A week back, the team from TIKR.com reached out and asked me to do a beta testing of their product for feedback.
While the platform is at its nascent stage and has a long way to go, it is very promising and better than SCREENER.IN in few aspects.
This is the platform dashboard page where you have the market news and updates as and when they arrive. I think they are pulling this from Reuters, not sure though.
You have a search bar on top in the platform, where you can search for stocks and get the requisite details. The best part is, the platform has both Indian and US equities. They have data from many exchanges across the globe.
Once you select a stock you're searching for, from the search bar dropdown, you have a single page where you can see all the details about that particular company - from recent news to financials, to con-call transcripts to recent filings.
This should be a very helpful addition in terms of the technology aided tools for understanding companies. This most likely combines the best features of trendlyne, screener, researchbytes, etc.
Whatever systems I trade (I have a couple systems I trade manually now), I trade without using leverage on top of leverage.
I primarily trade 2xATM or synthetic futures directionally, predominantly to avoid futures related slippages and reduce costs.
Banknifty futures spread is around 4 points, and slippage is usually 3-5 points one way. That is like 17-20 points two way. Add to this the commissions and all, worst case you end up looking at 20-22 points as your cost.
Nifty Futures is slightly better with respect to spread and slippage, but neither banknifty futures nor nifty futures have enough depth to scale up with, at least on intraday timeframes.
So, there has been some conversation regarding backtesting based on what I had posted few weeks back. I'll use this thread to tell you how I backtest ideas.
1. Depending on which instrument the idea is being tested for, I take the 1 lot quantity of that instrument.
2. I test for the entire in-sample period with just one lot quantity (75 if nifty, 25 if banknifty, and respective stock future unit sizes for stocks).
3. No additional lots will be added as the profits are generated.
For most, I keep 3 lakhs as starting capital with around 1.5 lakhs as the margin amount.
What this gives me is for one lot trading.
I look for the following:
1. Maximum Drawdown 2. CAGR 3. Risk vs Reward ratio 4. Average points per trade
Grab a peanut butter sandwich. I'm gonna teach you the Dividend Arbitrage strategy in @10kdiver's style ;-)
Arbitrage = Free Lunch in market. Free lunches usually don't exist, but they do exist, if you know where to look.
What amateur traders/investors think:
"Oh, this company has announced dividend. Let me buy the stock so that I can receive the dividend. I'll sell the stock just after the requisite date until which I should hold the stock. I'll then pocket the dividend. Free money yay!"
What happens:
The stock price rises leading up to the ex-dividend date, and then falls. You get the dividend, but the stock you hold falls in price equivalently. So, you're left with no profit, and if you're lucky, no loss either.
People who believe Warren Buffett to be a buy and hold investor are not very well informed.
First and foremost, Warren Buffett is a master deal-maker. And he's an expert at using derivatives to protect himself.
If he were only a buy and hold investor, he'd not be this rich.
More often than not, he's used a combination of derivatives, complex instruments in order to create a what's called "heads I win, tails I don't lose much" scenario, like the deal he did with Goldman Sachs during the housing crash.
This superb mastery of the use of right derivative instruments with the most opportune timing backed by his cash holdings has created wealth for him beyond what a simple buy and hold would have.
1. A lot of content on trading that you find on Youtube is utterly and absolutely worthless. More like 99%.
Google's job is to give you the best results - based on likes, comments, interactions, etc.
The people who do the search decide what gets ranked where. New traders searching for terms makes Youtube figure out what terms are searched more.
The Youtubers figure out what terms are searched more and create content based on those terms.
Most of the creators aren't creating content that's super valuable that you should watch, because that content will not be ranked by Google. Coz, Google only ranks the content that people are looking for.
The problem is that people don't know what to look for.