Multi-bagger Chart Pattern - Inverted Triangle -

Moving Average Crossover

Multibagger Chart Pattern is for long term investment or positional trade and any Multibagger
Chart Pattern should give least no of false signals so that an investor can continue to stay in the
trade/investment for Multibagger returns.

In past, i shared a strategy to identify the Multibagger stocks with the help of very reliable double
bottom or W pattern. In this video, i have shared a Multibagger Chart Pattern that is based on the
moving average crossover.

The chart settings are as follows:

You should check the stock on the weekly chart and the moving average cross over of 200 period
exponential moving average and 20 period exponential moving average along with the formation
of the inverted triangle gives a confirmed buy signal. In some of the nifty stocks, you will not find
a sell signal from the last 10 years. You can book profit if the 20 EMA cross 200 EMA in a
downward direction.

The strength of the trend can be found out from the size of the inverted triangle. For example, a
small inverted triangle gives a bigger move compared to large inverted triangles. You can
generate good returns by using this strategy.

Stock EXIT Strategy - How to maximize your

PROFIT and reduce Losses

Stock EXIT Strategy should be based on sound logic and reasoning. Most of the retail investors
select RIGHT Stock but EXIT too early either by booking small profit/loss or at no profit no loss.
After some time the investors realize that they made a very big mistake and the share delivered
spectacular returns.

Stock selection is very important but it is more crucial to hold on to the trade. In this two-part
video series, I will discuss the 10 reasons for an early exit from the right trade i.e. wherein the
stock selection is perfect.
1. Traditional Indian investment philosophy is based on the safety of capital. Therefore, we are
always afraid of loss. However, experts are of the opinion that we should only invest that much
that we afford to lose in the share market.

2. You should always check the expected volatility in the stock and should not be worried if the
stock is trading in that volatility range.

3. The blind bet in stock market can give us sleepless nights as we are not confident in our trade.
Only take trades with a very high probability of success or profit.

4. Constant monitoring is also responsible for the early exit from the stock. Therefore, we may
choose non-volatile stocks. However, in volatile market, constant monitoring is required.

5. Confidence in a particular trade is directly proportional to our accuracy or success in the stock
market.

Stock Trading EXIT Strategy should aim to maximize returns and minimize the loses. The biggest
problem is that they exit the trade either too early or by booking small loss. Even though the stock
selection is perfect.

6. Investors think that the stock market is a money making machine. Like any fixed income
instrument, you should give time to your stock market investment to grow.

7. I normally invest only in 5-6 stocks for complete focus. You should not over trade as it might
lead to poor Stock Trading EXIT Strategy.

8. The stock market should be considered as the business and you should have a proper strategy
for your stock market journey.

9. You cannot avoid loss in the stock market. Assuming, accuracy is 80% then you should target
that first 8 trades should be profitable.

10. Lastly, you should only enter high probability trades for perfect Stock Trading EXIT Strategy.
 How to Avoid FAKE Breakouts - 3 Simple TIPS

How to Avoid FAKE Breakouts is the most burning issue for any retail investor or trader. False
breakout can be identified using multiple techniques. In past, we discussed how to identify false
breakout using various indicators. In this video, we will discuss How to Avoid FAKE Breakouts
using charts or price action strategy.

The stock breakout or break down after the period of consolidation. During consolidation phase,
the stock or index moves in a range or sideways. It means big players are getting ready for the big
price move. The false or fake breakout is to mislead the retail investors so that they should not be
able to judge the actions of big players including FII's and DII's.

A breakout is fake breakout if the traded value does not change with the stock price movement. A
real breakout is always preceded by the sharp increase in traded value.

The longer the consolidation period, the higher the probability of false breakout. Also, if you miss
the real breakout then you need worry as in the majority of cases, the stock will retrace to retest
the Fibonacci levels, rectangle or flag.

NIFTY Weekly Expiry Strategy - How to make

Profit ?

NIFTY Weekly Expiry Strategy is based on the fact to take advantage of the fast time decay.
Normally, the traders consider the weekly options as loss-making propositions for the retail
investors. Initially, the derivatives segment i.e. futures and options were launched as hedging tools
but they are now used as trading instruments. The USP of NIFTY Weekly Expiry is cheap
premium and quick results i.e. it provides more no of trading opportunities compared to monthly
NIFTY Weekly.

However, the odds are against if you buy or long the put/call options. In the NIFTY Weekly
Expiry Strategy, the odds favor the options writers if you short the put/call options.

In the case of option writing, the time decay is your biggest strength. The best part is that time
decay is factored in option premium even on holidays. Therefore, there are two NIFTY Weekly
Expiry Strategies that can be followed
1. You can write out of the money option outside the expected movement or volatility range of
nifty during the trading week.
2. A trader can take advantage of long term support and resistance. You can short the call option
just above the resistance thus you will short near at the money contract and can make more profit.
Similarly, put writing can be done below support thus will get max profit through premium.

Also, confirm your trade on reliable trading systems like Fibonacci and candlestick. The nifty in a
strong trend can provide risk-free NIFTY Weekly Expiry Strategy.

7 Most Successful Swing Trading Setups

Most Successful Swing Trading Setups are the ones that are mastered by the investors. The
accuracy increases over a period of time. The Most Successful Swing Trading Setups shared me
are based on my personal investment or trading experience. For every swing trade, i check the
stock or index on minimum 3 trading setups and if it is a buy on 2 trading system then only it
qualifies for final trade.

The 7 Most Successful Swing Trading Setups are:-

1. Option chain analysis: The standard rules are not applicable all the times and you have to
combine it with the FII data of index futures/options or Stock Futures.
2. Long term support or resistance is very reliable provided you connect minimum 3 peaks or
troughs and the line should be horizontal.
3. Fibonacci Retracement: If the Fibonacci retracement is plotted properly then it is very accurate
and reliable. The nifty 50 index follow this with very high accuracy.
4. Candle stock patterns or price action strategy is another reliable and accurate Swing Trading
Setup.
5. Heikin Ashi and Stochastic RSI work well only for limited no of stocks.
6. Divergence is reliable if plotted properly and the indicator should be in the overbought and the
oversold zone.
7. Trend lines only act as support analysis and minimum 3 points should be connected.
 Stock Market 2019 - 7 Important Points

Stock Market 2019 will perform based on some unique and critical factors. The regular factors
like crude oil, inflation, GDP, Strengthening or Weakening rupee etc. will have an expected the
impact on the performance of the Stock Market in 2019. However, the crucial factors are as
follows

1. FII inflow/outflow: The important points to consider are how aggressively, MSCI push to
increase China's weightage in the emerging market index & cap the weightage of India's
Weightage.
2. Domestic Inflow: The fund flow from SIP/MutualFunds/DII etc are important to keep the stock
market stable.
3. Loksabha elections verdict will have a negative impact if the new govt is not stable i.e. mandate
will not be clear. The political uncertainty is not good for the stock market.
4. The slowdown in the USA can push the world into recession.
5. Banking sector's NPA's are a threat to the economy and the stock market.
6. If the Chinese economy become strong then it is bad news for India.
7. Weekly expiry in NIFTY will make the market more volatile. As volatility means high risk.

No one can tell how the stock market will perform in 2019. As an investor, we can keep a track of
factors that impact the market. If they are favorable then it is good news else it is bad news.

FII SELL Off in India - The INSIDE Story - What

will happen in 2019?

FII SELL Off in India is a mystery for retail retailers. India is one of the best performing emerging
markets for FII's and FPI's, still why they are pulling money from the Indian Stock Market. In
2018, the total outflow is more than 13 billion dollar.

Normally, the FIII buying or inflow is from the emerging market funds. One such fund is MSCI
emerging markets index. The key trigger for the FII or FPI outflow is the decision by Indian
Exchanges to stop sharing data feed of Indian stocks and Index. FII or FPI don't like any
restriction and believe in the open market or the free flow of information. At the same time, MSCI
would like to increase the weightage of China in the MSCI emerging markets index from existing
around 28% to 40%. This will impact around 140 billion investment of FPI and FII.
The reason for FII buying in 2017 was the restrictions put by China on FII investment and
repatriation of foreign capital. However, in the last few years, China understand that it is difficult
to sustain the stock market without FII or FPI investment.

Also, MSCI is considering to cap the weightage of India in the MSCI emerging markets index.
The FII take a contrarian approach and India is best-performing market whereas China is one of
the poorly performing emerging markets. There is also a proposal to increase the exposure in the
Chinese stock market to 20% and then to 100% of the index market capitalization. It will reduce
the weightage of India from 8.8% to 8.3% and then to 7.7%.

Indian Stock Market Events - Nifty Weekly

Expiry

Indian Stock Market Events will make the market more volatile to nifty 50 weekly expiry. Earlier
these events had a very minor impact due to monthly expiry. However, with the introduction of
weekly expiry in Nifty 50, the Indian Stock Market Events mentioned in this video will provide
very good trading or investment opportunity.

These events are as follows

1. Quarterly results are declared during the 1st month of every quarter. It causes a lot of volatility
in the stock due to speculation in the stock price movement.
2. Budget is declared on the 1st Feb every year and its impact vary from stock to stock.
3. Industry specific data: The data like auto sales no or IIP data are declared on a monthly basis.
Besides that crude oil inventory data of USA also impact the market movement.
4. Bi-monthly RBI policy review.
5. Macroeconomic data like Inflation and GDP are also key pointers to stock market movement.
6. The day of expiry i.e. last Thursday of the month is very volatile.
7. The outcome of the board meetings is keenly watched.
8. Monsoon impact rural demand.
9. Elections showcase the sentiments of the general public.
10. Political events like farm loan waiver etc also impact the stock performance.
11. Any adverse news due to natural calamity or policy change can sharply impact stock price.
 Should I Hedge Swing Trading Stocks?

Should I Hedge Swing Trading Stocks? is the biggest dilemma for investors. As the Swing
Trading is sort of short term investment, therefore, the profit target is not high. Hedging of swing
trades will eat into the profit of the investor. Therefore, to answer Should I Hedge Swing Trading
Stocks?. The ans is not for all stocks. In this video, I shared a specific case where to hedge the
short term stock investment is advisable.

1. If you are buying stocks in large quantity i.e. in cash segment, the quantity is at least equal to
the lot size of futures trade. For non F&O stocks, selling index future is the best way to hedge the
position.
2. High beta and highly volatile stocks
3. If the correlation of the stock price is very high with the index movement then the decision to
hedge also depends on the analysis of future index movement.
4. If you are buying near long term resistance or near the Fibonacci retracement levels then
hedging is a must.
5. If the accuracy of your analysis is very low then you should minimize risk.

Lastly, cost benefit analysis can help you to answer the question Should I Hedge Swing Trading
Stocks?

Option Chain Analysis Myths - Reasons for

Failure

Option Chain Analysis Myths is one of the key reasons for the failure of option chain analysis. As
we know that Option Chain Analysis is one of the most complicated technical analysis. It is used
by very less no of investors or traders. However, it is very complex then it is very reliable and one
of the most accurate technical analysis.

The more myths are attached depending on the complexity of the Option Chain Analysis. In this
video, i will share 7 such myths that will help you to do accurate and reliable technical analysis.
There are
1. Option Chain Analysis can be used for Intraday trading. It is wrong as it tells only short term
view of the market.
2. You cannot do it on a standalone basis. You have to combine with the analysis of the derivatives
segment i.e. future, Fibonacci and the harmonic patterns.
3. The conclusion is not standard and is situational. You need to check whether the sentiments are
bearish, the premium is being booked as profit or hedging is going on.
4. Sometimes the small retail investors are deceived for bigger gains.
5. Any technical analysis fails in front of good or bad news.
6. Option Chain Analysis always works in range.
7. As option chain reflect sentiments. Therefore, sentiments can change even in a day.

Lastly, investors or traders should use their common sense for the conclusion of Option Chain
Analysis.

Volume Breakout Strategy - Success and Failure

Volume Breakout Strategy is very popular among investors and traders. However, it can be a loss-
making strategy for you if you invest or trade just based on the volume. In my opinion, investment
or trading just based on the Volume Breakout Strategy is not reliable. There are a lot of volume
based trading strategies. These might work for few stocks but not reliable.

In this video, i have shared 7 important points related to the Volume Breakout Strategy. These are
as follows
1. Normally, an investor observes the Volume Breakout if there is any positive or negative news in
the stock. This news might be real or fake or just sentiment positive. They might provide an exit
route to big investors like recently in one of the nifty 50 stocks.
2. Volume is not an indicator as it is not based on any calculations or the derivative of data points.
3. Volume is not a leading indicator as projected by some experts. Even if it is an indicator then it
is also a lagging indicator.
4. Volume basically shows the interest of investors whether it is genuine or fake that needs to be
ascertained before any trade.
5. Volume indicates momentum. However, you should check whether this momentum is
sustainable or not.
6. Big players buying is a secret and it is difficult to find.
7. Low volume does not mean trend reversal or exhaustion of existing trend.
 RBI MPC Meeting - How to Analyze ?

RBI MPC Meeting is very important from the stock market investment point of view. This is two-
part video series. In this part, RBI MPC Meeting mentioned following important points

1. Retail inflation is decreasing and it is good for the economic growth of the company.
2. RBI MPC Meeting also shared the sectors that contributed to inflation and deflation. However,
any increase in the supply of food items reduces the price thus impacting the income or disposable
income of the farmers. It can decrease rural spending.
3. The sectors that are contributing to inflation are facing increased demand. Therefore, these
sectors are expected to perform well in near future.
4. The rural wage growth is muted. However, the manufacturing sector staff cost is increased
means sector is expected to do well.
5. Both import and export are increasing.
6. The GDP growth will be more than 7%.
7. For fiscal discipline or to control fiscal deficit, it is suggested that Govt should bring private
investment.

RBI Policy Review - Stock Market Research and

Analysis

RBI Policy Review provides a very good insight from the stock market research and analysis
perspective. All the points mentioned in the RBI Policy Review, provide a logical conclusion and
can be linked to the share market. It can help the investor to make informed decision regarding
their stock investments.

RBI Policy Review provides inputs related to the performance of the Indian economy, an
overview of the world economy and brief about the macroeconomic indicators like inflation,
currency, GDP etc.

In the current RBI Policy Review, some of the key issues that are highlighted are related to the
weakening rural demand and subdued manufacturing growth. The decrease in private
consumption and the exports resulted in the slow growth of GDP.
It also shared the reasons for the global sell of i.e. in the USA there are concerns on the corporate
earnings. The global economy is showing signs of weakness and industrial production is also
slowing down.

All these inputs can help the investor to decide the potential best and worst performing sectors. It
will help in their stock market investment decisions.

Psychology of a Contrarian Investor and How to

Make Money

Psychology of a Contrarian Investor is important to predict the unpredictable in the stock market.
It's a known fact that maximum money can be made through contrarian investing. I already shared
a video on contrarian approach. However, besides the technical analysis, the trading or investment
psychology of an investor is crucial. In this video, i have shared the 7 imp points related to
Psychology of a Contrarian Investor

1. It is a known fact that only 10% investors make money and 90% lose. The reason being, 10%
investors take contrarian approach against the herd or mass mentality of 90% investors.
2. Share Market always tries to prove you wrong.
3. Always remember that reality is always different from what is being shown in the stock market.
4. In the share market, the trading or investment experience counts.
5. You should always invest with common sense. Sometimes, common sense saves you from the
loss as decision makers give enough hints.
6. Greed and fear play an imp role i.e. be greedy when others are fearful.
7. Always have faith in your analysis.

Stock Market Chess - 10 Learnings for

Investment or Trading

Stock Market Chess is a very interesting strategy game. You can implement your learning from
the game of chess to the stock market. Besides strategy games, an investor can also imply their
learning boardroom game and mind games to the share market. However, Stock Market Chess is
my favorite as most of the techniques can be applied.

In this video on Stock Market Chess, I will share top 10 learning based on my experience.
1. The start is very important. A wrong move can through you out of the game.
2. It is important to win a war not a battle. Therefore, you should not focus much on the small
players rather you should focus on big players.
3. The end objective or goal should be very clear. For example, whether you are long term
investor or short term trader.
4. If you are in an advantageous position then you should take advantage and take further moves
based on your position.
5. You are playing alone, therefore, do your own analysis and then decide.
6. Understand the style of an opponent like harmonic patterns and candlestick patterns.
7. Focus on your portfolio, not on individual stocks.
8. A wrong move can lead to the series of wrong moves.
9. Close the loss-making trades.
10. Overconfidence means a loss in the share market.

Banking Sector SWOT Analysis - Strengths

Weaknesses Opportunities and Threats

Banking Sector SWOT Analysis is very important if you are selecting stocks based on a top-down
approach. This approach is taken by FII's and other big players during the stock selection process.
The reason being, stocks are selected based on expected future performance of the sector.

Banking Sector SWOT Analysis is a two-part series. In the 1st part, we will discuss the strengths
and weaknesses of the banking sector. In the 2nd part, we will discuss the opportunities and
threats.

Banking Sector SWOT Analysis first part is Strengths and these are as follows
1. Strong Government Support as the banks are the backbone of the economy.
2. There is always a demand for banking services.
3. Less dependence on cash as cash management is a costly affair
4. Innovation
5. Excluding NPA's, banks are fundamentally strong.
6. The growth of the economy is powered by the banking system.
Weaknesses in the Banking Sector SWOT Analysis are as follows
1. Too many banks. We need fewer big banks
2. It is high risk business
3. NPA
4. Cost of service is very high
5. It is imp to plug loopholes in the banking system
6. The bank should be a business rather social responsibility vehicle.

SWOT Analysis of Banks is very important for long-term investment especially when you are
taking a top-down approach for the banking stock selection. There are a lot of large, mid and
small cap banking stocks. The long-term investors get confused i.e. which stock to select. In this
part 2 of the SWOT Analysis of Banks, we will discuss the opportunities and threats. In the 1st
part of this series, we discussed strengths and weaknesses.

The opportunities in the banking sector are as follows

1. Digitization i.e. user need to visit a branch for any type of banking work
2. Low-cost banking is another opportunity. The branch operation cost is very high. Therefore,
banks should rationalize or consolidate branch network to reduce the cost and increase online
presence.
3. Allow the corporate to run the banks as they will run like businesses.

Threats are
1. Banking sector performs well when the economy is doing good.
2. Banks face competition from mutual funds, insurance companies and NBFC's
3. Weak banks: Either all should be merged to form one big bad bank or they should be merged
with much stronger banks to remove weak banks from the system.
4. Too much regulatory interference.

6 Thinking Hats for Stock Market

6 Thinking Hats for Stock Market are based on the very popular decision-making tool 6 Thinking
Hats by Edward De Bono. Normally, we are unable to make decisions due to lack of conviction
about the decision. The reason being multiple thoughts run through our minds at the time of
making a decision. This indecisiveness can be corrected with 6 Thinking Hats for Stock Market.
The reason being, it will make our decision making more structured and organized. As per
experts, it will also help to tap more opportunities in the stock market. 6 Thinking Hats for Stock
Market are as follows

1. White Hat: It is linked to facts and data including past trends. You should find out missing data
for decision making.
2. Red Hat: This hat is linked to the gut feeling, emotions, and intuition.
3. Black Hat: It is linked to negativity or pessimism and make us realistic with caution.
4. Yellow Hat: This hat is for optimism or positive view.
5. The green hat is linked to creativity. You should be creative in your stock market analysis.
6. The blue hat is for process control and thinks like leader or entrepreneur. You also decide which
hat is suitable under which situation.

Learn Stock Market Trading Beginners - How to

avoid Demotivation

Learn Stock Market Trading Beginners face the biggest problem of demotivation. Demotivation is
one of the biggest roadblocks to become successful in the share market. Learn Stock Market
Trading Beginners should be aware of 10 points that can cause demotivation and in this video, i
will share the solution or how to remain motivated.
1. Negativity around the stock market investor or trader: You should take advice only from the
knowledgeable around you i.e. who understand how the stock market works. Any suggestion from
a non-related person is of no use.
2. Brokerage eats into your profit. You should open your trading or trading account with the
broker who is willing to provide you brokerage free plan by charging fixed fees.
3. In the share market, you are competing against the professional trader and Algo trading.
Therefore, without proper knowledge and learning, you should not jump into the investment or
trade.
4. Avoid wrong advice as we enter the market when it is at its peak and exit near the bottom.
5. Don't get confused by learning from multiple sources.
6. Master only one strategy at a time.
7. Big players try to scare small or retail investors.
8. Learn all trading styles.
9. Stay away from hot stocks/tips/recommendations.
10. Bad news will always be there in the market. Don't get demotivated by bad news.
 7 Reasons for Technical Analysis Failure

Technical Analysis Failure is quite surprising for investors or traders especially in case of most
reliable technical setups or systems. However, one of the key reason behind the Technical
Analysis Failure is when the assumptions or rules of Technical Analysis does not hold true. Retail
investors never take into consideration the assumptions or rules.

In this video, i have shared the 7 reasons for Technical Analysis Failure and these are as follows
1. There is an assumption that the market is always ahead of times i.e. market discount all the
future events like in the case of quarterly results.
2. The stock will always follow the trend. This is not true for hot stocks.
3. There is a famous saying that history repeats itself. The technical analysis fails if it does not
happen. The examples are harmonic patterns, fractals or candlestick patterns.
4. The market is a maths and art but not science.
5. You have to solve the puzzle of an index movement or stock price movement.
6. The market always tries to prove the majority wrong. This is how big investors make money
and one of the key reasons for Technical Analysis Failure.
7. The impact of external factors should be limited.

Also, the stock price drives the demand and supply of stock whereas the reverse is considered as
the truth.

Why Price Action Traders FAIL and How to Avoid

these Mistakes?

Why Price Action Traders FAIL and How to Avoid these Mistakes? is key to successful
investment or trading in the stock market. In most of the cases, the reasons Why Price Action
Traders FAIL are unknown.

During my initial trading days when i started using price action strategy, i also failed. However,
professional investors or traders are of the opinion that price action or candlestick patterns are one
of the most successful trading system or setup. In this video, i am sharing 7 reasons based on my
personal experience.
1. Some strategies require a lot of patience and price action strategy is one of them. Besides, price
actions trading others are Fibonacci Retracement and Long term support/resistance.

2. The size of the candle is a relative term

3. In price action strategy, you may find it difficult to place a stop loss. An investor or traders can
use other trading setup or systems.

4. Most of the patterns spotted initially does not complete. Therefore, no of trades are very less
from the watchlist.

5. Check the correlation of stock price with market movement.

6. Reliability of a chart pattern is very crucial.

7. Always spot to known or tried and tested patterns.

IT Sector Stocks BUY SELL HOLD

IT Sector Stocks BUY SELL HOLD depends on the multiple factors. Currently, the IT sector
stocks are beaten down and are in the buying zone on various technical setups or trading systems.
However, the stocks of American IT companies also known as FAANG stocks have entered into a
bear phase after 20% correction from the 52 weeks high.

IT Sector Stocks BUY SELL HOLD decision depends on the following 7 factors
1. Indian rupee is getting stronger against the USD. In my opinion, currently, the INR is fairly
priced against the USD.
2. ADR of Indian IT stocks will take a beating along with local IT stocks. Therefore, it is imp
point.
3. The policy of American Govt also decides the movement of IT sector stocks.
4. Indian Stock Market will remain volatile.
5. Though experts are bullish they have not sighted any reason.
6. A trade tussle will result in restrictions on the Indian IT sector by the European Union and other
strong Asian Economies.
7. The Govt may reduce the spending on IT sector projects due to fiscal deficit consideration.

5 Steps to Create a Stock Watchlist

5 Steps to Create a Stock Watchlist for swing or positional trade are based on my investment
experience. I received a lot of queries from viewers to share my 5 Steps to Create a Stock
Watchlist. These are as follows
1. Identify the trading setup or system you understand fully. Currently, i am using 7 trading setup
i.e. Swing trading excel sheet, option chain analysis, Divergence, Candlestick pattern or price
action strategy, Fibonacci Retracement, Long term support and resistance & Heikin Ashi candles
+ Stochastic RSI.
2. I take a contrarian approach and identify stocks that can potentially fit in any of the trading
system or setup
3. I decide my buying or selling zone. You can catch the bottom or top.
4. Wait for the stock to enter in my buying and selling zone
5. Once the stock enters in the buying or selling zone, check for a buy signal on other trading
systems.

Normally, there are 10-15 stocks in my primary stock watch list. The main stock watchlist
contains 3-4 shares. It is not necessary that i will trade or invest in all the stocks in my watchlist.

Contrarian Investments and Bad News in a Stock

Contrarian Investments and Bad News in a Stock are linked to each other. In my opinion, this is
the biggest mistake by the investors who follow the contrarian investing approach in the share
market. If a stock is under the influence of bad news then it is not suitable or fit for a Contrarian
Investment. The reason being majority view is right and technical analysis also suggests the same.
On the contrary, in the contrarian investment, technical analysis suggest contrary trade against the
majority view like the analysis we did when the NIFTY was at 10000 or when the TCS share was
at 2200.

The only trade for a bad news stock is to take a short position. Whereas under Contrarian
Investments, you can take buy or sell position depending on the existing trend.

To analyze the bad news, it is important to understand whether the news is really bad. It is not
necessary that good news is always positive and bad news is always negative.
Also, the retail investor should understand the definition of beaten-down stock. In my opinion, the
worst performed stock out of the influence of bad news is the beaten-down stock. The big players
don't exit stocks suitable for Contrarian Investments. The loss under this approach is very limited.

