BC TRADING
Saved by @vsamk

A small thread on momentum investing and how I practice it.

I use the Nifty 500 universe for selecting my momentum stocks. Nifty 500, as the name suggests, has 500 companies in it. WRONG !!!! It actually has 501 companies. Yes, I double-checked 🙂 So, these 501 companies is

 my talent pool (if you will) from which I select the 50 best candidates that I want to bet my money on.

Ok. So, exactly, did I go about doing that.

Step 1: Start with Nifty 500 universe (501 companies)

Step 2: Eliminate all those companies which have a listing history of
less than 1 year. This eliminated 25 companies (see table).

Step 3: For the remaining 476 companies, I computed their last 12-month rolling price returns (meaning, comparison of their price as on March 31, 2022 as compared to that as on March 31, 2021, and then computing the %
gain that each of those stocks have earned. I found out the following:

a) Average return of all the 476 companies was 43.27% (meaning if their average price as on March 31, 2021 was 100, then their average price as on March 31, 2022 was 143.27)

b) Out of these 476 companies
140 companies, gave a negative return.

c) Out of the balance 336 companies, 46 companies gave single-digit returns

d) Out of the balance 290 companies, 101 companies gave a return between 10-30%

e) Out of the balance 189 companies, 55 gave returns between 30-50%
f) Out of the balance 134 companies, 76 gave returns between 50-100%

g) The remaining 58 stocks gave 100+ % returns

Step 4: I selected 50 stocks with the highest returns.
Obviously these came from the category (g) mentioned above. In other words, out of the total 58 stocks
in (g), 8 were eliminated and the final 50 were selected.

These top 50 stocks had an average return of 253% (as compared to the average 43% that I mentioned above for the whole Nifty 500 universe) -- see table
Step 5: I deployed 2% of my capital each in these 50 stocks

Step 6: Now all I have to do is wait for 1 full quarter. I have bought right. Now I need to sit tight. Till June 30, that is.

Step 7: On June 30, I will repeat this whole exercise, by looking at the rolling 1-year
returns from June 30, 2021 to June 30, 2022.

Step 8: Those stocks that have got thrown out of the top-50 club, will be sold/ exited and the new ones that have entered the top-50 club, will be bought afresh.

Step 9: The weights of all the stocks will be re-adjusted back to 2%
each. Meaning, if say, during the April-June period, some stock has rallied 50%, then it's weightage would have increased from 2% of the capital (as originally deployed) to 3% of the capital. I will book the extra 1% of the profit, and bring its weightage down to 2%.
Similarly, if a stock has fallen by say 25%, it's weightage would have gone down from 2% to 1.5%. I will invest more in that stock and bring its weightage back to 2%.

The logic behind doing this is that, the fact that this stock (despite falling 25%) is still in the top-50
itself shows that the stock is still very much in "momentum" (except that it is going through a temporary rough-patch). So, in a crude-way, I am doing "value-investing" in this momentum stock by taking advantage of it's temporary bad form and averaging it down.

If the stock
recovers (and my hypothesis of its "temporary bad form" is proved right), I would have made good money. If however, the stock falls further and gets thrown out of top-50 club, I will exit it anyways.

Parting thoughts ==> If you have a decent capital, this is a very simple DIY
kind of investing that you can do on your own. All you need to know is 4th grade maths and tons of discipline. No need to pay any management fee to any fund manager/ PMS. I can safely assure you that, not only would you "handsomely" beat the best-of-best fund mgr out there
but you will also save on the "very handsome" fund-mgt fee that they would have charged you 😃

Oh! and I forgot to mention another very important point. In addition to doing all this hardwork (which takes all of 30 mins once every 3 months 😄), I also do a #Nifty FUT overlay
on top of my portfolio (using the same stocks as collateral...so no extra capital required), which helps me hedge the portfolio during major corrections, and also helps me to earn double income during bull phases.

I feel fairly confident that, a combination of these two
approaches... (a) momentum investing and (b) Nifty FUT trend following... should give me fairly superior returns, and more importantly, fairly superior "risk-adjusted" returns.

Hope the thread was useful.

Cheers!

More from Trading

Trader knight
Trader knight
@Traderknight007
“In search of the holy grail”

A thread-


Holy grail- A strategy Which can make money all the time.

After going through two phases of a traders journey, the initial success phase, and Only why do i get loss phase, Traders enter the third phase -

THE SEARCH FOR THE HOLY GRAIL PHASE.

This phase has no limits, It can end in 1 month and it may not end till lifetime.

What exactly is this phase?

When a trader covers all the basics, they know how to lower their losses, they know the power of risk management.

And few of them may even develop their edges and systems over time.

But after some time, they feel that they are doing something wrong and there is more to trading than what they know.


THEN COMES THE HOLY GRAIL PART-

Few of them start to Read more books about trading,finding articles about “How to win 100% of the time” and listening to Youtube videos of few big traders who make big in trading.
ALL , TRADING
Trader knight
Trader knight
@Traderknight007
Three things which will make a difference in Your trading Results.

