Profitable Stocks में Trade कैसे करें? | #Learn2Trade Session 28
Welcome to the 28th session of learn to trade series I am Vivek Bajaj and I I am teaching trading to you and Annapurna How are you? good sir. So we're recording another video today so you might feel that it's all the same In the last video we had discussed multi time frame trading strategy. The concept is good If someone adapts to it then they will enjoy it. Do you think so? Yes sir
till now you doing single time frame, I think daily chart as you do not do intraday attempting intraday through this, anyways you are working from home you can try it take an instrument it can be Nifty or Bank Nifty. A lot of people trade in it although there are higher chances of becoming a fool as a lot of people are into it pick up any stock that is volatile which has a lot of intraday activity I had taught you do 15 minutes intraday candle. I attempted it we have to enter looking at the five minutes candle, so it gave a break out in the next 5 minute candle I try to attempt but the stop loss was hit. keep trying, maybe you need to revisit the stock filtering criteria but my experience with that strategy is to find out delivery based stocks and if they also have open interest explain the concept of open interest to you, in future I will also Explain the relationship between delivery and open interest and how do we identify stocks based on this. In fact I traded in a stock with the strategy
I got result as there was good open interest. Muthoot Finance, that is in Gold Loan. I used the same strategy and I got to break out after 15 minutes and was able to earn a lot of money keep trying it, it's a very good strategy. Today we will discuss techno Funda strategy as the name suggests is a trading strategy with a mix of Technical and fundamentals so I thought we don't need to check fundamentals for trading. Don't fear fundamentals We have simplified it and added it in StockEdge. I will decode the simplified form how you can technically traded fundamentally good companies and earn money in the market It's a very good system. Once you learn it then you will get another star in the stock identification process this is going to be a very interesting video, please watch this video till the last if you watching the video for the first time, keep recording a lot of such videos with Annapurna so share it and watch the entire series all the videos is a gold mine for anyone who wants to learn trading as a novice all the beginners who have just entered the market, the series is for them and keep liking the videos the more you like the video, the more YouTube will also like us and help us to reach out to more people let's go to web.stockedge.com. You can use it in mobile app as well. UI of both are equivalent and good
let's talk about Funda first. We created scans in StockEdge, where we have added fundamental scans a lot of these fundamental scans are free and some are paid. I'll gift you a coupon code VIV100 and this coupon code and you will get StockEdge for free for 1 month. Some are paid features
we have kept it paid as there is a lot of effort behind this, there's a server behind. Use VIV100 and take 1 months trial, and see if your are actually benefiting from this or not what are fundamentals? there are two ways to judge fundamentals. it is my responsibility to remove all the fear from your mind you can either judge qualitatively and quantitatively in fundamentals. Numbers play a role in quantitative
the business plays a role in qualitative, whether the management is good or not, business potential quantitative is more of past and qualitative is more about making judgement of the future if the management is good and the business potential is good then they will do good in the future so we will discuss about the past. Can I judge the company based on the numbers? broader parameters to judge the company are these. Profitability, how much does it earn? turnover, does it work or not and selling or not. Solvency, will it become bankrupt cash flow, it on but does it bring money back home. Valuation, is it cheap or expensive is the price of the company as per its own in cheap or expensive. Dividend, the company is earning but I am not getting dividend
so where is the money going. Efficiency, you have the assets and you're working with the assets But are you using the assets efficiently? The the more efficient use of the assets, the higher chances of the company performing well in the future shareholding, who are the shareholders, are they good or bad? Are the good shareholders increasing the shareholding? are the bad shareholders increasing their shareholding, do they have strong or weak people? promoter holding pledge, are the promoters pledging their shares? pledging is when the promoters give the shares to the bank foreign nbfc in exchange of a personal loan for other purpose if someone has pledged company's shares, then it's a Red flag, as they have kept their shares on loan do you feel all these parameters are very difficult? No sir. This is all common sense you need to evaluate a company as per these parameters. We have created readymade outputs for each parameter company with high return on equity, with an improved return on equity, with a high return on capital employed return on equity news the return as per the initial amount of equity return on capital employed is the return on equity + debt. Improved return on capital employed
