BC TRADING
Saved by @ThomassRichards

THREAD: COUNTERFEIT STOCKS

There are four major players in the industry: Hedge funds, prime brokers, the DTCC, and the SEC.

Hedge funds and the SEC you know of, but the DTCC and prime brokers are important.

 Prime brokers are relatively simple - they’re brokers that can clear their own transactions by way of moving actual shares between their clients.
The big prime brokers are ones you’ve heard of - Goldman Sachs, Morgan Stanley, Bear Stearns, Citigroup, etc. - big, big companies.

These prime brokers in turn collectively own the Depository Trust Clearing Corp - DTCC.
The DTCC is an almost impenetrable, behemoth corporation that clears near a billion shares a day and accounts for a vast majority of the clearing house activity in the US market. This is the corporation that ACTUALLY holds physical shares - all your “shares” are on their books
The DTCC is (this will be important later) nearly impossible to get information out of, and it takes an act of Congress or a subpoena to get them to talk on anything.
So onto the big ticket - naked shorting. Hedge funds REALLY like shorting stocks. So much so that they, by way of bad market structure, can create “new” shares through the “float” - the gap between when they sell you a share and they actually deliver on it.
Anyone in the market legally has three days to deliver on a sale of a stock, else it gets marked as a “Fail to Deliver”. In the case of a short, this means that a hedge fund has to borrow a share to then sell and deliver to the buyer.
Problem is, for big players, you don’t have to actually borrow the share before you sell it. This is called a “naked” short - you sell the stock, then find someone to borrow a share from within the three day settlement period.
So within those three days, you’re basically playing with the house’s money.

And the hedge funds *really* like playing with the house’s money.

So how do you get more?

You extend the period.
The thing is, nobody ever checks up on Failures to Deliver. A hedge fund can have an FTD, but the sale goes through as normal and the buyer is treated as having an actual share - without the fund having sold one.
Now the SEC doesn’t like stocks having too many FTDs, so funds go a step further.

Stocks owned in margin accounts are not only immediately loaned out, but are also treated like complete, whole shares as soon as the sale goes through. So watch this:
Hedge fund naked shorts a stock.
Buyer in margin account buys said sale.
Stock lands in margin account, is put into loan pool.

Hedge fund borrows back the “share” they just sold to the account, and the books are balanced.
Congrats. You’ve made a share appear out of thin air. However, you can only do this so many times - there are so many margin accounts.

Well, hedge funds pay massive fees to brokers, and as part of that deal, brokers change normal accounts into margin accounts all the time.
What else can you do?

Well, funds also like to have a massive position in naked shorts that they, before the timer is up, sell to an offshore account - resetting the timer.

And they can chain this through dozens of accounts, taking advantage of massive amounts of float.
Basically, by way of naked shorting and creative misuse of the T+3 SEC rule, big hedge funds can make short positions in stocks appear out of nowhere, with no starting capital and no physical shares in hand.
This puts massive downward pressure on targeted stock prices, and if a large amount of funds get in on it together, they can drive a company into bankruptcy for a pittance and pocket MASSIVE amounts of money.
This is why Robinhood’s been having liquidity issues - there literally aren’t any more “real” shares of $GME out on the market
IF YOU DO NOT OWN THE CERTIFICATE IT IS NOT YOUR STOCK
Even better comparison: This is like check kiting, with the entire economy.

More from Trading

Madan
Madan
@madan_kumar
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)
TRADING
Emperor\U0001f451
Emperor👑
@EmperorBTC
Technical Analysis Masterclass- Part 2

'Entering the trade'

Entering a trade without ascertaining a certain things is gambling.

In this masterclass we will learn the pre-requisites to enter a trade.

DON'T ENTER A TRADE WITHOUT DETERMINNG THE FOLLOWING.

Please share.

We understand what reward to risk (popularly called risk to reward) is.
It will be denoted by R:R.

We will also try to bust a few myths about R:R and how to avoid losing trades.

Before entering a trade, you need to determine 3 things.

1. Entry trigger
2. Stop loss
3. Target

1. Entry trigger = Reasons for entering a trade. There could be multiple reasons or a single reason for entry.

Generally a set of reasons AKA confluence is a higher probability trade and a generally a safer entry.

Example of an entry trigger.


2. Stop Loss.

The price in the opposite direction of the trade where the trade is exited, at a loss.

At this level, the reason for the entry becomes invalidated according to TA and the price can then move in the opposite direction, probabilistically.


3. Target is the possible price level that the asset might touch based on previous trends or confluence AND where a possible reversal could occur.

Target is the next path of least resistance from where the price might reverse.

