Mark Minervini and David Ryan- Online seminar
I liked the insights on position size.
2 Likes
The Next Apple: Ivaylo Ivanov
The author is driving a point how you can track expectations investing from momentum to fundamentals.
CRASH: How to protect capital
A good synopsis on market cycles with crowd foot print.
Stock Market Cycles: Jeff Hirsch
I pray everyday if someone writes for Indian market. A fascinating and learning book.
The Mathematics of Money Management: Ralph Vince
A cult of itâs own. Warning- he is a mathematician, from page 1 requires attention.
https://www.amazon.in/Mathematics-Money-Management-Analysis-Techniques/
Portfolio Management Formula- Ralph Vince
Focused reading with more examples and updated. Extension of previous book.
https://www.amazon.in/Portfolio-Management-Formulas-Mathematical-Trading/
2 Likes
Suvendu Sir,
this is exhaustive and exhausting. for the masses which feed on buffett and munger esp.
Wondering if this list is timed with a heated market and corrections in line :).
Warm Regards
Aditya
Books by Andrew lo are also very insightful. He is one of the few mainstream economists who believes in technical analysis and has written extensively on chart patterns. His two books a non random walk down wall street and adaptive markets are a delightful read
Keynes and Market: Justyn Walsh
The God of economics battle and lose, rise, bites the dust with unpredictable stock market.
The 86 biggest lies on Wall Street: John Talbott
Pretty much applicable on Dalal Street.
Full of bull: Stephen McClellan
Read to understand how an investment bank works. You will realize half of what told on TV and social networking is a lie. I am smaller version earlier of author, enjoyed thoroughly.
Three Skills of Top Trading: Hank Pruden
Pretty much same pyramid of what oteherâs say. But quite extensive on behavioural finance and psychology.
High Probability Trading: Marcel Link
Most of standard packaging trading book, but good refresher. Nothing special but reminds all important issues.
Market Guys Five Point for Trading Success: A J Monte
Not available on Amazon India website, I ordered from US. The punches on behavioural finance is one more long shot at complex subjects.
The Master Swing Trader: Alan Farley
Back to techniques, data. I am not a big fan of lot of indicators, but highly acclaimed book.
Invest with Success: Charles Schaap
Easy to do book, liked the growth investing cycle explained by author.
Dead Companies Walking by Scott Fearon
A short sellers lesson, punctured many of thumb rules pertaining to balance sheet and PL. A must read for every one.
The Art of Short Selling: Kathryn Staley
This is actual not a book on how to do, but conditions around short selling. Perfect book to understand the creative accounting, red flags etc.
How to make money in stocks by selling short: William O Neil
This is a how to do book with concise details on market top formation, screening, risk management for short selling.
Confidence game: Christine Richard
Credit markets deep dive of 2008. Financial models and leverages details are intriguing.
Fooling some people all the time: David Einhorn
Another 2008 topic, his shorting with few companies with why.
The Big Short: Micheal Lewis
Classic on housing bubble. Failure of monetary policies, housing policies and much more. Another classic from Lewis after Liarâs Poker
@The_Confused_Consult
have a question. is long term shorting (in cash market) possible and legal in india?
i heard in zerodha etc, its only for intraday. what is one wants to hold and short sell later?
In cash market you can only short sell through intra day. As you have to settle the delivery contract amount T+2, if you donât cover your short during day you will get a notice and it is managed through a mechanism called shortages. I fell once, itâs an auction process which required me to deposit 150% margin before auction takes place. The auction takes place offline where my broker buy shares for me and managed my covering. Very dicey situation, one should avoid.
Second is through underlying instrument like derivatives i.e. futures and options. But as you know derivatives contracts are time bound and written for 200 companies or so. But you can play for 3 months if you short sell.
Third is most popular but process driven is called âsecurity lending and borrowing schemeâ. Here you can borrow stocks through clearing house, these borrowings can be presented at the time of covering of shorts. This is most widely adopted practice right from Livermore to Bill O Neil.
https://www.nseindia.com/products/content/equities/slbs/slbs.htm
In fact most of short selling I did through derivative contract. I am doing some follow up activity to understand more on this borrowing activity. Though technically all information available on brochure what I have struggled is long tenure of contracts, arbitrary power of borrowers, list of eligible securities etc.
I have gone slow on this as I am never an active short seller. Few transactions I have done mostly through derivatives.
2 Likes
Dear SIr
Is Profit preservation possible by hedging against a technical correction or hoped one time Fundamental deterioration rather than selling and re entry
Yes short selling technically is a hedging tool. But hedging is subject of risk management. Isnât it?
Now I want to differentiate risk management and entry method as separate subject. For example capital protection we use (stop loss) is nothing but risk management. Even I can set up risk reduction based on index movement (like reduce 50% position size when market corrects beyond a X%).
Second short selling is like long is entry method. In fact much superior and scarier. As they say short selling is not for faint hearted. Fear may be powerful than greed but lasts short. If you are caught in recovery you have to act much quicker.
