Model Portfolio 3

Time Horizon 3 years or earlier ~ Depends on if the stock performs significantly well in faster time. Review of business performance important every quarter.

This portfolio is suitable for aggressive investors who believe in risk taking and look for growth

Peter Lynch is a great investment manager of all time. He is famous for introduction of PEG. (P/E growth)

According to Mr. Lynch the faster the company grows, the higher the P/E ratio you should pay for that company

Here is a Thread - Peter Lynch thoughts & my interpretations.

1. Investing is fun, exciting & dangerous if you don’t do any work

Fun becoz we tend to learn so many things

Exciting becoz it give great moments of celebration because of unimaginable wealth

Dangerous becoz it can be addictive due to greed & people may start finding shortcuts

2. You can outperform the experts if you use your edge by investing in companies or industries you already understand.

Study businesses, apply common sense and invest into something which you understand.

No need to adventure & no need to be part of anything or everything.

3. The stock market has come to be dominated by a herd of professional investors. You can beat the market by ignoring the herd.

Stay away from noise & crowd to come out as a winner.

4. Behind every stock is a company. Find out what it’s doing

The underlying entity of a stock is business. Choose to ignore everything else, but never ignore to study business.

Company includes few more things in addition to business like management, etc.

Stock Market

~ Understand business
~ Don't chase momentum too much
~ Avoid speculation/ noise/ hopes
~ Avoid FOMO
~ Avoid Averaging down
~ Avoid Spontaneous trades
~ Don't jump into volatility
~ Have goals, have strategy
~ Reduce losers
~ Control emotions
~ Review self often

Jubilant Bhartia group gonna be one of the biggest group that has all the potential to overtake marketcaps of many other groups.

Listed
~ Jub Foodworks
~ Jub Pharmova
~ Jub Ingrevia
~ Jub Industries

May list in future
~ Jub Enpro
~ Jub Motorworks
~ Jub Consumer

WatchOut !!

Secret towards being successful - Simple yet powerful rules.

Create your own luck.

Thread - Take a printout & read it again & again in your leisure.

1. Invest some part of your income in yourself

It’s only when you invest in something that you have the motivation to make it happen.

You are determined by

~ The quality of work you’ll produce,
~ The level of happiness you’ll have.
~ The quality of leaders you build

2. Invest at Least 80 Percent of Your “Off” Time into Learning

The world’s most successful people are intense learners. They are hard readers. They know that what they know determines how well they see the world.

Stop consuming junk media.

Read right & build your own content.

3. Don’t Work for Money, Work to Learn. Money is an outcome.

Wealthy & happy people work to learn. Unsuccessful & unhappy people work primarily for money.

Only 20 percent of your energy should be spent doing your actual work. Spend rest on learning, improving self, & resting.

4. Don’t Learn for Fun, Learn to Create Value. Value attracts everyone.

It takes wisdom to determine what you should learn, why you should learn it, and when you should learn it.

Learn, Relearn, Erase, Learn, Relearn. Be dynamic.

Find your own content.

#StockMarket - While there are #Multibaggers there can be #Multifailures as well. Here is a thread on key mistakes that may happen during the journey. I have been thru all these mistakes myself.....

1. Leverage can be key mistake that usually happen either when we get carried away in euphoria or are finding shortcuts during early part of journey. Even if you need to take leverage, it should be based on your net worth, risk profile and in right stocks.
#NoShortcuts

2. Selling too early just because it has run up too much too fast. Till there is a visibility of business potential and company growth path, one should ride the growth as maximum as possible.
#StayPut

3. Buying too late just because of noise / momentum and fear of missing out. Never ignore the valuations, business potential and company fundamentals while going with any suggestions. Always do your own due diligence.
#CutTheNoise

4. Buying too big too early and then selling while patience is being tested. Build the position towards upside especially for any new stock finding. Build onto the conviction with a visible growth in numbers.

FINDING EDGE IN OPTIONS

24/08/15: Nifty gap down 250 points & another 250 after that. Previous few months return gone, but since I'm quick to take my losses, was saved from ruin. Before that my only edge in option selling was adjustments & my forever edge of following PA. (1/n)

I soon realised that theta decay with sound adjustments is not an edge, which i earlier thought was & which gave me good returns over the years. After that i went deeper in understanding volatility behaviour, how/where it manifests & all the discrepancies in option chain. (2/n)

With finding edge in logistics i mean how to keep the greeks in check, SL in place & optimum ways of adjustments with minimum slippages. So the main aim here is to write theta without following vol behaviour & having any actual knowledge of what's going on in the markets. (3/n)

A dedicated trader can learn all this in few years & it is something which is 'obvious' to become successful. But majority can't reach this level, as this also requires consistent hustle in live markets. All the seminar/webinar business teaches you till this level only.(4/n)

If you get passed this level though, the real work starts, when you have to find your real edge. This can't be taught in a webinar. It needs serious introspection of your trading skills, psychology & strategies in use, which ultimately allow you to book excellent profits. (5/n)

Having now taken a few days to digest the detail of the UK-EU agreement, here's a couple of observations from me on the deal, what it means, how we got here, & where it might take future UK-EU relations.

