Last time I shared a basic stock screener for Investors.

Today I will share 1 Basic stock screener for traders .. 👍

We are living in days of high #Vix with added volatility & movement in our favorite indices

There have been strange opens & very quick movements some to profits, others to losses

There is always a message in the data. Data speaks

Let's explore what Vix wants to tell us

Vix is at 25- 30 currently.

Is this Normal?

Data from 2010 suggests this as an outlier

A vix above 30 has been trading less than 55 times in 3000 sessions!

It's a 1.83%

For those who are new to trading , this is a TIME Profile of the VIX from March 2020.

The mode is seen at 18-20 and anything above the red line of 25 is 2nd standard deviation territory for the markets and a change in Vix regime.

Translation - Vix from March 2020 is telling us that if we stay above 1 standard deviation of 25 and continue to do things which you did at mode of 18-20 , you will not get the same results

In other words, if you are making losses, relook at your trading strategies and change.

But this "adjustment" is for the short term only as I mentioned before this Vix event is an outlier .

To cut losses, CHANGE your methods for short term.

It's the weekend!

Grab a cup of coffee, in this thread I will explain

1. How to do Industry Research?
2. How to research a Company from scratch?
3. How to determine Margin of Safety and build an Investment Case?

Lets dive right in.

The most frequent question I get asked is - How should I research an industry or a trend?

A good question indeed and my answer to this is simple.

Read, Read and then Read some more.

The more knowledge you consume, the better you will be able to identify and link trends across industries.

But reading doesn't mean you need to pick a newspaper or start reading random articles over the internet.

Your reading and research needs to be structured.

This is where technology comes in to help and make our lives easier.

Today, algorithms run our world and decide what data you consume.

Be it Instagram posts, TikTok reels or YouTube videos.

So learn to trick these algorithms and use them to your advantage.

A Mega-Thread on Jesse Livermore’s Wisdom:

1. Never be completely bearish or bullish on the whole market because of one group or a few stocks have reversed its course from the trend.

(Would Appreciate a retweet as a lot of efforts are put by our team to compile these threads)

2. There is only one side of the market and it is not the bull or the bear, but the right side.

3. Don’t trust your own opinion and back your judgment until the action of the market itself confirms your opinion.

4. Markets are Never wrong – opinions often are.

5. The real money made in speculating has been in commitments showing in profit right from the start.

6. As long as a stock is acting right, and the market is right, do not be in a hurry to take profits.

7. One should never permit speculative ventures to run into investments.

8. The money lost by speculation alone is small compared with the sums lost by investors who let their investments ride.

9. Nothing new ever occurs in the business of speculating or investing in securities and commodities.

10. Never sell a stock because it seems high-priced.

11. I become a buyer as soon as a stock makes a new high on its movement after having had a normal reaction.

12. Watch the market leaders.

13. The human side of every person is the greatest enemy of the average investor or speculator.

14. Wishful thinking must be banished.

Pyramiding 2.0

A thread-

What is pyramiding?

It is simply adding to your winners.

Why use pyramiding?

1. It makes your winners bigger than your losers.

• Because you are adding positions when your trades are going your way, you are increasing your gains but your losers will be small comparatively.

2. You lose less during Draw-down time ( it saves you from losing big during whipsaws )

• Many times when the market is in sideways mode, Entering a trade with full risk might not be the best idea.

• So, you test the waters with a small position first, it could be ⅓ or ¼ of your total risk.

• So if the Breakout fails or whipsaws come, then you will only lose a small part of your overall risk.

• Then when position starts to go in your favor you can add to it.

3. It helps you to concentrate on a few trades,

They say that don’t put all your eggs in one basket, but don’t put them in too many either.

• See, Everyone can see charts and find breakouts, pullbacks etc.

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.