EXIT Stock Market - 5 Reasons

EXIT Stock Market is a tough decision for many investors or traders. In past, I shared a video on
how to quit Intraday Trading. In the current scenario, when the volatility is at its peak some of the
viewers asked me whether they should EXIT Stock Market or not. The biggest concern is whether
they will miss the investment opportunity or not.

In this video, I have shared 5 reasons or situations under which you should consider to EXIT
Stock Market.

1. As an investor if you are not comfortable with stock market volatility then you should stay
away till the volatility reduces. However, the events lined up suggest that volatility will continue
in the stock market.
2. If you can't do technical analysis then you should switch from active investment to passive
investment like mutual funds or index funds.
3. Some investors earn from stock market only by investing in hot stocks, penny stocks or news
based stocks. It is time to EXIT Stock Market if you invest in these stocks.
4. You should invest any amount that is required in short term during a volatile market as you
might lose due to volatility.
5. As an investor, if i am not good in execution, planning or does not have patience during volatile
market then i will EXIT Stock Market.

10 Reasons for Stock Market Volatility

Reasons for Stock Market Volatility can help you understand volatile market in-depth and you can
make informed investment & trading decisions. It is a fact that you can make maximum during
Stock Market Volatility. However, not everyone is comfortable with the volatility. In this video, i
have shared 10 Reasons for Stock Market Volatility.
1. If big players like FII's or DII's decide to pull out money from the stock market then it increases
the volatility. It is one of the most important Reasons for Stock Market Volatility.
2. The corporate earnings is another critical factor. Any dip in corporate earnings can raise serious
concerns on the performance of the stock.
3. Increase in interest rate hampers the economic growth of the economy as it reduces demand and
slows down the economy.
4. During Stock Market Volatility manipulators and speculators enter the market thus it becomes
difficult to do technical analysis.
5. Inflation is one of the most important macroeconomic indicators.
6. Crude oil price directly impacts the inflation.
7. The big investors like FII, DII or hedge funds don't like political instability. A table govt
provide stable economic policies.
8. The currency movement impact imports and exports thus may cause trade imbalance.
9. The demand and supply help to maintain economic growth.
10. Other risk investment opportunities can cause fund outflow

Mutual Funds Bullish and Bearish Stocks

Mutual Funds Bullish and Bearish Stocks are important for retail investors to decide whether to
buy, sell or hold such stocks. There are 3 types of Mutual Funds Bullish and Bearish Stocks

1. Consistent buy sell pattern

2. Inconsistent buy sell pattern
3. Rest all stocks

The stocks with consistent buy sell across AMC or Asset Management companies are most
important as the Mutual funds are either bullish or bearish on such stocks. The retail investors
should definitely consider these stocks for their analysis.

The stocks with an inconsistent pattern like bought by one AMC but sold by another AMC should
be ignored by the investors. The reason being there is NO consensus among the AMC's on the
trend or direction of the stock.

The third and last category should be ignored as there is NO clear majority view on whether
Mutual fund houses are bullish or bearish on that particular stock.
The FII and DII especially mutual fund data is very crucial as there is a strong inflow of funds in
equity segment by the retail investors through mutual funds.

BIG Investors Portfolio - Have they LOST money

during Stock Market Correction?

Big investor’s portfolio is always the topic of interest for retail investors. Recently there were
some news articles that some of the BIG Investors Portfolio have declined almost 1/3rd during the
recent stock market correction. They only presented one side of the story. In this video, i will
share the other side of the story through 7 points related to BIG Investors Portfolio.

1. Sometimes the news around BIG Investors Stock Portfolio is only to garner more views or
eyeballs i.e. to create sensationalism. A loss to big investor creates negative or bearish sentiments
in the stock market.

2. It is important to know whether they are in a loss on a net basis or it is just a notional loss for
them i.e. they are in profit on a net basis due to lower buy price.

3. Most of the ace investors, stock market gurus etc invest in small and mid cap stocks to generate
maximum returns. Therefore, big gain stocks also result in a big loss.

4. Every market be it bullish, bearish, sideways, volatile etc, some stocks will be performing and
some might be non-performing. Therefore, big players have not exited the share market as it is
normal phenomena.

5. Indian stock market is not as mature as retail investors do not expect big investors to lose
money. However, here the success rate or accuracy is more important.

6. Sometimes, the technical analysis may go wrong and mostly it is because of some news.

7. Small players with a business interest in stock market glorify the losses of big investors to hide
their failures.
 Option Greeks Conclusion - 11 Important Points

Options Greeks Conclusion video contains 11 important points that include do's and don’ts for
option traders investors who are using option Greeks for their analysis.

This video is 7th and final part of option Greeks video series. The 11 important points for Option
Greeks Conclusion are as follows
1. You should be very well versed with the option chain analysis.
2. An options trader should be good in mathematics. The reason being the impact of option Greeks
analysis is not ideal.
3. Only an analytical mind can draw Option Greeks Conclusion in a logical and scientific manner.
4. An investor or trader should be able to analyze the market movement with at least 70% to 80%
accuracy.
5. The option trading style should be comfortable with the options trader.
6. Option Greeks is a continuous learning process.
7. If you are not comfortable with the volatility then you should avoid option Greeks analysis.
8. The gains and losses are huge
9. Risk Management is very important.
10. You should follow strict discipline while trading or investment.
11. You should avoid option greeks analysis if you don't understand the same.

Option Rho - Option Greeks | Part 6

 
Option Rho is the rate of change in the option premium when there is a change in risk free interest
rate. Here risk free interest rate us the minimum return that an investor should expect with zero or
NO risk.

In Option Rho, for the practical purpose the zero risk investment is the yield on the govt bonds
that is currently 7.78%. Normally this interest rate does not change frequently. Any change in risk
free interest rate is positive for calls and negative for puts. Increase in an interest rate increases the
call premium and decrease the put premium.

Option Rho is positive for long calls and short puts and whereas it is negative for short calls and
long puts.
Cost of carry is basically a choice between 2 options for the investors i.e. either to buy the stocks
in the cash segment or buy at the money call contract. At the money, call contract is attractive if
the interest rate is high as an investor can get a higher return by investing remaining money. On
the other hand if the interest rate decrease then the first option is more attractive.

Option Theta Trading Strategy - Option Greeks |

Part 5
Option Theta is the rate of change in option premium when there is a change in the time to expiry.
Option Theta is the biggest risk for option buyers. The option premium drop with each day as the
time to expiry approaches. More the no of days to time to expiry, higher is the probability to hit
the strike price. This is the reason why option writers or sellers make money in the options
trading.

For option buyers, the best scenario is the increase in option premium but the rate of increase
should be more than the Option Theta. The option writers are an advantage as the option premium
will decrease naturally near expiry and they will be in profit. Therefore, option buyer should buy
an option with low Option Theta value and it is reverse for option sellers.

Option theta constitutes a major part of the extrinsic value. As we know the option premium
consists of 2 parts i.e. intrinsic value and extrinsic value. At the money contracts have the highest
Option Theta value.

Also, the theta should be more than delta to check the breakeven point. If delta is 10 and theta is 2
then the stock price must increase by Rs 10 every 5 days.

Option Vega Explained - Option Greeks | Part 4

Option Vega is the Rate of Change in option premium w.r.t volatility of the stock price or index. In
layman terms, option vega tells you how much option premium will change with every 1% change
in the implied volatility of the underlying asset.

Option premium increase with the increase in implied volatility. If the volatility increase by 1%
then adds vega value to option premium. On the other hand, the value of vega is subtracted from
the option premium if the volatility decreases by 1%.
Option Vega decrease with time to expiry. The value is positive for long positions and negative for
short positions.

If no of option buyers increases then the value of vega increase as implied volatility should
increase i.e. option premium increase in the case of a long position.

In the case of option writing, the option seller will earn if the premium of the option decreases as
there is a short position. The value of option vega decrease in this case because of a decrease in
implied volatility. It is one of the most important option Greeks.

Option Gamma Explained - Option Greeks | Part

3
Option Gamma is the rate of change in delta or volatility in delta option greeks. Option Gamma is
also called the derivative of a delta that is expressed in percentage.

Option Gamma is must for an option greeks analysis. Also, if you are analyzing the delta then you
should definitely study the Option Gamma. The reason being, delta only tells the change in option
premium with the change in the value of the underlying asset that can be a stock or index.

However, option delta is dynamic and variable in nature and most of the investors or traders find
it difficult to conclude. In such a scenario, it is imperative to study the rate of change.

A higher gamma value means the option contract riskier compared to call or put option with low
gamma. The value of deep in the money / out of the money contracts is Zero as the option
premium will not change much. It means the probability is very low. The highest gamma value is
of At the money options contract. In case of high volatility, the value of Option Gamma is stable.

Option Delta Explained - Option Greeks | Part 2

Option delta is the rate of change in the option premium w.r.t. change in the price or value of the
underlying asset i.e. share price or index. For example, if the option delta of a stock is 0.2 then
with every Rs 10 movement of the share, you will gain or lose Rs 2 per share. You can estimate
your profit or loss with the help of option delta if you know the expected share price movement.

Delta of a call is +ve and put is -ve. The option delta of ITM or In the money contracts are high.
Whereas it is low for out of the money contracts. For at the money contracts, the delta is 0.5.
Option delta also depends on the time till expiry i.e. for out of the money contracts will have near
zero delta near expiry. With the increase in the volatility of the underlying asset, the delta decrease
or vice versa.

In the case of 0.5 delta there is an equal probability of at the money contract to move in the money
or out of the money. If the delta is 0 or 1, the probability of hitting that particular strike price is
almost impossible.

For hedging, you need to check the option delta. It is wrong to assume that if the lot size is 100
and i bought same no of shares in cash then by buying one lot, i have fully hedged my position.
You need to check net gain or loss based on delta to hedge a position.

Option Greeks Strategy - Introduction | Part 1

Option Greeks Strategy is key to success for options traders. With the help of option greeks, you
can take informed decision resulting in a profitable trade. Option greeks are the group of greek
alphabets that tell values w.r.t to the option premium volatility. The most common greeks are
Delta, Gamma, Vega, Theta and Rho.

The option premium is decided by the large no of variables like Stock Price, time to expiry,
implied volatility, risk free rate of interest etc. Each of these greek alphabets shows a relation
between these variables and the option premium i.e. change in option price or premium w.r.t
variable affecting it.

1. Delta is linked change in the underlying asset i.e stock price or index. Low delta means low
return on the options trading.
2. Gamma: Rate of change in the delta and is mentioned in the %.
3. Vega: Implied volatility of the index or stock price.
4. Theta takes care of time decay i.e. time of expiry.
5. Rho: Rate of risk free interest rate.

All the calculations are based on the Black Scholes formula. You can check the values on any
online option calculator.
 Stock Market and Macroeconomics - 5 Reasons
Why Share Market will not CRASH

Stock Market and Macroeconomics are strongly co-related to each other. Macroeconomics
indicators decide the strength of the economy and the performance of the economy is reflected in
the stock market.

There are a lot of stock market analysts who are predicting the crash in the stock market to the
levels of 9500 or lower. However, macroeconomic indicators do not support their claim. The two
key macroeconomic indicators are the country's GDP growth and the second is inflation.

Currently, the GDP growth of the country is around 8% and inflation is around 4% which
indicates the strong performance of the economy. The global rating and credit agencies give
maximum weightage to GDP and inflation. These ratings are using by FPI and FII to decide, in
which country they would like to invest.

Thirdly, the subsidies and leakages are under control. Besides that govt is pushing hard on reforms
and infrastructure.

Lastly, NO govt would like to face an election with a weak stock market as there are more than 80
lakh active investors. Regarding crude oil, it is not in control of Govt and rupee depreciation is
required to sustain the current trade and currency war between world's biggest economies.

Stock Liquidity - Is it important for Trading or

Investment?
Stock Liquidity is not always bad. Normally, it is advisable not to invest in stocks that are illiquid
or have low liquidity. In layman terms, Stock Liquidity is how easily you can buy or sell a
particular stock without impacting the stock price. The interpretation is subjective and can be
decided based on the volume.

If i am trading with low volume then Stock Liquidity is not a major concern. I only need to check
whether my trading volume is less than 1% of the total trading volume or more than that.
Normally, the hot stocks have high trading volume. Therefore, the probability of loss is high.

In this video, i have shared 4 important points related to the Stock Liquidity.
1. Bid-Ask Spread: The bid-ask spread for high-value stocks is normally high but for low-value
stock, it is abnormal.
2. The volume in high-value stocks is low. Therefore, we cannot have a standard definition for the
Stock Liquidity.
3. The volume in relation to the free float of the stock is also an important criterion.
4. The no of investors or traders is also important and it can be checked from the no of trades from
the bhavcopy. An increase in value and volume has no relevance until it is accompanied by the
increase in no of trades.

How to Trade in Volatile Market?

How to Trade in Volatile Market? is key to remain profitable in the stock market. Most of the
investors leave the share market when it becomes volatile. The reason being, it becomes very
difficult to earn a profit during the volatility. In this video, i have answered all the queries of the
viewers related to How to Trade in Volatile Market?

The first question is how to know whether the market is volatile or not. The answer is you can
track India VIX. There are multiple technical indicators also that can help you to find out stock
market volatility.

Some of the trading systems or indicators that work well during volatile market are
1. Fibonacci retracement: Normally, the retracement is observed from 78.6% level during high
volatility instead of 61.8%.
2. Trend lines are rarely used by retail investors. However, during volatility, trend lines on the
weekly chart are reliable.
3. You can use most reliable candlestick patterns like double top or double bottom.
4. RSI or Stochastic RSI indicator.
5. Long term support and resistance is the most reliable way to trade in a volatile market.

Option Chain Premium Analysis

Option Chain Premium Analysis is very critical to find the direction of the stock market. The
premium of an option is the most ignored factor for Option Chain Analysis. Now as an investor or
trader, you must be wondering why Option Chain Premium Analysis is important?
The premium of an Option is directly proportional to the probability of strike price being hit or at
least the market movement in that direction. Therefore, the relative decay in the premium is a very
reliable parameter to identify the direction of the share market.

The basic criterion is

1. To consider only the out of the money or OTM contracts.
2. Consider the two strike price on PUT and CALL side with highest OI.
3. After that calculate the decay in a sequential manner i.e. with the movement of the stock
market. The latest value should supersede the existing value.

After that based on the number of values, you can find out the average decay in premium on put
and call side. If the decay is less on PUT side than the CALL side than the market will go down.
On the contrary, if the decay is less on the CALL sides then the market will GO UP. The reason,
less decay in premium means that particular side (bull or bears) are optimistic about the share
market moving in that direction.

AVOID Initial Public Offering or IPO - 5 Reasons

AVOID Initial Public Offering or IPO as Initial Public Offering is expensive. Normally, it is a
marketing gimmick by the company to attract investors. Through social media and other
platforms, it is projected that the only way to become rich in the stock market is to invest in IPO's.
However, the fact of the matter is that the probability of success in the primary market is only
50:50 i.e. if an investor would have invested in all the IPO's he/she would have lost money in half
of the Initial Public Offering and made money in another half.

I don't invest in IPO because

1. It is a marketing and selling exercise. The best marketing ensures that IPO is oversubscribed.
2. The probability of success is just 50%
3. Most of the IPO's are expensive as the company demands higher valuation.
4. There is NO data available for technical analysis and is bought just based on the fundamental
analysis.
5. Listing gains are not ensured as the sentiments might change overnight. You should also check
the big investors who invested and how the IPO or Initial Public Offering is oversubscribed.

Volatility in Stock Market - Why it is GOOD for

Learning?
 
Volatility in Stock Market is part and parcel of share market trading and investment. Volatility
brings fear in the mind of the investors due to high risk. Volatility in Stock Market bring very fast
changes and human behavior resist change. The resistance is to fear of unknown. Currently, the
stock market experts are anticipating the market to correct to a level of 10000, 9500 or even 7500.

Volatility in Stock Market tests the knowledge and learning of the investors You may pass or fail
but you will definitely learn a lot from the Volatility in Stock Market. It tests the famous quote of
warren buffet i.e. be fearful when others are greedy and be greedy when others are fearful.

The 5 reasons why i love volatility are

1. Volatility brings a lot of opportunities in quality stocks that are not available otherwise.
2. It provides a great lesson on risk management.
3. It also tests all the trading and investment skills i.e. emotions, attitude, trading system, stop less,
entry point etc.
4. If you leave the market during the period of volatility, you cannot earn during the bull phase.
5. You should stay in share market during the turbulence period even without any investment.

How to Swing Trade with a Full Time Job ?

How to Swing Trade with a Full Time Job? is key to generate the second source of income for
most of the working professionals or traders with full time job. Just to add that Swing Trade is
best for traders with Full Time Job. Day trading or intraday trading is not suitable for working
professions. The investors who complain that they don't have time should check the study on
productive hours of the Indian workforce. Out of 8-9 working hours, the no of productive hours is
just under 5 hours.

In this video, i have shared 7 tips on How to Swing Trade with a Full Time Job?
1. List down unproductive tasks. For long term gain, you have to bear short term pain. You should
cut down on all the unproductive tasks.to save time to study & learn the share market.

2. You should plan your time and make a timetable.

3. I deleted all my personal social media accounts to save time.

4. You should form a group of like-minded people in Office to discuss the mistakes.

5. You should be consistent in your stock market analysis.

6. The limited time available should not be an excuse to learn the stock market.

7. You can utilize your weekend to study and learn.

The stock market requires process oriented analysis whereas the job requires result oriented
approach. You have to change your mindset accordingly.

11 Volatile Market Mistakes Every Investor

Makes

Volatile Market Mistakes can cause very heavy losses to the investors. When the market turns
volatile then the investors and traders should turn extra cautious. In this video, i will share the 11
most common Volatile Market Mistakes by investors.

1. Margin trading should be avoided when the share market turns volatile. The reason being, the
sharp price movements in stock prices can hit your stop loss. Also, the direction of the market is
not clear.

2. it is better to avoid trading in derivatives segment i.e. futures and options.

3. The investor should cut some positions and keep the cash in hand for some good opportunities
available during the high volatility period.

4. The stock market experts will suggest you buy stocks near 52 week low. It is not an investment
strategy until you know the bottom of the stock.

5. The investors are biased by the option of the stock market experts.
6. It is a bad idea to average out the falling stock.

7. An investor feels that stock market volatility is a temporary phenomenon. It is important to

keep a strict stop loss.

8. The stocks under correction look good for value investing.

9. During the high volatility period, the investor stops investing and it is one of the biggest
Volatile Market Mistakes

10. You should protect your profits.

11. Never rely on others for analysis and do your own analysis.

The bonus tip is to avoid highly volatile stocks.

Stock Market Bubble Definition - How to SPOT it

Stock Market Bubble Definition is very simple i.e. when the stock price does not justify the
valuation of the stocks. The most common parameter to judge the Stock Market Bubble is the PE
ratio or Price to earning ration. The most common question in the mind of the investors is the
Stock Market Bubble is formed and can we identify or spot it in advance.

Another Stock Market Bubble Definition is when large no of investors start thinking that what
other investors are doing is correct in terms of investment. In this case, the no of investors grows
exponentially thus the stock price is inflated.

With the help of the following 7 factors, you can spot the Stock Market Bubble in advance.
1. Stock Market Volatility: You should keep a watch on the India VIX.
2. Most of the IPO's are launched during the bull phase. If you observe that there are not too many
IPO's lined up. It means that the Stock Market Bubble is about to burst or there can be a crash in
the stock market.
3. The valuation of the stock is not justified by the stock price.
4. If both the FPI or FII and DII or Mutual funds start selling.
5. The macroeconomic indicators do not support the stock market.
6. The business environment is not favorable and there is political instability.
7. The future growth potential is bleak.

Why Option Buyers Lose Money - 7 Reasons

Why Option Buyers Lose Money is an unknown mystery. As i shared in my option chain analysis
series that option writers or option sellers are always correct. In 80% to 90% of cases, option
buyers lose money. Which in turn is the success rate of option sellers. In this video, we will
discuss 7 reasons or mistakes Why Option Buyers Lose Money?

1. The key to success for option buyers is to track the activities of the option writers i.e. how they
are taking a position in the derivatives segment. The reason being, the loss of option buyers is
limited whereas the losses of option writers are unlimited.

2. Option buyers think that if they buy deep OTM or out of the money option then their loss will
be less because it is cheap. However, the option premium is directly proportional to the
probability of hitting the strike price.

3. Option buy can be profitable in the highly volatile market that can be checked with the help of
India VIX.

4. The best time to trade derivatives or options is between 1st and 3rd week i.e. before the expiry
week. By doing this, an investor can avoid the loss due to time value decay.

5. Option buyers should put stop loss to minimize the loss.

6. With the help of technical analysis, you can find out whether the option is overpriced or
underpriced.

7. There is no alternative to learning. Option buyers should gain knowledge of how derivatives
segment work then only they can do perfect option chain analysis.
 How to find PUMP and DUMP Penny Stocks ?

How to find PUMP and DUMP Penny Stocks is a bit tricky question as such stocks are normally
confused with the multibagger stocks. PUMP and DUMP Penny Stocks are normally very low
volume stocks with very low market capitalization. PUMP and DUMP Penny Stocks are identified
by the manipulator or promoters to exit their position at a higher price or to make a profit in the
stock market.

The manipulator will start buying the stock and due to low volume, the stock price will increase
sharply. After that this stock will be marketed as the multibagger stocks through social media,
press releases, case study or through 3rd party agencies.

As an investor, i will not have any reason to buy such stocks. it is only the FOMO i.e. fear of
missing out will force the retail investors to invest in such stocks. After the pump i.e. increasing
the stock price, the manipulators will start dumping the stock thus retail investor will be trapped
and the stock will hit lower circuits consequentially.

How to find PUMP and DUMP Penny Stocks?

1. Check the long period chart say 1 year and also check the volumes.
2. Check any fake positive news to improve sentiments.
3. You will be promised big profit
4. These are penny stocks
5. These stock trade in a narrow range for long period.
6. It might be a hostile takeover.
7. Stick to your stock selection criterion.

How to become Professional Trader - 10 Pro Tips

How to become Professional Trader is a serious question for the investors or traders who would
like to make the stock market as their full time profession or career. Normally, retail investors
think that professional traders are the ones who have a big stock portfolio or trading capital. It is
not correct. In layman terms, an investor or trader whose profession is a stock investment or
trading is a professional trader. At the same time, he/she is also taking a professional, systematic
and process-oriented approach to trade or invest.
10 tips or traits of professional traders are as follows
1. Professional traders follow the steps without worrying about the results. If you follow rights
steps and process, the profit is assured in the share market.
2. Risk Management is a very important part of Professional traders strategy. In layman terms, the
risk management is how much money you lose in no of losing trades.
3. The return expectation should be realistic and practical.
4. You should deploy optimum capital in the stock market.
5. Opportunity cost is very high in the stock market.
6. Working professional cannot become professional traders
7. You should follow 2 strikes rules i.e. if any setup does not work for 2 consecutive times then it
is time to change the strategy.
8. You can earn only if you learn
9. Trading should be based on a professional approach
10. Always do your own analysis.

Trend Analysis Tutorial - Why it FAILS?

Trend Analysis is the key to remain profitable in the stock market. If you identify trend correctly
then you can book profit else your trade will hit stop loss. The whole premises of the technical
analysis to identify the trend. In layman terms, if your Trend Analysis is accurate most of the
times then you can generate consistent income from the stock market.

If an investor is not able to identify the trend of stock or market then he or she should rely solely
on the stocks that are in strong uptrend or downtrend.

For Trend Analysis, you need to follow 3 simple steps i.e.

1. Identify the trend
2. Reconfirm the trend
3. Identify the strength of the trend i.e. whether the trend is strong, weak or possibility of reversal.

Secondly, you should check the chart for a longer time period i.e. minimum 1 year or 6 months.

The historical trades should not bias your mind. A stock in a strong uptrend or bullish can be most
lost making a trade for you. Therefore, it is important to select the stocks with rational, logic and
without any bias.
You can do Trend Analysis on multiple time frames and stock can be under different trend on
multiple time frames.

Insider Trading Opportunities for long term

Investment

Insider Trading is when an insider collects the price sensitive unpublished information and pass it
to his friends, relatives or known person with the objective of making money from the change in
share price. Here, the insider means any person who is connected to the company and has access
to sensitive information.

The insider trading data is available on the BSE and NSE exchange. Insider Trading provides an
excellent opportunity for the long term investors if they can track the stock for the long term. The
reason being, an insider can take a position with pre-condition holding the stock for a minimum 6
months. This condition is for 3 months for an IPO. The insider cannot trade in the derivatives of
the stock.

Here the catch is that the Insider Trading data is available with the delay and big players try to
confuse the retail investors.

The reason why retail investors lose Insider Trading Opportunities for long term Investment is that
they use this data for intraday or swing trading. However, the real opportunity lies in the long term
investment. According to a study, the investment based on insider trading is accurate 90 percent
times in the long run i.e. for investment between 1 year to 3 years.

BEST Banking Stocks - Banking Sector

Fundamental Analysis

How Do Banks Make Profit? is the part 1 of the 3 part series on Banking Stocks Fundamental
Analysis. The fundamental analysis of the banking stocks is completely different from the
Fundamental Analysis of other stocks.

The financial ratios for banking stocks analysis are different from the traditional financial ratios.
In the 2nd part of this series, we will learn the financial ratios for Banking Stocks Fundamental
Analysis. In the 3rd part of this series, we will learn how to analyze the bank stocks.
For a complete analysis, it is important to understand the cost and revenue of the banks. The cost
includes the interest on deposits and the cost of running bank operations. The revenue or income
for the bank includes interest income from the loans and other income from the distribution of
financial products & fees from the services offered by the bank.

