Analyzed last 12 years of historical data to check if there are any patterns we can observe to find the best time to invest in stocks for long term. #Nifty50 #investing #stocks 1/10

A small thread on various historical data analysis and trading strategies articles that I have shared so far. #TradingSystem #AlgoTrading 1/n
"Is long strangle strategy profitable?" https://t.co/luHnX1SGxx

"Is #Intraday trading profitable?"
Every long term investor was once a Intraday trader.

If you avoid the below three mistakes, intraday trading is definitely

"The best way to invest in #StockMarket, follow this simple rule"

Let’s consider two different scenarios,

Market crashes after your investment
Market rallies after your

Investment in #Gold is really good diversification. It helps well during bad economy period. However, instead of buying physical gold, you can invest in Gold ETF like Goldbees. Here’s the last 13 years historical analysis of Gold price

How about a trading system that gives you just two or three trades in a year, but ends up giving phenomenal returns. This is one such trading strategy with plain simple rules

A small thread on Mindset of a successful trader. What differentiates best traders from the bad ones? Why 95% of the traders don’t make money? Trading is an unpredictable game, how could one win in that? 1/n

Many people think some magical strategy or indicators is all they need to be successful at Trading. But what really goes in the minds of a successful trader? Professor Hichman Benjelloun did a research on this.

Successful traders have poker face. If you talk to successful traders or chat with them, you can’t figure out if they are happy or sad. Having good time or bad time.

For them making money or losing money is same thing, as they say a good trader feels great after a good trade, but a great trader feels NOTHING after a great trade. They control their emotions not only in trading but also outside their trading life. They are highly disciplined

Whether they are making money or losing money, they continue with their daily routine, going to gym, cycling etc they don’t skip it because of a losing trade. It doesn’t affect them. They have probability mind set. What does that mean?

I have watched lot of movies but only few movies would change your perspective towards life, here’s the 10 movies that really changed my mindset

1.The Theory of Everything

Brilliant acting , truly mesmerising portrayal on life of Stephen Hawking, never felt bored even for a sec

2. Rush - it’s a film about F1 racer James Hunt & Nikki Lauda, excellent narration and incredible acting. The dialogues were truly masterpiece and it’s still stays in mind even after 9 years

3. The Founder - This movie released at the right time in my life, when I was about to quit my job and focus full time on my startup. This movie is all about single man Ray Kroc who built a billion dollar empire McDonalds. This is the best entrepreneurship movie ever made.

4. The Imitation Game - I watched this movie when I started my rule based trading journey in 2014, struggled a lot during my initial phase with code, unable to get any breakthrough, this film gave my that ray of hope. It’s about a mathematician who broke the code n won the war

5. The Pursuit of Happyness - any favourite Movie list would be incomplete without this movie. Will Smith, damn what an actor he is. I watched this movie when I was in college days, still remember the day, I was crying non stop during the interview scene. Brilliant film.

My number 1 stock pick for 2021 is: Pine Island Acquisition Corp.

$PIPP

Let me break down why I think this will be THE SPAC of 2021. 👇

TL:DR – the management team is loaded with President Biden’s closest friends and advisors. No other SPAC has this level of access.

$PIPP company overview:

-focused on defense, government service & aerospace
-perfect focus when you consider who is on their Management Team

$PIPP Management

-here's where it gets EXCITING
-founded by John Thain (ex Merrill Lynch CEO and Uber director)
-then STACKED with veteran Government and Administration key figures

$PIPP Insane Management Connections

-the list of PIPP "DC Partners" includes:

-- President Biden's pick for Secretary of State (Tony Blinken)
-- President Biden's pick for Secretary of Defense (Gen. Lloyd Austin).

$PIPP - The Joe Biden Connection

- Tony Blinken and President Biden are close allies.
- Blinken has been an advisor to Biden for decades
- Blinken set to be appointed Sec. of State

A thread on Risk and Returns

Trader X -

Net-worth - 5 Cr
Trading capital - 25 lakh

Trader Y -

Net-worth - 30 lakh
Trading capital - 25 lakh

Trader X take risk of 2% per trade and he makes about 30-40 % Return on trading capital per month,

Whereas Trader Y only risk 0.25% per trade and he makes about 3-4 % on Trading capital per month.

Trader Y saw how much trader X is making with the same amount of capital that he has.

He is frustrated with his mediocre results as compared to Trader X, though he don’t know the fact that Trader X Is only trading with 5 % of his total net worth.

Trader X has much more risk taking ability in Rupee terms as compared to the Trader Y because he has higher net-worth.

Trader X will not have much impact when he goes into deep Drawdowns , 40-50% where as if the Trader Y goes below 15% DD , it will have deep psychological impact on him.

Even if the Trader X makes 100% return on his trading capital , turns 25 lakh into 50 lakhs ,

#NIFTY

Bearish engulfing on monthly or bullish harami on Weekly , which one will play out?

Outlook for the week Jan 2 - 6, 2022.

THREAD: Deconstructing NIFTY on 5 different TF's.

#NIFTY

1. Monthly TF:

• Although the structure in monthly TF is of HH-HL, December monthly candle is a more of a bearish engulfing.

• However it is exactly at the support

• 17800-18000 looks like a strong support.

#NIFTY

2. Weekly TF:

• 17800- 1800 used to be a resistance in April & August 2022.

• However post BO of those levels, they might act as an immediate support.

• Current weekly candle is closer to the support (erstwhile resistance)

#NIFTY

3. Daily TF:

• After a sharp vertical fall, we expected a buying momentum

• Also Nifty filled the Gap.

• Strong support at 17800

#NIFTY

4. Hourly TF:

Moving within the rising channel, albiet the channel is quite steep.

Knowledge sharing initiative Book 4: "The interpretation of financial statements" by Benjamin Graham.

This book was published around 1937 by investing legend Ben Graham. Ben is also regarded as the guy under whom the great Warren Buffett started his investing journey.

This book teaches financial statement analysis in a very simple manner. It also focuses on the key relationship between P&L, B/s & Cash flow statements of a company.

Here are key takeaways from the book 👇👇

1.B/s shows how much a company owns (assets) & owes (liabilities) at a particular point in time mostly prepared on a semi-annual & annual basis.

2.Assets=Tangible (PP&E, inventories, accounts receivable, cash)+intangible Assets (trademark, lease rights, goodwill)

3.Liabilities=Short term debt (accounts payable,current portion of long term debt,advances from customers) + Long term Debt (bank loans,bonds,lease liability)
4.Tangible assets are written down through depreciation & intangibles are written down through amortization or impairment

5. Depreciation & amortization means normal wearing out assets over its typical lifespan. It allows the cost of the asset to be charged off (in the income statement) over a number of years.

6. Depletion gets applied in commodity businesses like cement, mining, and crude oil.