Some people have asked me how many things you are into and how do you manage? 🧵 for my friends here.
1. Entrepreneur
a. Co-owner of Kredent Trading, one of the largest prop trading firms in Kolkata with over 150 full-time traders. Other co-owners are my amazing brothers.
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b. Co-owner of Irage, one of the largest algo trading firms in India with over 50 technocrats trading using technology. Other co-owners are my amazing partners like @graizada@niteshkh and other three low profile gentlemen Rajib, Sameer, Anil.
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d. Cofounder and Active Investor in @QuantInsti, one of the top global algo training firms with learners from over multiple countries. The show managed and run by my brother and and amazing human @niteshkh
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2. Stock Market Trader and Investor
I am into momentum trading and investing and trade only when there is a significant opportunity. I was an active full day multiasset trader before I moved it into passive trading. This has given me peace and time for other activities.
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I write, I record, I have fun. Supporting me is my lovely team @Shruvika@shuchi1114 and others.
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4. Learner
I learn from books, videos and markets. I try to spend at least 10 hours every week on books. At least 10 hours weekly on some helpful video/course. Daily 1 hour on market during marker hour and 1 hour on market after market hour.
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5. Fitness
Daily 1 hour, at least, on various fitness/sports activities. If you are not fit, it shows in your body, stamina, and mind. Fitness is not an option anymore. Especially if you are over 40. The earliest we realise, we live a great life.
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Question is what makes me do these?
a. Because I am a people's person and I know how to work with suitable partners, the right team. They get the work done from me; I don't ask them to do work.
b. I am hungry and foolish for knowledge. I always feel like a learner.
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Always remember this, there is no limit to anything if you merge your passion with your performance.
Also, being human is the greatest gift we all should cherish.
Finally, you will get from society what you deserve and not what you want.
Have a soft heart and an active mind.
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In my 15 years plus career in markets, I have witnessed multiple regulatory changes. Some good, some bad. Stock market is one of the most regulated businesses. Reason ? It's about money, honey. If not done the right way, the entire structure could collapse as house of cards.
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Every 4 to 5 years we have seen some major changes in market microstructure in India. Be it STT then removal of income tax rebate on STT,then algo trading,then additional margins on stock futures, then CTT,then introduction of currency cost, then uniform stamp duty etc.
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As markets evolve the regulatory changes becomes inevitable.Infact sometimes, these regulatory changes lead to change in market behavior. It's not about retail vs. institutions.Finally everyone looses if market looses genuine liquidity.I have always moved on at every stage.
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The biggest problem for a modern day entreprenuer is that the business is monthly cash flow positive and you don't feel the need of raising external capital.
Not raising external capital at early stage will delay the potential of becoming investment ready.
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Obviously there are exceptions who create money making machines and don't need external capital forever. But those are strictly exceptions.
I have learned this hard way in last 3 years. Spending too much time on product, revenue and profit can be counter productive.
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My humble submission to all buddying entreprenuers,don't consider fund raising as an incident need but as the part of the product lifecycle. Here is the flow
1. Deploy your very small capital and build product prototype 2. Raise seed capital immediately to gain traction
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This circular from NSE has potential to massively reduce liquidity in market as market makers who are actively giving bid and ask may find it difficult to maintain the optimal order to trade ratio.
Thread on this.
Who are Market Makers ?
These are high frequency traders (algorithms now) which are always there in the market depth to provide entry and exit to various market participants.
They are typically providing bid and ask at every depth of the market. Hence lots of orders.
There is always high order to trade ratio for these market makers as number of trades executed out of these orders are not within their control. Market is very dynamic and one has to remain with their orders to capitalize on any execution on both side.
The most simplest way of identifying stocks for your momentum swing trading. Something which has worked for me for years now and hence we have added the model in @mystockedge for individual investors.
After analyzing the financial statement (FY20) of 10 fintech companies, including mine I have come to the following conclusion about Indian fintech customers in this thread:
1. Retail Subscriptions based services has not picked up in India for serious domains like financials
2. Indian consumers love free service and won't mind if you make indirect earnings from them by pushing advertisements and third party products. 3. Difficult to charge customer for advisory as very few people would value the same, especially online
4. Cross selling is the final game, so mutual fund distributors and/or nextgen stock brokers will eventually sell high yield services like loan/global markets etc to their existing customer base.
But question remains will that truly lead to conversions ?