To earn a profit, the interest income from the loan should be more than interest paid on the
deposits. The banks can raise the deposits based on the net worth of the bank. Higher the net
worth of the bank, higher the deposit banks can raise. The total capital raised depends on the
financial leverage or equity multiplier. Financial leverage equals total capital divided by the net
worth.

4 Key Financial Ratios for Banks i.e. fundamental analysis for banking stocks are as follows
1. Financial Leverage or Equity Multiplier
2. Return on Assets
3. Return on Equity
4. NIM or Net Interest Margin

These are profitability ratios or risk ratios. With the help of these 4 Financial Ratios for Banks,
you can decide which banking stocks are fundamentally strong or weak.

1. Financial Leverage or Equity Multiplier: This ratio is calculated by dividing total capital or
asset to net worth of the bank. The maximum value is 15. If this value exceeds 15 then it implies
that bank is taking a high risk by accepting more deposits.

2. Return on Assets: It is the profitability ratio arrived by dividing Net Profit / Total Assets. The
idea value is 1% or more than that.

3. Return on Equity: Net Profit divided by Net Worth is Return on Equity. The idea value is 15%
or more. You can also calculate by multiplying Equity Multiplier and Return on Assets

4. NIM or Net Interest Margin: This is a very important financial ratio. You can calculate by
(Interest Earned - Interest Expended) divided by Total Assets. The max value is 3% i.e. higher
NIM means the bank is disbursing more loans to improve NIM and it reduces the return on assets.
It is not considered a good sign.
To select BEST Banking Stocks based on Fundamental Analysis is important for long term
investment. This video is 3rd and last part of the series on banking stocks fundamental analysis. In
the 1st part, we discussed how do banks make profit?

In the 2nd part to select best banking stocks, we discussed the 4 important financial ratios to
analyze and compare the banking stocks for long term stock selection.

For analysis, i have considered banking stocks in Nifty 50 like SBI, ICICI Bank, Yes Bank, HDFC
Bank, Indusind Bank, Axis Bank and Kotak Mahindra Bank.

The banks with 4 financial ratios within the ideal range are best suited for long term investment.
As we know that financial sector contribute almost 1/3rd contribution in Nifty. Therefore, it is
important to select the fundamentally strong banking stock.

The most important ratio is Return on Equity. I will prefer banking stock with Return on Assets
greater than 1% but with higher NIM (Net Interest Margin) i.e. more than 3%. The equity
multiplier or financial leverage tells the risk taken by the bank in terms of deposits collected from
the customers.

The BEST Banking Stocks fundamental analysis shared in this three part series can be done very
easily by the long term investors in very less time.

Promoters Holding Analysis - Most Common

Mistakes

Promoters Holding Analysis can prove to be an asset to the investors if it is done properly.
However, most of the times Promoters Holding Analysis is wrong as the investors select the stock
only based on the single criterion i.e. increase in promoters holding in the company.

As a thumb rule if the FII and promoters are increasing their stake then it positive for the stock
price. On the other hand, the reduction in shareholding is a negative news. It is not true always.

As an investor, you should understand the reason for increase or decrease in the promoters stake
and secondly, the method of change in shareholding pattern. If the promoter is decreasing stake to
issue ESOP or introduce strategic or financial partner or to reduce debt then it is a good news.
High promoters stake is not a good sign during shareholding pattern analysis. The reason being, it
means the institutional investors are not interested in the stock. In case of high FII holding, the
sudden sell of by the FII can crash the stock price.

It also important to check the pledging data. Sometimes promoters increase stake and pledge the
shares at a higher price thus get benefited.

Besides shareholding pattern analysis, you should also check the business prospects of the
company. Both should be clubbed together to complete the Promoters Holding Analysis.

SME Stocks Investment - Good or Bad ?

SME Stocks Investment or shares of small and medium enterprises always attract retail investors
due to news reports of extraordinarily high returns. It is projected that SME or small and medium
enterprises have very high growth potential. On the contrary, the success rate of small and
medium enterprises or SME is just 20%. The NSE Emerge and BSE SME platform provide
facility to retail investors to invest in SME stocks.

However, there are certain reasons why i don't invest in SME Stocks.
1. High entry barrier: The minimum traded value is 1 lakh rupees and SME stocks are traded in
lots i.e. a fixed lot size. In other words, the retail investors are discouraged to invest in SME
Stocks.
2. SME Stocks Investment is very risky
3. There is a lack of transparency in small and medium enterprises
4. There is no past track record of promoters or entrepreneurs
5. The trading volume is very low thus these stocks are illiquid
6. The resources for the future growth of the SME are very limited
7. The traditional analysis does not work for SME stocks

SME opt for listing to raise funds as most of the banks, prefer not to approve loans to SME due to
very high risk. In some cases, listing provide an exit route to promoters.
 BEST Date for SIP Investment in Mutual Funds
and Stocks

What is the BEST Date for SIP Investment in Mutual Funds and Stocks? Normally, the long term
investors keep guessing without any concrete conclusion. The financial planner / Investment
Advisor / Mutual Fund distributor of the investor suggest keeping SIP date during the beginning
of the month. The reason being, they would like to ensure that as soon as you receive your salary
or income then they get their wallet share as they receive commissions and get incentives for SIP
in mutual funds.

As an investor, you have to select the SIP date from the list of dates offered by AMC or Mutual
Scheme. You can decide on your SIP date as per your wish. According to independent
studies/analysis, the BEST Date for SIP Investment in Mutual Funds and Stocks are as follows

1. Near the date of expiry.

2. End of the month.
3. Middle of the month.
4. Beginning of the month.

If you start your SIP every month 25th then you are more likely to generate 1% additional return
on your investments compared to any other day of the month. On the contrary, the SIP in mutual
funds and stocks during the beginning of the month is more likely to deliver the least returns on
your investments.

The reason for best returns near expiry is a highly volatile market and position unwinding by the
traders near expiry. Historically, the market trade lower near expiry during the entire month.

Narrow Range Stock Selection - TTM Squeeze

Strategy

Narrow Range Stock Selection is key to breakout strategy. The TTM squeeze can help the
investors or traders to find out Narrow Range Stocks in just 2 mins. TTM Squeeze is a
combination of Bollinger Bands and Keltner Channel. Besides narrow range, i consider 2 other
important criterion i.e. the stock should be high beta stock along with very high volatility.
The squeeze is formed when the Bollinger band cross inside the Keltner channel and breakout or
breakdown is reverse of the same.

There is a 70% to 80% overlap between the narrow range stocks selected through NR4 and NR7
stocks & the stocks selected through the TTM Squeeze strategy.

Keltner channel indicator is based on the ATR or True Range i.e. it is a Volatility based indicator.
It is narrow than Bollinger band. The Bollinger band squeeze is relative. However, a combination
of two is more reliable.

This strategy works for both Intraday trading and Swing Trading or even for long term
investment. The time frame for intraday trading is 15 mins and for swing trading, i consider the
daily charts. You can backtest or paper trade before any investment or trading based on Narrow
Range Stock Selection through TTM Squeeze Strategy.

Why is the Reliance Share Price falling ?

Underperform Rating

Reliance Share Price is falling from the last couple of sessions. It has corrected more than 6.5%.
The reason being global brokerage Jefferies has cut the target price of Reliance Share Price to 880
and the future rating is underperform.

Now the million dollar question in the mind of the existing investors is whether to book the profits
or accumulate more no of shares post correction. On the other hand, the investors planning to
invest might find a right opportunity to enter.

Reliance is nifty 50 stock with 2nd highest weightage of 9.29%. The probability of almost 1/3rd
correction is almost negligible. However, an investor should check the Fibonacci levels of 23.6%
and 38.2% retracement. The level of 38.2% can be the good entry point. At the same time, it is
imp to understand the reasons for underperform rating.

1. Reduction in gross refining margin

2. Increased capital expenditure on Jio operations.
3. High net debt in the future.
4. Expensive valuation.
The underperform rating is short term negative from sentiments point of view. However, it may
provide a good opportunity for long term investors i.e. attractive Reliance Share Price.

Multibagger Stocks Biggest Mistake - Importance

of Sector Analysis

Multibagger Stocks Biggest Mistake is to ignore the sector analysis. You may find many stocks
with multibagger chart patterns. However, before you decide to invest, it is important to do sector
analysis. In my one of the videos i shared two types of analysis i.e. tops down analysis and
bottoms up analysis.

The FII's, DII's and big investors always follow the tops down approach. Under this approach,
they first spot whether they would like to invest in emerging markets or not and then the country.
After that next step is to shortlist the sectors and after the finalization of the stocks, it is important
to identify the beaten down stocks for multibagger stocks.

The probability of a beaten down stock in a bad sector becoming future multibagger is very low.
On the other hand, the probability is very high if the beaten down stock is from the sector that is
expected to perform well in the future. Some of the key factors are

1. Sector Performance and the opinion of the experts.

2. Scalability and Growth triggers
3. Consolidation
4. Profitability
5. Future Growth
6. Margins
7. Govt policy and heavily regulated sectors
8. Seasonal Stocks

Equity Portfolio Strategies - How many Stocks to

Invest in
Equity Portfolio Strategies decide the return on your stock portfolio. As an investor, you know
that my stock selection process is very rigid. I don't have any target in my for no of stocks to
invest in. The whole debate depends on the quality v/s quantity. It's a known fact that quality
reduces with the quantity. Therefore, as a thumb rule, my Equity Portfolio Strategies depend on
quality stock selection, not on quantity.

Increase in quantity also decrease the returns of the stock portfolio. The objective of the active
investor is to generate more returns compared to the index returns.

Another debate is on the concentrated portfolio v/s diversified portfolio. The ace investors or
stock market gurus always focus on the concentrated portfolio. For the diversified portfolio,
mutual funds are the best option.

Another important criterion is the weightage of a stock in the stock portfolio. Top performing
stocks should have higher weightage. The future investment should also be in top performing
stocks.

Diversification of stock portfolio depends on the confidence of the quality stock selection. With
limited capital, an investor should get rid of relatively non-performing stocks. To minimize risk,
you can adopt diversification in Equity Portfolio Strategies. However, if the stock selection is
good then concentrated stock portfolio makes more sense.

Contrarian Investing Tips for Multibagger Stocks

Contrarian Investing Tips are key to find out the Multibagger Stocks.
Contrarian Investing is basically a view against the view of the majority or vast majority. For
example, if the majority of investors are anticipating a fall in stock price, the Contrarian Investing
or investor will buy the stock. It is exactly the same as the principle of buying when others are
selling and selling when others are buying.

All the multibagger stocks are Contrarian Investing. You can make big gains or huge profits by
identifying multibagger stocks through Contrarian Investing.

The difference between Contrarian Investing and value investing is very minor. Contrarian
Investing takes into account, the market sentiments and investors behavior.

Through the process of Contrarian Investors is that market is irrational and unfair towards some of
the stocks and secondly, the majority view is always wrong in the share market. Therefore, the
majority of investors lose money in the stock market.
You can consider the valuation of the stock as perceived by the big investors, technical analysis,
and India VIX to find out when is the best time for Contrarian Investing and identify multibagger
stocks.

Complete Guide on Intraday Trade

Complete Guide on Intraday Trade includes an end to end Intraday Trading steps. In this video, i
have shared my one of the profitable and safest Intraday trade.

The stock selection was based on Narrow Range stock. In this case, it is NR4 Stock with very
high volatility and high beta stocks. These are the 3 selection criterion for Intraday Watchlist.
After stock selection, you should check the direction of the market. It can be found based on the
Advance to Decline ratio. The gains or loss in terms of points is of NO relevance.

As a next, you should check the sector trend for that particular day. The stock trend can be found
out with the help of EMA, Option Chain Analysis, Price Action Strategy or Candlestick pattern
and
Fibonacci Retracement. If 2 out of 3 methods point in one direction then it is confirmation.

The direction of the stock breakout can be found with the help of technical set up or trading
system. In this case, i have used Heikin Ashi candlesticks and stochastic RSI.

For safest trade, the Market, Sector, Stock and Technical Setup should point in the same direction
i.e. either bullish or bearish. The probability of loss is negligible.

Double Bottom Bullish Reversal or W Chart

Pattern for Multibagger Stock

Double Bottom Bullish Reversal or W Chart Pattern is considered as one of the most reliable chart
patterns in the price action strategy. An investor can identify the beaten down stocks and these
stocks should be in a strong downtrend. If these stocks form Double Bottom Bullish Reversal or
W Chart Pattern then the probability is very HIGH that this stock can be a future multibagger.

Double Bottom Bullish Reversal or W Chart Pattern is formed over weeks or months. Therefore,
an investor should keep patience for the pattern to complete. At the time of reversal, all the
technical setups of the stock are negative. Therefore, the is not on the focus of large no of
investors that provide a golden opportunity for big players to take a position in the stock.

The movement from 1st trough to 1st peak of W chart pattern is an opportunity for big investors
to accumulate the stock. The risky investors enter the stock at the 2nd trough and risk-averse
investors when the stock breaks the 1st peak and give a breakout.

The Double Bottom Bullish Reversal or W Chart Pattern offer very attractive risk-reward ratio to
the investors. You can easily identify multibagger stocks in small and mid cap stocks.

Tips to Find Multibagger Stocks - Why Retail

Investors Fail ?

Tips to Find Multibagger Stocks, The answer to this query depends on the fact why retail
investors fail to identify Tips Multibagger Stocks. In his book "The Art of War" by Sun Tzu, he
explained a concept that All warfare is based on deception. This deception is not created by the
retail investors but by the big players.

In order to find Multibagger Stocks, the retail investors should identify this deception in the stock.
These stocks are beaten down stocks. Any big player, who would like to take a position in any
stock bring the stock price to their buying level either by shorting the stock or by buying and then
selling. It is called a short attack.

Market manipulation is possible only because of shorting. Big players create a negative technical
setup to weed out buyers from the stocks. This can be done by negative news or short selling. The
nervous retail investors sell and experienced retail investors start short selling the stock. In such a
scenario, big players will start buying and selling simultaneously. This is the reason why stocks
trade in very narrow range especially in the case of Multibagger Stocks.

Futures and Options for Stock Market Beginners

- Derivatives Trading

Futures and Options for Stock Market Beginners is very attractive because of the promise of huge
profit at a very low investment. This is possible because of margin and leverage. The beginners
are attracted towards the derivative trading or Futures and Options because of profit statements of
big investors & traders. It is fascinating to see the profits of lakhs on daily basis in derivatives
trading.

In this video, i will share the some of the key points of derivatives trading i.e. why beginners
should stay away from the futures and options.
1. High profit at low investment: It is true that you can generate 100% returns or double your
returns in a very short span of week or fortnight. However, you are not told that you can also wipe
off your entire investment i.e. your investment can become zero because of the high margin and
leverage.

2. Buy option at a small premium and earn a huge profit: As per various studies, the probability of
profit for option buyers is just 5% and chances to lose the option premium is 95%. Option writes
are always correct in the stock market.

3. Sell option or option writer: It is too risky as the loss is unlimited.

4. Margin requirement may change because of sharp price movements or volatility.

5. Additional cost like brokerage, stamp duty etc is very high in futures and options or derivatives
trading.

6. Derivatives were originally designed for hedging. They are not a trading product.

7. You should open separate accounts for investment and trading.

11 Types of Stocks - I AVOID Investing In

 
11 Types of Stocks in which i AVOID Investing In is based on my investment and trading
experience. Normally, we only discuss the types of stocks in which an investor should invest.
However, i keep discussing the list of stocks that can eat into your profit. The 11 Types of Stocks
are as follows
1. News based stocks
2. Hot Stocks i.e. when everyone starts talking about these stocks.
3. PSU Stocks. The management of such stocks is very weak.
4. Bad News in the stocks as the stocks are driven by sentiments. Therefore, if there is any bad
news in the stock then it will definitely fall.
5. Circuit Breakers i.e. stocks consistently hitting upper or lower circuit.
6. Highly regulated stocks. The intervention by the regulator keeps the profitability under stress.
7. Capital intensive sectors. The profitability is very low for such companies.
8. Operator driven stocks.
9. Very low promoter holding. The promoters are not confident about the prospects of the
company.
10. Debt ridden companies. It is very difficult to get out of debt.
11. Stocks with high pledging by promoters. The price manipulation is very easy in such stocks.

15% PROFIT in IDFC BANK in Just 15 Days - Why

I BOUGHT it?

15% PROFIT in IDFC BANK in Just 15 Days is not a JOKE in the stock market. The beauty of
swing trading is that if you identify the stock at the point of trend reversal then you can generate
the very high returns in very short period.

A couple of weeks back, I took trade in IDFC bank. At that time, the stock was undergoing trend
reversal i.e. from bearish to a bullish trend. I got BUY signal on 4 different trading setup or
trading systems. Being a conservative stock investor, i always take very few but profitable trades.
The 4 different trading setup or trading systems are as follows
1. Price Action Strategy or Candlestick Patterns: The IDFC bank formed a double bottom of W
pattern on charts
2. Divergence: It formed a bullish divergence. The price was forming lower low whereas
oscillator RSI was forming lower high thus bullish divergence.
3. On heikin ashi candles and stochastic RSI, it was forming the bullish setup i.e. beginning of an
uptrend.
4. In option chain analysis the short term sentiment was a strong bullish uptrend.

As the above-mentioned trading setup or systems were giving bullish trend, therefore, the
probability of loss is negligible in such cases.
Stock Market Trades - Verify and Avoid Cheating
by Broker

Stock Market Trades are executed and placed through your stock broker with the stock exchange.
Many viewers complaint in this regard. Some of the most common complaints related to the Stock
Market Trades are
1. I placed a market order but the order was not executed.
2. My stock broker took a while to place my order with the stock exchange.
3. I bought/sold shares but the stocks were not traded on the stock exchange.

Besides these, there are many other complaints related to Stock Market Trades i.e. misuse of the
POA or Power of Attorney.

The best way to avoid all these complaints is to verify your trades on the website of the stock
exchange. Under the "Domestic Investors", You will find an option to verify your trades. You have
to complete one time registration process and register your stock broker. The trade verification
module, provide complete information across various trade segments along with the trade date and
time, action, quantity, price etc.

You can cross verify the details shared in the contract note of your broker with the trade
verification module on the exchange website. You can verify the data of last 10 trading days.

All Time HIGH Share Market - Should I Invest

now or wait?

All Time HIGH Share Market creates confusion in the mind of the investors and trades. There are
3 types of investors when the share market is trading near its peak or all-time high.

1. During All Time HIGH Share Market, Should I invest now or not?
2. Should I wait for the stock market to crash or correct?
3. The 3rd type of investors invest under Fear of Missing out

One of the biggest myths in the stock market is that all investors make money during a bullish
trend and all investors lose money during a bearish trend. However, the stock market is a zero sum
game. Therefore, it provides an opportunity during both bullish and bearish trend.
During All Time HIGH Share Market, you can follow the 2 step process to decide whether to
invest or not?
1. Find out the probability of crash or correction with the help of option chain analysis or current
trend. Once the trend is clear, you can identify stocks with the help of the next step.
2. There are 4 ways
(a) Stocks driving the index
(b) Stocks with high buying interest i.e. trading flat even if the stock market correct
(c) Beaten down stocks with trend reversal
(d) Stocks in a Strong uptrend

Position Sizing in Stock Trading for Risk

Management

Position Sizing in Stock Trading for Risk Management is a very important tool to control the
losses in the share market by investors or traders. Position Sizing helps to decide the no of shares
you should buy based on the risk and stop loss. It is a comfortable risk zone for an investor or
trader. It depends on the following parameters

1. Portfolio Value or Size

2. The % of your portfolio, you would like to risk.
3. Stop Loss: You can decide the stop loss based on the multiple techniques like candlesticks,
Fibonacci, Support and Resistance etc.

In layman terms, based on the principle of Position Sizing, you can buy more stocks if the stop
loss is narrow and alternatively, if the stop loss is wide then the no of shares will be less. The
reason being, amount on risk will remain same irrespective of the stop loss.

The best example of Position Sizing in Stock Trading for Risk Management is from Mahabharata.
If an investor or trader does not follow the Position Sizing in Stock Trading then there are chances
of heavy losses and may lose his or her entire capital. Therefore, it is important to understand this
concept to reduce or minimize the loss of a trade.
 5 Types of Fear in Stock Market - How to
Overcome?

5 Types of Fear in Stock Market are very common that every investor or trader should understand.
Now the most important question, why it is important for me to know Types of Fear in Stock
Market. According to experts, ace investors, or stock market gurus the fear can destroy the trading
and investment of the investors or traders.

The fear can be real or imaginary and the best part is that it is applicable for all type of investors
i.e. stock market beginners or professional traders. The 5 Types of Fear in Stock Market are as
follows
1. Fear of the Unknown: This is due to lack of information and knowledge & the investor or trader
is not sure about the fate of his or her trade. The only way to overcome is to gain knowledge.

2. Fear of wrong decision: All our decisions cannot be correct. Winning % is important for
profitability but it does not ensure profitability always. I should try to keep my winning % greater
than 70% for a higher probability of profitability.

3. FOMO or Fear of Missing Out is another wealth destroyer. Many investors or traders jump into
the trade early i.e. without trend confirmation. It is not possible to enter at bottom and exit at the
top or vice versa.

4. Fear of Loss: You cannot avoid a loss but can control or cut loss. The loss is an integral part of
the stock market investment. Hedging is one of the techniques to control the loss.

5. Fear of losing profit: The best solution is to strictly follow the trading setup or system for buy
and sell signals.

Why Indians do not invest in the Stock Market?

Why Indians do not invest in the Stock Market? is linked to multiple factors. In Indian stock
market, there are only 86 Lakh active investors or traders. The 60% of the investors or traders are
from 5 states i.e. Maharashtra, Gujarat, Tamil Nadu, West Bengal and Uttar Pradesh.

In this video, i have shared 10 reasons Why Indians do not Invest in the Stock Market?
1. Competition: Traditional investment products like Fixed Deposits, Gold, Land and House are in
the top investment list. Therefore, stock market investment faces tough competition from
traditional products.

2. Lack of proper knowledge and formal education related to the equity market.

3. The news of scams and frauds in the listed companies keep the Indians away from stock market
investment.

4. The fraud advisory companies and tips provider are responsible for the loss of most of the
equity investors.

5. By nature, We Indians are risk averse.

6. Many potential investors are not aware of how to invest in the Stock Market.

7. Many investors don't have time to do research and analysis

8. Most of the people in India don't have money to invest in the stock market. The majority of
Indians fall under the middle or low income group.

9. Volatility in the stock market and expectation of fixed returns.

10. Addiction to the stock market.

Penny Stocks Multibagger - Should I Invest?

Penny Stocks Multibagger are very difficult to find but not an impossible task. Some of the Nifty
50 companies like Kotak Mahindra Bank, Eicher Motors, Titan, Lupin, and UPL were penny
stocks 15 to years back. The probability of a penny stock becoming a multibagger is very high.
The reason being these companies are very small companies and have very high growth potential.

Technically, any stock with a stock price of less than Rs 10 and very low market capitalization are
penny stocks. They have some very common characteristics like low delivery %, low liquidity,
driven by manipulators and speculators and most suitable for Intraday Trading.
Penny Stocks are very risky as not much information is available for such stocks. They are under
constant regulator watch and prone to frauds & scams.

If you are planning to invest in penny stocks i.e. potential multibagger then you should under the
co's business. It is important to do fundamental analysis along with an analysis of promoters
holding & pledging. You can start with small amount and follow all investing rules.

For Penny Stocks Multibagger, choose only quality penny stocks else these stocks can destroy
your wealth especially during the bearish phase.

Price Breakout Trading Strategy - Importance of

Narrow Range Pattern

Price Breakout Trading Strategy is based upon the narrow range pattern. For intraday trading or
day trading, the NR7 and NR4 are highly reliable patterns. NR7 means that the stock is trading in
a narrow range from 7 days. If the stock breaks the narrow range i.e. moves out of narrow range
then it is called ORB or Opening Range Breakout.

The basic principle is that a stock follows the cycle of volatility expansion followed by
contraction and so on. There are multiple definitions of narrow range. The most popular is the
difference between the day's high and day's low.

You can find out the narrow range with the help of candlesticks. You can connect the tops and
bottoms of the shadows or the body of the candles to draw the narrow range.

If the stock breaks the upper line of the narrow range then it means the bullish trend and if it
breaks the lower line then it is a bearish trend.

The stop loss, in this case, can be an upper line if the trade is short and lower line if the trade is on
the long side. For risk-free trade, you should consider the trend. Also, you should check out for
the false breakouts and i shared a dedicated on false breakout. Narrow range stocks are safe for
intraday trading as the stop loss is very small due to a narrow range. Price Breakout Trading
Strategy is more reliable on the daily chart.
 Overvalued and Undervalued Stocks - How to
find out?

Overvalued and Undervalued Stocks analysis is very important for long term investment. It is an
integral part of fundamental analysis. The experts suggest that if an investor is planning long term
investment then he or should buy the stock near the fair value of the stock. The million dollar
question is how to find out the fair value of the stock so that investor can conclude whether the
stock is Overvalued and Undervalued Stocks.

Buying a stock near fair value is also critical for value investing. In other words, you are paying a
right price for the stock. In this video, i shared an excel sheet with the help of which you can
easily find out the Overvalued and Undervalued Stocks.

An investor should enter data points like EPS, PE projections etc along with desired returns to
find out whether he or she can invest in the stock for long term or not. EPS growth calculations
are important for this fundamental analysis.

I have also shared my favorite website for the fundamental analysis. Normally, the viewers find it
difficult to get these data points. This sheet also projected share price in the next 3 years. For me,
3 years is the good time horizon for fundamental analysis for long term investment.

