THREAD // How I Invest

1. Successful Investing starts with Education
2. Psychology of Trading & General Rules
3. Essentials of Fundamental Analysis
4. Master Technical Analysis
5. Screening for Stocks
6. Making a Watchlist
7. Money Management
8. Diversification of Accounts

1 // Successful Investing starts with Education

Following 2000-2002, I realized that I needed an education to help me understand many of the topics mentioned in this thread.

So, I started to educated myself using books. Seek mentors as well.

Then DO!

https://t.co/zA1m0lxH9n
2 // Psychology of Trading & General Rules

Develop a working SYSTEM (for you)
Preservation of capital
Consistent profitability
Cutting losses short
Superior returns

Understanding “You”:
What is your general personality?
What influences your decisions?
What is your lifestyle?
3a // Essentials of Fundamental Analysis

Earnings Per Share:
1. % Change in Latest Qtr EPS vs. Same QTR Prior Year
2. % Increase in Next Year’s EPS Estimate vs Prior Year’s Actual EPS
3. % Change in Latest EPS, trend past several qtrs
4. Annual % EPS Growth Rate of Last 3 Years
3b // Essentials of Fundamental Analysis

Sales / Revenues
1. % Change Latest Qtr’s Sales vs. Same Qtr Prior Year
2. % Change Latest Reported Fiscal Year Sales vs. Prior Year
3. % Change in Latest Sales, trend past several qtrs
4. Annual % Sales Growth Rate of Last 3 Years
3c // Essentials of Fundamental Analysis

Other items I analyze:

1. Increasing Return on Equity (ROE)
2. Cash flows
3. Net Income
4. Price/Earnings Growth (PEG)
5. Valuation
6. Market Cap & opportunity
7. Institutional Sponsorship
8. New &/or growing product or service
4a // Master Technical Analysis

Preferred graphic is Candlestick Charts
Focus on Daily & Weekly Charts

What to Look for:
1. Properly Forming Bases
2. Major Moving Averages (50d & 200d)
3. Support & resistance areas
4. Volume
5. Pivot Points
6. Breakout Areas
4b // Master Technical Analysis

Always understand breadth: New Highs vs. New Lows Ratio

Extreme readings on NH-NL ratio signal a change in trend coming.

Look for increasing accumulation days (stock up on above average volume).

Zoom out to monthly charts every so often.
5a // Screening for Stocks

1. Quality Stocks making New 52-week Highs
2. Quality Stocks w/ a recent IPO (past few years)
3. Institutional Sponsorship Increasing
4. Quality Stocks trading within 15% of 52-week Highs
5. Quality Stocks within 10% of the 200-day Moving Average
5b // Screening for Stocks

6. Quality stocks with a strong daily &/or weekly close
7. Sales & Earnings rising, QoQ
8. Quality stocks trading between the 50d & 200d ma

*CANSLIM Quality:
Earnings Per Share (EPS) Rating: From 60-99
Relative Price Strength (RS) Rating: From 60-99
6 // Making a Watchlist

Filter stocks up 2% or more
Volume greater than average by at least 50%
Seek stocks that are making multiple screens

Technical criteria:
Identify trend (up or down)
Recognize base
Identify pivot or breakout area
Establish support & resistance levels
7a // Money Management

Position Sizing (Risk Management):

1. Understand “how much” money to trade on each position
2. Know account size & available funds
3. Determine maximum risk per position
4. Never exceed max risk = potential blow up of account
7b // Money Management

Expectancy**:
1. Reliability, % of time one makes money
2. Size of Profits vs Losses
3. Cost of making a trade
4. Opportunity to trade (how often)

** Doesn't always apply to longer term discretionary investors.
8 // Diversification of Accounts

Breakdown of our investments (by size):

1.Long term IRA portfolio
https://t.co/iMuBbtUK4l growth portfolio
3.Crypto portfolio
https://t.co/oZLUkOne6Z stock
5.Index funds

*Real Estate & Business excluded
BOUNS: Interview

https://t.co/6NUnBNb7ck
9 // Presentation

How to Invest While Working Full Time

https://t.co/r6Q4dtoASB
https://t.co/5a8HqA8iHI

More from Tradingthread

My threads, data, tools I use, investment philosophy and frequently asked questions. Please review these links.

1. Overview
https://t.co/p2gjgPvhHG
2. Investing Process
https://t.co/ZpJeN0JiSV
3. Tools I use and

4. Market Analysis
https://t.co/Ol9POhXMiV

5. Due diligence and deep dives on stocks
https://t.co/0oTNNsXuwr

6. General

7. My ongoing

8. List of about 20+ email newsletters in investing / technology and self help that I would

9. I do a lot of writing about IPOs and like to research new companies.

You can follow my writing and subscribe (Free) at
🚨CRASH COURSE THREAD🚨

Below YOU will find a thread to ALL my #InestrTradesCrashCourse!

Please ❤️Like, 🔁Retweet & ✅Follow if you want more videos!

I Will continue to add content to this as I create more crash courses for you guys!

Tools Used:
@unusual_whales

https://t.co/6HpP0YeJoj


https://t.co/It3cOSqxkj


https://t.co/lc7HAXqXKz

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The first ever world map was sketched thousands of years ago by Indian saint
“Ramanujacharya” who simply translated the following verse from Mahabharat and gave the world its real face

In Mahabharat,it is described how 'Maharishi Ved Vyasa' gave away his divine vision to Sanjay


Dhritarashtra's charioteer so that he could describe him the events of the upcoming war.

But, even before questions of war could begin, Dhritarashtra asked him to describe how the world looks like from space.

This is how he described the face of the world:

सुदर्शनं प्रवक्ष्यामि द्वीपं तु कुरुनन्दन। परिमण्डलो महाराज द्वीपोऽसौ चक्रसंस्थितः॥
यथा हि पुरुषः पश्येदादर्शे मुखमात्मनः। एवं सुदर्शनद्वीपो दृश्यते चन्द्रमण्डले॥ द्विरंशे पिप्पलस्तत्र द्विरंशे च शशो महान्।

—वेद व्यास, भीष्म पर्व, महाभारत


Meaning:-

हे कुरुनन्दन ! सुदर्शन नामक यह द्वीप चक्र की भाँति गोलाकार स्थित है, जैसे पुरुष दर्पण में अपना मुख देखता है, उसी प्रकार यह द्वीप चन्द्रमण्डल में दिखायी देता है। इसके दो अंशो मे पीपल और दो अंशो मे विशाल शश (खरगोश) दिखायी देता है।


Meaning: "Just like a man sees his face in the mirror, so does the Earth appears in the Universe. In the first part you see leaves of the Peepal Tree, and in the next part you see a Rabbit."

Based on this shloka, Saint Ramanujacharya sketched out the map, but the world laughed