(A long thread)

First, let's be clear that negotiating a deal in 9 months, against the odds, and in the middle of a pandemic, is an achievement. It's too easy to underestimate the difficulty of negotiating over the screen for 4 months, from Mar-June, and under enormous pressure. /2

Both @DavidGHFrost & @MichelBarnier and their teams, deserve a lot of credit for sticking up with it in hard circumstances, often with lacking political clarity, & high stakes.

This shouldn't preclude us, or MPs and MEPs, from looking critically at the deal on the table. /3

That we have a deal is a result of the UK & EU having found a way to protect their core defensive interests.

From the EU's view, integrity of the single market is preserved with level-playing field obligations which go virtually beyond any other 3rd-country (even the Swiss). /4

For its part, the UK has negotiated down EU ask on dynamic alignment on state aid; eliminated any references to EU law; removed any role for the ECJ (NB not in the whole future relationship, due to EU law in NI Protocol); and preserved its right to control access to waters. /5

A thread.

Earnings Trades Simplified.

Earnings announcements are public announcements that display a company’s earnings, or lack thereof. As the earnings announcement gets closer, implied volatility tends to increase. After earnings are announced,...

1/n

the uncertainty of what will happen diminishes, and usually we see a rapid decrease in implied volatility because of it. Because of this phenomena, we tend to stick to premium selling strategies when it comes to earnings plays. We can take advantage...

2/n

of the implied volatility crush by selling premium prior to the announcement, and buying it back after the announcement.

Earnings trades are not for everyone, as they involve high amounts of uncertainty and random movements.

3/n

Why Trade Earnings -

-Increase number of occurrences, many trades available so increases of our probability of profit.

-High IV opportunities

-Short term Binary event leading to drastic volatility crush.

4/n

Factors to consider when placing earnings trade -

1. Expected Move
2. When to place trade
3. Historical Moves
4. Strategies based on market conditions

5/n

Thread on 'no stop loss', 'adjustments' and 'Risk'
----------------------------------------------------

Wanted to share my thoughts on this topic for a long time but this email sent by someone yday woke me up from slumber

Pls read the email 1st before delving into thread

(1/n)

In the past 1-2 years, there has been a sudden surge of traders who just talk about theta decay, option selling, adjustments and stuff like that..

It is all fair as long as the trader knows what he's doing. But the reality is far from what we see/perceive...

(2/n)

Many of these folks were told that one can 'adjust' their way out of any situation. Any sane options trader know that you cannot come out of any situation by adjustment

One of my friend used to do that(he is famous in options selling desi fintwit) for a long time until..

(3/n)

..he realized that one cannot possibly do that and its gonna burn him one day. He's pretty smart and hence, he put a portfolio level SL & when that hits, he will stop dancing, gets out and calls it a day

So, risk is managed at account level and he is quite clear about it

(4/n)

Unfortunately, 1000s of traders who does option selling(with adjustment) dont have this risk mgmt in place.

They think (i dont know if i had to call it false confidence or ignorance) their skills in 'adjusting' will take them ashore 😅

(5/n)

As part of our Knowledge sharing initiative by @FinnacleAcademy and @Investmentbook1, here we are on our post 2 with some of the most important key takeaways of the book “Masterclass with super investors” by @vishalmittal22 & @basrars

Here we go! (1/n)

Masterclass with super investors is one of the best books covering the investment strategies & journey of renowned domestic investors. Our summary has been segregated in 2 parts, A) Common traits in investment ideologies of these stalwarts B) Investor specific key takeaways (2/n)

A)Let's look at a few common points in these Stalwarts' investment ideologies 1)Invest (higher % of portfolio) when you have conviction backed by sound logic 2)You need to be bullish on India to make investments in Indian cos. bcoz majority of Indian cos. are domestically focused

3. New Bull markets have new leaders when a bull markets ends the stocks which have gained the most falls the most 4. The entry price that you pay for a company should be very cheap so that even if your assumptions go wrong in future you don't end up losing money (4/n)

5. We get attached to stocks which have given us a lot of returns in past even though in current & future expected scenarios they seem overvalued 6. Focus on art of disciplined selling-it's imp. to have a sound selling mechanism just buying at right price wont create wealth.(5/n)