Discount Broker vs Full Service Broker for

Beginners

Discount Broker vs Full Service Broker for Beginners is a never-ending debate. An investor or
trader is not able to decide whether to open a trading or demat account with Discount Broker or
Full Service Broker. Both have their own advantages and disadvantages.

In this video, i have shared 11 parameters you should consider to compare and finalize the
Discount Broker vs Full Service Broker. These points are as follows
1. Brokerage
2. Margin or Leverage
3. Technology/Platform
4. Research, Analysis, and Advisory
5. Other costs involved
6. Proprietary Trading
7. Call and Trade facility
8. Frequency of Trade
9. Money credit in the trading account
10. Facility to sell before delivery
11. Trading segments

Some of the key differences between Discount Broker vs Full Service Broker are
1. Full service Broker charges higher brokerage. However, they do provide research and advisory
service that is not provided by the discount brokers.
2. Normally, the discount broker provides a higher margin or leverage.
3. Full service broker has both an online and offline presence.

You should also consider that out of top 10 stock brokers, there is only one discount broker. The
investors prefer 3 in 1 account i.e. savings account, trading account and demat account with the
bank.

How to Find Candlestick Patterns in 1 Minute?

How to Find Candlestick Patterns is a mystery for investors and traders. There are so many listed
companies and it is not possible for a trader or investor to daily scan all these stocks for
candlestick patterns.

In past, i shared a 7 part video series on price action strategy. In that, i explained Japanese
candlestick patterns in details. I also share the list of most reliable Candlestick Patterns.

However, How to Find Candlestick Patterns is the key concern before you apply your learnings to
invest or trade. In this video, i shared a simple technique with the help of which you can easily
find out Candlestick Patterns in just 1 minute. You can also find out the interpretation of whether
the trend is bullish or bearish.

Besides that, the reliability of the Candlestick Patterns is also mentioned. You can also filter
stocks based on multiple parameters. It is also important to confirm or reconfirm the trend or trade
on technical setup or technical system. In my opinion, the accuracy of Candlestick Patterns is 90%
if analyzed properly.
Therefore, this video solves the biggest problem of investors and traders i.e. How to Find
Candlestick Patterns?

Trending Intraday Stocks with HIGH Beta Value

Trending Intraday Stocks with HIGH Beta Value increase the probability of profitable trade.
Currently, i am using this strategy for my intraday stock selection. Prima facie, this analysis looks
very complicated but with the help of stock screener, you can easily find out the Trending Intraday
Stocks with HIGH Beta Value.

With the help of this strategy, an investor or trader can find out the breakout stocks i.e. stocks in
which price breakout is possible. Most of the traders are not able to find out the trend of the stocks
correctly. Therefore, they are in deep loss.

Under an ideal scenario, a trader should take buy position in bullish stocks when the market is UP.
On the contrary, stocks in strong downtrend should be shorted in a bear market. By doing this, the
risk is minimal.

Also while shortlisting Trending Intraday Stocks with HIGH Beta Value, you should cross the
trend through a reliable trend indicator. Also, the beta value is not correct on most of the websites
and i shared an excel in which i shared how it should be calculated scientifically. In short, the
correctness and reliability of data points under Trending Intraday Stocks with HIGH Beta Value
should be checked.

Warren Buffett and Index Funds - Hidden Secrets

Warren Buffett Index Funds Investing is very popular in western countries. Actively mutual
managed funds find it difficult to beat the returns of the index. According to Warren Buffett, Index
funds is a smart investment choice.

As per one report, 72% if the small and mid-cap mutual funds underperform their indices.
Whereas in the case of large-cap mutual funds, 60% mutual funds underperform their benchmark
index.

Index mutual funds are linked to the respective index say Nifty 50 or Sensex. All the stocks of the
index will be part of index mutual fund in the same proportion or weightage as in index.
Some of the benefits are
1. Quality Stocks
2. Very difficult to manipulate
3. Normally big investors, invest in Index funds
4. You can easily monitor
5. Index funds have the lowest expense ratio compared to actively managed mutual funds.

Disadvantages are
1. It is a wrong notion that index funds are best performing funds
2. Heavyweights i.e. top 8-10 stocks control the majority of weightage in the index.
3. There is always a minor tracking error between the index and the index mutual funds.

CALL and PUT Options Trading for Beginners in

Stock Market

CALL and PUT Options Trading is very popular. In layman terms, for the call and put option
buyers or holders, the loss is capped to the extent of the premium of the option but profit or gain is
unlimited. CALL and PUT Options Trading is also used to find out the short term trend or
sentiments of the stock or index.

The option is a derivative that gives right but not an option to buy/sell a stock or index at a set
price on or before a set date. On the other hand, futures give both right and obligation to the buyer
or seller of the futures contract. However, technically speaking for option writers or sellers i.e. call
writers and put writes, there is an obligation to honor the contract.

In layman term, CALL is basically a deposit for the future purpose. If the strike price is hit then
the call holders will gain and call writers will lose. On the other hand, put is basically an insurance
used for hedging. If the strike price is hit the put holders or buyers will gain and put writers will
lose.

To summarize, Call holders and put writers are bullish on market whereas call writers and put
buyers are bearish on the market.
 Price Breakout Indicators - Price Channels,
Bands and Envelopes
Price Breakout Indicators are least discussed but most important topic for investors and traders. In
order to find out the price breakout in a stock, you need to find out the moving average of the
stock. The period and timeframe depending on the type of trade. It is not a rocket science that the
stock moves around the moving average but for price breakout, you need to check the fluctuation
or volatility around the moving average.

There are 3 different types of price breakout indicators i.e. Channels, Bands, and Envelopes. With
the help of these Price Breakout Indicators, you can easily find out the price breakout.

With the help of Price Breakout Indicators, you can also find out the trend of the stock and
target/stop loss for a trade.

1. Price channel Indicator: Upper line shows the highest high and if the stock price breaks this line
then there is a BUY signal. In case, lower line i.e. lower low is broken then there is a sell signal.
This indicator is used for price action.

2. Envelope or % Envelope is a fixed width based on % of simple MA added and subtracted from
the SMA but it does not tell about volatility.

3. Bollinger Band: I already shared multiple videos on Bollinger Band. Bollinger Band is of
variable width and it is based on standard deviation.

Stock Beta Calculation Excel

Stock Beta Calculation Excel is very important for investors and traders. For Intraday Trading and
Swing Trading, it is better to choose high beta stocks as they tend to deliver higher returns
compared to low beta stocks. Stock Beta Calculation Excel can be prepared based on the excel
functions like Slope and Covariance. In this video, i have shared my Stock Beta Calculation
Excel. In this, i have used slope excel function.

Normally, the beta of top 50 high beta stocks is available on NSE website but investors and
traders find it difficult to calculate the beta value of other stocks. The value available on different
websites are different and may not be accurate. In my opinion, minimum 90 data points are
required to calculate the stock beta value. In Stock Beta Calculation Excel, i considered more than
90 data points.
The steps are as follows
1. You should download the closing stock price for the last 90 trading days.
2. Import closing value of index like NIFTY 50.
3. Enter these 2 values in excel sheet and you can easily the stock beta value.

You can also check my earlier videos on Stock Beta for interpretation and conclusion.

FACEBOOK Stock CRASH - Reasons and Learning

Facebook Stock Crash is the biggest stock rout in the American stock market history. Investors
lost approx. $150 Billion in a single day. It is more than the market capitalization of Reliance
Industries Limited or TCS. After Facebook Stock Crash, the CEO of the Facebook lost $17
Billion.

The reasons for Facebook Stock Crash are attributed to following

1. The poor Q2 results. However, in my opinion, this is not the reason. As the revenue and income
growth is healthy. However, the company has cautioned investors against future growth.
2. From some time, the bad news was pouring in whether it is privacy or content policies. There
were also charges of interference in the elections. The advertisers were also not happy with the
rules.
3. Foreign Currency rates.
4. Focus on future products with low ad revenues.
5. Low income from user data.

There are some learning also

1. If you are long term investor then always invest in companies that update the investors
regularly.
2. Avoid over-cautious companies.
3. Sometime future growth forecast is lowered to show healthy growth in the future.
4. Powerful social media platform is not desirable therefore, it might be an attempt to mellow
down.
5. Shift revenue from weak to strong sister concern.
6. Spending more for future growth.
 What is Leverage in Stock Trading? Difference
between Leverage and Margin

What is Leverage in Stock Trading? Difference between Leverage and Margin is mostly not
known to the investors and traders. The leverage and margin are loosely defined terms and used
interchangeably.

As per experts, the definition of leverage is "When an investor or trader control a large amount of
money by using very little of own money and borrowing the rest". It is useful in risk management.
The margin is mentioned in percentage terms i.e. % whereas leverage is mentioned in the ratios.

In layman terms, if your stockbroker is providing you a margin of 5% then the leverage is 20:1 i.e.
for every 1% movement in the stock price, your portfolio will show an impact of 20%. In the case
of profit, it is good but the loss can wipe out your profit is secs. You can use leverage in stock
trading for risk management i.e. before taking any trade, an investor or trader should calculate the
impact of leverage i.e. for every % change in stock price, how much he/she will lose or gain.

Normally, the margin is defined in percentage by the stock brokers. Therefore, you should check
the same with your broker and calculate leverage. It will help you in informed stock trading.

What is Margin Money in Trading Account?

What is Margin Money in Trading Account? Basically, the margin is when you buy more than
what you can afford. Margin money increases the purchasing power of the investor or trader.
Margin trading is the easiest way to make quick money. In other words, the broker lends the
money on interest and keep the shares as collateral.

Minimum margin is the money required upfront in cash so that in case of loss more than the initial
margin, the broker can recover some money by squaring off. Initial Margin is some % of total
traded value. The rules or policy related to margin are decided by the brokers & is different for
different brokers. In case, the margin is less than minimum margin then the margin call is
triggered and the broker will tell the investor or trader to deposit more money to maintain margin
else the trade is squared off by the broker.

There are 2 types of margin trading or margin funding.

1. Intraday: This is further divided into two i.e. margin money for trades without stop loss and
margin money for cover or bracket order. Margin money is higher for cover or bracket order.
2. Delivery: Normally the margin required is 25%. The broker will pay the balance amount. In
reality, the broker tie-up with NBFC for a loan. The balance margin required is a loan from NBFC
and the interest is charged for the same.

Emotional Discipline in Trading - Avoid Loss in

the Stock Market

Emotional Discipline in Trading is must to avoid loss in the stock market. Emotions are one of the
key reasons for loss-making trades in the stock market. The reason why algo trading is successful
because there are NO Emotions attached. Emotional Discipline in Trading is a key success factor
for successful investors and traders in the stock market.

You can avoid emotional trading only through practice and it cannot be taught. An investor or
trader has to prepare the plan, follow the steps and review the plan.

In this video, i have shared 7 key points or mistakes to be avoided for Emotional Discipline in
Trading. These are
1. The fear of trading: You can start trading will small quantity and increase the quantity
gradually.
2. Addiction to trading is very dangerous. You should trade only the best setups.
3. An investor or trader should be humble enough to accept the mistakes and correct them.
4. Fear of losing the profit: It can be avoided by following sell signal on trading system/setup,
Trail stop loss and booking partial profits.
5. Avoid greed
6. The fear of missing the bus forced the investor or trader to initiate an early trade.
7. Due to loss some investors or traders exit the stock market. However, every loss is a learning
opportunity and a road to consistent profitability.

Multiple Trades Strategy - DOUBLE PROFIT

Compared to Single Trade
Multiple Trades Strategy is the least known compared to a single trade. In India, most of the
investors or traders follow the single trade strategy. However, if you correctly identify the trend
reversal of the stock i.e. beginning of the new trend then instead of initiating a single trend,
investor or traders can opt for multiple trades strategy.
Under multiple trades strategy, you can execute multiple trades at the beginning of the trend until
the end of the trend. In this video, i shared multiple trades from reliance industries. By following
this my profit was double compared to a single trade strategy.

The only pre-requisite of multiple trades strategy is to identify the stock trend correctly and the
beginning of the trend reversal. You can do this with the help of support & resistance lines, trend
lines, double top and double bottom chart patterns. These are the most reliable way to find out
trend reversal. After the identification of a trend, you need to find out the technical set up and
system that is being followed by the chart. After backtesting based on a minimum of 3 data points,
you can initiate a trade and can earn handsome profits using multiple trades strategy.

How to Invest in US Stock Market - BUY GOOGLE,

AMAZON, APPLE, FACEBOOK, TWITTER

How to invest in US Stock Market? or How to buy the shares of Google, Amazon, Apple, Twitter
or Facebook etc. are some of the most common queries of investors who would like to invest in
foreign stocks.

You can invest through either of the following 4 routes

1. Open Overseas Trading Account with the Domestic Brokers like ICICI Direct, Kotak
Securities, Indiainfoline, Reliance Money, Religare etc. These domestic brokers have a tie-up with
foreign brokers. An investor should keep in mind that you will not get margin i.e. margin trading
and short selling is not allowed.

2. You can also open a trading account with Foreign Brokers like Charles Schwab, Interactive
Brokers etc. Before opening a trading account, you should compare the brokerages and currency
conversion charges.

3. You can invest through international mutual funds like Franklin US Opportunities Fund, ICICI
US Bluechip Equity Fund, DSP Blackrock, US Flexible, Equity Fund etc.

4. You can also invest through ETF like Motilal Oswal NASDAQ 100 ETF.

You should understand the risks involved like currency movement, the stock analysis is also
important as you should understand the local factors and capital gain tax liability.
You should also check the difference between indices like Dow Jones Industrial Average, S&P
500 and NASDAQ.

Bonus Shares GOOD or BAD for Stock Investors?

Bonus Shares GOOD or BAD for Stock Investors? is very important for long term investors.
Whenever any company declares the bonus shares, there is a euphoria in the market and the stocks
jump. The retail investors consider it as positive for the stock price. However, it is not correct.

Bonus Shares GOOD or BAD for Stock Investors depends on whether you are an investor or
company. From companies point of view, it is projected is some sort of reward to shareholders. At
the end of the day, the retail investor is not gaining anything. The no of shares of retail investor
will increase in the proportion of bonus issue or bonus shares declared but the stock value will
decrease in the same proportion.

Any bonus issue or bonus share increase the liquidity of shares and also improve the sentiments as
i mentioned earlier. From an investor perspective, you are not going to gain anything. On the
contrary, you will be at loss from a tax perspective.

1. The bonus share cost is Rs 0 i.e. it is considered to be issued for FREE by the company.
Therefore, if you sell the bonus share under the bonus issue before 12 months from the date of
issue of bonus issue then short term capital gain is applicable.

2. Investor will be at a bigger loss if you bought this share on or before 31st Jan 2018 because of
grandfathering rules. In such a case, it is better to sell the share before the bonus shares are issued.

Divergence Trading Technical Indicators and My

Favourite Books

Divergence Trading Technical Indicators are very useful for the investors who are not comfortable
in drawing trend lines to find trading divergence. Divergence Trading Technical Indicators are
available on the MT4 platform and are not available on the platform of the brokers or 3rd party
websites.
Most of the Divergence Trading Technical Indicators are paid. However, they are of great help to
investors. You can find out the type of divergence with the help of the technical indicators.

As an investor, you should start with the free version and then shift to the paid version after you
earn some profit from the free version.

In this video, i also shared my favourite books for divergence trading. This is one of the most
frequently asked questions. I covered all the important points and aspects in my series. You can
buy the books if you would like to understand the author's perspective. In my videos, i covered all
the points relevant from Indian Stock Market Perspective.

Part 5 of the divergence trading is the last video of this series. In this series, we discussed and
learned
1. What is Divergence?
2. Types of Divergence.
3. Golden rules of divergence trading.
4. Some of the most common mistakes in divergence trading.

5 Divergence Trading Mistakes - Investors or

Traders Should AVOID

Divergence Trading Mistakes are very common among investors or traders. Even though the
Divergence Trading is considered one of the most reliable trading systems besides price action
strategy. However, Divergence Trading Mistakes should be avoided for consistent profitable.

In this video, i have shared 5 most common Divergence Trading Mistakes.

1. One of the most common mistakes is to ignore the limitations of the momentum indicator like
MACD, RSI, and Stochastic. I personally use Stochastic RSI. Therefore, you can watch my
detailed video on Stochastic RSI to understand the limitations of Stochastic RSI.

2. Most of the investors or traders do not confirm the trend before executing any trade. I use the
following 5 techniques to confirm the trend.
(a) Price Action Strategy (Candlestick Pattern)
(b) Fibonacci Retracement
(c) Trend lines
(d) Support and Resistance
(e) Option Chain Analysis

3. For stop loss and target you can use the above-mentioned trading techniques
4. Investor or trader should wait for indicator crossover and wait for the stock price to move out of
the overbought & the oversold zone.
5. You can also trade if the price and indicator break their trend lines.

Blue chip Stocks Portfolio - Nifty 50 Top 10

Shares

Blue chip Stocks Portfolio comprises of Nifty 50 Top 10 Shares. The weightage of Top 10 shared
in nifty keep changing on daily basis based on the market capitalization of 50 stocks in nifty. The
definition of Bluechip Stocks is subjective and everyone interprets it differently.

In this video, i have explained how you can prepare your Bluechip Stocks by investing in Top 10
stocks of nifty. As a first step, you need to check the weightage or holdings of top 10 stocks.
Normally, these stocks contribute more than 50% weightage and rest 40 stocks contribute balance
50%.

After finding out the current holdings, you can normalize it to the value of 100. Now find out the
% contribution of each of these stocks and then divide the investment amount in the proportion of
each stock in the Nifty 50. This proportion may change on daily basis. I shared my excel sheet
also that will help you to invest less if any of the stocks are not performing and increase the
investment amount or contribution of performing stocks in the bluechip portfolio.

One of the limitations is that you might not be able to invest the exact amount. Therefore, you can
round off the investment in each stock of Blue chip stocks portfolio.

Hedging Strategies with Options and Futures

Hedging Strategies with Options and Futures are important for risk management. It helps to
execute zero loss trading strategy by professional traders. For a retail investor, it is mandatory to
understand the concept of hedging.
In layman terms, hedging is a position opposite to existing position. It is sort of insurance cover to
protect loss in existing position. Derivatives like futures and options are basically hedging tools.
However, over a period of time, they are used as trading tools.

Hedging with options is a simple strategy to take buy or sell position in cash or futures and to buy
corresponding put or call option to hedge the existing position. For perfect hedging, you buy or
sell the same quantity equivalent to the lot size i.e. qty of existing position should be equal to the
qty of hedging position.

In layman terms, the value of an existing position is inversely proportional to the value of the
hedge position.

To hedge the portfolio, you can also consider the beta value of the stocks. Here the value of the
portfolio decides the no of index futures contracts. The cost of hedging depends on the premium
and may vary.

Hedging is used in the commodities and currency or forex market by the corporates or companies
to hedge their position against any future fluctuation in the commodity or currency movement.
This is important for export or import oriented companies.

Warren Buffett Investment Strategy for India?

Warren Buffett Investment Strategy for India? Is the most discussed topic. The million dollar
question whether the Warren Buffett Investment Strategy can be used in the Indian scenario or
not. It is important to know all the investment rules and follow holistically. However, all the
investment mantras of warren buffett cannot be applied in Indian scenario. In this video, we will
discuss all these points in detail

1. Warren Buffett does not invest in real estate. Whereas, the first investment for most of the
Indians is in real estate.
2. Commodity, Crypto Currencies, and Alternate Investment never find any place in the portfolio
of warren Buffett.
3. To generate wealth, it is important to take business ownership. The ace investor, earned
maximum returns only from the companies where he held min 5% to 10% stake.
4. Maximum returns can be generated from high dividend companies provided they also provide
decent appreciation over a period of time. Unfortunately, the Warren Buffett Investment Strategy
cannot work in India as most of the high dividend paying companies are underperformers.
5. Don't invest in risky companies whose business model you don't understand.
6. Loss-making companies with bad balance sheet should be avoided.
7. Invest in companies with high market capitalization and significant competitive advantage.
8. Strong management with high brand value and leader in the respective industry/sector are
important for successful implementation of Warren Buffett Investment Strategy.

Blue Chip Stocks in India - Long Term

Investment

Blue Chip Stocks are leaders in their respective industry or sector. There is NO standard definition
of Blue Chip Stocks. Different investors or fund houses tweak the definition of Blue Chip Stocks
as per their convenience. These are also called bellwether stocks. Blue Chip Stocks have a
competitive advantage over their competitors.

Some of the characteristics of Blue Chip Stocks are that they considered being safe for long term
investment. They have high growth potential with normally high dividend yield. The management
of the company is very strong that deliver very high returns. The market capitalization of these
companies is very high.

Some of the most common definitions of Blue Chip Stocks are as follows
1. Large cap stocks i.e. Top 100 companies in terms of market capitalization as classified by SEBI
2. Sensex 30 stocks.
3. Nifty 50 stocks.
4. As per my definition, the Top 10 companies with the highest weightage in Nifty 50 are Blue
Chip Stocks.

The weightage of the company with poor performance reduce in the Top 10 list and eventually
move out of the list. For example, SBI is no longer in the top 10 list. The current list of Blue Chip
Stocks is HDFC Bank, Reliance Industries Limited, HDFC Ltd, Infosys, ITC, TCS, Kotak
Mahindra Bank, ICICI Bank, L&T, and Maruti.

Mutual Fund SIP Returns - What to do in case of

LOSS?
Mutual Fund SIP Returns cannot be negative is one of the biggest myth of mutual fund
investments. Normally, it is projected that investment through SIP route is safe and secure. It is
true but not for investors. Mutual Fund SIP is safe and secure for Mutual Fund distributors,
financial planners, investment advisors or AMC's. The AMC earn through expense ratio and other
stakeholders earn fees and commission.

Some other benefits of mutual fund SIP like cost averaging, disciplined investment and
compounding are superficial. A SIP is a marketing gimmick to undertake investment commitment
from investors for long period to further the business interests.

In case, your mutual fund SIP investment delivers negative returns then you can consider the
following options.

1. Put a stop loss like an equity investment.

2. Pause the SIP.
3. Stop the SIP.
4. Check the stock holding of the mutual fund scheme. You can invest in the scheme with quality
stocks in the portfolio.
5. Check the potential return based on self-analysis.
6. Compare your scheme with other similar schemes to shift your mutual fund investment.

Always remember that you should only invest when you are comfortable with your financial
investment.

Mutual Funds Profit - Why AMC Stay Invested

Mutual Funds Profit Booking is one of the key concerns for mutual fund investors. Typically there
is a perception that mutual fund investment is safest and cannot deliver negative returns.
However, it is not correct. Even large cap mutual funds can deliver negative returns during the
bearish market.

The stock market or mutual fund experts are of the opinion that the investors should always stay
invested in the mutual funds. The reason for this suggestion is that AMC earns money or profit
through the expense ratio charged from the investors. Therefore, higher the AUM higher the
profitability.
Why mutual funds profit booking is key concern?. To answer this question, an investor needs to
understand the mutual fund cash holdings. Typically, the mutual fund cash holding is 1% to 5% of
the fund's corpus. However, for some mutual fund schemes, this no can be as high as 30%. High
cash holding is not a positive sign for the mutual fund scheme. The reason being, it should that
either mutual fund manager is not able to find out the right investment opportunity or he is bearish
on the market. To avoid high cash holding, sometimes the schemes stop accepting fresh
investment from the investors. The cash holding is maintained only to handle redemptions or fresh
investments. This is the reason by Mutual Funds Profit Booking is a key concern.

Index Future Trading - 7 Hidden SECRETS

Index Future Trading secrets are not discussed in public domain. I receive multiple queries
whether it is possible to execute an intraday trade in index i.e. Nifty 50. The trading in derivatives
segment is risky due to the size of the trade. For example, one lot of Nifty 50 is of 75. Even
though the margin requirement is less but retail investors fail to judge the risk. Therefore, is it
feasible to trade in Nifty 50 or index with lower or less capital. Hedging in cash segment is
another commonly asked query. In this video, i will share 7 secrets of index trading. All these
secrets are linked to ETF or exchange traded funds, directly or indirectly.

1. It is possible to do intraday trading in Nifty 50 or index in cash segment through ETF. You can
also trade with very low volume or value.
2. You can hedge your position through the index. Arbitrage and cover option strategies are also
possible through ETF.
3. You can trade in index futures in cash segment.
4. You can rollover your position without cost.
5. If you but ETF then you can take advantage of tax benefits. The gain from ETF, if held for
more than 1 year is long term capital gain.
6. Dividends are reinvested in the ETF.
7. If discount in ETF is more than discount in futures then it is a great trading opportunity.

Bulls, Bears, Wolf, Pigs, Stags, Chickens, Ostrich

- Animals in Stock Market

Animals in the Stock Market are commonly used lingo and terminology to define specific
characteristics of the type of traders or investors. For example, have you ever wondered what is
meant by Wolf in the book or movie "The wolf of wall street". In this video, i have shared 14 such
most commonly used animal names in the stock market.
1. Pigs: These investors or traders are risk takers, greedy, impatient and emotional. They don't do
any analysis and always look out for hot tips in the share market. Pigs are biggest losers in the
stock market and the market loves them.

2. Sheep: They stock to one investing style and never change according to market conditions.

3. Ostrich: They sense danger and bury head in the sand. These types of investors or traders,
ignore the bad news and hope bad news will not impact them.