quarterly net profit growth your on your basis, quarterly EBITDA growth on your to your basis just like a jewellery craftsman, crafts with jewellery with precision. We have created the jewelry for you this is our craft, we have selected each parameter very carefully back tested it and then added it here generally on other platforms the give you an engine, to figure out yourself with data that is given we feel that all the beginners I will not be able to work with the engine. They need the car They have given you the engine, breakpad, and asked you to make your own car I have given you the best components to make a car. Do you know lego? Yes my children love Lego. Lego comes out with different Lego shapes after a lot of thought it's not random, that they provide plastic and any shape comes out They are very particular about the shapes that they create. These are our legos and you have to create an object out of this
I will suggest you to look into all the parameters and click on the I to understand each of the parameter like high increase in quarterly sales which is net sales of latest available quarter is more than net sales of same quarter last year by at least 5% if you do it by yourself then you are confused whether you should take 5 or 4. We have told you that 5 is good but this is not the idea of the video. I I want to give you a very good framework for stock identification There are more such scans like fundamentals. I had told you about all the scans in one of the videos I want you to create a combination and add fundamental as well as price best parameters along with the technicals identify stocks that fulfill all these parameters. Those are the good stocks click on add combination, I will name it as Annapurna combination let's first check the fundamentals, it's techno funda need fundamentally good companies companies with good high return on equity, more than 15%. IS there is a logic behind 15%? we have back tested mathematically, what percent is the good percentage to define a company to be a good company we have observed 15% is a fairly good percentage, as if a company is earning more than 15% in India then it is considered as a good company we have crafted it carefully, and we have added only those parameters where even we are convinced I have clicked on high return on equity, and high return on capital employed.
I want those companies with consistently increasing quarterly EPS, it means that the company's earnings are growing each quarter EPS means Earning per share, so it's growing each quarter. I'll select this as well We need to create new combinations to find a Perfect Combination. If we keep these three things in our mind we get these companies who is return on equity is high, return on capital employed is also high and EPS also growing what are basis let's go to anyone company affle. It'll take you inside if you click on it. Return on Equity is 43% Return on capital employed is also 43%, as there might not be any debt.
If the debt was there then the return on capital employed would be higher or lower? Lower not necessarily lower. It can be high, it depends on the interest cost. If the interest is high then the return will be lower and if the interest is low then the return will be higher. Consistently increasing quarterly EPS if you see the graph GPS is growing consistently. Is the company good? It seems to be seems like it is growing, you will not get trapped in it. My idea is to trade in a company that is fundamentally good today even if the price Falls and the stop loss is not set, then at least we will not die. But the stop loss is important did you understand this concept? Let's add another parameter. The more parameters we add the more it will filter
the less stocks we will get. We have done the fundamental, profitability. Let's see Turnover high increase in quarterly sales, consistent sales growth it means the companies that have consistency it might increase in some quarters and decrease in some quarters but it is increasing every time, I have added this no low and moderate leverage in solvency. These are all good and can be considered but we can skip it as well a company with high leverage but with good return on capital employed is a good company high leverage means high debt equity ratio. The debt is very high and low equity. I'm not taking it Cash Flow is very important for me, instant cash flow, I like those companies who generate consistent cash flow cash flow means the liquidity. There are 3 kinds of cash flow - cash from operating activities, cash from investing activities
and cash from financing activities. If the cash from operating activities is high in any business it is generating more money from its own operations, no company can be better consistent cash from operation means the generate money from business and not just from lending we have added more scans, so let's see the list. Perfect match - Alkyl, Caplin Point, Poly Medicure this is that perfect guy who you were looking for. But not everyone can be perfect, we need to be ok with one flaw so we have said almost there even these are eligible. Almost there means only one condition did not satisfy satisfy all the other conditions you will not get all these and other platforms. We have added this after a lot of thought
it might not be perfect but it is almost there. We get these stocks. We have checked the fundamentals we can add technical scans to it. There are two things in technicals - technical indicators and price behaviour I told you about 52 week high. What does that concept mean? Eagle Scans any stock which is in the 52 week high zone, then there's a good chance that it will go up provided the delivered quantity is also good These all the continuation of Eagles scans, as I want you to create your own eagle scan Either we can add 52 week high and can accordingly or we can check the technicals of this list these are all major stocks. We have defined the major stocks. These are stocks with liquidity
you can enter and exit easily. There are roughly 700 stocks that we have defined in the back and are major stocks you can choose all stocks, or all NSE stocks. You'll get all the NSE stocks let's see all the five stocks and their charts. Let's see Alkyl. This is your template of your daily chart I have not added the multi time frame. Alkyl. what do you understand?