A thread-


1. Clarity- When the mind is free from fear and ego

The first step to successful trading is to be clear about everything you do.

BUT, the reality is that most traders don't even know what they are doing.

And because of this-

They don't have any goals.
They don't have any Trading plan
They don't know what is suitable for them
And the list goes, on and on.

If you are among the people as described above, don't worry, There is nothing wrong with you, almost 90% of Traders are like that.

So, what do you have to do to get CLARITY in your Trading-

Find one style that is suitable to your personality and double down on it.

Why?


In this world where we have plethora of information just one click away, most people are distracted and see a Glowy thing every time they go over the social media.

They Find something new every now and then, jumping from one strategy to another, searching for Holy grail.
TRADING , ALL
Advertisement
Sajal Kapoor
Sajal Kapoor
@unseenvalue
On this auspicious day of #GuruPurnima, happy to share an easy to read and an exceptionally worthwhile investment. I plan to make a thread that will hopefully help us invest and live better. Thank you @awealthofcs 🙏🏻


Experience has taught me that less is always more when making investment decisions. Simplicity trumps complexity. Conventional gives you much better odds than exotic. A long-term process is more important than short-term outcomes.

And perspective goes much further than tactics. Tactics are useless to investors in a matter of days—sometimes in a matter of hours. But perspective is something that stays with the investor for a lifetime. It allows you to adapt to the changing market and economic landscape.

While keeping it simple won’t make it any easier to predict the future—no one has a crystal ball—it can give you the necessary capacity to make rational decisions, no matter what happens next.

Perspective is so important because, without it, even the most intelligent of investors can be ruined from a lack of self-awareness in their own abilities. Investors that fail to put the news or market moves into the proper context....[1/2]
TRADING
Aditya Todmal
Aditya Todmal
@AdityaTodmal
TradingView isn't just charts

It's much more powerful than you think

9 things TradingView can do, you'll wish you knew yesterday: 🧵

Collaborated with @niki_poojary

1/ Free Multi Timeframe Analysis

Step 1. Download Vivaldi Browser

Step 2. Login to trading view

Step 3. Open bank nifty chart in 4 separate windows

Step 4. Click on the first tab and shift + click by mouse on the last tab.

Step 5. Select "Tile all 4 tabs"


What happens is you get 4 charts joint on one screen.

Refer to the attached picture.

The best part about this is this is absolutely free to do.

Also, do note:

I do not have the paid version of trading view.


2/ Free Multiple Watchlists

Go through this informative thread where @sarosijghosh teaches you how to create multiple free watchlists in the free


3/ Free Segregation into different headers/sectors

You can create multiple sections sector-wise for free.

1. Long tap on any index/stock and click on "Add section above."
2. Secgregate the stocks/indices based on where they belong.

Kinda like how I did in the picture below.
SCREENERS , ALL , TRADINGVIEW
Zerodha
Zerodha
@zerodhaonline
ChartIQ charts on Kite web just got an upgrade with custom timeframe charts, new indicators, backtesting from charts, and much more.

Here’s how you can switch to the new version of ChartIQ: https://t.co/rhXrQ330G7

A thread on all the new features 👇


Custom timeframe charts

Charts with timeframes of 75 and 125 minutes were amongst the most popular feature requests. With the custom timeframe feature, you can now not only access 75 and 125-minute charts, but you can also do so for any timeframe of your choice.


Download historical data in CSV

You can now download chart data to Excel to run your own analyses.


Backtesting from charts

@StreakTech allows you to create and backtest trading strategies without any coding. Streak is now integrated with Kite charts. Clicking on the Streak icon will start a backtest of widely used strategies with the indicators applied on the charts.


Shortcut keys for various functions

Chart shortcuts are now available on ChartIQ 8. Shortcuts can be used to quickly perform actions such as invoking the order window, accessing drawing tools, zooming, etc.
TRADING

You May Also Like

Seth Abramson
Seth Abramson
@SethAbramson
(THREAD) The Whitaker scandal is deepening, as it becomes clear that Sessions' Russia recusal was a coordinated sham and his firing an act of obstruction—and that his replacement is a White House plant inside the Mueller probe. I hope you'll retweet and read on for more details.


1/ From 2014-17 Whitaker worked for World Patent Marketing—which during his tenure defrauded consumers out of $26 million and was successfully prosecuted by the feds. His involvement in the scam confirmed he had loose morals and that the feds would never want to employ him again.

2/ Despite the seeming impossibility of a man with Whitaker's background getting a job at Justice ever again—he'd been found to have used his former title as a US attorney to fraudulently threaten consumers with valid complaints with criminal penalties—Whitaker found an opening.

3/ Within 60 days of parachuting out of World Patent Marketing as it was being fined $26 million by the feds, Whitaker was working for CNN and telling a fellow attorney panelist that his purpose in working for CNN was to get noticed by one man—Donald Trump—and thereby get a job.

