I begin with the stock market in a thought that it is an easy and fastest way to make money. Initially, I begin with buy and hold strategy but I felt, that is not what I came for and so I initiated with trading and in few months, (1/n)
As I completed 23 years on this lively planet and 5 years in this stock market, I want to share my 23 mistakes of my Investing journey.
A thread🧵
I begin with the stock market in a thought that it is an easy and fastest way to make money. Initially, I begin with buy and hold strategy but I felt, that is not what I came for and so I initiated with trading and in few months, (1/n)
One quote revamp my mind “Rome was not built in a day and Hiroshima and Nagasaki were destroyed in a day” (2/n)
I lost my faith in 2016 due to such a heavy loss and embark to take tips from TV channels and follow them on daily basis. I don’t know about others but this step failed me miserably. (3/n)
After TV buzz, I start taking tips from my relatives while this idea also failed, because they share their view on personal biases and not based on rationale.
Asking rationale looks like doubting their skills which hurt their ego. (5/n)
If you have a broker as your friend, I advise don’t call him between 9:00 am-3:30 pm, Brokers always seeks thier profit motive. They try to maximize your trades to maximize their brokerage, even though you don’t want to trade or invest. (7/n)
In the initial stage, when I was into trading, I immensely follow the news and radar on the stocks which could be benefitted. I thought, am the smartest guy and stock never move as per expected behaviour as market discounts everything. (8/n)
These 3 words written above are the most dangerous in the stock market. After looking at some successful trade, my confidence was at the peak and thought that I could make it big. (9/n)
After all my hardships in trading, I thought to end up trading and go for investing, begin with penny stocks and thought to make it big like 5x returns in 6 months or so and these penny stocks made my capital penny. (11/n)
I begin to time the market to gain more profits but eventually it all lead to losses. Timing the market is the most dumb thing to do in the stock markets. (13/n)
Selling frequently also leads to higher taxation. At a time, it seems Like from April to December I was earning from myself and from Jan to march only for Government. If you know basic about taxation you will get my point. (14/n)
When I begin with Investing everybody near me earn more than what ROI I could generate. (15/n)
I was afraid to book losses and always biased about my holdings, in hope that it will recover one day and that never happened. In investing, if you know you are wrong, admit it and book your losses. There is no shame in booking losses. (17/n)
Management is the most important point of investing, I failed to check the management quality of Yes bank and you know what happened with the share price. (18/n)
I always had a track of what mutual Fund is buying and selling and without any research. I buy those stocks and these steps also failed me miserably.
(19/n)
I rigorously followed and saw videos what RJ is buying, What RKD is buying and I was buying without my conviction. You get an idea of what would have happened
(21/n)
As a beginner, I Suggest people to empathize more on reading rather than following any media or tips. Reading books helps to build your conviction and try to understand when to buy and when to sell, which is the most important part of the Investing. (22/n)
In my initial trading days when most of my trades were going well, I was biased with control bias and overconfident bias for my trades, I learnt those and hopefully, I am aware of this right now. (23/n)
When my most trades were in my favour I thought it was skill rather than luck but once I came across one the book called fooled by randomness by Taleb and it changed my perception and understood the role of luck in investing. (24/n)
I always had a misconception that money is made in the bull market but this pandemic changed my perception. It’s all about the bear market, bulls just take the credits. If you have bought some stocks in april you know what it means (25/n)
In 2017 after I failed in trading, I was very frightened and whenever my stock moves up, I exit the stock so that I don’t have to face negative return from that stock which led to missed out many multi-bagger stocks. (26/n)
In investing I highly empathized on financials rather than focusing where did these number come up from. I learnt that financials are the small part of investing you have to analyze more than that. (27/n)
In 2017 whenever want to buy some stocks I just go to screener and check is this a good company or not by just checking their financials, many times stock didn’t perform well, after that I understood the core point of investing and now. 28/n
If you are not convicted to buy a stock don’t buy, once upon a time when my broker uses to told me I just buy without any research and never build my conviction. If you cannot build a conviction you are not fit for this game. (29/n)
Be in your COC. Initially,as an investor, I was not knowing my COC and I used to buy some stocks which are in momentum and when you don’t understand the business you don’t know what information can impact the stocks and you end up being in the loss
This is all my mistakes for individuals so that you don’t repeat this mistake and hope you get some learnings from this thread.
Chanakya says “Learn from mistakes of others, you can’t live long enough to make them all yourselves.”
Hope you learn something good today.
https://t.co/ClnlYg5CSN
@Dinesh_Sairam @stockifi_Invest @FinMedium @dmuthuk
More from Trading
You May Also Like
Trading view scanner process -
1 - open trading view in your browser and select stock scanner in left corner down side .
2 - touch the percentage% gain change ( and u can see higest gainer of today)
3. Then, start with 6% gainer to 20% gainer and look charts of everyone in daily Timeframe . (For fno selection u can choose 1% to 4% )
4. Then manually select the stocks which are going to give all time high BO or 52 high BO or already given.
5. U can also select those stocks which are going to give range breakout or already given range BO
6 . If in 15 min chart📊 any stock sustaing near BO zone or after BO then select it on your watchlist
7 . Now next day if any stock show momentum u can take trade in it with RM
This looks very easy & simple but,
U will amazed to see it's result if you follow proper risk management.
I did 4x my capital by trading in only momentum stocks.
I will keep sharing such learning thread 🧵 for you 🙏💞🙏
Keep learning / keep sharing 🙏
@AdityaTodmal
1 - open trading view in your browser and select stock scanner in left corner down side .
2 - touch the percentage% gain change ( and u can see higest gainer of today)
Making thread \U0001f9f5 on trading view scanner by which you can select intraday and btst stocks .
— Vikrant (@Trading0secrets) October 22, 2021
In just few hours (Without any watchlist)
Some manual efforts u have to put on it.
Soon going to share the process with u whenever it will be ready .
"How's the josh?"guys \U0001f57a\U0001f3b7\U0001f483
3. Then, start with 6% gainer to 20% gainer and look charts of everyone in daily Timeframe . (For fno selection u can choose 1% to 4% )
4. Then manually select the stocks which are going to give all time high BO or 52 high BO or already given.
5. U can also select those stocks which are going to give range breakout or already given range BO
6 . If in 15 min chart📊 any stock sustaing near BO zone or after BO then select it on your watchlist
7 . Now next day if any stock show momentum u can take trade in it with RM
This looks very easy & simple but,
U will amazed to see it's result if you follow proper risk management.
I did 4x my capital by trading in only momentum stocks.
I will keep sharing such learning thread 🧵 for you 🙏💞🙏
Keep learning / keep sharing 🙏
@AdityaTodmal
