When is the best time to buy a stock?

Hello, my name is Deverishi Kapoor, I am an independent stock trader with 5+ years of

experience in the market, So lets just directly go into the topic of what are techniques for
trading the stock market?

In the stock market, there is a saying you don't trade the stock you trade the news what it
means it means whenever you try to create your opportunity you will loose and whenever
you grab the opportunity which is out there you will sit with profits.

Let me take you to one of the most recent trade of mine and the approach behind it, so
let's start

There is this news from 14th September, two Saudi Aramco plants at the heart of the
kingdom's oil industry, including the world's biggest petroleum processing facility were
attacked by drones.

The attack on the two plants -- Abqaiq oil processing facility and Khurais oil field --
could see a temporary shortage of 5.7 million barrels per day which is 5 per cent of the
global crude supply.

This is very shocking and devastating but as a professional trader, you don't want to miss
the opportunity like this as I told in my previous answer that the main highlight of
Reliance Industries AGM was that they signed India's biggest FDI deal with Aramco.

As the news came in on weekend so it was very clear on Monday relicance industries will
show weaknes and that's what happend stock opened with a gap down I was closely
tracking the stock and as I always suggest do not put any indicator until you see any
opportunity on the charts So I was reading candlesticks at different time frames and
around 10:30 I saw a pattern initated (three white soldiers) but on third candle I realized
it was a false breakout after that same thing happened again one more pattern got
initated (three white soldiers) again on the third candle I realized it was a false breakout
but this time the third candle was a shooting star (trend reversal) I thought this is the
best opportunity to short the stock so I aligned RSI, Bollinger Band and Supertrend on
the chart RSI was weak, bollinger band showed volatitliy is too high and supertrend was
also in red I short the stock at Rs.1215.21/- with the stop loss of Rs.1218/- (high of the
shooting star) and with the target of Rs.1207/- target got hit chart was fully clear in my
mind so I did the same thing on tuesday as well short the stock at Rs.1207/- with the
stop loss of Rs.1212.50/- (high of the shooting star) and with the target of Rs.1195/-
target got hit.
In the stock market, there are times where you will see the sudden reaction of any news
on the stock and sometimes late reaction on the stock, it depends on the news and the
company, so always make sure you study the chart well.

There are 100s of stock which are cheap. but don’t both looking in top 50 or top 100. you
can find many in top 500 or in small cap.

Stick this on your wall to refer to every time you investigate a company.
 
 Business Characteristics
 
 “Our favourite holding period is forever.” – Warren Buffett

●It is a simple business you understand and can explain to a 6 year old.

● The company has an economic moat.

● They can set and increase their own prices.

● Their product and/or industry is extremely boring or dirty.

● The company is experiencing rapid expansion.

● The company is NOT a contracting business.

● Proven track record of duplicating their success.

● The company is recession proof.

● Low reliance on a single product.

● Low customer concentration.

● The earnings are not heavily reliant on or regulated by the government.

● The company is ignored by brokers and is not surrounded by hype.

● The company has expected upcoming catalysts.

Financial Characteristics

 “The stock market is filled with individuals who know the

 price of everything, but the value of nothing.” – Philip Fisher

● Earnings growth is consistent

● Owner earnings are consistently increasing

● Abnormal items are not apparent or infrequent

● Operating cash flow is positive and consistent

● Profit margins are improving (Gross profit, EBIT margin, NPAT margin)

● If it’s an acquisition story, EPS continues to grow

Balance Sheet Strength

 “100% of the information you have about a company represents the past, and 100% of a
stock's valuation depends on the future.“ – Bill Miller

● Consistently high return on equity

● Consistently high return on invested capital

● Consistently high return on assets

● Are there any hidden assets that cannot be financially measured? (brand name,
unrealised property gains, patents etc.)

