We might not realize it, but trading is a demanding activity & can be incredibly stressful. Most traders spend most of their time thinking about the markets & their P&L but not nearly enough about their mental wellness. zerodha.com/varsity/chapte…
If you ignore stress and anxiety, they always catch up—our bodies keep score. What's the point of making money, if you aren't healthy.
Your physical health is influenced by your mental health. If you're stressed, it'll show up physically.
Taking care of your mental well-being isn't rocket science. The basics like eating well, getting enough sleep, regular exercise, periodic breaks, & spending time with your family can go a long way.
More broadly, money is one of the biggest sources of stress. While there will always be things out of our control, there are plenty of things in our control. Making sure we make the right decisions with money can go a long way in reducing stress.
Most of us are one serious health issue away from facing financial difficulties. Regular health checkups & health insurance can help, but choosing a policy is hard.
A simple checklist for picking the best health insurance for you & your loved ones by @joinditto
A thread👇 (1/n)
1.) Don’t split the Bill:
- Insurers might nudge you to consider a co-payment clause, in which case, you’ll be forced to foot a part of the bill each time you make a claim.
- This might not be the best option unless you have no choice, or are purchasing for elderly citizens.
2.) Restrictions on room & room rent:
- Some insurers will have a limit on room rent. And if you breach this limit, they’ll make you pay extra for every little service rendered in the room.
- Opt for a policy that doesn’t have too many restrictions on this front.
Console is the central dashboard for viewing your account details, downloading various reports like tax P&L, fund statements & also insights on your portfolio.
Console also has some really cool features and tools, and a lot of people don’t know about them.
🧵A thread
On the holdings tab, you can get insights on your portfolio exposure by asset class, sectors, and market cap. This can be quite helpful to keep an eye on portfolio concentration risk and also when you have to rebalance your portfolio back to your target allocation.
You can check the age of your holdings. This makes it easier for you to figure out the Short-term capital gains tax (STCG) and Long-term capital gains (LTCG) impact when you sell your holdings.
What is the difference between a stock split and a bonus issue? A 🧵
Stock splits and bonuses are two common corporate actions that investors get confused with.
A thread on stock splits and bonuses and how these two corporate impact your holdings and the share prices.
Before we dive into what a stock split and a bonus issue are, it’s important to understand two dates: the Record date and the Ex-date. These dates determine your eligibility for any corporate action.
Have you tried the Iceberg orders, yet? If you haven’t, here’s a quick explanation of how they can help you when trading 🧵👇
Traders lose more to impact costs than to brokerage and taxes when trading large quantities, and Iceberg orders help reduce impact costs.
Example: A market order of 1000 shares placed when the stock was trading at ₹100, and executed at ₹100.5, leads to ₹500 in impact cost.
Iceberg is an order type that slices orders of larger quantities into smaller orders. Each order is sent to the exchange only after the previous order is filled. This is helpful in dealing with quantity freeze limits when trading F&O.
Pump and dumps are one of the oldest scams in the stock market.
In a pump and dump, operators who hold most of the shares move the prices by spreading messages through SMS, social media and then dump the shares once the price rises.
SMS, Telegram, & WhatsApp, were the most popular channels to spread these stock tips for a long time. But of late, people with large followings on social media and YouTube are being paid to promote stocks through tweets and videos.
In the last few months alone, there have been multiple instances that got media attention. But there are several that go unnoticed.
As a shareholder of a company, you are entitled to vote on important company decisions like board appointments, corporate actions, mergers & acquisitions, executive compensation, etc. But very few retail investors vote on shareholder proposals. support.zerodha.com/category/conso…
One reason for this is, of course, retail investors are a small part of the Indian markets. The retail shareholding in NSE-listed companies is about ~7%.
There's also a lack of awareness among investors that they are entitled to vote on company resolutions. Just about 1-2 lakh retail investors voted on company resolutions in the past few years.