We will always ONLY use TA to determine all 3.
TRADING
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Peter McCormack \U0001f451
Peter McCormack 👑...
@PeterMcCormack
1/ Feels like a good time to tell the story of how I went from broke to a millionaire to broke again in 2017/18 again...

Yesterday was brutal for some people...

Losing life-changing money sucks, losing any money sucks...you can chase the market or you can change your strategy.

2/ The original thread is gone but you can read it here.

https://t.co/cLLNs75rB0

tl;dr
- Traded $32k to $1.2m
- Thought I was a genius
- Made poor investments
- Didn't conserve capital
- Peaked at 150 BTC
- Lost nearly all of it

2 weeks from losing my house + no income. Oops.

3/ I am going to assume you are in it for the money rather than the tech. Yeah, you might Tweet about the amazing blockchaining of cross-border payments and oracles yadda yadda...really, you are in it to make money.

If you are really in it for the tech, go and build something.

4/ Okay, so if you want to make money, trading is super hard, you are trading against:
- Better traders than you
- People who can move markets
- Unknown information

And if you are trading with leverage you might blow up your account with the volatility.

5/ If you are not trading, you are investing. Okay, so what are you investing in?

I made the decision that the crypto with the best opportunity of existing in 10 years is #Bitcoin:
- Solves a genuine problem
- The right tech
- A proven track record
TRADING
Richard Chu
Richard Chu
@richard_chu97
1/ I used to think that the biggest gains had to come from stocks that no one knew about

One of the harder lessons for me to internalize has been that oftentimes, unknown stocks stay unknown for a reason and you can still earn attractive returns from stocks everyone's bullish on

2/ While I’m not contrarian just for the sake of being contrarian, I do think it’s important to question everything.

When I started out, I would buy "quality" stocks like FB or TSLA without doing much research.

But an opinion being consensus doesn’t make it the truth.

3/ So owning the most popular stocks made me nervous. If a winner is so obvious then either it's priced in or maybe I'm missing something?

I preferred owning stocks that others weren’t aware of or were bearish on for the wrong reasons (more room for upside surprises).

4/ But there are degrees

Despite being widely popular, stocks like SHOP have been some of the best performers because they exceeded even the most bullish projections

And some stocks like TSLA are partly popular because they are great consumer products which is an important sign

5/ On the other hand, while the biggest winners can be found in micro-caps, many of which started out very undervalued with no analyst coverage, on average, they tend to underperform larger caps

Picking out the big winners earlier on is very difficult and there is no set formula
TRADING
Nikita Poojary
Nikita Poojary
@niki_poojary
Thread: Free Options Trading Course for Beginners with small capital.

Reference: Option trading marathon series, part 1 from Mr. Subasish Pani ft. @PushkarRThakur

Collaborated with @AdityaTodmal

1/ Trading journey of Mr. Pani

• He has an experience of 7 years.

• He has made a profit of Rs. 20 cr. over these years with a capital of Rs. 2 cr.

• However, it's not easy to make such profits.

• More difficult, is to retain those profits and build more on it.

2/ How he ventured to options selling

• He started with futures and option buying however after a certain point when his capital grew, he faced scalability issues and hence he resorted to options selling.

3/ Investing becomes imp once the capital grows:

• Since his trading profits have grown well, he has started investing (investing is always for LT).

• For folks who dnt have much info regarding investing can simply buy Nifty 50 stocks & keep rebalancing as Nifty 50 does.

4/ Covered calls strategy for the portfolio:

• Pledge the portfolio and receive margin ~80% which he would then use to sell OTM CEs of the stocks which are in his portfolio.

• This helps in generating fixed income from the portfolio.
TRADING

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Ancient Egypt was the most advanced civilization in the ancient world. Why was Egypt so special?

There are so many firsts in Egypt that we all know about, and that makes Egypt unique. For example, the Sumerians did not build the pyramids of Egypt.


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Jaya_Upadhyaya
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ARULMIGU SRI PARTHASARATHY SWAMY KSHETRAM, CHENNAI (TN)

Divya Desha where Perumal appears with moustache of a Sarathi (charioteer) to conduct Arjun’s Rath in Kurukshetra war.
Here, Venkatkrishna-Parthasarthy is present with his entire family.


He is flanked by Sri Rukmini, Sri Balarama, Satyaki, son Pradyumn and grandson Anirudha.
It is said that on the request of Raja Sumathirajan, Sri Perumal appeared and stayed here as Arjun’s charioteer (Partha-sarathi).


He is without chakra as he had promised not to wield weapons in Mahabharata war.
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The Naivedyam offered here does not have spices. Ghee is used in it to cure Prabhu’s wounds. Sarkarai Pongal is famous here.