4. Chicken: These types of investors do not take risks.

5. Dogs: This term is used for beaten-down stocks.

6. Stags: These traders are not interested in bull or bear market. They just look out for
opportunities.

7. Wolves or Wolf: These are powerful investors who use unethical means to make money.

8. Dead Cat Bounce: It is a temporary recovery during the bear run.

9. Hawk: It is used for a policymaker who take a tough stance on the economic situation.

10. Dove: They take an easy stance on the economic situation.

11. Whale: They move stock prices when they buy or sell.

12. Sharks: They enter, make money and exit the share market.

13. Rabbits: This term is used for scalpers. They take a position for a very short period typically in
minutes.

14. Turtle: This is used for long-term investors. They are slow to buy or sell.
 What is BEAR Market? - Facts You Don't Know

What is BEAR Market? is the most talked about but the least understood topic. Most of the stock
market experts use the term bear market term loosely in their discussion but never explain What is
BEAR Market? Another most common query of the viewers is what is the difference between
Stock Market Correction, Dip, Crash and the bear market.

If the stock market falls 20% or more than from its last 2 months peak then it is official that it's a
bear market. Another definition is 20% drop from the 52 weeks high. Besides 20% correction,
share market experts are of the opinion that all major indices should drop. In NSE, there are 3
broad market indices i.e. Nifty 50, Nifty Next 50 and Nifty Midcap 50. Going by the standard,
Indian Stock Market is nowhere near to the bear phase.

According to experts, there are 2 to 5 phases of bear share market.

Phase 1: It is a warning phase. Smart investors exit and book profits.

Phase 2: Under Acceptance phase, the stock price drop drastically and sentiments turn bearish.
Phase 3: In denial phase, Speculators enter the share market and raise price & volume.
Phase 4: Stock prices drop at slow rate and investors or traders accept the fact that the market is in
a bear phase.
Phase 5: This is the last phase of a bear market and it shows that bear run is over. It is 3 step phase
i.e. first there is bear market rally then there is final selling before the BULL market starts.

LIC and IDBI Bank Deal - The Winners and the

Losers
LIC and IDBI Bank Deal is considered as a stepping stone for the stock price of the IDBI bank.
Many analysts are of the opinion that it will turnaround the fortunes of the IDBI Bank. However, i
have a difference of opinion. The reason being IDBI Bank is one of the worst performing PSU
Banks. It's NPA's are 28% of the total. The annual loss is approx 5600 Cr. Therefore, it is very to
revive the so sick PSU bank like IDBI Bank.

Through LIC and IDBI Bank Deal, the LIC will infuse 13000 Crore in the IDBI Bank. The key
point to note is that govt has already infused 23000 crores in the bank through PSU Banks
recapitalization plan and it has not helped to revive the fortunes of the bank. Therefore, any
additional infusion of 13k Crore will not make much difference.
Secondly, even though the LIC will acquire 51% in the bank. However, it is only a strategic
investment in the bank. Therefore, it is not a merger or acquisition & LIC will not get
management control of the IDBI Bank. From last 2 years, not even a single private player has
shown its interest in acquiring the stake in the IDBI Bank. Also, the attempts to sell non-core
business failed.

13 Reasons Stock Price Movement Analysis

13 Reasons for Stock Price Movement Analysis are important for investors and traders. The stock
price can move up or down based on the following 13 Reasons Stock Price Movement Analysis.
These factors are as follows

1. Quarterly or Annual Results of the company. The big investors are always watchful of the
results of the company for long term investment. Whereas traders take a position in advance and
normally book profits on the result day.

2. Buying or selling by the big investors, Mutual Funds, FII's or Promoters change the sentiments
towards the stock.

3. Any news related to Merger or Acquisition

4. Business Expansion plan like a new product launch, venturing into the new geographical
territory or new contracts are positive news for the share price.

5. Management Change or Weak/Strong Management team are major triggers.

6. Company debts or stocks pledged by the promoters.

7. Stock Buyback/Split/Bonus/Dividends

8. The inclusion of Stock in any index.

9. Macroeconomic indicators like economy data, inflation, exchange rate, crude oil price etc.

10. Political and Regulatory environment.

11. Impact of the overseas market.

12. If the company is facing any issues related to strikes, scandals, accounting irregularities etc.

13. Any upgrade or downgrade by the analysts or brokerages.

How to TEST Trading Strategy ?

How to TEST Trading Strategy is the key to your success in the stock market. Many traders or
investors get confused between the successful testing trading strategy and backtesting the same.
The question of backtesting arises only if the trading strategy is currently working for the stock or
derivatives.

As a first step, you need to segregate the strategies based on the trading styles i.e. scalping,
Intraday, Swing Trading and positional. You can TEST Trading Strategy by either of the following
techniques.

Technique 1: In this case, you finalize the strategy that works well for you and you should be very
well versed with this trading strategy. You can then test all the shortlisted stocks on this strategy. It
is very less time-consuming. However, you will get less no of trades to execute. You will also
carry high risk if the trading strategy stops working.

Technique 2: In this case, you can identify all strategies that are known to you and then test all the
shortlisted stocks on each of the strategies. It is very time-consuming exercise. Gradually, you will
become master of all the strategies. The risk is low in this case as all stop strategies will never
stop working in the share market.

NEW Additional Surveillance Measure (ASM)

NEW Additional Surveillance Measure (ASM) decided in the Joint Surveillance meeting of
Exchanges and SEBI are very strict and introduced to improve the risk management.
Under the NEW Additional Surveillance Measure (ASM), more no of stocks will come under the
ASM framework. The 109 stocks under Additional Surveillance Measure (ASM) have seen a
sharp correction in the stock price.

The new parameters that are included are Stock's valuation i.e. Price to Earning ratio or P/E ratio,
Client concentration and the gyration in the stock price over 1 month/1 Year. Quite interestingly,
Public Sector Enterprises and Public Sector Banks are out of the preview of these regulations.

The 4 new criterion for selection of stocks in the ASM

framework are
i. High low price variation (based on corporate action adjusted prices) of 200% or more in the last
three months AND Concentration of top 25 clients in the last three months is 30% or more.
OR
ii. High low price variation (based on corporate action adjusted prices) of 200% or more in the last
three months AND a number of price band hits (upper or lower) in the last three months is 30% or
more.
OR
iii. Close to close price variation in the last 30 trading days is 100% or more AND PE negative or
more than 30 AND the concentration of top 25 clients in the last one month is 30% or more.
OR
iv. Close to Close Price variation in 365 days greater than 100% AND High - Low Variation in
365 days greater than 200% AND Market Cap above Rs. 500 Crores AND High Low Variation in
90 trading days greater than 50%.

9 Golden Rules of Divergence Trading

9 Golden Rules of Divergence Trading defined by profitable investors or traders are critical for
profitable trade in the stock market. In this video, i will share the well established 9 Golden Rules
of Divergence Trading.

Rule No 1: It is important to know when to trade i.e. under which price action scenario you should
trade. As per professional traders, you should trade only under following 4 scenarios of price
action. You should refer to indicator only if the price action adheres to
(a) Higher high than Previous High.
(b) Lower low than Previous Low.
(c) Double Top
(d) Double Bottom

Rule No 2: Investor should connect successive tops or bottoms backward.

Rule No 3: If you are connecting tops in price action then you should connect only tops in
indicator also and vice versa

Rule No 4: In case you are using indicators like MACD or Stochastic then you should ignore lines
or crossovers of a technical indicator. You should focus only on the tops and bottoms.

Rule No 5: You should frame and follow same rules for both the price action and indicators. For
example, if you are connecting tops in price action then you should connect tops in the indicator.

Rule No 6: Vertical alignment of price and indicator are critical. If they are not aligned vertically
then you may interpret it wrongly.

Rule No 7: Slope is very important for divergence trading.

Rule No 8: You should enter the trade only at the top or at the bottom.

Rule No 9: Divergence trading is successful only on longer time frames. The min time frame can
be 1 hour.

BEST Stock Market News Source

BEST Stock Market News Source is important for the profitability in the share market. In this
INTERNET age, the BEST Stock Market News Source travels faster than the light. It also
changes the sentiments of the investors or traders towards the stock very fast. Therefore, it is
important to stay updated with the stocks, economy, macroeconomic indicators, business etc news
from the reliable sources rather i will say BEST Stock Market News Source.

At the same time, there are large no of Stock Market News Sources. It is important to find out the
news aggregator that help you save time.
Also, many viewers of this channel requested me to share the news aggregator for Hindi news
related to share market. In this video, i have shared the one such news aggregator that serve
business news from the 42 sources. It will help you to go through all the important and reliable
news related to business, economy, macroeconomic indicators and of course stock market news at
the click of a mouse. You can also add the news from other segments you are interested in to make
it one stop shop for all the news.

Types of Divergence - Regular and Hidden

Divergence

Types of Divergence is an important topic to understand the trend of the stock or index. There are
2 types of divergence i.e. regular divergence and hidden divergence. These are further divided into
2 types i.e. bullish and bearish divergence.

Regular divergence means trend reversal. Regular bullish divergence if formed when price action
form lower lows and the indicator or oscillator is higher lows. It means the end of downtrend and
start of an uptrend. The reason being price and the indicator should move in the same direction.

In bearish divergence, the price action is higher highs and indicator is lower highs. It is formed
during an uptrend and means the end of the uptrend i.e. trend reversal or beginning of a
downtrend.

With the help of regular divergence, you can find out the entry and exit points i.e. top and bottom
of the stock or index. In layman terms, the sustainability of the trend.

The 2nd type of divergence i.e. hidden divergence is formed inside the current or existing trend.
It means a continuation of an existing trend. Hidden bullish divergence is the result of higher lows
in price action and lower lows of the indicator. It means a continuation of the uptrend.

Hidden bearish divergence is formed when price action is lower highs and indicator is higher
highs during a downtrend.

Divergence Trading Course - What is Divergence?

Divergence Trading Course is 5 part video, wherein i will share all the nitty-gritty of divergence
trading. In the first part of this series, i have explained the basics of divergence.
Basically, the study of momentum is agreement or disagreement between the price action and the
momentum indicators. Any disagreement between price and momentum indicator means they are
diverging from each other. It is relative in nature. In other words, compare the price action and
indicator movement or divergence is a high probability of price retracement i.e. some change is
taking place and some action is required. Momentum indicators that are used are RSI, Stochastic,
MACD, ROC (Rate of Change), CCI etc.

Price and momentum should move in the same direction. Also, you should use either higher highs
or lower lows in both the price action and indicator. It is more reliable on higher time frames for
trending stocks.

Divergence is leading indicator that helps to find entry and exit points i.e. buy near low and sell
near high. It also identifies the direction and strength of the trend. Whether the trend is weakening
or strong or reversal.

Option Chain Probability - Implied Volatility

Excel Sheet

Option Chain probability can help you earn huge profit from the stock market. However, the
option chain analysis helps investor or trader to find out the short term sentiments in the stock
market. The sentiments keep changing with news or other macroeconomic data that keep pouring
in.

In this video on option chain probability, i have shared my excel sheet on Implied volatility based
on which you can easily find out the probability of success based on option chain data. In this
excel sheet, you need to fill very simple details like current stock price or index value. The
implied volatility data on both put and call side.

After that, you need to check the strike price with a maximum concentration of Open Interest or
OI data. Once you input this data in the option chain analysis excel sheet, you will get the
corresponding probability against each strike price. Thus the strike price with higher relative
probability and maximum open interest or OI built up is a possibility during the current expiry.

Normally, this option chain probability should be done in the 2nd or 3rd week of expiry month. It
is not much reliable during expiry week.
Bharat 22 ETF Exchange Traded Fund - Should i
Invest

Bharat 22 ETF Exchange Traded Fund 2nd trench is open for subscription. It consists of 22 stocks
from 6 core sectors. It is an Open Ended Exchange Traded Fund investing in S&P BSE Bharat 22
Index. For retail investors, the minimum investment amount in Bharat 22 ETF Exchange Traded
Fund is Rs 5000 and maximum amount is Rs 2 lakh. This Bharat 22 ETF Exchange Traded Fund
is listed on BSE Ltd. and National Stock Exchange of India Ltd.

The discount of 2.5% is available for investors. This etf is launched to meet the govt's divestment
target. The expense ratio is just 1 basis point. The dividend yield of Bharat 22 ETF Exchange
Traded Fund is 2.6%. However, the stocks in this ETF or Exchange Traded Fund are random and
does not represent any investment philosophy.

As a retail investor, i can take advantage of Bharat 22 ETF Exchange Traded Fund to earn 2.5%
return in just a few days. However, if there is any downfall in the market till the date of listing
then the returns due to discount may wipe off.

Quite interestingly, ICICI AMC has offloaded its position in Bharat 22 ETF Exchange Traded
Fund in May 2018. The AUM of this ETF also decreased by approximately 3000 Cr in last 7
months.

Paper Trading for Stock Market Beginners

Paper Trading for Stock Market Beginners is crucial for the profitable journey in the share market.
The opinion is divided whether the Paper Trading for Stock Market Beginners is beneficial or not.
There are both pros and cons.

Some of the benefits of Paper Trading or virtual trading are as follows

1. No RISK involved in the paper trading.
2. For investor or trader, it is a stress-free trading experience.
3. You can learn and practice through paper trading.
4. You can also check the accuracy of trade. It will help you to decide whether to undertake real
trade or not.
5. Virtual trading can also help you to create your own trading strategy with the help of the
learning curve.
The cons or disadvantages are as follows
1. The data on websites providing paper trading facility is delayed. Thus, you may some of the
trades because the order might not be executed due to delayed data.
2. Investor takes relaxed approach because there is no real money involved in both profit and loss
case.
3. The initial amount for Paper Trading for Stock Market Beginners is fixed and cannot be
changed. Therefore, the investor or trader might not be able to gauge the real impact because
actual investment might not match the virtual trading investment.

Stocks Category - Group Classification by NSE

and BSE

Stocks Category - Group Classification by NSE and BSE is very important for trading or
investment. The most common stocks category or Group Classification by BSE are as follows

1. A Group: Most popular actively traded stocks

2. Z Group: Blacklisted Stocks. Violated Exchange rules & regulations or has pending investor
complaints or any such reason
3. T Group: Trade to Trade or T Segment. Intraday not allowed. Settlement only through delivery.
Delivery %: 100%
4. B Group: Does not fit in Group A, Z or T
5. F Group: Debt Market
6. M/MT: Small and Medium Enterprises
7. G Group: Government Securities available for Retail Investors
8. I Group: Interest Rate underlying
9. E Group: ETF's (Exchange Traded Funds)
10. IF Group: Normal/Rolling settlement in the units of Infrastructure Investment Trust (InvITs)
11. IT Group: Trade to Trade settlement in the units of Infrastructure Investment Trust (InvITs)
12. X Group: Traded/Listed only on BSE and settlement on normal rolling basis
13. XT Group: Traded/Listed only on BSE and Trade to Trade settlement
14. SS Group: Stocks in “S+ Framework” settled on normal rolling basis
15. ST Group: Stocks in “S+ Framework” settled on trade to trade basis
16. P Group: Stocks traded and settled in Physical mode/ Optional Demat mode
17. ZP Group: Scrips of Non-compliant companies (Non-compliance with clauses of Listing
Agreement) & traded and settled in Physical mode/ Optional Demat mode

NSE Stocks Category are as follows

1. EQ: Equity (Normal Trading). Intraday is allowed
2. BE: Trade to Trade or T Segment. Intraday not allowed. The settlement only through delivery.
Delivery %: 100%
3. BL: Block Deals. Min 5 Lakh Shares. Window open from 9:15 am to 9:50 am

Sharpe Ratio Strategy - How to Select Stocks or

Mutual Funds
Sharpe Ratio Strategy can help you to select Stocks or Mutual Funds. Sharpe Ratio tells by taking
additional risk, how much incremental return you will get. Normally, while selecting any stock or
mutual fund, an investor check only the performance. They completely ignore the risk involved. It
is important to understand whether the high return is the result of smart investment or due to high
risk. Therefore, Sharpe ratio helps you to find whether the investment is high risk or smart
investment.

Modern Portfolio Theory helps you to optimize your portfolio by maximizing return by taking
least risk. There are 5 technical risk ratios i.e. alpha, beta, sharpe, Standard Deviation and R
Squared. You can decide your percentage allocation of the portfolio and evaluate the same.

The formula of sharpe ratio is a difference of expected return and the risk free return divided by
the standard deviation. Standard deviation is basically the fluctuation in returns. Good sharpe ratio
is more than 1 as per international standards.

You can benchmark the sharpe ratio against the index or category or other similar funds. If you
are planning to invest in a share or mutual fund then You can compare pre and post sharpe ratio
after investment. If the sharpe ratio increase then it is advisable to go ahead else you can find
some other investment options.

BEST Performing Stocks Selection for Swing

Trading and Long Term Investment
BEST Performing Stocks Selection for Swing Trading and Long Term Investment is not a that
difficult task. Some of the perceived most complex analysis or research. BEST Performing Stocks
Selection should be based on the best performing sectors or indices. It is part of top down
approach and this data is easily available on the NSE website. You can follow the steps mentioned
below

1. Check the performance of all the NSE indices for a time period of 1 month, 3 months, 6 months
and 1 year.
2. Identify the indices or sectors that performed consistently well over 4 time periods mentioned
in the point no 1.
3. The benchmark return is the returns from index i.e. Nifty 50.
4. Now check the stocks in the respective well performing indices & shortlist stocks delivering
+ve returns over a period of 1 month.

This exercise will provide the BEST Performing Stocks. Banking and Services sector are best
sectors during last 1 year. Besides this, you can also do the sector analysis by doing this analysis
and research. You can also find out the sectors not doing well consistently. The example is pharma
sector that is underperforming sector from last 1 year.

Additional Surveillance Measure (ASM)

Additional Surveillance Measure (ASM) is introduced by the NSE (National Stock Exchange) and
the BSE (Bombay Stock Exchange) to safeguard and protect the interests of the investors.
Currently, there are 63 stocks in Additional Surveillance Measure (ASM) framework. Under ASM
framework, NSE or BSE put certain restrictions on the Stocks. The restrictions are as follows
1. Stocks circuit filter will be revised to 5%.
2. Marin requirements of ASM stocks is 100%. In other words, the margin is not available to trade
in stocks under Additional Surveillance Measure (ASM).

Further, if the above mentioned measured don't achieve the desired objective then the stock is a
move to T2T segment i.e. Trade to Trade segment. In Trade to trade segment, Intraday trading is
not allowed and the buyer has to compulsory take delivery of the stocks.

An investor or trader can keep a watch on stocks in Additional Surveillance Measure (ASM) as it
is a good indicator to identify stocks with speculative activity, manipulation or stocks under the
operator's influence. Following 5 parameters are used for shortlisting securities under Additional
Surveillance Measure (ASM)
a. High Low Variation
b. Client Concentration
c. No. of Price Band Hits
d. Close to Close Price Variation
e. PE Ratio

11 Most Important Points of Price Action

Strategy
Price Action Strategy is incomplete without 11 most important points that every trader or investor
should keep in mind. Any wrong decision can cost heavily. In this video, I have shared 11 most
important points of price action strategy. It is concluding part of 7 part series on Japanese
candlestick patterns.

Every trader or investor should consider following important points

1. Identify the trend first: A particular candlestick pattern work only after a trend. For example,
shooting star is more reliable after downtrend or bounce back. It is not effective after
consolidation phase. Therefore, shooting star candlestick pattern does not mean sure shot short.
2. The chart settings of Japanese candlestick pattern is very important. I use 1 day chart settings.
3. The target and stop loss is very difficult to find. Investor can keep stop loss at high or low
candlestick pattern. Target is next reversal pattern. You can also use Fibonacci retracement.
4. You can also confirm the trend by price action i.e. if stock price move high or low of the
pattern.
5. On different time frames you can observed different patterns.
6. Japanese candlestick pattern is considered superior to the other technical analysis.
7. It helps to gauge investor sentiments
8. Candlestick patterns beat algo trading.
9. Different people observe different patterns
10. Investor should avoid operator or news driven stocks
11. Trader should always trade in the direction of trend
Bonus tip is that for price action strategy Japanese candlestick pattern form best combination with
option chain analysis.

Price Breakout and Volatility

Price breakout and volatility has a strong correlation. The probability of a price breakout increases
with the decrease in volatility. I receive lot of queries from the viewers of this channel on how to
find out the price break out in a stock with very high accuracy.
To understand the price breakout it is important to understand the volatility first. In this video, i
have shared 5 simple ways to find out volatility in the stock. These 5 methods are as follows

1. Daily Volatility report from the NSE website.

2. Volume data. Normally the volatility increase with the volume and price.
3. Bollinger Bands: I shared a lot of videos explaining Bollinger bands trading strategies.
Bollinger band squeeze is one such strategy to find out the price breakout in the stock.
4. A simple moving average of 20. The more the stock price deviate from 20 periods SMA, higher
the volatility in the stock. If the stock price is trading near the SMA then it means the volatility is
less.
5. Last but not the least is ATR i.e. Average true range. The decrease in ATR means a decrease in
volatility and increase in average true range means an increase in volatility.

Economic Calendar Analysis, Earnings and

Important Events

Economic Calendar Analysis is a part of the successful trading strategy. A successful trader or
investor keep a close watch on the Economic Calendar for any potential volatility in the stock
market.

Volatility in the stock market is both good and bad. For professional traders, high volatility means
intraday trading opportunity. Whereas conservative retail investors are not comfortable with high
volatility as the risk increases.

In this video, i have shared a website that lists down all the important and not so important
economic events. These events are critical for investor or trader. Normally, i avoid intraday
trading on high volatility days.

You can also set a recurring event for an event relevant or important for your investment or
trading. One of the best parts of web interface for Economic Calendar Analysis is that it tells you
the expected probability i.e. expected volatility will be low, moderate or high. You may filter out
non-important economic events from the list.

Another important feature is earnings data available on this website. The best part is that it also
shares forecast of the earning data & comparison of actual data with the forecast. it helps the
investors and traders to decide the stock direction post result.
 Multiple Line Japanese Candlestick Patterns -
Price Action Strategy | Part 6

Multiple Line Japanese Candlestick Patterns are of 6 types. We discussed engulfing and harami
patterns in part 5 of this 7 part video series on price action strategy. In this video, we will discuss
following 4 Multiple Line Japanese Candlestick Patterns of price action strategy.

1. Dark Cloud Cover

2. Piercing Pattern
3. Morning Star
4. Evening Star

Dark cloud cover is a bearish reversal pattern. It is formed after an uptrend. The 1st candle in this
pattern is Green long day candle and the 2nd candle is red long day candle. The 2nd candle opens
above the high of the real body of the 1st candle. It closes min 50% from the high of the real body
of the 1st candle. The 2nd candle is known as the dark cloud.

Piercing pattern is bullish reversal pattern form after a downtrend. The 1st candle is red and the
2nd candle is green. The piercing candle breaks into a bearish trend.

The morning star is 3 candle pattern. It is a bullish reversal. The 1st candle is red and the 3rd
candle is green & both are long day candles. The 2nd candle is small & can be red or green.

The evening star is a bearish reversal pattern. The 1st candle is green and 3rd is red & both are a
long day. The 2nd candle is small.

if two patterns appear back to back or are overlapping & pointing to same trend i.e. bullish or
bearish then it is very high probability setup.

Multiple Line Candlestick Patterns - Price Action

Strategy | Part 5 (HI
Multiple Line Candlestick Patterns are the 3rd and final type of candlestick patterns. Multiple
Line Candlestick Patterns are further divided into following 6 types
1. Engulfing Pattern
2. Harami Pattern
3. Dark cloud cover
4. Piercing Pattern
5. Morning Star
6. Evening Star

First, four are two candlestick patterns and last two are three candlestick patterns.

In this video, we will discuss engulfing pattern and harami pattern in detail. Rest 4 patterns we
will discuss in part 6 of this 7 part video series on candlestick patterns.

Engulfing pattern is formed if following 3 conditions are fulfilled

1. 1st candlestick reflects the existing trend of the stock. For example, if the existing trend is
downtrend then the first candle should be red and green in case of the uptrend.
2. The real body of the 2nd candle should cover the entire body of the first candle.
3. The color of both the candles should be different i.e. if the first candle is green then the second
candle should be red.

Engulfing pattern is a reversal pattern. Bullish engulfing is formed after a downtrend and the first
candle is red. In the bearish engulfing pattern, the first candle is green.

In the second type of Multiple Line Candlestick Patterns i.e. Harami Patterns, the real body of the
first candle is bigger and cover the real body of the second candle.

Bullish Harami is formed after a downtrend and in this first candle is Red whereas the second
candle is Green.

Bearish Harami is formed after an uptrend. The first candle is green and second candle should be
the idealistically doji candle or short day red or green candle. Doji is more reliable in this case.
 Debt Funds RISK
Debt Funds RISK is not visible but mostly hidden. There is a common perception that Debt Funds
are completely SAFE but unfortunately, it is not correct. Debt mutual funds are tax efficient and
can deliver better returns than FD but these are some hidden Debt Funds RISK. In this video, i
will share 7 such risks.

1. The first risk is a misconception that debt funds are safe. The reason being, bond yield is
volatile. The volatility in bond yield means debt funds can deliver negative returns in short term
say 1 week, 1 month etc.
2. Bond yield and repo rate should move in tandem with each other but unfortunately, it is the
ideal scenario and in a practical scenario, bond yield is ahead of repo rate.
3. As an investor, i should keep a watch on FII activity in debt segment. Any redemption pressure
can put pressure on debt funds.
4. Rating of debt instruments is another risk. Normally to deliver superior funds, credit
opportunities fund invest in low credit rating papers. There NAV negatively.
5. Global and Domestic factors also play imp roles like crude oil, inflation, US fed rate and rupee
movement.
6. Bond yield is always ahead of times thus you should invest at right time.
7. Inflation is a key criterion. Normally debt fund performs well during high inflation compared to
low inflation.