For example I go for shorting when I feel confidence index will not revert to mean. A minimum breakdown below long term average like 200DMA and downward slope. For hedging if I short in up trend market it remains theoretical hedging, in reality it will nullify my profits from long position.
2 Likes
I understand , Buy or hedge sell ⌠it is entry
But some how i have been lucky with Sun Pharma ⌠Took a position equivalent to one lot at a technically opportune time and sold one lot FNO when ever there is correction done based on 30m chart âŚ
Could capture 50% of the down swings as profit
I guess you have a good skill on trending stocks, even downward. Congrats for your success.
Which is this charting tool? Free resources or paid?
I am not at all comfortable as you have mentioned
"Fear may be powerful than greed but lasts short"
This is FCharts Pro Paid one ( 75Aust$)
The Greatest Trade Ever: Gregory Zuckerman
A massive 15 Billion from Short selling during 2008 put John Paulson straight to legends. What is fascinating about this book an extraordinary amount of details into his mindset, habits during difficult days.
The Great 1929 Crash: John Galibraith
First book in investing world behind the greatest stock market crash. It goes into causes and effects. Story telling is superb.
Black Monday: Tim Metz
1987 crash, you will feel watching a movie. Enough reasons provided to understand why it put Paul Tudor Jones into all time great.
Extraordinary Popular Delusions and Madness of crowds: Charles Mckay
This book has inspired from Livermore to Ed Seykota. Goes to history of euphoria and reasons behind. A recommended book by most of greats.
1929 Crash Documentary
PBS goes behind 1929 Crash by talking to living members of those greats, infamous and famous involved in catastrophic disaster. I would have watched dozens of times, hope you will like it as well.
One of the best line from documentary which I wonât forget:
They had a beautiful house in 76th street in Manhattan on west side of central park. They had a floor in 813 on 5th avenue because Dorothy did not like to go West Side to change her clothes.
2 Likes
@The_Confused_Consult . thanks for sharing. thats an awesome video.
We are in 2017. Since then the stock marked has evolved and we have a lot of regulations in place. But i dont think anything has changed as far as market participants behavior is concerned. We may be a fundamental investor doing the right things. But the others may not be. Thats why this stock market is a scary place to be in. How does one prepare or handle such events?. The reason why i ask is that even if one is a long term investor, the paper loss hurts especially when the portfolio is large. ( even a daily fluctuation will change the mood)
1 Like
I couldnât agree with you more. Human philosophy change and improves, but itâs a logical process of habit formation. Technology and new innovations definitely have increased the speed of habit formation. Imagine Chandrakant Sampat managed all foreign books in 1960âs, now we get at a click of computer.
Fortunately or unfortunately for us a majority of humans continue with same sort of biases. Like 80/20 rule only 20% could master the biases of behavioural finance or may be even lesser. So yes market behaviour wont change, prices is moved by buyers and sellers not business value. Business value forms a tool for buying and selling.
Stock market is not scary place as long as you have tight risk management. In my school of thought there is nothing called paper loss, if a stock falls below my risk appetite I dispatch it even fully knowing it may come back. A untidy and shaky market may bring down stocks. But two reasons for selling them I have: 1. Mathematics purely work against me, bigger the loss bigger the recovery required. 2. I do not have an entry barrier like biggies. I can re-enter any time.
If we are talking about unprecedented event like 1929 crash actually everyone gets a boot. But if your risk management is pre-planned your thrashing will be minimum. As you will have a habit to book losses when required. Second risk free money tracking will make sure you protect capital first.
Do not allow mood to play a role in life which are suppose to be build on rules. For example before I take up a portfolio stock my positions sizes, stop loss point, worst case scenarios are all decided. When the real event happens its just ticking checklist. Lets not forget rules are build with a view to my risk appetite, capital size etc. Rules changes but not everyday; only during appraisal season. I review rules 4 times a year, add the surprises to list of new rules. This battle will continue, but no place for subjectivity.
Lastly there will be a hillock where you would like to play beyond rules but with the help of rules. Thatâs called right side of brain thinking, the gut or intuition etc. But thatâs an advanced stage, should only be attempted by those who has mastered art of rules.
4 Likes
A good book from those who wish to learn Technical Analysis, but have no knowledge about it⌠Covers all basics and is helpful to allâŚ
Pros : Written by Indian Author and is available not just in English, but also in Hindi, Marathi and Gujarati languagesâŚ
Cons : May be less suitable for experts !
1 Like
Other language versions of the above mentioned book.
Hindi Version of Book - https://www.amazon.in/Technical-Analysis-Aur-Candlestick-Pehchan/dp/B00OZUHBZI/
Gujarati Version of Book - https://www.amazon.in/Technical-Analysis-Ane-Candlesticks-Margdarshan/dp/B00I3UYTLA/
Marathi Version of Book - https://www.amazon.in/Technical-Analysis-Aani-Candlesticksche-Margdarshan/dp/B00GZMT5J4/