Learn

Short guides to money, gold and trading in India.

Famous traders' formulas · The 11 setups · Results

• What is swing trading?
  Holding a stock for a few days to a few weeks, and why it is different from investing.
• R-multiples: measuring trades by risk
  Why traders talk about +2R and -1R instead of rupees or percent.
• Expectancy: why win rate is not enough
  The one formula that says whether a trading method makes money.
• ATR stops and position sizing
  Setting stops by how much a stock normally moves, and buying the right number of shares.
• Is a 40% win rate bad? How famous traders compare
  Our tested rules win about 40% of trades. Here is how that compares with Minervini, Qullamaggie and the Turtles, and why the size of the wins matters more.
• The market filter: GOOD, CAUTION and BAD days
  Why the whole market's trend matters more than any single chart.
• Relative strength and momentum
  Why strong stocks tend to stay strong, and how to measure "strong".
• Backtests: five ways they fool you
  Survivorship bias, overfitting, costs and other reasons real trading is worse than the test.
• Why famous setups can lose money
  What our two-year test of 2,391 NSE stocks says, and what it does not say.
• Do trend rules work on gold? We tested 22 years of Indian prices
  Faber's 10-month rule, moving averages, momentum and the TradingView-style rating, tested on gold and silver in rupees since 2004, against simply holding.
• How the gold price in India is worked out
  From the world price in dollars to the rate your jeweller quotes - the dollar rate, import duty, GST, purity and making charges explained with an example.
• Making charges on gold jewellery, explained
  Percentage, per gram or flat making charges, wastage (VA), stones and GST - how a jewellery bill is built and how to compare two shops.
• ₹2 interest per hundred: what it really costs
  Local loans quote interest as rupees per ₹100 per month (rupee vaddi, byaj, sood). Here is what ₹1, ₹2 and ₹3 per hundred mean as a yearly rate.
• SIP or lumpsum? How each grows, with examples
  The formulas behind SIP and lumpsum investing, worked examples and when each one makes sense.