Future Price Calculation and Its Importance

Future price is very important in derivatives segment and 99% traders don't know the calculation
of future price and its importance.

There is a common myth that if the future price is more than spot price then it implies the bullish
sentiment and if the future price is less than spot price then it is bearish sentiment. However, it is
totally wrong interpretation.

In layman terms, the spot price is the price of a stock in cash segment or current market price. The
future price is the price of a stock/commodity/derivative at a future date normally the current
expiry. By default, the future price is higher than the spot price. The difference is also called the
cost of carry.

You can can calculate the future price by the following formula.
Future Price = Spot Price + Interest Payable - Dividend Payout. Under ideal condition, there is a
perfect correlation between the future price and spot price.

One of the most commonly asked queries is whether we should refer to future price or spot price
for the price discovery. The answer will depend on the no of active contracts. If the future price no
of active contracts are more than it will act as a reference & it will react first and vice versa.

Future Price is a mix of sentiments and speculation. It is normally used to take advantage of low
margin and arbitrage opportunity. You can carry forward your sell position in futures.

After Market Order

After Market Order or AMO is the order placed outside normal trading hours. The normal trading
hours of the stock market is between 9:15 am to 3:30 am. Thus any order placed after this
duration is called the After Market Order or AMO.

An investor or trader can place the After Market Order or AMO through the online trading
platform or call & trade helpline of their broker. After Market Order or AMO is especially
beneficial for the investors or traders who are busy during the share market trading hours.
Secondly, if an investor is stuck in any circuit breaker stock especially stocks in derivatives
segment then they can place After Market Order or AMO. When the stock market will open, the
AMO at market rate or market price is executed first. Lastly, if you spot any trading opportunity
after market hours then you can place After Market Order or AMO.

It is always advisable to place the AMO limit order else you may lose. The brokers always define
the time slot during which you can place your order. Also, the trading range is also defined for
AMO. Certain brokers also allow After Market Order or AMO in the derivatives segment. Last
but not the least some brokers don't allow AMO at market rate.

Single Line Candlestick Patterns - Price Action

Strategy | Part 4
Single Line Candlestick Patterns is one of the types of candlestick patterns. In this type of
candlestick pattern, the shadow or wick of the real body plays a very important unlike the first
type i.e. basic single line candlesticks wherein the body of the candle is crucial.

There are 4 types of Single Line Candlestick Patterns

1. Shooting Star
2. Hanging Man
3. Hammer
4. Doji

In shooting star candlestick pattern, the body is small and the upper shadow is twice or two times
the real body. It is formed after uptrend and points to resistance level & potential reversal.
Normally, investors close their position after shooting star as it means that bullish momentum is
weakening.

The second pattern is hanging man candlestick pattern. In this pattern the real body is small and
lower shadow is twice the size of the real body. The conclusion in this pattern is same as shooting
star but it is more bearish than shooting star.

The third pattern is hammer. It is observed during a downtrend and means the potential bottom of
the stock. It is normally a green candle and signifies weakening bearish momentum.

Doji is a candle wherein open is equal to close with upper and lower shadow. It signifies trend
reversal and Doji can be bullish or bearish depending on the chart set up. There are 2 types i.e.
long-legged and gravestone doji.

How to QUIT Intraday Trading?

How to QUIT Intraday Trading? is very difficult to answer. The reason being Intraday Trading is
addictive in nature and it is next to impossible to quit Intraday Trading. In this video, i have
shared 7 steps that an intraday trader should follow to quit the Intraday Trading.

These 7 steps are as follows

1. A trader should not keep money or funds in their trading account so that they should not be able
to execute intraday day.
2. An intraday trader should write down his or her losses that should be prominently visible. It
will desist him/her to get attracted towards the addiction of intraday trading.
3. You should not keep money in the bank account linked to your trading account.
4. You should uninstall the mobile app of your broker in case you trade from your mobile.
Alternatively, if you trade from your laptop or desktop then you should block the website at router
level or at a firewall.
5. You should tell your relatives to change the password of your trading account.
6. In case of loss in Intraday, you should start paper trading. Either you will learn and earn a profit
or if you continue to lose then you will quit Intraday Trading forever.
7. You should keep yourself busy during market trading hours by engaging yourself in other
activities.

Debt Funds Explained - When Interest Rate or

Bond Yield is increasing

Debt Funds Explained in this video are specific to a scenario when Interest Rate or Bond Yield is
Increasing. However, the basic concept remains the same. As an investor you can generate double
digit returns from the debt funds provided you follow 2 conditions.

1. Invest in short term debt funds when the interest rate cycle or bond yield is increasing. On the
contrary, investing in long term debt funds when the interest rate cycle or bond yield is
decreasing. By doing this you can take advantage of a full reversal of the cycle.

2. You should invest in debt funds at the right time i.e. just at the beginning of the reversal of the
interest rate cycle else you will miss the rally.

I generated double digit returns from long term debt funds in 2013-14 when the interest rate cycle
was softening. Currently, it is anticipated that interest rate cycle is at the verge of reversal & will
increase. Therefore, to take advantage i have invested in short term debt funds & credit
opportunities fund.

Also, your investment horizon should match with the investment horizon of debt funds to
maximize returns. Always chose the scheme with good rating and large in size i.e. AUM.

Inflation Impact on Stock Market

Inflation Impact on Stock Market is positive in some sectors. In this video, i have shared the list of
10 sectors on which inflation will have a positive impact. I will also share the list of sectors with
negative impact. In other words, sectors that are not sensitive to interest will have a positive
impact and interest sensitive will have a negative impact.

Overall Inflation Impact on Stock Market will be negative. I am listing down sectors with a
positive impact
1. Jewellery Stocks or Gold/Gold related stock
2. Essential Goods like FMCG
3. Commodities and Commodity Companies
4. Utility companies like pipeline and electric utility
5. Companies with low labor cost
6. IT companies
7. Banks and Financial Institutions
8. Real Estate Companies with rental or lease business model
9. Industrials
10. Energy Sector

Following sectors will have a negative impact

1. Auto
2. Consumer Goods
3. Real Estate companies focusing on residential sector

Inflation is a key macroeconomic indicator and is very important for long term investors. An
investor can rejig his or her portfolio in case the inflation cycle reverses as anticipated by the
experts.

HIGH Crude Oil Price - 3 Trading Strategies

High crude oil price provides a good trading opportunity to traders and investors. When the crude
oil price is increasing, i follow triple trading strategies around the crude oil. There are reports that
crude oil price may touch $100/bbl in one year. It is a very crucial macroeconomic indicator. High
crude oil price means higher inflation thus it impacts the growth of the economy. In short, it is
negative news for the stock market.

HIGH Crude Oil Price is the result of the cut in supply by the oil-producing countries. Crude oil
price is the classic case study of the impact of demand and supply on the price.

Triple trading strategy around crude oil price revolves around

(a) Long position in Crude Oil in the commodity segment
(b) Buy stocks of sectors benefited by the increasing crude oil price like upstream oil companies
(c) Sell stocks of sectors negatively impacted by the increasing crude oil price like downstream or
oil marketing companies

Sectors to be benefited are as follows

1. Upstream oil companies
2. Oil Substitutes i.e. biofuel, CNG, Coal, Solar energy etc.
3. Auto Companies selling Hybrid vehicles

Sectors to be negatively impacted are as follows

1. Oil Marketing Companies
2. Tyre
3.Paint
4. Airline or Aviation
5. Packaging
6. Auto
7. Cosmetic companies

Japanese Candlesticks Types - Price Action

Strategy | Part 3 (HINDI)
Japanese Candlesticks Types are as follows
1. Basic Single Line Candlesticks.
2. Single line pattern Candlesticks.
3. Multiple line patterns Candlesticks.

Out of these 3 types of Japanese Candlesticks, we will discuss the first type in detail in today's
video. Basic single line candlesticks tell about stock momentum and this is the biggest mistake
done the investors or traders who follow the price action strategy i.e. trade or invest based on the
Japanese Candlesticks without considering momentum.

Single line pattern candlesticks are further divided into 3 types which are as follows
1. Long day
2. Short Day
3. Marubozu
Long day candles are relative daily long candles relative to other candles that depict strong
momentum in the stock or index. It measures momentum in the direction of the trend.

Short day candles are formed after long day candles and are relatively small candles with short
body or doji. It shows weakening momentum.

Last but not the least and most critical among all three are Marubozu candles. They are similar to
the long day but without any shadow or wick. It shows very strong momentum or trend and is
considered the safest trade.

Marubozu are further classified into 4 subtypes i.e.

1. White closing Marubozu
2. Black closing Marubozu
3. White opening Marubozu
4. Black opening Marubozu

These 4 types show the control of bulls or bears during the opening or closing session.

Japanese Candlesticks Basics - Price Action

Strategy | Part 2 (HINDI)

Japanese Candlesticks & Price Action Strategy is a 7 part video series that explain how the
investors or traders can use the Japanese Candlesticks in Price Action Strategy. This video is the
2nd part of the series and it will discuss how the Japanese Candlesticks Basics.

The most important aspect of Japanese Candlesticks is the distance between the open and close
price.

The trading strategy revolves around the momentum. If the green/bullish candle closes near the
day or session high then it means +ve momentum. In case of red/bearish candle, if the close is
near session low then it means negative momentum.

In case the size of the candle is reducing then it indicates a possible trend reversal. Therefore,
investor or trader should book the profit. A wick or shadow in the Japanese Candlesticks shows
the weakness of bulls or bears. A wick above the body means buyers pushed the price higher but
sellers pulled it down and the vice versa.

A Japanese Candlestick has single meaning irrespective of the context. Therefore, it fails
sometimes. It is imp to check what happened before the pattern is formed. Japanese Candlestick is
not used in Algo Trading because of this reason.

Japanese Candlesticks are more effective or useful when the stock is in a trend i.e. bullish or
bearish trend. Therefore, an investor can select stocks in trend.

What is Japanese Candlesticks ? Price Action

Strategy - Part 1 (HINDI)

Japanese Candlesticks are the best way to read the Price Action Strategy. Majority of the
professional traders use Japanese Candlesticks for the price action strategy. In price action
strategy, the technical indicator is used to confirm the trend.

A Japanese Candlestick is basically a war or fight between the bulls and the bears. The bulls want
the stock price to go up and on the other hand, bears want the stock price to go down. The
completed Japanese Candlesticks tell the following information

1. Between Bulls and Bears who won i.e. in case of the green candle, the bulls win & red candle
depicts victory of bears.
2. It also shows the margin of victory. In case of the long green candle, the margin of victory is
high and in case of the long red candle, bears are in control of the market.

The Japanese Candlesticks meets all the requirements of price action strategy i.e.
1. Who is controlling the stock market?
2. Who is losing/gaining control?
3. In a particular time frame, who is the winner.

In case of short candle or doji, it is a tie between the bulls and bears. In this case, the investor or
trader should wait for the next candle.
 5 Rules of Heiken Ashi Candlesticks - Price
Action Strategy

5 Rules of Heiken Ashi Candlesticks are key to price action strategy. Heiken Ashi Candlesticks
are different from normal candlesticks. In Japanese, Heikin means Average or Balance and Ashi
mean foot or bar.

The 2 key advantages of Heiken Ashi Candlesticks compared to normal candlesticks in price
action strategy are as follows
1. You can identify the stock or index trend. Therefore, Heiken Ashi Candlesticks are more
reliable and helps to take the right decision.
2. It cut the noise.

The calculations of open, high, low and close price point for Heiken Ashi Candlesticks are
different from normal candlesticks. If an investor or trader is using Heiken Ashi Candlesticks for
price action strategy then they should take care of following 5 rules

1. A Green long body with No lower shadow means a bullish trend i.e. there is strong upward
momentum.
2. A RED long body with No upper shadow or wick means a bearish trend.
3. A consolidation Heiken Ashi Candlestick is formed when the size of the body is small and there
are long upper & lower shadows or wick. It means either the trend will reverse or stock/index will
continue existing trend after consolidation.

4. In case, the size of the body of the candle is decreasing then it means that existing trend is
weakening.

5. In case of the bullish trend, if the candle has a lower shadow or during a bearish trend, if the
candle has upper shadow/wick then it also implies that existing trend is weakening.

11 Advice from Professional Traders

Advice from Professional Traders matters most to the retail investors as professional traders are
profitable most of the times. However, it is difficult to get their learnings until unless you
personally know them.
In this video, i am sharing my 11 learnings or Advice from Professional Traders based on my
personal interaction with them. These 11 Advice from Professional Traders are as follows
1. Never mix up your personal life with trading. You should be mentally strong to remain
profitable in the stock market.
2. Discipline and Rules are two key pillars for consistent profit in the stock market.
3. Professional traders never follow the herd mentality. They only trust their technical analysis and
insulate themselves from any news, groups, chat rooms etc.
4. Professional traders always stick to their tried and tested trading plan. They do thorough testing
before making any changes.
5. Do not follow most popular trading strategies.
6. As a trader, you should be open to accepting losses as it is part and parcel.
7. Professional traders always try to catch early signs for maximum profit.
8. There is NO perfect setup
9. Professional traders never think that they are the best. They always consider themselves as a
student in the stock market.
10. The stock market is continuous learning journey.
11. Last but not the least Advice from Professional Traders is that you can generate maximum
profit from not so popular stocks.

Futures and Options Difference Explained - 2

Types of Derivatives

Futures and Options Difference is not known to many investors or traders. Basically, Futures and
Options are the two types of derivatives. Normally there is a confusion among investors and
traders between options and futures.

Let us understand FUTURES first. It is an agreement between 2 parties to buy or sell an asset at a
certain time in future at a certain price. It can be closed on or before expiry. A trader buys futures
if he is running short of funds. There is an obligation for both buyer and seller of futures contract
to execute the contract at a certain date.

On the other hand, OPTIONS give right to the buyer, not an obligation but seller has obligation to
comply with the contract. There are two types of options i.e. Call options and Put options. Call
give the right to but and Put give the right to sell.
The profit and loss of futures buyer are unlimited. Whereas the loss of options buyer is limited
whereas profit is unlimited. The margin requirement is HIGH in futures and low in options.

Futures are used by speculators and to tap arbitrage opportunities i.e. buy in cash and sell in
futures at a higher rate. On the other hand, options are used for hedging. The seller of options
pocket the premium upfront.

How much should i INVEST in STOCKS?

How much should i INVEST in STOCKS? is one of the most frequently asked queries by stock
market beginners. The answer is not straightforward and depends on multiple factors. Also, there
is NO RIGHT or WRONG answer because of risk. The stock market investment risk is perceived
and depends whether you are bullish or bearish.

In this video, i have shared 7 factors that i consider while investing in share market. Indirectly
these factors decide your risk appetite. The 7 factors that can help in your decision to invest in
stocks are as follows
1. No of dependents: If an investor has more no of dependents then the exposure in the stock
market should be less.
2. Job Stability: In case of a stable job or income, you can invest more in share market.
3. Current and Future Liability: If you have any major financial liabilities to take care of in
present or near future then you should reduce your exposure to the stock market.
4. Age is another important factor. Young people can take more risk thus can invest more in share
market.
5. Plan B: You should have Plan B in case stock market fails to fulfill your investment objectives.
6. Comfort Level: If you are a risk-averse person and are not comfortable in taking a risk on your
investments then you should avoid equity investment.
7. Lastly, you should decide your losses in advance and should not risk your money more than
that.

My 10 Favorite Books on Stocks

My 10 Favorite Books on Stocks cover the 360-degree learning of stock market. It includes books
that will help you to learn and understand following topics
1. A complete course on Penny Stocks
2. How to make money in the bear market
3. Understanding how to trade in options
4. The books for stock market beginners
5. How to invest in index funds, mutual funds and ETF's for long-term investment
6. Why retail investors are in an advantageous position compared to the professional traders
7. Complete technical analysis with strategies
8. Last but not the least how to do intraday trading for a living

My 10 Favorite Books on Stocks will give complete perspective to the stock market investors or
traders. Also, it is important to understand the nitty-gritty of the stock market even if you adopt
only one particular trading approach.

In the list of My 10 Favorite Books on Stocks, i have included books of only foreign authors as i
observed that best learning is hidden in books by foreign authors.

Besides the list of My 10 Favorite Books on Stocks, i have many more books in my library. Those
books might not be 100% relevant but you may find some important & relevant sections.

Last but not the least, the examples given in these books are of foreign companies and you may
not be able to correlate. Secondly, you have to tweak your learnings from My 10 Favorite Books
on Stocks to the Indian context.

FREE Stock Screener

FREE Stock Screener rather a Good screener for intraday or day trading is very difficult to find. A
lot of viewers requested me to share the FREE Stock Screener that can be used for
intraday/swing/positional trade.

In this video, i am sharing a web based free stock screener i.e. fatafat stock screener. It is near
time and the free version includes whole lot of parameters required for intraday trading and swing
trading.

The list of parameters available in this FREE Stock Screener for intraday trading are as follows
1. Open High Low
2. Previous range breakout
3. New Intraday High's and Low's
4. Near High and Near Low
5. Near Yesterday High and Low
6. Pivots, Support and Resistance
7. Pre-open volume strength
8. Today's Volume Strength
9. Real Intraday % Change

Positional or Swing trading

Whereas for positional or swing trading you can do following analysis.

1. NR4 and NR7 breakouts. Here NR means Narrow Range
2. Opening Range Breakouts
3. Closing Range Breakouts
4. Gaps Up and Down
5. Opening Gap filling
6. Trend reversal
7. Daily SMA 5 & 13. It is also known as Fibonacci Moving Average
8. NIFTY and Bank Nifty Weightage Filter

Hedging or Bearish Sentiment

Hedging or Bearish Sentiment is the biggest dilemma in the stock market. This is one of the
common reasons for LOSS in the stock market. The traders are not able to find out whether put
option contracts are increasing because of hedging or because of bearish sentiments.

Hedging or Bearish Sentiment can be found out only in the stocks, not in the index. Also to clarify
that this catch 22 situation does not arise in case of an increase in CALL Option contracts. The
reason being, it simply means that the sentiment is BULLISH.
In this video, i am highlighting the steps to identify what is the reason behind the increase in PUT
Option contracts i.e. Hedging or Bearish Sentiment

1. Identify the stocks wherein the put options are increasing.

2. After that, you should check the traded value and delivery quantity of that particular stock.

Now if there is an increase in traded value and delivery quantity then it means the reason for the
increase in PUT option contract is Hedging.

On the other hand, if the Traded value and delivery quantity is constant or decreasing them it
implies that the sentiments are turning bearish.

Implied Volatility Trading Strategies - Option

Chain Analysis

Implied Volatility Trading Strategies revolve around future volatility and the probability of a stock
or index to reach specific strike price. In layman terms, implied volatility is the opinion of the
market on the stock or index's potential move. In case of high implied volatility, the option
premium is also high thus large price movement is expected.

Implied Volatility does not tell anything about the direction of the stock or index movement. It
only tells expected price movement in either direction. In case of low implied volatility, the option
premium is also LOW thus not much price movement expected.

In case of high implied volatility, professional traders prefer to sell PUT options and avoid buying
call options. Whereas in case of low IV, they prefer to buy a call option and avoid selling a PUT
option.

The definition of high or low implied volatility also differs from stock to stock or index. Secondly,
the definition also varies for high and low beta stocks. I use IV to find out risk-reward ratio and
also the potential entry & exit points i.e. range of the stock or index. Normally IV is high if some
news is expected.

Stock Analysis Mistake

Stock Analysis Mistake can cost you very heavily. Irregular or inconsistent Stock Analysis is one
of the most common mistakes committed by the trader or investor. Because of this there Stock
Analysis stops working resulting in LOSS.

The key point is that Stock Analysis should be a habit irrespective whether you are
trading/investing or not. Even the perfect analysis deliver 60% success during the initial period.
Once you start doing the Stock Analysis on regular basis, you can generate the consistent profits.
Continuity or being regular always pay to be it a share market or in personal life.

Here Stock Analysis, i mean end to end analysis i.e. right from the stock selection to profit
booking. During my initial trading days, i was also very irregular and was at a deep loss.
However, being regular made me more disciplined. I improved my this Stock Analysis Mistake
and became profitable trader over a period of time. The reason being your Stock Analysis
accuracy will improve and you will be very well versed with what is going in the stock market.
Therefore, to summarize, to remain profitable be regular in your analysis.

Consistent Income from the Stock Market

Consistent Income from the Stock Market is a dream for many traders and investors. I receive a
lot of queries from my viewers on how to generate Consistent Income from the Stock Market. The
main reason being the current source of income is not stable for these investors. They are mainly
housewives, traders or students.

In this video, i have shared my simple strategy to generate Consistent Income from the Stock
Market. Let me also that you cannot generate consistent income from the intraday trading. You
should be a consistently profitable trader or investor with more than 80% successful trade.

My strategy is very simple and revolves around swing trading. I buy 6-7 stocks. On an average,
my target is hit for one stock and i buy a stock on daily from my watchlist. Thus it creates a
recurring cycle and i can generate Consistent Income from the Stock Market by following this
cycle. I also keep my exposure to two types of trading styles i.e. intraday and swing trading.

In short, you need to create a cycle of consistent profit and that is possible only through Swing
Trading.

10 Mistakes in the Stock Market by Beginners

10 Mistakes in the Stock Market by Beginners are very common. Almost every beginner make
these mistakes in the share market. I receive a lot of queries from stock market beginners to share
mistakes i made. I this video i have shared list of 10 Mistakes in the Stock Market by Beginners.
These are as follows

1. There is NO perfect setup in the stock market. You can waste a lot of time to find out perfect
trade setup.
2. You cannot generate profit by replicating the portfolio of stock market experts.
3. You cannot earn in share market by listening to quotes, stories, sayings etc of stock market
experts.
4. You can only buy near low and sell near high. The myth of buy low and sell high does not exist.
5. There is NO sure shot call in the stock market.
6. You should have a basic knowledge before you enter the stock market.
7. You should be beware of marketing from people who are selling stock market courses or tips to
you.
8. You can only gain basic knowledge and clear concepts from the books.
9. You should not change your strategy based on news.
10. If you feel that stock market is not my cup of tea then it is better to exit rather incur heavy
losses.

Election Year - My Trading Strategy

Election Year Trading Strategy is slightly different from the normal trading strategy. There are
multiple permutation and combination that emerges during the election year. A trader or investor
to adjust their trading strategy accordingly.

The first and foremost point is that stock market likes political stability and is not tied to any
political party. The political instability is not good for the stock market. We observed in 1996-97
that due to uncertainty, the stock market poorly performed. In 2004, even after the change in
leadership stock market started the bull run.

As an investor or trader, you keep following points in consideration during an election year.
1. The election is one of the factors but not the sole factor that decides the direction of the stock
market.
2. You should be able to judge the short term and long term impact of the news or sentiments
during an election year.
3. Despite all ups and downs, the stock market delivers annualized returns of 12% to 15%. If i
don't like volatility then i will prefer to invest in index ETF or mutual funds.
4. The sentiments and opinions change fast during an election year.
5. Last but not the least, only quality stocks win in long run. You should not pay any attention to
speculations.

Secrets of Option Chain Analysis

Secrets of Option Chain Analysis are key to success in the stock market. This video is 3rd and last
part of three part video on option chain analysis. In this video, i shared some of the Secrets of
Option Chain Analysis.

The first secret is the definition of long and short in the calls and Puts option for out of the money
contracts. In case of puts, long position means that stock or index price will come down and short
position means that stock or index price will stay up. In case of calls, the long position means
bullish sentiment and short position means bearish position.

Secondly, the PCR or put call ratio is a contrarian indicator. The reason for this contrarian view is
hedging. For example, if FII or DII is bullish in cash or equity segment. To hedge the risk, they
will buy PUT options thus it will increase the put call ration. Because of this reason, if the PCR is
more than 1 then the traders expect the market to stay up and vice versa.

In case Nifty is going up with total Open Interest of Calls high then it is short on rise market. On
the other hand, if the Nifty is going down with Puts Open Interest high then it is buy on dip
market.

Option chain Analysis - Short and Long Positions

(HINDI)

Option chain Analysis Short and Long Positions help to find the direction of the market or stock
quite accurately. This video is the 2nd part of the three-part series on the option chain analysis. It
is important to analyze the change in premium and change in Open Interest to find out what is
happening at a particular strike price.

In Option chain Analysis - Short and Long Positions, there are possible 4 scenarios for analysis.
These scenarios are as follows
1. Decrease in Premium and Increase in Open Interest: In this scenario, the fresh short positions
are built or in other words fresh short selling is done by the traders. In case of call options, the
traders expect the price to go down.

2. Increase in Premium and Decrease in Open Interest: This scenario is for short covering. In this
case, put or call writers or short sellers cover their position. Short covering is normally done to
limit the losses.

3. Increase in Premium and Increase in Open Interest: In this scenario, fresh long positions are
created. The traders are bullish on their position. The bulls expect the price to increase and bears
expect the price to fall.

4. Decrease in Premium and Decrease in Open Interest: It means long unwinding. In short, the
traders are booking profit and exiting their positions.

Successful Swing Trading Strategy

Successful Swing Trading Strategy should be profitable 90% times. In this video, i will share one
such Successful Swing Trading Strategy that revolves around Fibonacci Entrancement and two
more buy signals based on the candlestick patterns i.e. Bullish Doji Star and Morning Star. These
two are bullish reversal candlestick patterns.

I do my analysis on investing website as it shows the candlestick patterns on the chart. You need
not learn the candlestick patterns as you can easily search the pattern formed and conclude
whether to take the trade or not.