the fundamentally good companies will automatically become eagle so they will always be in uptrend till they are fundamentally good is it because the operator would want the stock to go up as it is a fundamentally good company So the genuine operator would want to keep this. you need to add this company to your tracker as it is a fundamentally good company you will keep tracking Italy fundamentally good company. You will stop tracking it when it's not a fundamentally good company how will you know that the company is fundamentally weak? It will go in the scans? No It goes to the scans as per the quarterly results. You need to track the quarterly results of each company that in your radar you need to track the announcements of each company. I had recorded a video with you
where I had shown you how you can track the activities of your companies. Should I repeat again? You can do it on StockEdge. Create your own watch list. I'll create your watchlist in StockEdge keep it in your name Annapurna. Let's go to the combo scans, the Annapurna combo scans let's see the stocks in there. I'll add all the stocks in your watchlist. I'll add Acrysil n your watchlist by clicking on the star and adding it in Annapurna. Let's add Alkyl Chemicals. I've already added to some of my watchlist
We can I add one stock to multiple watchlists. Caplin Point, Mastek. If you don't know anything and you want to know the basics of these companies, then go to fundamentals, click on profile you will get to know all the basics about the company. You should know that this is a software company who is in information technology. Poly Medicure is in medical equipment, healthcare
click on show profile to know more. Click to visit companies website. Then there is Saksoft this company is an IT software, and this is the profile. It's in SAP, Oracle are their partners It provides services like business intelligence, data warehousing and data integration go to that company's website if you want to know more about the company. It's fun to know about the company. We had created video for elm School using the Dabur's annual report I enjoy reading these. You'll enjoy it if you consider this as fun, you want enjoy if you consider this as your work I have added these stocks in your watchlist. I'll go to your watch list. Just keep 2 to 4 watchlists
I have added all the stocks here and the price at which I have added it. Check any News in it everyday any updates or any companies, announcements, any actions, or any results, you will get all the data here, just track it you will get all the deal like bulk, insider, block, deals all the data here. You're tracking the company using all the data points and you will get all the information of this any fundamental activity. Unless there's a fundamental shift Trade as per the broader price Trend. Let's go to multi-time frame.
this is daily and this is the 15 minutes. We need 2-hourly. You can keep it 15 minutes but then you need to convert this to 2 hourly There's buying strength in this company, so we will keep a buying mind set If this shows sell, then I will not trade in it. I will only trade if it shows buy and just reading near the average bollinger Or whatever parameters you want to use. It can be moving average crossover or bollinger you can choose any but you need to trade by buying as the stock is strong judge the stock by its mother, and act as per the daughter. Don't give weightage to the indicators in the smaller time frame give weightage to the indicators for a longer time frame, and give weightage to the price in the smaller time frame if prices near the support zone, it can be near the bollinger or because of the price behaviour attempt to buy as the price is showing strength as per the EOD.
create a watchlist and track it in tradingview as well as StockEdge. This should be your perfect setup we will use tradingview for intraday charts and use StockEdge for any other information end of the day It can be corporate data or announcement. You will not get a better tool than StockEdge for this let's repeat the process. We need to create a combination based on the fundamental parameters where we can add fundamental parameters, some price based parameters and Technical parameters identify the stock, add it to your watch list. Do this every Saturday. I prefer weekend trading do this every Saturday. See these are the same stocks that you have identified. Create a view on Saturday
trade on those stocks as those stocks are good. There won't be much problem if you trade in these stocks the stock that you had identified as per your lifestyle is different. This is another method of identifying stocks which are fundamentally good you can know about these stocks and track it. Practice this and let me know which stocks have you identified through this Add these in your watch list and start tracking. This was a small initiative to tell you about techno-funda strategy this was a basic level thought process that I have shared, but it's very effective The more you use it the more comfortable you will get, and you will trade effectively I am confident that you can trade better. If you want to use the StockEdge feature if you are not a member then use the coupon code VIV100, use this for a month and if you feel that it is worth it subscribe to StockEdge. Even we will get support and you will get the opportunity to earn money
thank you for watching this video subscribing to the channel. Share it with others and subscribe to the channel that's how you will know whenever I release a new video for you. Bye