Tradevesting — Notes— 1

Class 1 — Introduction

Stock market is a game of discipline, emotional control and patience and NOT of intelligence.

Prioritization is important in life — do what is needed.

Don’t track the portfolio, instead track chart patterns and quarterly results.

Focus on the process, not on the results.

Stock price up or down validates nothing, business analysis, financial analysis and technical analysis does.

Goods at the shop don’t get sold immediately.

Not all the stocks in the portfolio can be profitable at the same time. Not every month/year would be same. Not every strategy will work the same way.

Uncertainty in the market is in our favour, we don’t understand the market practically.

97% — 2% — 1%: 99% people lose their money to 1% people.

Jargons don’t earn you money in the market.

Intelligence doesn’t matter much in the market, wisdom does.

Intelligent people work for wise people in real life.

Learn to respect money and appreciate rich people.

Understand money. How to earn it? How to control emotions? How to be different from the crowd?

Who creates fear? 1% of the people? Operators.

Market doesn’t like egoistic people.

Be humble or market will make to humble.

Be disciplined with your approach and accept the results and that the markets behaves in unexpected ways.

No economist is a billionaire, keep aside the theoretical knowledge.

Respect salary, save salary and invest salary.

Everyone is a student in this market.

CXOs are not made by working only during office hours.

Plan and utilize your time effectively (weekends).

Stock market needs similar ethics and commitment.

Understand what wrong others are doing? Differentiate yourself from that crowd.

Leave what 99% are doing, do what 1% are doing.

Leave social media, mobile/gadgets, minimize screentime.

Work on the pillars — wisdom, health, time management, discipline, empathy, self-improvement.

Follow the rules strictly, driving is also a gamble, wisdom is in driving safely with above average speed.

Invest in good books, everything you do without learning is gambling, else its a profession, its an art.

How much 1% would be earning when 99% are the losers.

Stop watching TV, learn to pick stocks, do not look for tips.

Look for information, not for opinion.

Look at the successful people, follow what they do and respect them.

No news can trade in stock market.

Rich people don’t watch web-series, don’t have high-end phones, don’t go on exotic vacations or don’t spend on luxuries.

Kids are learning theory in schools, we need to teach them practicality of life, spend half an hour daily with them, this will be a revision for us.

RK Damani is not even a graduate, degree can’t get you success in market.

High-end cars are not advertised on TV, why?

Don’t get impressed by high package but look who is offering that package.

You get what you focus on consistently. If you think about profits, you will book profits, if you think about stop losses, you will book losses.

F&O is not for everyone, one needs to be almost as disciplined and heartless as a robot.

Say NO to social media, use YouTube and Twitter for learning. Fix the time to use these tools.

Don’t look for tips, understand the basis of the tip.

Being blessed is in our hands: practice chanting, empathy, discipline. Luck is the fruit of our actions.

Everyone is responsible for whatever is happening in their life. Money is not necessary for education.

Doing what 1% are doing is not enough, need to stop doing what 99% are doing.

Don’t discuss your trades with anyone.

Segregate information from opinion and speculation. News is what has already happened. Rely on screener.in, any one business newspaper.

To succeed, we need three things: Time, Focus and Energy.

Stock price movement doesn’t reflect on business, at least in shorter time frame. In longer time frame, price and business do align.

Two biggest reasons for lossed in market: 1. Stop loss 2. Assumption that stock price movement is are reflection of business performance

Understand the reason for low sales and/or profits i.e. raw material cost in manufacturing.

Manufacturing businesses are more volatile than services as:

crude prices up → INR down/Dollar up → inflation up → RBI interest rates up → demand down → fixed expenditures remains same

Market leaders are market leaders for a reason. Hating riches will not make anyone rich.

Praise and respect riches, countries are run by capitalists.

In next 20 years, market will ultimately move up. India’s per capita income is 2.3K $, it is in self-sustainable zone. Indian market will not go down solely due to domestic reason.

There are 3 type of changes in the market: 1. Business change 2. Financial change 3. Stock price change

Speculations — changes in stock price without any change in business and financials. * opportunity to buy *

Who moves the market? — Operators.

Strong hands (Promoters, FIIs, DIIs, HNIs) and weak hands (Retail investors)

HNIs have their own money, FIIs and DIIs invest on behalf of their clients.

Strong hands bring the stock prices down to buy cheap but can’t keep them down as they need to make money.

Rare to find in the market, who makes money and willing to teach.

Paid content is attended by serious learners.

Stock market is a game of psychology and human behaviour.

Operators are drama queens, who are waiting for the retailers to panic and sell.

We need to build our basics stronger, market can go down but can’t remain low forever.

We also should share and help others if we have knowledge and talent.

People lose money in the market because of their ignorance.

Chanting brings luck, drink 4 litre of water daily.

Spend time with yourself, don’t discuss about others.

Self — Body — Mind — Subconscious

Stay humble, respect talent and respect seniors.

Read books about market, spend time alone with yourself.

Market is a practical game, theory doesn’t work beyond a point.

High supply — low price≤==≥Low supply — high price

Crude importers and exporters countries, demand and supply are tightly coupled.

Understand what strong and weak hands are doing. Effect of GST on transport trucks. Real estate prices went down, housing finance business went up.

People don’t want to live longer as they don’t know what to do with it.