Successful Swing Trading Strategy should be backed by min 2-3 BUY signals. Let me explain the
relevance of these two candlestick patterns.

Bullish DOJI star formed during a downtrend and it signifies that existing downtrend is coming to
an end i.e. there is a high possibility of reversal. Secondly, the stock was at 61.8% retracement
level and in my opinion, it is high probability setup and stops loss is small.

Morning star is another bullish reversal candlestick pattern. It also shows that downtrend is
coming to an end and reversal of trend is possible.
 Fibonacci Retracement Strategy

Fibonacci Retracement Strategy is one of the foolproof trading strategies for swing trading or
long-term investment. Normally under Fibonacci Retracement Strategy, 38.2% is the most
common Fibonacci Retracement level but i consider the retracement level of 61.8%. The reason
being, the level of 61.8% on Fibonacci is very critical because if the stock breaks this level then it
is considered that there is a trend reversal. Therefore, if you are swing trading at the level of
61.8% then you can trade with very small stop level as the probability of the retracement is very
high.

Normally for swing trading, i look out for 2 to 3 BUY signals before executing a trading. In the
example shown in this video, the 3 BUY signals are as follows

1. Fibonacci Retracement level of 61.8%.

2. The double bottom W pattern is formed and in my opinion, it is a highly reliable pattern.
Besides double bottom, for sell trade, you can check double top pattern. Sometimes the patterns
are triple top or triple bottom.
3. As i shared in my earlier video that there is a high probability that FII's are taking a position in
HDFC Bank.

Types of Fundamental Analysis - Quantitative

and Qualitative

Types of Fundamental Analysis is mistaken as only quantitative analysis. However, there are two
Types of Fundamental Analysis i.e. qualitative and quantitative fundamental analysis. Sometimes
viewers post a query despite buying a fundamentally strong stock, they are in loss. The answer is
that a stock might be strong on one of the fundamental analysis i.e. quantitative but might be very
weak in qualitative analysis.

Quantitative analysis is done with the help of financial statements, balance sheet etc. On the other
hand, qualitative analysis is done with the help of tools like SWOT Analysis. Out of two Types of
Fundamental Analysis, qualitative analysis is more imp compared to quantitative. The reason
being, qualitative fundamental analysis tells why the stock or company is great and whether it will
remain great in future or not. It also helps to find out the competitive advantage of the company
compared to its peers. Competitive advantage is also called MOAT. To summarize, both Types of
Fundamental Analysis is imp as numbers alone are incomplete without qualitative analysis.
 Low Volatility Stocks

Low Volatility Stocks are suitable for falling markets i.e. investors who would like to remain
invested in falling markets. I received a lot of queries from viewers regarding investment during
volatile and falling market. In this video, i have shared how an investor can find out Low
Volatility Stocks from the NSE website.

The reason for selecting or shortlisting Low Volatility Stocks is that these stocks tend to fall less
during a downtrend. If you check the top 10 list of low volatility index, you will observe that
stock list contain some quality Nifty 50 stocks. These stocks are considered safe and stable. Some
of these stocks are preferred by FII/DII/Mutual Funds.

However, you can always select Low Volatility Stocks only after proper due diligence and
technical analysis. Also to add that you cannot refer to the daily volatility file uploaded on the
NSE website as it contains volatility for the day and annual/yearly volatility. We need a scientific
and logical way to identify Low Volatility Stocks. Thus we can 100% reply on the NSE for this
analysis.

Avoid Intraday Trading on These Days

Avoid Intraday Trading on certain days. The reason being, the probability of LOSS is very high on
these days because of specific reasons. Therefore, as a trader, you should Avoid Intraday Trading
on certain days. In this video, i will share my list i.e. days on which i avoid Avoid Intraday
Trading.

1. Expiry Day: Expiry day is last Thursday of the month. I normally avoid intraday trading on
expiry day as the market volatility is at its peak.

2. In case i incur a loss for 3 consecutive days, I Avoid Intraday Trading because firstly i would
like to understand the reason for the loss. Normally, i find that my strategy is not working.

3. Just before or after the trading holidays: The reason being, just before the holidays, the volume
in the market is very low and just after holidays, the volatility increases.

4. During highly volatile days, i Avoid Intraday Trading as retail investors tend to incur a loss
during such days.
5. If the market is expecting Major News then the trading should be avoided. For example, i
stayed away from the market on the budget day.

6. If there are NO stocks on my watchlist then i do not trade.

7. Lastly, if a trader is under any sort of metal stress then they should Avoid Intraday Trading. The
reason being, trading required mental strength to take right decisions. In case of stress, the
probability of taking right decisions reduces drastically.

Swing Trading Shares and Stock NEWS

Swing Trading Shares in the watchlist are critical for short term gains. Swing Trading Shares in
my watchlist are mostly the stocks wherein FII/FPI/DII/Promoters are buying/increasing their
stake. It is a positive news for the stock. Swing Trading in such stocks may return 5% to 10%
return in a short span of 7-10 days.

On the other hand, the stocks in which FII/DII/promoters are selling their stake or promoters are
pledging their stake is a bad news for stock & they are perfect swing trading candidate for
shorting. Investors or traders who trade in the F&O segment can short.

Besides Swing Trading Shares, a lot of viewers request me to stock news related to change in
shareholding pattern. As i explained that any stock news related to buying/selling by
FII/DII/FPI/Promoters is a perfect opportunity to shortlist Swing Trading Shares.

Going forward, i will be sharing the stock news related to change in shareholding pattern and
subsequent shortlisting of Swing Trading Shares on my twitter profile. You can follow me to get
these updates. The link is mentioned in the description box and also in the comments section. I
hope you will find this information related to Swing Trading Shares and Stock News useful for
your trading and investment.

How to Become a Consistently Profitable Trader

How to Become a Consistently Profitable Trader is a mystery for every trader or investor. Many
viewers post a query that they earn profit consistently for 2-3 days but lose all the profit in a
single trade. To answer a query i.e. How to Become a Consistently Profitable Trader? I can only
say that with a discipline only you can become a profitable trader.

It is easy said than done. As an investor or trader, you need to create an evaluation sheet or report
card. Wherein you can create an evaluation sheet or report card for yourself.

If you follow a rule then you can give yourself +1 mark and in case the trading rule is broken then
you can give -2 marks i.e. negative marking.

In order to maintain the discipline to remain consistently profitable, you can set a target for
yourself i.e. 100 marks or 500 marks. You can reward yourself for the achievement of target and
trust me you can buy the reward from your profit in the stock market.

The answer to How to Become a Consistently Profitable Trader? is not a rocket science. You don't
need any training but to follow a simple rule or trick with the help of which you can be a
consistently profitable trader.

How to Control Loss in Stock Market

How to Control Loss in Stock Market is million dollar question for any investor or trader. By
using a simple method, investors can easily Control Loss in Stock Market. The basic principle is
to divide your investments into multiple parts based on your investment philosophy or investment
objective. Some of the most common ways to divide are

1. Long term, Medium Term, Swing Trading and Intraday.

2. Investments in Stocks, Equity Mutual Fund, Balanced Mutual Fund and Debt Funds or
instruments.
3. Large cap stocks, mid cap stocks or small cap stocks.

The basic objective to divide the investments into multiple parts is to hedge the risk thus it
answers the question i.e. How to Control Loss in Stock Market.

Stop Loss for each of these multiple parts or segments can keep separately. In my opinion, it
should be equivalent to one year fixed deposit interest rate. If the stop loss hit in one segment then
as an investor i will exit that segment and first recover my loss. Thus it will help to Control Loss
in Stock Market.

This video is part 2 of the 3 part series. In the first part we discussed, how to recover the loss and
in 3rd part, we will discuss how to become a profitable investor.

Intraday Stocks Watchlist - How to Prepare ?

Intraday Stocks Watchlist can be prepared by using multiple techniques. However, the reliability
and consistent profitability are the keys to follow any particular technique to create Intraday
Stocks Watchlist.

In this video, i have shared 7 most popular techniques to prepare Intraday Stocks Watchlist. This
is basically a summary video. I have discussed all these 7 techniques of Intraday Stocks Watchlist
in past videos. There are dedicated videos on a couple of techniques whereas others were
discussed during the videos on other relevant intraday topics.

The list of Intraday Stocks Watchlist is as follows

1. One of the most common technique is to shortlist highly volatile stocks.

2. An investor or trader can include a stock in watchlist if there is an increase in the volume or
traded value of the stock.
3. You can also create watchlist after the market opens based on the sectors in uptrend and
downtrend but it should be in concurrence with the overall market trend.
4. You can create a list based on your own trading history.
5. A trader can check pre-open market data and follow the same trend for stock selection.
6. Open High Low or OHL is another popular strategy.
7. Professional traders mostly focus on one or two stocks for a longer period.

Weak Indian Rupee - Who Wins and Who Loses

Weak Indian Rupee is a good news for exporters and bad news for importers. The stock market
sectors that are going to benefit from Weak Indian Rupee are IT/Software, Pharma, Automobile,
Textile, Metal, and Engineering & Capital Goods.

A Weak Indian Rupee will also benefit small and mid-size companies who are into exports and
don't hedge their risk against currency movement. The FII's who are already invested will also
benefit from Weak Indian Rupee.

On the other hand, the sectors that will have a negative impact due to Weak Indian Rupee are Oil
& Gas, Aviation and Consumer Durable & Power. It will also negatively impact the companies
that took foreign currency loans and raised money through FCCB.

Macroeconomic indicators are key to fundamental analysis. Weak Indian Rupee will increase
inflation and also increase current account deficit of the country. It will lead to an overall
slowdown in the economic growth.

As an investor, i should invest in sectors that are supported by macroeconomic indicators like
currency movement. Otherwise, a good fundamental analysis may result in losses for an investor.

Why IT Stocks Price is Increasing?

Why IT Stocks Price is Increasing? is one of the most common queries. The reason being the
stock market is declining but IT stocks are defying the share market trend. Some of the viewers
mentioned that it is due to FII buying and others pointed to the technical analysis. However, these
two reasonings provided by the viewers does not answer Why IT Stocks Price is Increasing?

The correct answer to this query is that IT Stocks Price is Increasing because of weakening Indian
Rupee. The Indian Rupee was Rs 63.50 per USD in Jan'18 and within 2 month's it is Rs 65 per
USD thus weakened by Rs 1.50. This is good news for exporters and sectors like IT.

A weakening rupee will help to strengthen the bottom line or profitability of the companies in IT
sector. There can be 2 possible scenarios of weakening Indian Rupee either the Imports are
increasing or maybe foreign investors are pulling money out thus increasing the demand for the
dollar. Whatever be the reason, the fact of the matter is that IT Stocks Price is Increasing and
investors may look forward to further devaluation of Indian Rupee as predicted by the experts.
 BEST Stock Alert Platform

BEST Stock Alert Platform according to me is the one that provides a lot of flexibility to create
stock alerts on various parameters. As an investor, i often need the flexibility to set stock alerts
based on the following parameters.

1. Stock Price Moves above or below a specific price point.

2. Gains or loses X % from the current level.
3. Volume exceeds a particular level for a price or volume breakout strategy.

Secondly, the platform should be compatible with web, email, and mobile.

After considering all the criterion, i finalized a platform of investing dot com for my trading /
investment. It fulfills almost all the parameters of the BEST Stock Alert Platform.

Besides stocks, i also use this platform to create alerts for the economic events that impact
commodity prices like crude oil inventories. It helps me to analyze and research the impact of key
events of the commodity prices & the level of volatility.

As an investor, i am more comfortable with the mobile app alerts or email notifications. It helps
me to trade effectively and efficiently.

How to Select BEST STOCKS without ANALYSIS?

How to Select BEST STOCKS without ANALYSIS? is one of the most common queries from
investors. Normally, the investors are not comfortable in fundamental analysis of a stock. They
trust sources like recommendations of the stock market experts, research reports etc.

However, as i always request investors to do their own analysis. Therefore, viewers asked me
How to Select BEST STOCKS without ANALYSIS? In this video, i will explain how the
investors can ride on the analysis of the Mutual Fund Manager. This is the smart approach of
stock selection.
As a first step identifies the best performing mutual fund based on your investment philosophy.
For example, if i am planning to invest in a small cap stock then i will find out best performing
small-cap mutual fund. Secondly, the fund should have high alpha and low beta.

In the second step, check the top holdings of this best performing mutual fund. Also, check
whether the current holding of the mutual fund scheme is at 3 Year higher or not. Now, it will give
you the list of BEST STOCKS without ANALYSIS. These are the stocks on which the fund
managers are bullish and also the holding is at its peak.

Fake Stock Market Call

Fake Stock Market Call is very difficult to find out. You will find a lot of Fake Stock Market Call
floating around. Most of the investors or traders easily believe in such Fake Stock Market Call
due to lack of knowledge, information, and education.

Normally a fake buy call is given to provide an exit route to the big players. On the other hand,
fake sell call is given to provide entry to the big players at the lower price.

Fake Stock Market Call is a coordinated effort of some top-notch experts in the market. As an
investor, i will easily believe on the Fake Stock Market Call if the same call is given by large no
of stock market experts.

As an investor, i always avoid stock market calls for operator-driven stocks. Secondly, the volume
and price analysis to identify Fake Stock Market Call.

You should always do your own due diligence before acting upon any stock market call. Lastly,
you should check the credibility of the stock market expert. Don't by only the name but you
should check past history and success ratio.

FII Trading Strategy - Stock Analysis

FII Trading Strategy revolves around stock analysis based on the sector wise data available in the
public domain. Normally, FII or FPI are bullish or bearish on the entire sector. Any buying or
selling in specific stock/s has a rub-off effect of the other stocks in the sectors.
In case of a consolidation, the FII/FPI consolidate their portfolio and shift money from one stock
to another. The best example in the current scenario is banking stocks. As per my analysis, FII or
FPI are selling in the PSU bank stocks and buying selectively in a couple of private sector banks.

Secondly, the FII Trading Strategy also involves identifying the sentiments of the FII or FPI on a
particular sector. For example, FII were very bullish on pharma sector one month back but
suddenly during last fortnight, there was heavy selling.

The example of negative sentiments on a particular sector is the utilities sector. While doing stock
analysis under FII Trading Strategy, it is important to study all the stocks of the sector to under the
investment pattern. The selective study under FII Trading Strategy will not yield any result.

Intraday Trading Strategy - Bollinger Bands and

Stochastic RSI

Intraday Trading Strategy is very difficult to prepare as it takes a lot of time and effort to create
Intraday Trading Strategy. In this video, i have shared my new Intraday Trading Strategy by using
Bollinger Bands and Stochastic RSI. During my testing, I observed that it was 90% successful.

One of the best things about this new strategy is that it helped me to separate fake breakouts. The
Bollinger Bands i.e. Upper Band, Middle Band, and Lower Band helped me to find out the
support and resistance level.

Under this strategy, you need to find out the trend of the stock with the help of a Bollinger Band.
After that, you can check whether any of the band of the band is acting as a support or resistance
for the stock. Finally, Stochastic RSI will help to take buy or sell decision.

A buy signal is generated when any of the band is acting as Support and the fast & slow line of
Stochastic RSI cross 20 level. A sell signal is generated if any of the band is acting as resistance
and the fast & slow line of Stochastic RSI cross 80 level.

Proprietary Trading Brokers - Is Investors Money

Safe?
Proprietary Trading Brokers are the brokers who are involved in Proprietary Trading or Prop
Trading using own money to make money for itself. Proprietary Trading Brokers create a separate
account called Own Account or Prop Account.

Some of the Proprietary Trading Brokers also create a separate prop desk with dedicated
employees to undertake Proprietary Trading activities. They hire or rent high-speed servers along
with bandwidth within the exchange servers. With the help of advance of high-level algorithms,
they execute Proprietary Trading.

According to experts, instead of using their own money for Proprietary Trading, these brokers use
the margin money of their clients in their trading account.

Secondly, most of the Proprietary Trading Brokers don't charge brokerage fees. The key objective
to latch as many clients on their platform as they can. By using the information available on their
brokerage platform they execute Proprietary Trading. Information is the KING and more
information you have, higher is the probability of being profitable.

Fundamental Analysis Alternatives

Fundamental Analysis Alternatives are most sought after analytics tools for long term investment.
Fundamental Analysis is very time-consuming exercise. Secondly, it requires financial knowledge
and a basic understanding of economics. Not many investors are comfortable in Fundamental
Analysis. Therefore, they look out for Fundamental Analysis Alternatives.

In this video, i shared two Fundamental Analysis Alternatives for long term investors whose
investment horizon is more than 6 months.

Option 1: As an active investor you can search for stocks or mutual funds with high alpha and low
beta ratio. If any stock or mutual fund is beating the returns of its benchmark index i.e. high alpha
then it can be concluded with 99% conviction that stock or stocks in mutual funds are
fundamentally strong.

Some investors asked me about high alpha and high beta stocks or mutual funds but personally, i
don't prefer.

Option 2: If you are passive investor then you can invest in an index mutual fund or ETF. It can
deliver a return of 12% to 15% in the long run.
 Range Bound Stocks - Double Profit Trading
Strategy

Range Bound Stocks provide a great opportunity for Intraday Trading with least risk. One of the
key advantages is that these stocks are not on the radar of operators. Therefore, Range Bound
Stocks are not prone to manipulation.

To identify Range Bound Stocks, as a first step the trader should scan the low volatility stocks. In
the next step, you can do technical analysis on following three trading systems

1. Bollinger Bands
2. Fibonacci Retracement
3. Trendline to find support and resistance

Among any of three trading setup, if the stock is moving within a range i.e. touch the upper
band/line and then retrace to lower band/line multiple times then it is confirmed signal that you
have to find out Range Bound Stock.

You can earn a double profit by selling near the upper band and close this trade near lower band.
You can simultaneous execute the 2nd trade and buy the stock and sell near upper band. You can
follow this strategy till the stock breakout. Also, the probability of hitting stop loss is low in this
case.

Fake Breakouts - 7 Tips to AVOID

Fake Breakouts is one of the biggest problems for any investor or a trader. I also faced this
problem that resulted in huge losses in Stock Market. As we all know that price breakout is very
important for profitable Intraday Trading. In case of price breakout, the fake breakout is profitable
for big traders. As the stop loss of retail investors is HIT.

In this video, i will share the 7 tips or steps to avoid Fake Breakouts.
1. It is important to trade in the low volatility stocks to avoid Fake Breakouts. Fake Breakouts is
very common phenomena in highly volatile stocks.

2. To avoid Fake Breakouts, you can trade in the direction of the stock i.e. trade in the direction of
the trend.

3. One of the common features of Fake Breakouts is that it shows very slow price movement in
the direction of a price breakout. On the other hand, the true price breakout is a result of sharp
price movement.

4. Some of the reliable candlestick patterns are also responsible for Fake Breakouts in the trades.
These so-called breakouts are basically a part of a pattern.

5. It is imp to backtest any price breakout.

6. Some of the technical indicators like RSI and MACD can help in identifying the Fake
Breakouts.

7. Lastly, the traders should avoid operator driven stocks.

IT Sector Multibagger Stock - How to Identify

IT Sector Multibagger Stock can be easily identified through a proper fundamental analysis.
Besides the regular fundamental analysis, an investor needs to do a sector specific analysis based
on the key success factors for that particular sector.

In this video, i have shared the 7 key parameters to identify IT Sector Multibagger Stock. This
analysis can be easily done.

1. The contribution of digital revenue to the total revenue of the company. The company with the
high contribution is more likely to succeed as per the experts. Currently, Wipro's digital revenue
contribution is 25% followed by 22% of TCS. Infosys declare it on annual basis.

2. Revenue per employee is another key factor. Currently, the revenue per employee in USD is
54702, 52676 and 36350 for Wipro, Infosys, and TCS respectively.
3. An investor should check the order book or contribution of new clients to the total revenue.

4. Revenue on fixed price contract is very important for high margins. The per hour billing model
squeeze the margins of the company.

5. Revenue distribution helps to find out the dependency of the company on top clients. More
dependence means high risk.

6. Higher the revenue from Non-USA clients is good for IT companies as USA govt is focusing
more on local jobs.

7. Lastly, Automation is the key to success along with a focus on IOT i.e. Internet of Things. The
IT companies working in these 2 areas are more likely to become multibagger stocks in future.

Operator Driven Stocks - How to find out

Operator Driven Stocks are very easy to find. Normally, retail investors are not able to predict the
movement of Operator Driven Stocks. In this video, i have shared 7 easy steps on how to find out
the Operator Driven Stocks.

1. The delivery % in these stocks is very and volumes are very high. It means that investors are
not interested in these stocks and speculative activity is at a peak.

2. Operator Driven Stocks show sharp price movements. You can observe sharp gap up or gap
down opening of a stock.

3. A trader will observe tall candles in these stocks i.e. tall green candles or tall red candles. It
shows very high volatility.

4. Operator Driven Stocks don't follow the technical analysis. Normally, the behavior of these
stocks is unpredictable. They tend to give false or fake breakouts.

5. The promoter holding is very low in these stocks.

6. These stocks are fundamentally very weak.

7. The MF/FII/DII holding is very low in Operator Driven Stocks. In short, serious investors are
not interested in these stocks.

Bank NPA Analysis

Bank NPA Analysis is very important part of fundamental analysis. If i hold or planning to invest
in any banking stock or banking mutual fund then Bank NPA Analysis is a single most important
criterion to select the stock or mutual fund.

Personally, i refer to Gross NPA instead of net NPA. I track the quarterly movement of Gross NPA
% and fresh slippages. It helps to understand how the bank is performing to control NPA.

Another key ratio is PCR or Provision Coverage Ratio. Though higher provisioning impacts the
profitability negatively but it is the right step to clean the bank's balance sheet. An increasing
Provision Coverage Ratio implies that bank is protecting itself from the future losses.

Besides checking financial statements. You should check the presentation or press release. In that,
there is a section on Asset Quality. It provides complete details of bank NPA. It also shares the
thought process of bank's management. Bank NPA Analysis is very crucial in today's scenario.

Stop Loss Kaise Lagaye - 7 Mistakes to Avoid

Stop Loss Kaise Lagaye is one of the most common queries from the viewers of this YouTube
Channel. It is important to enter the trade at right time to avoid stop loss orders getting executed
most of the times. In this video, i shared 7 mistakes of retail investors or they miss the following
points during the process of Stop Loss Kaise Lagaye.

1. I personally don't place stop loss order to avoid stop loss hunting. Personally, i observed that if i
place bracket order or cover order, the stop loss will definitely hit.

2. A retail investor or trader put very tight stop loss especially in case of highly volatile intraday
trades. Depending on the volatility of the stock, the stop loss can be decided by the investor or
trader.
3. It is important to decide the quantum of loss or stop loss in trade first before deciding the
quantity to be traded. It is also called position sizing.

4. The stop loss should not be too wide. You can use risk-reward ratio.

5. An investor or trader should not place stop loss near the known points like pivot points, day's
high or low etc.

6. It is not advisable to change the stop loss once it is decided at the beginning of the trade.

7. Always remember that there is NO 2nd trade especially if the stop loss is hit due to stop loss
hunting.

Stop Loss Hunting Strategy - Why Yours Always

get Hit

Stop Loss Hunting is one of the key reasons why traders complain that their stop loss always gets
hit. Normally professional traders don't put stop loss order on their broker's platform. The key
reason is that it provides data point to big operators or players the concentration of stop loss.

To avoid Stop Loss Hunting, i also avoid putting stop loss order and also do not use bracket order
or cover order. Some of the reasons for Stop Loss Hunting are as follows.
1. To remove weak players from the market and maintain stock momentum.
2. To increase volatility. As we know that high volatility means high profit in intraday trading.
3. To increase liquidity.

For big operators or players, it is easy to execute Stop Loss Hunting Strategy. The reason being,
most of the retail investors think alike i.e. they trade in news/events based stocks or results are
expected.

Secondly, the tight stop loss and expected stop loss levels make it easy to execute Stop Loss
Hunting strategy. Some of the common stop loss points are day's high/loss, Pivot Points,
Fibonacci Retracement etc.
 Stock Back testing - The Reason for Successful
Trading Strategy

Stock Back testing is the single most important reason for the success of a trading strategy. The
professional investors like FII, DII or Institutional investors focus more on Stock Back testing
before making it live. Stock Back testing can be done manually or you can use software like MT4
or amibroker.

The reason why Stock Back testing is important because the index or stock behavior is not same
always. For example, if you study the movement of Nifty, after the double top of M type tops, the
index should fall but it does not happen. On the contrary, the market moves up. The retail investor
or trader always anticipate the expected behavior.

Similarly, while studying one stock I observed that after forming the double bottom or W type
bottom, instead of moving up it goes down.

Another method for Stock Back testing is a Fibonacci retracement. I observed that stock always
find support and resistance at a particular level. You have to observe the patterns. You can also
study fractals.

Lastly, fake breakouts are technically not fake but it the behavior of the stock or index.

Share Market Correction - 7 Reasons

Share Market Correction is inevitable. The market finds an excuse to correct. In recent past, I
shared videos on specific reasons for Share Market Correction. In this video, I am sharing the 7
Reasons.

1. USA Stock Market has a very strong correlation with Indian Stock Market as I shared in my
video on Share Market Bubble. A sharp fall or correction in USA result is resulting in Indian
Share Market Correction.

2. Increasing Bond yields means that Interest Rates are going to increase. Bond Yields are
indicative of future interest rate movement. The increasing bond yields is also a key concern in
USA stock market for Share Market Correction.
3. LTCG tax imposed in 2018 budget is another reason. There are apprehensions that FII's or FPI's
might book LTCG to avoid LTCG tax. Also, it will be double taxation i.e. LTCG and STT.

