Stock that breaks the uptrend are the one that can give massive upmove.
These stocks are considered as strong stocks in the market.
Timeframe should be monthly and if price closes above ATH on any day you can enter.
Investing in stocks is boring, but it can help in creating wealth for many investors.
Sharing 4 Simple Investment Strategies (sold as a ₹ 50,000 course!).
For guidance, shared screeners for all the strategies also.
Shared a bonus trading strategy at the end.
A thread 🧵:
Stock that breaks the uptrend are the one that can give massive upmove.
These stocks are considered as strong stocks in the market.
Timeframe should be monthly and if price closes above ATH on any day you can enter.
Bajaj Finance gave a breakout above ATH at around 55 and then it moved up till 5000 levels.
Total returns of 9000% in 10 years.
Simple Strategy, isn't it?
Reliance Chart.
It gave breakout above its All Time High level after 10 years and then never looking back.
Price moved up from 700 to 2600.
Returns of 270% in five years.
Initially keep stoploss at swing low on monthly chart and trail your stoploss accordingly to enjoy massive upmove.
Other ways of Trailing Stoploss can be using 200 EMA or any other indicator.
This screener will identify stocks that are breaking All time high (10 year high). It needs to be run daily to identify such stocks.
https://t.co/zEUg5SAkgs
It is one of the popular investment strategy widely used by traders/investors.
Common Golden Crossover that is followed is of 20 EMA and 200 EMA.
Enter if 20 EMA goes above 200 EMA.
Exit if 20 EMA goes below 200 EMA.
Time frame: Weekly/Monthly
Example 1:
Pidilite Ind gave golden crossover in 2009 at 71 and till now it has not given any exit.
From 71, currently it is trading at 2662.
Returns of 3600% in 13 years.
ITC gave golden crossover in 2003 at around 17 and after that it directly gave exit signal in 2019 at 238.
It gave returns of 1300% in 16 years.
Golden Crossover Strategy is completely rule based system and can be easily implemented.
This is a basic screener that will identify stocks that give golden crossover. You can tweak it if you want or add any other condition.
https://t.co/zZ2iuPO2QW
CCI is known as momentum indicator and can be a good for investor with shorter horizon of 2-3 years.
Strategy:
⚡️Weekly/Monthly TF
⚡️Enter: CCI crosses above -100
⚡️Stoploss: CCI crosses below -100
⚡️Exit if CCI crosses above +100 and then it goes below that
Bajaj Finance Monthly Charts.
CCI crossed above -100 in 2009 and price was around 5.
It gave an exit at around 58 when CCI crossed below +100.
Returns in 1 year: 1000%
This screener will identify stocks that are fulfilling entry criteria for CCI.
https://t.co/aGYyXh1tkp
CCI identifies stocks that are in momentum and can give decent returns in less duration.
Just like CCI, RSI is also a momentum indicator.
Strategy:
⚡️Monthly TF
⚡️Enter: RSI crosses above +50
⚡️Stoploss or TSL: RSI crosses below +50
It is also rule based strategy.
Laurus Lab Monthly Chart.
RSI crossed above 50 and entry was triggered at 90.
After that, RSI never went below 50.
So far, stock is up from 90 to 450.
Almost 400% returns in 2 years.
This screener needs to be run on month end and it will give out stocks that are fulfilling entry criteria of RSI Investment strategy.
https://t.co/jpr2ptWOSn
Also, note stoploss will be big in case of investment strategies so your quantities will be based on proper position sizing.
If you found this useful, please RT the first tweet.
Also, for live trading and stock market related updates, you can join our Telegram Channel ⤵️
https://t.co/RblJ0wWKCv
More from Yash Mehta
#RS is an indicator which helps in finding strong stock or index in the market.
This learning thread would be on
"𝙐𝙨𝙚𝙨 𝙤𝙛 𝙍𝙚𝙡𝙖𝙩𝙞𝙫𝙚 𝙎𝙩𝙧𝙚𝙣𝙜𝙩𝙝"
Shared some strategy.
Like👍 & Retweet🔄for wider reach and for more such learning thread in the future.
1/22
Most of us would confuse it with Relative Strength Index (RSI) but Relative Strength is a different indicator.
We have already covered about "Uses of RSI" in below thread👇
https://t.co/oTOrW7joNI
One can go through this if you haven't.
2/22
Now coming to Relative Strength (RS).
It is basically a strategy used in momentum investing which shows strength or weakness between two asset classes (two stocks, index, commodity).
One can read about this in below
As of now, I am using this indicator on .@tradingview platform.
It's free and one can add it in their Tradingview account as well, using this link👇
https://t.co/FxCjJFsNOG
There are multiple variants in this as well. Some traders use multiple time frame RS.
4/22
RS basically compares returns of one stock/index with the returns of benchmark stock/index at a particular time horizon.
Let's say, I want to analyze TCS and Benchmark Index is Nifty.