4/ Whitaker spent his time at CNN making ludicrous statements about the Mueller probe: there was no obstruction or collusion, he said; Mueller had no authority to look into any aspect of Trump's finances or to subpoena him, he said. All the while, he hoped Trump was watching him.
POLITICS
Vibhu Vashisth
Vibhu Vashisth
@VIBHU_Tweet
दधीचि ऋषि को मनाही थी कि वह अश्विनी कुमारों को किसी भी अवस्था में ब्रह्मविद्या का उपदेश नहीं दें। ये आदेश देवराज इन्द्र का था।वह नहीं चाहते थे कि उनके सिंहासन को प्रत्यक्ष या परोक्ष रुप से कोई भी खतरा हो।मगर जब अश्विनी कुमारों ने सहृदय प्रार्थना की तो महर्षि सहर्ष मान गए।


और उन्होनें ब्रह्मविद्या का ज्ञान अश्विनि कुमारों को दे दिया। गुप्तचरों के माध्यम से जब खबर इन्द्रदेव तक पहुंची तो वे क्रोध में खड़ग ले कर गए और महर्षि दधीचि का सर धड़ से अलग कर दिया।मगर अश्विनी कुमार भी कहां चुप बैठने वाले थे।उन्होने तुरंत एक अश्व का सिर महर्षि के धड़ पे...


...प्रत्यारोपित कर उन्हें जीवित रख लिया।उस दिन के पश्चात महर्षि दधीचि अश्वशिरा भी कहलाए जाने लगे।अब आगे सुनिये की किस प्रकार महर्षि दधीचि का सर काटने वाले इन्द्र कैसे अपनी रक्षा हेतु उनके आगे गिड़गिड़ाए ।

एक बार देवराज इन्द्र अपनी सभा में बैठे थे, तो उन्हे खुद पर अभिमान हो आया।


वे सोचने लगे कि हम तीनों लोकों के स्वामी हैं। ब्राह्मण हमें यज्ञ में आहुति देते हैं और हमारी उपासना करते हैं। फिर हम सामान्य ब्राह्मण बृहस्पति से क्यों डरते हैं ?उनके आने पर क्यों खड़े हो जाते हैं?वे तो हमारी जीविका से पलते हैं। देवर्षि बृहस्पति देवताओं के गुरु थे।

अभिमान के कारण ऋषि बृहस्पति के पधारने पर न तो इन्द्र ही खड़े हुए और न ही अन्य देवों को खड़े होने दिया।देवगुरु बृहस्पति इन्द्र का ये कठोर दुर्व्यवहार देख कर चुप चाप वहां से लौट गए।कुछ देर पश्चात जब देवराज का मद उतरा तो उन्हे अपनी गलती का एहसास हुआ।
ALL
Advertisement
The Chartians
The Chartians
@chartians
Took me 5 years to get the best Chartink scanners for Stock Market, but you’ll get it in 5 mminutes here ⏰

Do Share the above tweet 👆

These are going to be very simple yet effective pure price action based scanners, no fancy indicators nothing - hope you liked it.

https://t.co/JU0MJIbpRV

52 Week High
One of the classic scanners very you will get strong stocks to Bet on.

https://t.co/V69th0jwBr

Hourly Breakout
This scanner will give you short term bet breakouts like hourly or 2Hr breakout

Volume shocker
Volume spurt in a stock with massive X times
SCREENERS , ALL , CHARTLINK SCREENERS
Dr. Thomas Binder, MD
Dr. Thomas Binder, MD
@Thomas_Binder
1/12

RT-PCR corona (test) scam

Symptomatic people are tested for one and only one respiratory virus. This means that other acute respiratory infections are reclassified as


2/12

It is tested exquisitely with a hypersensitive non-specific RT-PCR test / Ct >35 (>30 is nonsense, >35 is madness), without considering Ct and clinical context. This means that more acute respiratory infections are reclassified as


3/12

The Drosten RT-PCR test is fabricated in a way that each country and laboratory perform it differently at too high Ct and that the high rate of false positives increases massively due to cross-reaction with other (corona) viruses in the "flu


4/12

Even asymptomatic, previously called healthy, people are tested (en masse) in this way, although there is no epidemiologically relevant asymptomatic transmission. This means that even healthy people are declared as COVID


5/12

Deaths within 28 days after a positive RT-PCR test from whatever cause are designated as deaths WITH COVID. This means that other causes of death are reclassified as
CATEGORY C19
Dr Amanda Moehring
Dr Amanda Moehring
@FlyBehaviour
In Academia, people aren’t always supported when they need it. I want to share what @WesternU did when my husband died right after the pandemic shutdown. It should be shared with other uni’s as a model for empathy and proactive care when someone is in crisis.
1/
#AcademicChatter
SCIENCE


Category Partner: Enkryptopedia