4. Experts of the opinion that recent Share Market Correction will result in a slowdown of mutual
fund inflow by retail investors.

5. The ban of SGX Nifty derivative trading is negative from sentiment perspective in short term.
Though it is a good news for retail investors as i shared in my video.

6. Bank NPA's is a key concern for the financial sector. The strong banking system is important
for the strong economy.

7. The recent quarterly results by bluechip companies are not as expected. SBI has posted its first
quarterly loss in last 17 years.

How Much Stock Market will Fall?

How Much Stock Market will Fall? Is the most asked query in recent past. The viewers of this
channel also asked whether the share market entered in a bear phase from the bull phase. Also,
how to find out the support and resistance of the stock market?

An investor or trader can find out the answer to all these questions with the help of following
methods. On a chart of Nifty 50, it is important to keep the optimal settings i.e. select the time
period of 1 day and also refer to the data of at least last 6 months.

1. Trend line: To draw the support or resistance trend line, you need at least 3 data points. It will
help an investor to find out the current support or resistance level.

2. Fibonacci Retracement is one of the most important analysis. It also helps to find out the
support and resistance level. The level of 61.8% is the most crucial level. If the stock or stock
market breaks this level then it is considered to be a trend reversal.

3. A moving average crossover of 13 and 48 also indicates the trend reversal.

Therefore, it is important to find out the trend and support/resistance level with the help of above-
mentioned methods.
 Best Stocks for Intraday Trading - Result of My
Research

Best Stocks for Intraday Trading is a topic of interest for intraday traders. Right stock selection is
a single most important criterion to remain profitable in the stock market.

From the last 3 months, i was doing a research to find out the correlation between the stock
volatility, stock price, and the returns. I did dummy or paper trading to check out the results and i
observed that

1. For a stock with volatility between 1.6% to 1.95% and stock price between Rs 200 to Rs 700, a
trader can generate max profit during intraday trading.

2. The similar observation for stocks of more than Rs 1000 value was that the stock volatility
should be more than 2%.

An important point to note is that i only considered Nifty 50 stocks for this study and also this is
only for stock selection.

A right stock selection but wrong trade can also result in a loss. I used a chart of 1H for this study.

For trading setup or system, a trader can watch my videos on the system. For each stock, you need
to find out most suitable trading setup. I hope these observations will help you to find Best Stocks
for Intraday Trading.

Stock Market Crash - Warren Buffet Lost $5.1

Billion in 1 Day

Stock Market Crash made ace investors warren buffet poorer by whopping $5.1 Billion. He is
world's 3rd richest person and is considered as a stock market guru. Approx. half of this loss can
be contributed to share of Wells Fargo & Co. It is a 3rd largest bank of America in terms of assets.
Berkshire is the largest shareholder in this script.
The reason why this share collapsed due to sanctions imposed by the Federal Reserve. It was
because of sales scandal and limit the balance sheet of the bank to 1.95 trillion dollars.

The 5 learns from this news report are

1. No one can time then market even stock market guru or ace investors cannot time the share
market.
2. 100% strike rate is not possible in the stock market. When the market is in a bearish phase, try
to execute large no of trades with a small profit.
3. Fundamental Analysis is not a foolproof method to generate wealth.
4. Market dynamics change very frequently. To remain profitable you should learn the new
dynamics fast i.e. learn & unlearn fast.
5. Exit bad investments on time. Don't carry the baggage of long.

Interest Rate and Stock Market

Interest Rate and Stock Market returns are in inverse proportion to each other. In layman terms, if
the interest rate increase then the returns from stock market reduces and vice versa. Bond yields
are the precursor to the direction in which the stock market will move.

The investment in the stock market depends on the premium it can generate compared to the safe
investment options like Fixed Deposit etc. The reason being, as an investor i am willing to invest
my money in riskier option if it can generate an additional return for me compared to safer
options. In other words, i want a premium for the risk i am taking.

The bond yield or interest rates also impact the profitability of the companies as it can increase
their interest outflow. In low-interest rate regime, companies can borrow at lower rates. Thus,
companies can utilize this money for their growth.

If the bond yield or interest rate increase, the FII's also shift their partial investments from equity
to debt. The most impacted are small and midcap stocks in case of increasing bond yield or
interest rate.

Market cap to GDP Ratio - Overvalued or

Undervalued
Market cap to GDP Ratio is a very important ratio. It basically tells whether the share market is
overvalued or undervalued. This ratio is compared w.r.t historical average.
Market cap to GDP Ratio is a ratio of the market capitalization of the traded stocks in the stock
market and the GDP of our economy multiplied by 100.

The stock market guru, Mr. Warret Buffet once said that Market cap to GDP Ratio is probably the
best method to measure the valuations of the stock market. After that, this ratio became very
popular.

In laymen terms, market capitalization is expected or anticipated earnings of the company. On the
other hand, GDP is the revenue of the economy. Some experts believe that Market cap to GDP
Ratio is not a true parameter in India context. The reason being

1. The proportion or weightage of sectors in GDP is not proportional to their weight in Stock
Market.

2. The participation of Indian household is very low compared to developed countries.

3. Lastly, some of the large and successful businesses & new age companies are not listed on the
stock market.

Stock Market Risk - 4 Types You Should Know

Stock Market Risk is 4 types and every investor should know about the same. Before learning
about risk management, it is important to understand the types of Stock Market Risk. They are as
follows

1. Market Risk: This is basically a macro level risk and applicable to all the stocks traded in the
share market. For example, if the stock market is in a bullish trend and if an investor takes short
position then it is like trading in opposite direction. It is always advisable to trade in the direction
of the market to mitigate the market risk. Secondly, macroeconomic indicators like inflation and
interest rate also pose market risk along with political risk.

2. Regulatory Risk: The sectors like telecom, pharma, and airline where the sector regulators are
very strong poses a regulatory risk. Any adverse regulation can directly impact the profitability of
the companies.
3. Business Risk: It is specific to the company. For example, contribution of digital business in IT
or competition in FMCG are risk to company thus are business risk

4. Sector or industry risk is for all the companies of the sector. For example, automation in IT or
cheap steel import poses threat to all the companies in the sector.

Stock Market Index - 7 Types of Indices

Stock Market Index is basically a pool of stocks identified by same or common characteristic.
Broadly Stock Market Indexes can be classified into 7 types also known as Stock Market Indices.
These types are as follows

1. Benchmark Indices: It consists of Stock Market Index like Sensex or BSE 30 & Nifty 50.
Basically, these are used for benchmarking or comparison.
2. Broad market indices contain Stock Market Index with broader participation like Nifty 100 or
200.
3. Market Capitalization: Under this classification, the Stock Market Index are divided into 3 parts
i.e. large-cap, mid-cap, and small-cap. I shared a detailed video on this subject.
4. Sector Indices: This type contains Stock Market Index like Nifty Auto / Bank / Pharma /IT etc
or BSE Bankex. As of now the total count is 12.
5. Thematic Indices: This kind of Stock Market Index is based on a specific theme like Nifty
Infrastructure / Energy / Commodities / MNC etc.
6. Strategy Indices: It consists of Stock Market Index based on investment philosophy or theme.
For example, Nifty high beta 50 index is for those investors who would like to invest only in High
beta stocks. Similarly, we have High Alpha 50, Growth Sectors 15 etc.
7. Customized Indices: These are designed based on the client requirement thus normally not
available for retail investors

Stock Market Learning - How many days it will take? 

Stock Market Learning is like any other learning curve and takes its own sweet time to complete.
As a beginner, you can divide the Stock Market Learning into 3 parts i.e.
1. Basics
2. Intermediate
3. Advanced
It can be divided into reactive and predictive learning in case of 2 step learning curve. Under the
basics module, an investor or trader should learn the known facts about fundamental, technical
and sentiment analysis. It can be referred as foundation course which is an absolute must for
anyone who would like to take direct exposure in the stock market.
At the intermediate level, an investor or trader should understand the stock behavior under various
phases of the share market i.e. bull phase, bear phase, and the sideways market. It is also reactive
learning and an investor should learn from other's learnings also. Many of the stock market
experts learned the stock market after a lot of hardship and losses in the market.

Large Cap, Mid Cap and Small Cap Stocks -

Market Capitalization

Large Cap, Mid Cap and Small Cap Stocks classification is based on the market capitalization.
Market capitalization is equal to share price and the total no of issued shares. Any stock with the
market capitalization of less than 250 Cr is classified as small cap stock. In case, Mcap is between
250 Cr to 4000 Cr then the share is classified as Mid cap stock. Rest all are classified as large cap
stocks or blue chip stocks.
Small cap stocks are more volatile with high risk. At the same time, the growth potential is high.
Mid cap stocks are less volatile and risky. Their growth potential is good and is good for long term
investment.
Large cap or blue chip stocks are least risky but their returns are less than other 2 categories. A
stock can grow from small cap to large cap and vice versa.
When the market is bullish, small cap stocks normally deliver maximum returns and when the
stock market is bearish, the large cap stocks are least risky. Therefore, depending on the trend an
investor or trader can take appropriate position in the market.

Turnaround Stocks - Future Multibaggers

Turnaround Stocks can be future multibaggers. The million dollar question is how to find or
identify them. In this video, i have explained how you can find out Turnaround Stocks that can be
future multibaggers.
The first step is to check the cash flow. If the cash flow of the company turns positive from
negative then it is initial signal to identify Turnaround Stocks. Company's cash flow can become +
wither by reducing expenses or increasing revenue. Company may sell its asset.
The second step is company generates operating profit or turn EBIT +ve. Besides that you can
also check the P/B, P/E and EPS of the company to identify Turnaround Stocks.
The companies who changed their business strategy can also become future multibaggers. By
changing business strategy company identifies areas of future growth potential. Another signal is
change in management of the company. Leadership is crucial to turnaround the company.
On top of all the steps, there should clear indication that company is trying to fix the issues faced
and is taking necessary steps to correct the pain points.
 Jobs data is very important in the stock market

Jobs data is very important in the stock market. It basically tells an investor whether the company
is bullish on future growth or not. An increase in hiring activity symbolizes that company is
expecting more business or projects thus higher growth in future. Therefore, it is a sign of
increased profitability in the future.
Some of the govt schemes or programs or initiatives can also fuel hiring activity. Therefore, it is
important to keep track of jobs data of potential beneficiaries. The schemes or initiatives that are
projected to fuel job growth are as follows
1. Recapitalization of PSU banks: It is expected that banks will utilize this money to disburse
more loans. Thus, companies can utilize the funds to grow the company.
2. Bharatmala: In next 5 years, 83000 Km roads will be constructed. The stocks that will be
directly benefited from this project will report better jobs data.
3. Sagarmala: Under this project, Govt is planning to construct more ports on east and west coast
of India thus it will create 1 crore jobs in 5 years.
4. Up-gradation of Railways Infrastructure will create a million jobs and will benefit the stocks
linked to railways.

In advance module, an investor can learn predictive analysis. It also deals with the psychology of
the stock market. Besides this, an investor also needs to learn & understand the risk management
and money management.

US Government Shutdown - How it will Impact Stock Market?

US Government Shutdown and how it will Impact Stock Market?. We will discuss this topic in
detail in today's video. In layman terms, the US Government Shutdown means that all the non-
essential employees of the US government will go on furlough or temporary unpaid leave. The
essential employees will continue working to maintain the essential services.

US Government Shutdown will not have any impact if is just for few or couple of days. It will
impact the US economy if lasts for a longer period say a week or more. Experts are anticipating
an impact of 0.2% on the GDP of USA economy.

There is a strong correlation between the Indian and USA stock market. This value is currently
0.97, therefore, any fall in USA market will have the corresponding impact on India Stock
Market.
It also a bad news for Indian exporters especially engineering and IT sectors that are major
exporters to the USA. It is also expected that volatility in the stock market will increase but again
it will depend on various factors.

Return on Investment or ROI - How to Calculate

using Excel

Return on Investment or ROI is very important to know for any investor. It is basically the result
of your investment. Therefore, it should be calculated correctly. In most of the cases, it is
calculated based on certain assumptions.

There are 2 types of Return on Investment or ROI i.e. Absolute and Annualized. For the correct
picture, the investor should consider the annualized the Return on Investment or ROI because it
considers time factor for calculation.

The Return on Investment or ROI can be calculated in the excel sheet with the help of an excel
function XIRR. It is also called the Internal rate of return. This excel function is helpful in the
calculation of both regular and irregular investments.

In the excel sheet, you have to add investment value as negative and maturity amount as positive.
It will return the annualized returns. In past, i shared a detailed blog on Return on Investment or
ROI. The viewers who would like to check the same can click on the comments section.

With the help of XIRR function, you can calculate returns for SIP, SWP, and investments made at
irregular intervals.

Stock Market Bubble - How to find out?

Stock Market Bubble is created when the investors or traders buy only in the anticipation of a
future increase in stock price or market rally. In such a scenario, sentiments overpower the
fundamental analysis. The macroeconomic indicators take a backseat.

To find out Stock Market Bubble, you can check the correlation between the American and Indian
market i.e. Dow Jones Industrial Average and the Sensex. If the correlation is high then the risk is
very high. On the other hand, if the correlation is low i.e. below 50 then the probability of rally in
the stock market is high.
An investor or trader can also check the P/E ratio of the stock market and compare it with the
historical value.

In case of stocks, the best way is to compare the future profitability of the company. An investor
can compare current P/E and EPS with the forward P/E and EPS. In case, the current P/E and EPS
are lower than the forward P/E and EPS then there is a possibility of an increase in the stock price.

Secondly, you can check the fair or intrinsic value of the stock. If the current traded price is more
than fair value then fundamentally stock is due for a correction.

Lastly, if the promoters of the company are selling their stake then it is not a good news and there
is a high probability of Stock Market Bubble.

Stock Beta Explained

Stock beta tells about the volatility of the stock or risks involved. High Stock Beta means high
risk for an investor or trader. This ratio is also used for risk management. If the beta of a stock is
+ve then it means that the stock and the market will move in the same direction.

On the other hand, if the stock beta is negative then it means the market and the stock will move
in opposite direction i.e. in case of the bullish market, the stock will be bearish & vice versa.

If the beta value is more than 1 then it means the stock is more volatile than the market. For
example, if the beta is 1.2 then it means stock can show 20% more swing compared to the market.

If the beta is less than 1 then it means that stock will not fluctuate more. The conservative
investors can invest in stocks with a beta of less than 1.

In layman terms, the stock beta tells the correlation between the stock and the market. You can
take a position depending on market trend to maximize gains.

Pledging of Shares by Promoters

Pledging of Shares by Promoters is not a good sign for a company or stock. Pledging of shares is
similar to availing loan against the shares. The shares act as a collateral.
Pledging of Shares by Promoters is one of the key analysis parameters for fundamental analysis. It
also increases volatility in the stock and if pledged shares increase more than 50% then the stock
is subject to manipulation.

For promoters, it is a trap because if the stock price decreases then the lenders will ask for either
more no of shares to be pledged or return the borrowed money.

As per one of the report, promoters of more than 80% listed companies have pledged their shares.
In small cap index, more than 90% companies have pledged their shares.

If pledging of shares is more than 80% then the company is in the very high risk category.
Between 50% to 80%, it is high risk. If pledged shares are between 25% to 50% then it is medium
risk and rest are low-risk cases. Best case is where 100% stake is retained by promoters.

The performance of the share is indirectly proportional to the pledging of shares by promoters.

Multibagger Stocks - Don't Select Based on the

NEWS

Multibagger Stocks selection based on the NEWS is the most unscientific way. It is just a hit and
trial method based on euphoria to add Multibagger Stocks in the portfolio by the investors.

The word Multibagger sounds fascinating to the investors. Without any analysis, it is assumed that
the stock labeled as Multibagger Stocks will generate a spectacular return for the investors.

The selection of Multibagger Stocks based on the news will definitely deliver negative returns if
the selection is not based on the analysis. This is especially true for the strategic schemes that will
take very long time to complete or implement.

Any position taken based on the news is best suited for the swing trading. The reason being,
NEWS is one of the key indicators for sentiment analysis. The stocks selected based on swing
trading may become Multibagger Stocks in the long run for the investors.

5 Stock Market Learning

Stock Market Learning is very crucial to remain profitable. Every year end is the right time to
evaluate what went right and what went during the year. In this video, i will share my 5 learnings
of 2017 in the stock market. Over the years i have realized that stock market learning more or less
remains the same.

1. Always expect the unexpected from the stock market.

2. Don't blindly trust the analysts or so-called experts of the market.
3. Fundamental Analysis is not redundant due to dynamic stock market conditions.
4. Always do your analysis and take your own decisions. Also, learn from the past mistakes.
5. An investor or trader should ride the wave by analyzing the trend and understand the sentiments
of the markets.

5 Golden Rules of Swing Trading

Swing Trading Technical Analysis require some rules to be followed by the investor or trader
religiously. In this video, i have explained the 5 Golden Rules of Swing Trading. These rules are
as follows
1. I never invest in a stock that ran up more than after the buy signal is generated on the chart. For
example, if i am using moving average crossover for the buy signal and the stock is already up
10% then i will not consider the stock for swing trading.
2. The second rule is related to trend reconfirmation. I reconfirm the trend on the 4 times time
frame chart
3. I don't consider stocks for swing trading if there is some news expected or stock is up because
of some news
4. I check my historical trade of the stock
5. I also check Value at Risk or Var of the stock

Value at Risk or VaR - Stock Selection

Value at Risk or VaR is one of the most used risk management tools by the investors and traders.
It is a statistical tool. Value at Risk or VaR tells the probability of loss with 99% or 95% accuracy
over a period of time.

Value at Risk or VaR is critical when the market is in downtrend or bear phase. It basically tells
how much money you can lose in a particular stock. In the stock market, risk management is
important for risk-averse retail investors. Secondly, it also helps in stock selection depending on
the risk appetite.

As a thumb rule, i invest only in stocks with the Value at Risk or VaR of less than 7.5%. It reduces
my loss in the stock market.

How to Confirm Trading Signal - Technical

Analysis

To Confirm Trading Signal is critical before you take any position in the market. It is also crucial
for profitable investment or trading in the stock market.

One of the technical indicators that can help to confirm trading signal is RVI or Relative Volatility
Index. This technical indicator measures the strength. It works best with the Moving Average
Crossover. It is also used with the Fibonacci or ADX.

Besides this technical indicator, An investor or trader can also confirm the trading signal on a
chart of higher time frame say 4 times the base chart. For example, if a chart of 15 mins is used as
a base chart the to confirm trading signal, a chart of 1 hour can be used.

Technical Analysis - Elder Impulse System

Technical Analysis is key to remain profitable in the stock market. Elder Impulse System is an
indicator of an indicator. It is a rare indicator that provides three types of bars i.e. Bullish (Green),
Bearish (Red) and Neutral (Blue).

Elder Impulse System is based on two technical indicators i.e. 13 days exponential moving
average and MACD - Histogram. When both the indicators are rising then the green bar is visible
on the chart. Whereas when both the indicators are falling then investor or trader can see red bar.
When the two technical indicators give opposite signals then the bar is blue. Elder Impulse
System is very useful for technical analysis and can be used with moving average crossover.

MACD Technical Indicator is one of the most popular indicators for the Stock Trading. Since it is
lagging technical indicator, therefore, it is used mostly for swing or positional trading.
Before an investor or trader use any technical indicator stock trading, it is critical to understand
how it works. I use MACD technical indicator both fast line & slow line and histogram. It helps to
identify initial/confirmed buy/sell signal. It also critical to check the long-term trend of the stock.

When both the fast and slow line is above the Zero line then the trend is bullish. On the other
hand, when both lines are below zero then it is a bearish trend. A crossover of the blue line and the
red line indicates the trend reversal.

MACD or Moving Average Convergence Divergence is one of the most popular technical
indicators. It is used to identify the trend using Moving Average. Therefore, you cannot use it in
combination with the Moving Average.

In MACD, Divergence means when the two Moving Average move away from each other.
Whereas convergence means when the two Moving Average move close to each other.

There are a lot of misconceptions about the MACD or Moving Average Convergence Divergence
technical indicator. Most of the traders or investors in the stock market do not understand the
MACD correctly. Thus, the technical analysis based on the MACD is incorrect.

Stochastic RSI - One of Favorite Indicators for

Technical Analysis

Stochastic RSI is one of my favorite indicators for technical analysis. It is also called the indicator
of an indicator. Basically, it is an extension of Stochastic Oscillator.

Stochastic RSI provides the Stochastic calculation of RSI. It measures RSI relative to RSI's high
and low range over a specific period.

Stochastic RSI is very useful when RSI moves within a range or band. Because of this sometimes
the trader or investors miss the profitable trades. The overbought and oversold levels in Stochastic
RSI are 80 & 20. It cannot be used alone but works well with another indicator. I use it with
Heikin Ashi candles.

Intraday Trading Strategy - RSI or Relative

Strength Index
Profitable Intraday Trading Strategy is very difficult to find. Normally, traders search for Intraday
Trading Strategy of a professional and successful intraday trader. This information is not available
in public domain.

In this video, i am sharing one of the successful Intraday Trading Strategy of professional traders
based on the RSI or Relative Strength Index. It is based on 2 periods with an overbought and
oversold zone of 90 & 10.

This Intraday Trading Strategy does not use any other indicator. It works well on the time frame of
15 mins. The only precondition is that the stock should be volatile with a very low delivery
percentage.

7 Benefits of a Stock Trading Software

Stock Trading Software is normally free but the trader or investor has to pay for the real time data
feed. One of the most common queries of a trader is why we should pay for the feed or what are
the benefits or advantages of a stock trading software. The comparison of a stock trading software
is with the platform of a broker or some sites that provide free access for technical analysis.

In this video, i discussed the 7 benefits of a stock trading software. These are
1. A library of indicators
2. Strategy testing
3. Experts
4. Change the logic of an indicator
5. Customized indicators
6. Premium Indicators
7. Reliability

Market Sentiment Analysis - How to do it

Market Sentiment Analysis is one of the 3 crucial stock analysis. The other 2 are Fundamental
Analysis and Technical Analysis. It is important to do a Market Sentiment Analysis for all type of
investments and trades as i shared in my earlier videos.

For intraday, BTST or Swing trade, Market Sentiment Analysis can be done along with the
technical analysis. On the other hand for long or medium term investment, it is important to do
fundamental analysis and Market Sentiment Analysis.
In my opinion, change in open interest and moving average are good indicators to gauge the
market sentiments. Other important parameters are a delivery percentage, news, FII buying or
selling, Research Reports, VIX or Volatility index etc.

How I Predict Stock Market Movement through

Technical Analysis
 
To Predict Stock Market Movement is a very crucial step for intraday trading. As i always trade in
the direction of the market. There is a common myth that current stock market status decides the
stock market movement. It is not correct. A stock market may correct after an up move or vice
versa.

Therefore, in case of a trend reversal, the traders are trapped. To be ahead of times or being
profitable in the stock market you should always check and predict the stock market movement.
The intraday trade should be taken in the market direction. For example, i am anticipating that
market will go up then i will only take BUY trades and vice versa.

Why Stocks Don't Follow Technical Analysis

All stocks don't follow technical analysis. There can be multiple reasons for the same. In this
video, i explained 7 reasons why stocks don't follow technical analysis. I also shared an example
of 5 stocks that are currently not following technical analysis. The list may change over a period
of time.

In this video, I also shared relevant examples. These reasons are as follows
1. Sentiment/News Driven Stocks
2. Operator driven stocks
3. Lack of interest of investors or traders
4. Stocks in sideways movement
5. Bulk deals
6. Whipsaw or Stop Loss Trigger
7. Unknown reasons
 Falling Crude Oil Prices - 7 Sectors that Will
Gain
Falling Crude Oil Prices is good news for the Indian economy. It helps to keep inflation under
control thus support economic growth. For a retail investor, it is important to know which all
sectors will be benefited from the Falling Crude Oil Prices.

This video on Falling Crude Oil Prices discusses the list of 7 sectors that will be direct or indirect
beneficiaries of the Falling Crude Oil Prices. The list is as follows
1. Oil Marketing Companies
2. Tyre Companies
3. Paint Companies
4. Airlines or Aviation Companies
5. Packaging Companies
6. Auto Companies
7. Cosmetics Companies

In most of the cases, these sectors use derivatives of crude oil as their raw material. It can be as
high as 50% of total cost of the product or service. Any direct or indirect reductions in the cost of
the raw material help to improve the margins of the companies.

7 Useful Tips for Chart Analysis

7 Useful Tips for Chart Analysis will help you to do your chart analysis more effectively and
efficiently. I have compiled the list of useful tips based on the common problems faced by stock
market investors and traders.

Useful Tips for Chart Analysis will help you in following

1. While plotting a Fibonacci Retracement, Support or Resistance and Trendlines, we struggle the
plot from the low/high/close/open of the price candles. You can enable magnet mode on the chart
to find the exact points without any efforts. It will help you to get the exact price levels in your
chart analysis.
2. When we do Multi-time frame analysis, we struggle to plot trendlines, Support & Resistance
and Fibonacci retracement correctly. The being, when we change the time frame, these lines get
distorted. You can fix this problem through visibility settings.

3. You can save multiple chart layouts for effective chart analysis. You need not plot all the
indicators again.

4. You can split the screen into 2, 3, 4, 6 and 8 parts to check multiple charts on a single screen.

5. You can also take a screenshot and share it on the social media platforms.

6. You can move to the inaccessible portions of the chart while doing chart analysis without zoom
in and zoom out. You click on the auto option

7. You can also insert session breakouts or change the look & feel from scales properties option.