5/22
This learning thread would be on
"𝙐𝙨𝙚𝙨 𝙤𝙛 𝙍𝙚𝙡𝙖𝙩𝙞𝙫𝙚 𝙎𝙩𝙧𝙚𝙣𝙜𝙩𝙝"
Shared some strategy.
Like👍 & Retweet🔄for wider reach and for more such learning thread in the future.
1/22
Most of us would confuse it with Relative Strength Index (RSI) but Relative Strength is a different indicator.
We have already covered about "Uses of RSI" in below thread👇
https://t.co/oTOrW7joNI
One can go through this if you haven't.
2/22
#RSI is a common indicator which most of us use in the stock market.
— Yash Mehta (@YMehta_) October 22, 2021
This learning thread would be on
"\U0001d650\U0001d668\U0001d65a\U0001d668 \U0001d664\U0001d65b \U0001d64d\U0001d64e\U0001d644"
Like\U0001f44d & Retweet\U0001f504 for wider reach and for more such learning thread in the future.
Also, an investment strategy is shared using RSI in the end.
1/16
Now coming to Relative Strength (RS).
It is basically a strategy used in momentum investing which shows strength or weakness between two asset classes (two stocks, index, commodity).
One can read about this in below
As of now, I am using this indicator on .@tradingview platform.
It's free and one can add it in their Tradingview account as well, using this link👇
https://t.co/FxCjJFsNOG
There are multiple variants in this as well. Some traders use multiple time frame RS.
4/22
RS basically compares returns of one stock/index with the returns of benchmark stock/index at a particular time horizon.
Let's say, I want to analyze TCS and Benchmark Index is Nifty.
5/22
So many free content available on Option trading, still very few are able to trade in options successfully.
Here is a master thread that will help a beginner to learn about Options Trading.
A complete course worth Rs 50K for free 🧵:
1/ Zerodha Varsity: Options Theory for Professional Trading
This book will give you a basic understanding of options works and what all thing impacts
2/ Zerodha Varsity: Option Strategies
This book has covered basic option strategies that a trader can use.
Still if you can't read this books then in the next part, summary of most of these things is
3/ Options Greeks:
A detailed thread on basics of Option Greeks and how it impacts Options
4/ Basic Option Trading Strategies:
There are many option strategies to trade. But keeping your strategy simple is the key.
In this thread, all the basic option trading strategies are being
Here is a master thread that will help a beginner to learn about Options Trading.
A complete course worth Rs 50K for free 🧵:
1/ Zerodha Varsity: Options Theory for Professional Trading
This book will give you a basic understanding of options works and what all thing impacts
2/ Zerodha Varsity: Option Strategies
This book has covered basic option strategies that a trader can use.
Still if you can't read this books then in the next part, summary of most of these things is
3/ Options Greeks:
A detailed thread on basics of Option Greeks and how it impacts Options
There are various Options Greeks like: Delta, Gamma, Vega, Rho, Theta.
— Yash Mehta (@YMehta_) September 4, 2022
A complete guide on how these #Option Greeks impact option price.
4/ Basic Option Trading Strategies:
There are many option strategies to trade. But keeping your strategy simple is the key.
In this thread, all the basic option trading strategies are being
Option trading is tough as there are many strategies based on different market view.
— Yash Mehta (@YMehta_) September 30, 2022
Sharing 6 basic Option Strategies for free that you can use based on different market view (sold as a \u20b9 25,000 course!).
A thread \U0001f9f5:
More from Finance
As the DeFi bull market continues, some brutally honest tips for new founders fundraising in crypto.
👇
1/ The discount you offer to strategic investors is both to account for the risk of an unlaunched product, but also as compensation for continued value add and support.
So make sure you know the investor will support you and not leave you on read once the docs are signed!
2/ Having someone on your cap table/ token allocation is as important as hiring.
You wouldn't hire someone just because they are influencers on Twitter- you do your reference checks and find evidence of value add from other companies the investor has invested in.
3/ Don't trust, verify.
Many investors will promise you the world when they're trying to get on your cap table.
Talk to founders they backed to see how much of it is bullshit. Ask them about how the investor was there for them during hard times.
4/ Don't just go for "name brand" funds because you want the brand.
Sure, it's great validation, but optimize for fit, not vanity.
However, I do think many well-known VCs are good actors, especially those with roots in successful trad VCs. They have a rep for a reason!
👇
Equity/ownership is a force. Getting it in the hands of the right people generously will drive alignment and execution.
— Joey Santoro (@Joey__Santoro) January 21, 2021
It is a joyful and serious responsibility \U0001f332
1/ The discount you offer to strategic investors is both to account for the risk of an unlaunched product, but also as compensation for continued value add and support.
So make sure you know the investor will support you and not leave you on read once the docs are signed!
2/ Having someone on your cap table/ token allocation is as important as hiring.
You wouldn't hire someone just because they are influencers on Twitter- you do your reference checks and find evidence of value add from other companies the investor has invested in.
