Our focus at @RainmatterOrg is to help create green jobs, livelihoods & help preserve the environment using sustainable agri practices. In that journey, we're super delighted to join @madhuchandansc & @organicmandya on their mission to change farming & improve lives of farmers1/8
@organicmandya has helped create kitchen gardens with fruit tree saplings in 5,000+ homes. Through Sunday Santhes in Mandya, they're creating direct farmer to consumer relationships. 2/8 grove.rainmatter.org/t/announcement…
They are also providing free training at @organicmandya farms to 500-600 people a month to help them create livelihoods from small farms using organic farming methods. 3/8
There's an interesting backstory here too. On the same day, we first met @organicmandya (OM), we also got an email from @kunalb11 saying the $200k we had invested in @CRED_club first round was now worth 20 times🚀 asking if we wanted any exit. 4/8
Not that we had to sell stake (partially) in CRED to invest in OM. But this was a good opportunity to put it out there that even if a fraction of love that goes to startups went towards social enterprises solving real-life problems, we can have more inclusive growth in India 5/8
The quick returns on CRED were quite crazy, felt unreal like CRED Coins. I even jokingly mentioned to @kunalb11 that us investing in @organicmandya is probably the best use of CRED Coins so far😬6/8
You'd be surprised at how much impact a small group of dedicated people and patient capital focused on solving real-life problems can have to create inclusive growth in India. 7/8
I get asked often, who out there do you think can disrupt the new-age online brokers or even exchanges?
Me: I don’t think it will be another stock brokerage firm or a new stock exchange. It will most likely be an outsider, maybe Crypto. Here is why👇 1/6
In broking or exchange business, both on pricing and product, there is not much left to disrupt. Unless of course, someone figures a way to pay people money for trading (-ve brokerage😉not allowed by regulation) or figures a way to help all customers make money (😬very tough) 2/6
Brokers & exchanges depend on a small group of active traders, ~1million traders for revenue. If they start trading something else, that will disrupt everything. Btw, active traders also provide liquidity, reduce impact cost & risk, & help better price discovery. 3/6
What most traders don't realize is that they pay a good chunk of their capital as costs. If you add impact costs, the minimum return an active trader should generate to break even yearly on their portfolio is usually well above 20%. Yep, that high and that tough.
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Costs include
Statutory costs like STT, Stamp duty, GST
Impact costs or slippages (while this doesn’t even seem like a cost, it adds up quickly. Especially when buying options, will have a post on this soon).
Trading costs like brokerage and exchange charges. 2/4
This breakeven % is a high hurdle as most traders take largest possible positions every trade with their capital without considering costs
The way to reduce the impact of costs & increasing the odds of winning is by reducing the trading size (% of capital deployed per trade) 3/4
We @zerodhaonline are stoked about the new tagging feature on Console. Tagging your trades and maintaining a trading journal can help you become a better trader and also help you track your investment goals. zerodha.com/z-connect/cons… 1/5
You can't become a better trader if you don't learn from your mistakes. But in order to learn, you need a proper journal of all your trades and the reasons you took the trades. You can then look back, review, and do more of what is working & less of what isn't. 2/5
Most traders don't maintain a journal because it takes some effort to tag trades, take notes & track P&L. This was a personal problem for me back when I was trading. So I'm super excited to announce the launch of Console tags which helps you easily journal your trades. 3/5
I’m surprised by the unwanted noise around this whole salary news of @nikhilkamathcio, Seema (my wife), & me. The headlines are misleading. We are a private company & no obligations to clarify, but we thought maybe we should, as there are folks who are misinterpreting this. 1/7
Firstly the reported figure isn’t the actual salary being drawn. This is an enabling resolution that allows us as working promoters to draw salaries up to the number in case of liquidity requirements. Didn’t anticipate that this would get this much attention. 2/7
Running a business is like trading, you can be up or down very easily. It is important to take liquidity out when you are “up” to de-risk. We have always done this, ~15% of profits. This also helps us in supporting our personal investments in small businesses & social causes 3/7
Last 2 years have been spectacular for @zerodhaonline. Lucky to be at right place right time, ready with products & initiatives when there was a surge in retail participation. With success, what I say gets valued more 😬Here are a few questions that we get asked frequently 1/11
Why haven’t we raised any external capital, especially at times like these when we could get some crazy valuation?
Why do very few startups bootstrap (not raise funding)?
While the obvious answer might be the easy availability of risk capital today that can help a business grow fast. But there is another reason why startups focus on growth & valuation rather than profits - Taxation. 3/11
About intraday leverages being further reduced to a Max of 5 times for stocks & minimum SPAN+Exposure for F&O from Sep 1st 2021, ANMI (NSE member association) has created a presentation requesting for this to be reconsidered.
Here are the arguments being made
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Margin calculation logic (SPAN or VAR) doesn’t differentiate between intraday and overnight positions. Margins are collected to cover for risk. Intraday positions carry a much lower risk than overnight, so ideally the margin requirement should also be lesser. 2/8
SPAN calculation methodology changed in 2020. Volatility measure increased to 6 sigma from 3.5, SPAN margin period of risk(MPOR) covers for 2 days. Exposure margins to cover risk beyond 2 days.
Our margin requirement structure now is maybe among the toughest in the world. 3/8