MACD

Rules to remember:
1. As long as price is above Alligator, BANKNIFTY is bullish.
2. As long as MACD is trading above 0 line, BANKNIFTY is bullish.
3. Horizontal Lines are the only S&R.
4. CONGESTION is followed by TREND is followed by CONGESTION.