Mr. Vijay Kedia built a net worth of over Rs. 800 crores.

But you probably never read past that headline.

So I binged hours of interviews to learn his investing principles and strategies.

Here are 20 lessons on investing from @VijayKedia1 Sir:

Collaborated with @AdityaTodmal

Before I start, a quick disclaimer, please don't ape his portfolio.

As the entry price, horizon and risk appetite would be far different than yours.

Rather lets draw inspiration and try to learn his stock picking skills.

Now let's DIVE IN👇

1/ Started off as a trader:

- Soon, beginner’s luck started to fade out and loses started to mount, to an extent where his mother was about to sell her ornaments.

- Although he was able to dodge the situation.

- This incident taught him the biggest lesson to have a stop-loss.

2/ Punjab Tractors:

- In 1990, he made his first investment by putting in his 10-years savings of Rs 35,000 in this stock, based on a news trigger that tractor industry will witness a turnaround.

- It worked and fetched him 4-5 times which he calls it as a fluke.

3/ He believes that an investor must possess three qualities:

i. Knowledge,
ii. Courage, and
iii. Patience.

Short Straddle is the highest payoff strategy.

However it comes with undefined risk.

Most traders don't know when & how to adjust the short straddle when it goes wrong.

Here are 16 adjustments to lower risk & increase profitability:🧵

Collaborated with @AdityaTodmal

1/ Longer-term short straddle:

• Helps in getting a big range: trade in biweekly, monthly, or far months.

• The only drawback with longer term straddles is the slippage.

• Also go for round levels both in NF and BNF as they have better liquidity.

2/ Weekly expiries will have short range:

• Leading to higher risk.

• Would require frequent adjustments.

3/ When to sit tight?

• As long as the underlying is between the breakeven point of the Short straddle, we do nothing.

• Don't adjust till breakeven comes, simply sit tight.

• Adjusting a short straddle typically brings in more credit, which increases the profit potential.

4/ When does a short straddle come into loss:

• The moment the underlying price moves towards one end of the breakeven point, your short straddle will be in loss.

• Adjustments would require additional funds, so don't go all in with your capital for shorting straddles.

90 million active demat accounts in India.

Less than 1% understand Fibonacci retracement.

This mega thread will help you understand better—starting today:

Collaborated with @AdityaTodmal

1/What is Fibonnaci (Fibo) retracement?:

•Fibo retracement levels help us to identify potential reversal area or identifying potential entry point after a pullback.

•It represents various levels of significance within a swing high and low.

2/How to plot the Fibo?

•Spot the recent swing high & swing low (usually a peak & a low) on a chart.

•Plot the Fibo on these points.

•You'll get 5 key levels of support & resistance (S/R) in between the peak & low.

•Key Fibonacci ratios: 23.6%, 38.2%, 50%, 61.8%, & 100%.

3/ Importance of retracement levels:

• The retracement level forecast can determine the level at which retracement is likely to occur.

• These retracement levels offer traders a favourable entry to open new trades in the direction of the trend.

4/ When to apply Fibo:

•Fibonacci analysis can be applied when there is a noticeable up-move or down-move in prices.

•Applying it in range bound markets would turn out to be a futile exercise.