few super-duper traders who when get right often seen these days mocking investors, warren buffet quotes
I will say in stock market both have their time.. some times traders feel investors are dumb, sometimes investors feel traders are dumb
as both investor and trader I can say
yes, I m enjoying making money by shorting but at the same time, I can feel the pain of investors as my own portfolio is bleeding but this is a part of the game and a process through which everyone has to go.
at this time I remember quotes of warren buffet and few learnings----
a thread-
Let's start with Warren’s Quote "Unless you can watch your stock holding decline by 50 percent without becoming panic-stricken, you should not be in the stock market."
before going forward something for retail- 1) We have talked about this quite often “ 5 ways Sure Shot ways to loose money in
Stock Market” “Barbaad hone ke stock markets mein 5 tarikke hote hai”
a) Intraday Trading on Margin
b) Futures c) Options d) Currency e) Commodity (if not for hedging)
Some people might say that they had short positions and they made money in this fall(including me).
only comment would be, continue trading on leverage same way for few more months or years,
most probably you would understand-"barbad hone ke tarike"
(as a human being I know there will be days where I will become overconfident and commit some mistake and that mistake will be enough to wipe ac.. so in order to keep myself safe I keep 2 diff ac - trading/investing
I trade with 5 to 8% of my net cap at any adverse situation.
in this way I keep my trading keera calm and keep on practicing Technical analysis which is my passion and this i have been advising all my friends and followers)
2) Stock Markets are profitable only because they are uncertain.
You cannot predict where the bad news will come from but you can always be prepared for it. (yes bank/ oil price and coronavirus) atleast coronavirus was very
unpredictable.
so what it taught to investors?
I have been taught by my guru -
"prepare for the worst"
question comes how?
so it goes like this
a) Planning for goals within 5 years in debt. (Some of us get excited when the markets do well and start investing in the stock market even for short term goals.)
b) Planning for long term important life goals by SIP in Index. If you are SIPping for long term goals, generally lower levels of the index should make you happier, as
you can buy more units(so its good time for sip investors)
c) Monitoring, if goals have been achieved because of higher Index levels.
(Sometimes markets might go very high and even if you transfer your sip investments to debt funds you might be able to achieve your long term goals and
eliminate the volatility risk as your goals come closer)
d) Creating a separate wealth maximization account (Surplus money that is not required for say 10 years and not required for an important goal). #investing #trading #wealthmanagement
• • •
Missing some Tweet in this thread? You can try to
force a refresh
#nifty topped out on 27th sept
on 30th sept gapped down
so first significant bear entry came there- #monday gap
but lets see few stocks where gap happened in either Aug or in 1st week of sept which were easy to catch as a short trade.
#Sail corrected 20% from 30th sept
this stock didn't had any gap down but it was most easiest breakdown patterns we can
1) Never mess with trend 2) Never anticipate reversal unless u get a signals on higher time frame
and most important - In strong trend - never see RSI or divergence especially on upside - u will be butchered.
😎
thats how i used extension to derive bnf target...
either it has to be imp level or it has to be candlestick signal
lets say if i m in trade - i will find out imp resistance zone
and will keep riding trend by using any indicator or swing
like this was support for me as I was in Long trade.
chalo u missed early move and wanted to catch momentum -- check chart 2
above 61.8% momentum
now people say -- day trading kaise karein?
go check the retracement both day
Both day were easy to hit long
u needed to understand trend and where to exit.
both day have suggested long in #innercircle same. #bnf
let me post some 100 #fibbonaci number wonders on long term chart.
Post your chart too with #fibbonaci, make sure chart is clean.
this is number 1 in list #ibrealestate
in 2021 it was one of the hot stock - Infact I was also excited took entry at top despite I was seeing Golden ratio rejection.
what happened next is history.
the very same stock took eyeball again few months back -- people went gaga
even we went long -- but exited sharp at 61.8%
Most of young boys who came to me for Job are-
1)Not even Graduate 2) Think for stock market related Job - degree doesn't matter* 3) No communication skill 4) No Financial Backing 5) Highly motivated from social media. 6) Know how to plot Trendline on name of skill.
We are seriously rotting down our youth - One through excessive use of CC another by Encouraging a lot to Take Trading as profession( its not bad though but not easy though)
Majority of youth build their initial capital either by taking loan from family or from friends or bank
and start trading, majority of them are in Debt as they are highly motivated to Build cap big and hence take Insane leverage and fuck up...