It is said that Rishi Bhrigu found Devi Lakshmi (as Vedvalli) in Alli flower in the mandir pushkarini. Later, Sri Ranganatha came here to marry her.
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Vibhu Vashisth
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प्राचीन काल में गाधि नामक एक राजा थे।उनकी सत्यवती नाम की एक पुत्री थी।राजा गाधि ने अपनी पुत्री का विवाह महर्षि भृगु के पुत्र से करवा दिया।महर्षि भृगु इस विवाह से बहुत प्रसन्न हुए और उन्होने अपनी पुत्रवधु को आशीर्वाद देकर उसे कोई भी वर मांगने को कहा।


सत्यवती ने महर्षि भृगु से अपने तथा अपनी माता के लिए पुत्र का वरदान मांगा।ये जानकर महर्षि भृगु ने यज्ञ किया और तत्पश्चात सत्यवती और उसकी माता को अलग-अलग प्रकार के दो चरू (यज्ञ के लिए पकाया हुआ अन्न) दिए और कहा कि ऋतु स्नान के बाद तुम्हारी माता पुत्र की इच्छा लेकर पीपल का आलिंगन...

...करें और तुम भी पुत्र की इच्छा लेकर गूलर वृक्ष का आलिंगन करना। आलिंगन करने के बाद चरू का सेवन करना, इससे तुम दोनो को पुत्र प्राप्ति होगी।परंतु मां बेटी के चरू आपस में बदल जाते हैं और ये महर्षि भृगु अपनी दिव्य दृष्टि से देख लेते हैं।

भृगु ऋषि सत्यवती से कहते हैं,"पुत्री तुम्हारा और तुम्हारी माता ने एक दुसरे के चरू खा लिए हैं।इस कारण तुम्हारा पुत्र ब्राह्मण होते हुए भी क्षत्रिय सा आचरण करेगा और तुम्हारी माता का पुत्र क्षत्रिय होकर भी ब्राह्मण सा आचरण करेगा।"
इस पर सत्यवती ने भृगु ऋषि से बड़ी विनती की।


सत्यवती ने कहा,"मुझे आशीर्वाद दें कि मेरा पुत्र ब्राह्मण सा ही आचरण करे।"तब महर्षि ने उसे ये आशीर्वाद दे दिया कि उसका पुत्र ब्राह्मण सा ही आचरण करेगा किन्तु उसका पौत्र क्षत्रियों सा व्यवहार करेगा। सत्यवती का एक पुत्र हुआ जिसका नाम जम्दाग्नि था जो सप्त ऋषियों में से एक हैं।
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Jaya_Upadhyaya
Jaya_Upadhyaya
@Jayalko1
HORANADU ANNAPOORNESHWARI, CHIKMAGALUR (KAR)
#bharatmandir

Annapoorneshwari is the Devi of nutrition and food. The literal meaning of Annapoorneshwari is “Feeding one and all”. Anyone who comes here is offered meals and shelter within the premises.
@LostTemple7


Maharshi Agastya is believed to have done pratishtha here.

Once, Shiva and Parvati had an argument. Shiva declared everything in the world including food to be Maya or illusion. To prove him wrong, Devi Parvati disappeared resulting in entire Earth becoming still.


Taking pity, Devi appeared as Annapoorna and relieved everyone.
Another belief is that once Shiva beheaded Brahma and his skull got stuck in Shiva’s hand. He was cursed that till the skull is not full of food or grains, it will remain stuck to his hands.


Shiva went everywhere and asked for food but the skull was never full. He finally came here and Maa Annapoorna filled the skull with grains and reversed Shiva’s curse.

It is believed that who ever visits Devi Annapoorna here will never be without food in their lives.
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Michael Dearing
Michael Dearing
@mcgd
An irony of facebook's situation.

Sheryl got her MBA at Harvard. One of the most famous cases (Extra Strength Tylenol) in one of the most famous classes (Business History) she took: in 1982, someone put cyanide in Extra Strength Tylenol capsules and killed 7 people in Chicago.

What do you do when someone turns your product into a weapon? When they use the system you built to harm? James Burke, CEO of J&J, was shockingly open with the public, he pulled the product and made significant packaging changes to make product safer (but not tamper-proof).

He over-shared every step along the way re investigation, redesign, stood up as both CEO and human. The reintroduction of new Extra Strength Tylenol succeeded. Burke saved the brand.

But four years later it happened again. A killer put cyanide in the capsules, this time a woman in Yonkers died. Same CEO, Burke, pulled the product again, completely changed the form factor from capsule to caplet and relaunched *again*. It worked *again*. How'd they do that?

Burke (CEO) tapped J&Js goodwill bank account w/ the public. Two big withdrawals from that bank account in four years + 8 dead bodies! But his honesty, openness, humanity (choked up about the deaths more than once), humility kept the goodwill bank balance positive the whole time.
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