Categories of price moves. A 🧵. There are different magnitudes of price moves and each has a different type of catalyst behind it.

Let’s look at each.

Market corrections - a 🧵. There are 3 broad types of corrections and each needs us to react in different ways.

Not all stocks are equal. At any given point, each stock can belong to one of the below categories.

Knowing which category your stock is in can make a big difference to your decision making and eventually your returns.

A 🧵. Category 1: Stocks which the market likes right now. These are stocks which are being re-rated. The re-rating process typically takes 6-9 months. Over this period you will see these stocks trending up.

How to instantly level up your game in the stock market?

All it needs to move from level 0 to 1, is a change in how to think about identifying opportunities.

A 🧵. New investors or novices think about opportunities in term of stock picks. They love stock ideas and what's in-famously called "tips".

The primary focus is "which stock should i buy next to make money?"

This kind of thinking makes the market a game of luck.

Physics of the markets. A thread. Markets follow certain laws again and again, just like physics. They are at the core of most strategies and set-ups that various practitioners use. If you understand these basics you can make much better sense of the markets.

Here’s a rundown. 🏃‍♂️

Study the biggest winners and losers of the last CY and the following patterns stand out.

A thread. The winning stocks can be categorized into the following types.

A small and incomplete guidebook for new investors to navigate fintwit (including my own tweets).

A disclaimer which i am sure all of us "experts" want out there.

A Thread. Understand that there are no experts, just a bunch of people whose strategies are working in the current environment. When the strategies stop working we will go quiet & a new set will emerge. Assume all strategies work reasonably well over time with bouts of bad underperformance

Markets are all about patterns and tendencies that have an edge. Here are a few I have observed and learned over the years.

A Thread. Identify the Sector(s) of this cycle. Typically mid caps which are enjoying an earnings tailwind due to the external environment and you have a 3 year visibility into a 25% or higher eps growth. Will seem expensive throughout the cycle but will make big money.

Good Personal Finance is so simple that it is too boring to execute. A Thread. @Finception__

https://twitter.com/paraschopra/status/1236158155697971204

Pay off your credit card balance.

Understanding Markets. Thread. Markets/Indices move up over time BUT in a cyclical manner.

1/ @Twitter makes it easy for us to follow some brilliant investors and traders. It also makes it easy to believe that if we follow their ideas, read and understand their strategy we can reap the benefits.

Nothing is further from the truth. 2/ The idea of circle of competence doesn't just apply to stocks/sectors, but more importantly it applies to investment strategies.

Surviving the market on a stgy you only read about, doesn't work. Market is designed to force us to bail out on it at exactly the wrong time.

Probably due to the way we’re taught in schools, most people approach markets with a formulaic/strategic approach. We assume that there must be a strategy to make money and once we figure out the strategy we cant help but make money at will. (1/n) So we read books, listen to podcasts, attend AGMs and figure out a strategy that we can identify with. (2/n)