In the volatile world of investing, where emotions often trump reason, the concept of “margin of safety” stands as a beacon of prudence. This fundamental principle, championed by legendary investors like Benjamin Graham and Warren Buffett, emphasizes buying assets at a significant discount to their intrinsic value. What is…
Finding the Bottleneck: A Powerful Mental Model for Improvement
In any system, whether it’s a manufacturing process, a software project, or even your daily routine, there’s always one critical point that limits overall performance. This limiting factor is known as the bottleneck. Identifying and addressing bottlenecks is crucial for significant improvement, and the concept itself forms a powerful mental…
Finding Balance: The Mental Model of Equilibrium
The concept of equilibrium, a state of balance or stability, is a powerful mental model with applications across various domains, from the natural sciences to social systems. This model helps us understand how systems function, how they respond to change, and how to maintain a desired state. Understanding Equilibrium At…
The Power of Feedback Loops: A Mental Model for Growth
In the ever-evolving landscape of personal and professional development, understanding the concept of feedback loops is paramount. This powerful mental model provides a framework for continuous improvement by highlighting the cyclical nature of cause and effect. By recognizing and harnessing these loops, individuals can accelerate their learning, optimize their performance,…
“Charlie Munger 2023 Annual Meeting”
In 2016 I made a personal commitment to transcribe every Daily Journal Annual Meeting so long as Charlie was graciously hosting them. It’s been a privilege to attend each meeting and spend the time deep into the talks transcribing each sentence. Charlie will be dearly missed. Intro It was a…
What Can I’ve Learned from Bernard Baruch about Investing
Bernard Baruch is one of the most legendary characters in the history of investing. In his biography, Jim Grant writes that Baruch was not as wealthy as most people imagine, but rich enough to live the lifestyle “of a millionaire” (whatever that means). At various times in his life, Baruch…
Self-Improvement
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The Power of Tiny Gains: Small Steps, Big Results
The idea of making significant progress often seems daunting. We tend to focus on grand gestures and ambitious goals, overlooking the power of small, consistent steps. However, the accumulation of tiny gains over time can lead to extraordinary results. The Compound Effect The concept of compounding is not just limited…
12 Books Every Investor Should Read: A Warren Buffett-Inspired Reading List
Warren Buffett, the legendary investor, is a voracious reader. He attributes much of his success to his lifelong pursuit of knowledge. Here are 12 books recommended by Buffett and other investing greats that every investor should consider reading: Classic Investment Texts https://amzn.to/3Z70yYE Modern Investment Insights https://amzn.to/3Z9p7nF Biographies and Memoirs 9.Buffett:…
How Warren Buffett Handles Problems: A Simple Guide
Warren Buffett, a renowned investor, is known for his calm and rational approach to problem-solving. Here are some key strategies he employs: By following these principles, you can approach challenges with a clear mind and a strategic approach, just like Warren Buffett.
How to make consistent money in Option Trading
Keep your fund in FD or buy some debt fund.Yearly return 6%-7%.Use collateral to trade intraday and on expiry day.Here sell only option which are trading at 8-12 Rs on normal day with leverage.You will make weekly 0.2-0.3% return. 2/nTake position bon Wednesday to get another 0.2% return per week….
To all option sellers
To all option sellers, Whenever I am selling an option first I am utilising my 20%-25% capital only if the trade goes against me I will exit my sell position if the option doubles or 2.5X From my sell position initially I am using only 25% capital I will not…
Common question to me every time from new comers in Option Trading
Concentrate only on support, resistance, breakout and volume. Google it. You will get it. Normally supply and demand are moving in slow motion. Useful for players with low capital. 2. Supply and demand theory requires patience to hold your position.It can move slowly. That’s why it is useful for low capital….
How to Make ₹30,00,00,000 (30 crores) in trading capital from ₹22,500.
Took it 2187 days, while operating with more than 30% ROI each year. Here are 10 steps of their wild journey: I hope it’s helpful to someone. 1) Trading Journey Their journey started in 2017 with a capital of ₹22,500 which was amassed by friends who contributed 500-1000 rs each….
Trading Psychology: Mastering Your Mindset for Success 💼💡
1. Its time to dive into the fascinating world of trading psychology In this thread, we’ll explore key insights and strategies to help you develop a rock-solid mindset for successful trading. Let’s dive in! 🚀 (1/10) Embrace uncertainty: Trading is inherently unpredictable. Accept that you can’t control the markets, but you…
The IRON FLY STRATEGY is the most valuable hedging strategy you aren’t using.
Knowing how to use it will protect you from gaps, intraday spikes, and 10x your hedging experience. Here’s the step-by-step guide: Here’s what you’ll learn in this thread: 1. What is an iron fly 2. Perks and Drawbacks 3. What should you do when you are in profit? 4. How…
Why few traders are going bankrupt after attaining huge success.Could be the following psychology.During initial days trader is generating huge ROI with less capital.
As time passes capital is growing and after certain limit of big capital it is very difficult to achieve same ROI because of low liquidity in trading.Due to low ROI trader can feel that his performance is not up to the mark as it was earlier. So, a trader can…
1.Why big traders are not taking more risk in trading?
On Thursday due to blunder my morning m2m was – 5.89 cr.If no blunder it could have around -1.2 cr only. In my early days of trading I was playing very aggressively with directional trading. 2.I have applied same psychology on Thursday with directional trading.Bought far OTM option immediately to…
Position size in trading by Mitesh Patel Trader
Mitesh Patel (@Mitesh_Engr), the well-known options Trader, has given important pointers on the importance of position sizing. Position size in trading. Base capital 50L Future contract lot average value 7L. I will buy or sell only 1 lot naked overnight with 50L capital. In worst condition if 10% gap up/down…
How to adjust short straddles
Based on the views of experts, the following is a summary of the numerous ways in which a short straddle can be adjusted: (i) Shift the tested side which has become ITM. ITM options have a delta of 1. So, if the straddle is at 15800 and the Index moves…
How to adjust straddles in the Bank Nifty by Mitesh Patel Trader
Mitesh Patel @Mitesh_Engr, the well-known options Trader, has explained how straddles in the Bank Nifty can be adjusted so that it can be closed at a profit. How to sell option?Here let me explain through simple math.Say BN at 3000030000 straddle trading at combine premium 800 ( based on current…