I just finished watching this amazing podcast from @vivbajaj. Loved it. Here’s a short thread on 10 most important lessons you can learn from @Nithin0dha
Focus on that one thing you really love the most and go after it.
If you are someone who is not good at programming , you should start learning how to sell? That’s the most important skill in life.
Markets are random, but how technical analysis still works?
The mistake that most traders do is…
How a client made 2.5 crores in two days with just one lac capital?
Biggest learning from Kailash - avoid technological debt
Advice for entrepreneurs who are looking to raise funds.
Our revenues go down 50% any day due to any external events, we are prepared for it since this is the most unpredictable industry.
What’s the USP of Zerodha? Pricing? Tech? No, it’s the credibility and transparency they built it over the years which competitors can’t replicate easily.
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Russian stock market crashed more than 70%, many investors are worried on what would happen if such things happen to Indian markets? Here's couple of important lesson you need to keep in mind before you start your SIP journey. A short thread
Do you know how much is the Asset under management of our mutual fund industry? It's 38.89 Lakh Crore (INR 38.89Trillion) which is 14% of India's GDP. Monthly SIP inflow in Indian mutual fund is more than Rs.11,500 crores. And this is expected to grow much higher in coming years.
Start Early:
It doesn't matter whether you invest 1000 or 10,000, the sooner you start SIP investments better it is. Consider the below table, a 25 year old guy starts with Rs.10,000 monthly SIP for next 35 years. All he has to do is just increase the SIP amount 10% every year.
In recent days, rule based trading or mechanical trading system is on limelight. Every beginner considers that system trading is the sure shot way to profitable trading journey. But there are certain pitfalls in mechanical trading system that no one talks about. Here's a short 🧵
Time Drawdown hurts more:
Many traders after spending so much of time with backtest, when they finally get started with live trading all they have in their mind is metrics like Profits, max loss, max drawdown, losing streaks etc. But they hardly give importance to time drawdown
When trading system is not performing well for months, first think that comes to our mind is
1. Is the system stopped working? 2. Should I stop using the system and paper trade it until it comes out of drawdown? 3. Should I tweak the system to adapt to current market condition?
Many beginners give utmost importance to trading strategy but least bothered about position sizing. Knowing how much is too much in a trade? This information is very crucial which determines the long term success of a trader. In this thread will explain what is position sizing
We all know that people who invested after Paytm was listed lost 50% of their capital. But there is this one type of investor despite losing 50% in Pay Tm he is calm, it doesn’t affect him much.Whereas there is other guy who lost his sleep investing his hard-earned money in PayTm
We know that the stock lost 50% in short span of time, the outcome is same for both investor, but how come it doesn’t impact the first guy? The answer lies in position sizing.
When you are designing a trading/investing strategy, here’s a list of things you need to keep in mind. A short thread🧵
1. Returns expectation - You need to set a realistic return expectations. Making 100% 200% year on year is not possible at all. Do not get fooled by MTM screenshots, do not just go by absolute numbers The average returns of the prominent traders/Investors are just 20% to 30%
2. Know what you don’t know - In Mahabharata, Duryodhana won the bet because he knows that he didn’t know how to gamble. So he used his uncle to play the game. Whereas Dharma lost the bet because he didn’t know how to play the game. This is so true with respect to trading as well
What’s your main source of learning with respect to Trading/Investing? Here’s the three resources which I used the most to gain great insights.
1. Podcast - bettersystemtrader.com There are more than 200 episodes of Interviews from TOP traders around the world. And there is one more channel called Chat with Traders. The kind of insights you get from these traders is enormous which you wouldn’t find else where.
2. Tons of research articles are published by top researchers here related to quantitative trading and investing ssrn.com/index.cfm/en/ I spend lot of my time on this site reading about multiple journals.
Whenever #Nifty & #BankNifty closes less than -1% on Fridays, what happens on Monday and what happens on next 30 days. Interesting analysis, will be sharing the details shortly.
Only 7 times in last 11 years, #IndiaVix moved more than 15% on Fridays and only 2 times Vix dropped on following Monday, rest all the time Vix increased on Monday as well.
After Friday’s Vix big move, What happens after 30 days, all 7 times the Vix went up much higher in next 30 days. So this Friday’s fall could be start of the next big volatile sessions in the coming weeks