If you are someone who spends more time on analyzing markets during trading, then this for you. Certain traders will create their own bullish or bearish view in their mind but seek confirmation for their trades which is called as confirmation bias. #tradingpsychology 1/15

https://twitter.com/kirubaakaran/status/1338314321428762624

We do not like people or information that contradicts our thoughts. We like them when they confirm what we think. Hence, we tend to place more weight on information that confirms our trade position. Example- You think market is bullish & wanted to go on a long position,

Next a new bullish bar prints on the chart. You would think "Yes, my bullish proposition is still valid" (even though this bullish bar is smaller range)

Read 16 tweets

Kirubakaran Rajendran

@kirubaakaran

8 Dec 20

Analyzed last 12 years of historical data to check if there are any patterns we can observe to find the best time to invest in stocks for long term. #Nifty50 #investing #stocks 1/10

This is how Nifty moved in last 15 years with three major corrections, in the year 2008,then around 2016 and then year 2020 due to Coronavirus. Only when we look back with hindsight bias we could say those were the best time to invest. But is there really any quantitative method?

200 day moving average is something that is widely used by many investors to check for long term trend. Where investors consider if stocks trades above 200 DMA, its in bullish phase and if it trades below 200 DMA its in bearish phase.

Read 10 tweets

Kirubakaran Rajendran

@kirubaakaran

23 Sep 20

In 1983,a young talented guitarist was kicked out of his own band. Just before the band was about to sign a record deal, he was kicked out. No warning,no discussion, they literally woke up him up one day handing him a bus ticket home. He has put in lot of effort but now ... 1/n

When he was about to taste the success, He is thrown out, had he missed his one and only shot? He couldn't control his tears on his way back home in the bus. By the time, bus reached his destination, he made up his mind. He decided to start his own band,

he is so determined that his new band would be so successful that his old band would forever regret their decision. He spent months focusing his band, recruiting far better musicians than his old band, wrote dozens of songs and practiced religiously. His anger fueled his ambition

Read 9 tweets

Kirubakaran Rajendran

@kirubaakaran

20 Aug 20

This is an excellent perspective, The Peter Lynch way. Invest in companies that produce commodity or Invest in companies that help them produce commodities. Choose wisely. Here’s an example with Indian context 1/n

#TataSteel vs other companies that helps TataSteel to produce goods.

Companies that produce medicines or Invest in companies that supply raw material for manufacturing medicines.

Read 5 tweets

Share this page!

Kirubakaran Rajendran

Try unrolling a thread yourself!

More from @kirubaakaran

Kirubakaran Rajendran

Kirubakaran Rajendran

Kirubakaran Rajendran

Kirubakaran Rajendran

Kirubakaran Rajendran

Kirubakaran Rajendran

Did Thread Reader help you today?

Like this author's thread?