BC TRADING
Saved by @SteveeRogerr

Worried about the stock market?

Is this really the top?

Pull up a (virtual) chair and let’s chat 🪑

👇

 So. Things are getting a little crazy out there.

TikTokers are spewing financial advice.

Carole Baskin is peddling penny stocks.

Everybody’s like “OMG my mom’s-best-friend’s-cousin made so much money in the market, c’mon it’s so easy!”
Makes you feel a little like this, right?
(couldn't resist the Zoolander reference)
Anyways,

Your portfolio is up, but Wall Street is throwing around the b-word (bubble) and you’re afraid it’s about to pop.

What do you do now?
First, you need to BREATHE. Don’t make any rash decisions.

You don’t know if this is the top. Nobody does.

Here's a dirty little secret: even the smartest Wall Street investors have a terrible track record with calling the top.
Why? Because 99% of all record highs haven’t been the top.

There were 1,150 $SPX record highs from 1950 to mid-December 2019.

Only 13 of those record highs weren't followed by another record high in the next 12 months.

https://t.co/27OBXsX1UF
OK, so you're not gonna call the top here. Good.

But you don’t know what happens next.

You can’t control the future, but let’s focus on what you CAN control.
Do you need your invested money soon (like in the next five years)?

If you do, then maybe you should take some profits. Don’t get greedy.

If you sell, consider putting those profits in more conservative assets, like bonds or cash.
BTW, I like this piece from @dollarsanddata on knowing when to sell in a crazy market:

https://t.co/d1ZzjuY8zm
Are you able to wait a few years? Then it make may sense to be patient and stay invested.

Market drops are painful, but stocks have always bounced back.

Since 1950, bear markets (20% drops) in the S&P 500 have taken an average of 25 months to recover.
FYI: The S&P 500’s tech bubble market recovery took about 5 years.

The financial crisis recovery took 4 years.
That sounds hard, though.

You can’t stomach a big drop in your investments!

Have some perspective.

The S&P 500 has rallied 70% since March, and is now 13% above its pre-pandemic highs.

We've come a long way.
If you’re truly worried you’ll make a rash decision and sell in a market slide, then consider diversifying.

Add some conservative assets (bonds, cash) to your portfolio.

They could help soften the blow if stocks get hammered.

https://t.co/FzX1EBMiX2
Feeling better? I hope so.

Selloffs can be scary, but the best investors know how you react to them is what truly matters.

You’ve got this 👊

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𝐑𝐮𝐥𝐞𝐬 𝐨𝐟 𝐈𝐧𝐯𝐞𝐬𝐭𝐢𝐧𝐠 𝐓𝐡𝐫𝐞𝐚𝐝
The entire thread summarizes some important rules with respect to investing. Inspired by legendary traders,these will not only help you to grow wealth,but also make a smart investor. Hope you would like the thread & shower some love

Rule 1: Bulls, Bears Make Money, Pigs Get Slaughtered so chose your category wisely
Rule 2: It's OK to Pay the Taxes,Dont just wait for a 10% LTCG always. Sometimes you know it won't pay you
Rule 3: Don't Buy All at Once,Have patience market will give enough opportunities

Rule 4: Buy Damaged Stocks, Not Damaged Companies. Understand the diff b/w undervalued stocks and no value stocks. Everything cheap is not bargain,it could be trap.
Rule 5: Diversify to Control Risk,make sure you don't put everything into one stock,one sector or one asset class.

Rule 6: Do Your Stock Homework. You spend 5 hours to buy a cream on Amazon but research for 1 hr based on buying a stock on twitter! Well,do your homework.

Rule 7: No One Made a Dime by Panicking .Invest 2-10% and leave rest. If it falls,pain will be low,if moves,no FOMO haunt

Rule 8: Buy Best-of-Breed Companies,This doesnt mean you have to invest in the most expensive companies,all it means is you need to buy co.s with good earnings,promoters and sustainability
Rule 9: Defend Some Stocks, Not All
Rule 10: Bad Buys Won't Become Takeovers,STOP hoping
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Sahil Bloom
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Circle of Competence 101

Warren Buffett and Charlie Munger often reference the importance of knowing the boundaries of your circle of competence.

But what is a Circle of Competence and how does it work?

Here's Circle of Competence 101!


1/ First, a few definitions.

A Circle of Competence is the set of topic areas that align with a person's expertise.

If the entire world of information were to be expressed in a circle, an individual's Circle of Competence is the small sub-circle that represents their expertise.


2/ The idea surfaced in the 1996 BH annual letter.

"You don’t have to be an expert on every company...you only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital."


3/ A Circle of Competence is built over time.

It is built through experience, reading, dedicated study, and effort.

It is dynamic, not static.

It can expand as you deepen your knowledge in new areas. It can contract if you fail to nurture your existing areas of expertise.

4/ To engage this mental model in your life, there are two key processes to go through:

(1) Identify what falls within your circle
(2) Identify the boundaries of your circle

(1) is all about figuring out what you know, while (2) is about humbly admitting what you don’t.
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I have to wear shoes? \U0001f339
I have to wear shoes? ...
@migbike
A thread about GameStop:

Big hedge funds made big bets that GameStop’s stock was overvalued. The way these bets work is the hedge fund borrows shares of the stock and sells those borrowed shares.

When it comes time to give the borrowed shares back, they buy them on the market, hopefully at lower prices. For example, they might sell the borrowed share at $50, hoping to be able to buy the share back at $30, to make a $20 profit. This is called shorting.