3/ Don't trust, verify.
Many investors will promise you the world when they're trying to get on your cap table.
Talk to founders they backed to see how much of it is bullshit. Ask them about how the investor was there for them during hard times.
4/ Don't just go for "name brand" funds because you want the brand.
Sure, it's great validation, but optimize for fit, not vanity.
However, I do think many well-known VCs are good actors, especially those with roots in successful trad VCs. They have a rep for a reason!
Ok here is the explanation. Grab a cup of coffee and read on. If you have not read/noticed this, you will see intraday options movement in a new light.
Say we have two options, one 50 delta ATM options and another 30 delta OTM option. Normally for a 100 point move, the ATM option will move 50 points and the OTM option will move 30 points. But in a high volatile environment, the OTM option will also move nearly 50 points
To understand why this happens, first understand why an ATM option is 50 delta. An ATM option has the probability of 50% of expiring as ITM. The price just has to close a rupee above the strike for the CE to be ITM and vice versa for PEs
Now think of a highly volatile day like today. If someone is asked where the BNF will close for the day or expiry, no one can answer. BNF can close freakin anywhere, That makes every option of an equal probability of being ITM. So all options have a 50% probability of being ITM
Hence, when a huge volatile move starts, all OTM options behave like ATM options. This phenomenon was first observed in the Black Monday crash of 1987 at Wall Street, which also gave rise to the volatility skew/smirk
In a high IV environment or when the market is very volatile
— Subhadip Nandy (@SubhadipNandy16) January 21, 2022
" OTM options will behave like ATM options", one will get almost the same delta movement
Say we have two options, one 50 delta ATM options and another 30 delta OTM option. Normally for a 100 point move, the ATM option will move 50 points and the OTM option will move 30 points. But in a high volatile environment, the OTM option will also move nearly 50 points
To understand why this happens, first understand why an ATM option is 50 delta. An ATM option has the probability of 50% of expiring as ITM. The price just has to close a rupee above the strike for the CE to be ITM and vice versa for PEs
Now think of a highly volatile day like today. If someone is asked where the BNF will close for the day or expiry, no one can answer. BNF can close freakin anywhere, That makes every option of an equal probability of being ITM. So all options have a 50% probability of being ITM
Hence, when a huge volatile move starts, all OTM options behave like ATM options. This phenomenon was first observed in the Black Monday crash of 1987 at Wall Street, which also gave rise to the volatility skew/smirk
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1/x Fort Detrick History
Mr. Patrick, one of the chief scientists at the Army Biological Warfare Laboratories at Fort Detrick in Frederick, Md., held five classified US patents for the process of weaponizing anthrax.
2/x
Under Mr. Patrick’s direction, scientists at Fort Detrick developed a tularemia agent that, if disseminated by airplane, could cause casualties & sickness over 1000s mi². In a 10,000 mi² range, it had 90% casualty rate & 50% fatality rate
3/x His team explored Q fever, plague, & Venezuelan equine encephalitis, testing more than 20 anthrax strains to discern most lethal variety. Fort Detrick scientists used aerosol spray systems inside fountain pens, walking sticks, light bulbs, & even in 1953 Mercury exhaust pipes
4/x After retiring in 1986, Mr. Patrick remained one of the world’s foremost specialists on biological warfare & was a consultant to the CIA, FBI, & US military. He debriefed Soviet defector Ken Alibek, the deputy chief of the Soviet biowarfare program
https://t.co/sHqSaTSqtB
5/x Back in Time
In 1949 the Army created a small team of chemists at "Camp Detrick" called Special Operations Division. Its assignment was to find military uses for toxic bacteria. The coercive use of toxins was a new field, which fascinated Allen Dulles, later head of the CIA
Mr. Patrick, one of the chief scientists at the Army Biological Warfare Laboratories at Fort Detrick in Frederick, Md., held five classified US patents for the process of weaponizing anthrax.
2/x
Under Mr. Patrick’s direction, scientists at Fort Detrick developed a tularemia agent that, if disseminated by airplane, could cause casualties & sickness over 1000s mi². In a 10,000 mi² range, it had 90% casualty rate & 50% fatality rate
3/x His team explored Q fever, plague, & Venezuelan equine encephalitis, testing more than 20 anthrax strains to discern most lethal variety. Fort Detrick scientists used aerosol spray systems inside fountain pens, walking sticks, light bulbs, & even in 1953 Mercury exhaust pipes
4/x After retiring in 1986, Mr. Patrick remained one of the world’s foremost specialists on biological warfare & was a consultant to the CIA, FBI, & US military. He debriefed Soviet defector Ken Alibek, the deputy chief of the Soviet biowarfare program
https://t.co/sHqSaTSqtB
5/x Back in Time
In 1949 the Army created a small team of chemists at "Camp Detrick" called Special Operations Division. Its assignment was to find military uses for toxic bacteria. The coercive use of toxins was a new field, which fascinated Allen Dulles, later head of the CIA