Active trader & investor | Ex-edtech entrepreneur (acquired by Unacademy) | Sharing lessons from 4+ years of trading mistakes & wins | BTech@IIT Indore
Being aligned with the markets and trends is the key thing to having longevity in this industry.
So, all our focus has to be in that direction - listen to what the market is trying to tell us and then align accordingly.
Society loves finding a specific mechanism to blame.
Because admitting: Large numbers of intelligent people became irrational together is psychologically uncomfortable.
Weekly Stage Analysis - Leadership spread increasing - bullish bias
Leading Themes - NBFC & Lending, Auto Components & Ancillaries, Digital Platforms & Internet, Fintech & Payments, Banking – Private, Hospitality & QSR
Improving Themes — Banking – PSU, Tourism & Travel
Weekly Stage Analysis says that the Leadership is broadening.
Power Trend is still ON (CNX500).
Daily Market Stance is Medium (downgraded from Strong).
Trade Feedback is mixed. Keep your Open Risk under control, time for strict Risk Management.
A Bullish Bias market.
Weekly Stage Analysis says that the Leadership is broadening.
Power Trend is ON (CNX500).
Daily Market Stance is Strong.
Trade Feedback is mixed.
A Bullish Bias market with thin participation as of now.
Current Market Stance - Strong
Leading Themes - NBFC & Lending, Auto Components & Ancillaries, Digital Platforms & Internet, Banking – Private, Hospitality & QSR, Oil & Gas, Footwear & Luggage
Improving Themes - Banking – PSU
Recent Trade feedback has not been positive.
@1shankarsharma Absolutely! Fantastic article. He has taken advantage of every bear market in the last 30 years and bought the extreme fear. Starting point always matters. And sitting out of a bear market already puts you ahead of the crowd and ready for the next bull run.
@prabhakarkudva Somewhere between Anxiety and Depression. People are still ready to buy on dips. This behaviour is not seen during Capitulation or Despondency phase.
These are the times to relook at your portfolio.
Most struggling companies share these red flags:
Debt/Equity > 1
Interest Coverage < 4
Pledge % > 1
Charlie Munger: "Better to avoid stupidity than achieve excellence."
Check your portfolio today. How many have these red flags?
The investment world might be less unstable if there were immutable rules (like law of gravity) that could be counted on to always produce the same results. But there are no such rules, since markets aren’t built on natural laws, but rather investor psychology." - Howard Marks
"There are no assets that are so good that can't become overpriced and dangerous.
There are very few assets that are so bad that they cannot be cheap enough to be attractive as investments."
- Howard Marks
Why do we need absolute certainty before investing?
History shows the best times to invest are when it's most uncertain.
March 2020, 2008, 2003 - everyone was scared, everything felt uncertain.
Those who invested during maximum uncertainty got maximum returns.
Certainty is expensive. Uncertainty is cheap.