The hedge funds were so sure that GameStop was going down, that GameStop was the most shorted stock on the market. 140% of the shares in existence were “borrowed.” Imagine Bob borrows from Jane who borrows from Sue who borrows from John.

Shorting is risky, but the hedge funds were so sure that they just didn’t even care. People on Reddit realized this and basically thought “what if we all just bought shares and refused to sell them when the hedge funds need to give their borrowed shares back.”

The price goes up, the hedge funds are forced to buy back the expensive shares and lose money. Except the hedge funds kept doubling down as the price rode up, expecting that it would eventually fall. The Redditors weren't scared off and with "diamond hands" refused to sell.
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Greg Duncan \U0001f981
Greg Duncan 🦁
@GregDuncan_
Many traders have no consistency when sizing their positions.

The pros have this down to a science.

Here's my dead simple, 3-step guide to position sizing (and to outperforming 99% of other traders in the process):

Step 1:

Define how much of your account you're willing to risk per trade.

Personally, I never risk more than 1% of my account equity.

If I have $100,000 account, I will never risk more $1,000.

This ensures I will never blow up my account on one single trade.

There are successful traders who risk 2-3% of their account per trade, but I find it most calming to risk 1% or less.

The first step in this process is completely up to you - only you can dictate how much risk you can tolerate.

Step 2:

Look for entries & exits that are within 5% (preferably less) of each other.

This means if I buy a stock & have a 5% stop loss, I can put a 20% equity position on & still be risking 1% of my equity.

Your account will thank you w/ 20% in a stock that goes up 100%.

Step 3:

Position size using this formula:

Total equity (100%) / Trade Stop Loss %

So, if your stop loss is 4%, here's the math:

100% equity / 4% stop loss = 25% Equity Position Size

(assuming 1% equity risk).

Here's another hypothetical calculation:
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Saurabh Bajaj
Saurabh Bajaj
@JigyasuInvestor
Saturday Thread Time.
Re-Read interview of Ed Seykota from @jackschwager
book "Market Wizards". It's the most philosophical interview among all interviews. Needs to re-read it over and over.
@vivbajaj Sir, a re-tweet would be highly appreciated.

1. Systems don’t need to be changed. The trick is for a trader to develop a system with which he is compatible

2. The key to long-term survival and prosperity has a lot to do with the money management techniques incorporated into the technical system.

3. The profitability of trading systems seems to move in cycles. Periods during which trend-following systems are highly successful will lead to their increased popularity.

3.1 As the number of system users increases, and the markets shift from trending to directionless price action, these systems become unprofitable, and undercapitalized and inexperienced traders will get shaken out. Longevity is the key to success.

4. In order of importance to me are (1) the long-term trend, (2) the current chart pattern, and (3) picking a good spot to buy or sell.
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1/ I must stress how unbelievably complex the "Grand Bargain" theory of the Trump-Russia case is—a different thing from saying it's not substantiated. It's substantiated in *almost every single particular*—it just *also* happens to be very confusing. Not byzantine—just confusing.

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After 17 years and more than 300 races, it could be @alo_oficial's last F1 race on Sunday 😭 He's given us a lot over the years... including some superb GIFs!

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The Chanting of following names of Bhagwan Vishnu, immensely helps us in overcoming the obstacles in our daily life.
These names are from Sri Vishnu Sahasranama!
|. "Om Vashatkaaraaya Namaha" : For Success in Business.
||. "Om Aksharaaya Namaha" : For Success in Studies.


|||. "Om Bhuthabhavanaya Namaha" : For Good Health.
|V. "Om Paramaathmane Namaha" : For Self Confidence.

Src: VAK magazine from Chilkur Balaji Temple, Hyderabad - Sri @csranga
#SanatanaDharma #SanatanaSanskriti #Sattology

One needs to chant the following slokas 28 times to get rid of certain problems in life.
Om Hrushikesaya Namah - For Overcoming Bad habits
Om Vashatkaaraya Namah - For Success in Business, Interviews, visa interviews, building relationships


Om Srimate Namah - For Handsome appearance & wealth
Om Aksharaya Namah - For Education & better financial strength
Om Paramatmane Namah - For self employed people, for promotions and success in games.
Om Putatmane Namah - To remove mental stress & for mental peace


Om Sarmane Namah - For Job Satisfaction
Om Bhutadaye Namah -To amend soured friendship or any personal relationship
Om Dhatre Namah - For issueless couple
Om vidhatre Namah - Pregnant Ladies to Chant for healthy babies.
Chant the following 108 times :
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GREG ISENBERG
GREG ISENBERG
@gregisenberg
Life is crazy. Today is a good day to stop and reflect

10 simple questions that CHANGED my life

(startup life, personal life)

Here they are:

Q: Can you really control that?

Smart people know what they can and cannot control

If you're living in the past, you're nostalgic
If you're living in the future, you're anxious
If you're living in the present, you're at peace

Q: Did you start today with a victory?

Starting every day with a victory sets you up to win

I don't care what it is:

- Make your bed
- Make a wonderful coffee
- Hug your wife or children

No such thing as a small win. It's a win!

You'll win more, if you start winning early

Q: What are you optimizing for?

#MFSA
1. Money
2. Freedom
3. Stability
4. Ability

The world rewards those who are focused

Perfectly prioritize

Are you being optimistic?

Guaranteed: more luck when you're optimistic
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