● Inventory as a % of revenue is constant or declining

● Total shares on issue either remain constant or decrease

● Shareholder’s equity is rising continually

● Be wary of companies with high levels of goodwill

Cash Flow and Debt

“It’s not what you own that will send you bust but what you owe.” - Anon

● Operating cash flow is positive and consistent

● Does not require high level of capital to remain competitive

● Receivables are growing slower than revenue

● High capex is not required to support earnings growth

● EBIT to debt coverage of at least five (5) times

● Current ratio > 1

● Low debt to equity ratio

Quality of Management

 "Go for a business that any idiot can run – because sooner or later, any idiot is probably
going to run it.“ – Peter Lynch
 
 ● Management have made their growth plans obvious to investors

● There are no related-party transactions with management’s family

● Management have a solid track record in delivering on guidance

● The dividend has been consistent or growing

● Acquisitions have been closely related to their business

● Management own a significant portion of the company

● Management have recently bought shares

And always remember, market is much smarter then you.

Cheers!

never forget the rule which was set by warren buffett for value investors.

It's far better to buy a wonderful company at a fair price than a fair company
at a wonderful price.

What are techniques for trading on the stock market?

Deverishi Kapoor, A professional trader with in-depth knowledge of the stocks.

Answered Mon
Hello, my name is Deverishi Kapoor, I am an independent stock trader with 5+ years of
experience in the market, So lets just directly go into the topic of what are techniques for
trading the stock market?

1. The stock should form a recognizable candlestick pattern.

2. Support and Resistance should confirm to the trade. The stop-loss price should be
around support and resistance.

a) For a long trade, the low of the pattern should be around the support.

b) For a short trade, the high of the pattern should be around the resistance.

3. Volumes should confirm.

a) Ensure above average volumes on both buy and sell.

b) Low volumes are not encouraging, hence do feel free to hesitate while taking a trade
where the volumes are low.

4. Indicators should confirm.

a) Scale the size higher if they confirm

b) If they don't confirm look for other opportunities.

In my previous answer, I'd explained my approach, How do I successfully pick stocks.

Is intraday trading profitable?

Deverishi Kapoor, A professional trader with in-depth knowledge of the stocks.

Answered Sun
Hello, my name is Deverishi Kapoor, I am an independent stock trader with 5+ years of
experience in the market, So lets just directly go into the topic of Is intraday trading
profitable? Every person has its psychology behind trading the stock market, trading the
market is very logical. To me, trading is like solving a mathematical problem. I will try to
explain it with a very simple approach, every day there are stocks in the news which are
focused. Dr Reddy's one of my favourite stock to trade was focused on the news on
Friday, I was constantly tracking the stock in the market before the pre-open session and
I found out the sentiment on the stock is a bit bearish, in the pre-open session stock
showed a bearish candle so I set RSI, ADX on the chart and RSI was showing weakness
and in the meantime ADX crossover was about to happen but candlesticks were not
showing any clear pattern so I used Bollinger bands on the chart and it made my mind
very clear to short the stock, I shorted the stock at Rs.2746.83/- with the stop loss of
Rs.12/- and target of Rs.36/- risk to reward ratio 1:3, target achieved and at the same
time there was a spinning top (trend reversal candlestick) on the chart + RSI was also in
the oversold zone, I opened one more position, this time I was long on the stock, I
bought the stock at Rs.2707.92/- with the stop loss of Rs.10/- and target of Rs.10/- as
well, my previous trade was successful so this time I chose my stoploss and target with
the ratio of 1:1 (most of the time people make the biggest mistake here they get over
confident and without thinking logical they put there targets very high, there is an index
is known as greed and fear index in this situation greed takes over, as a result, a person
who is sitting in good profits end up in losses by the end of the trading day)

NEVER LET THIS THING HAPPENS TO YOU

Yes intraday trading is profitable But you have to work hard just like in any other
business.

My suggestions:-

1. In any software or platform never open a chart with the indicators, first always get the
proper idea from candlesticks only and if you see an opportunity then only align the
indicators on the chart.
2. Never initiate a trade by seeing any candle in the pre-open session always wait for the
next candle.

I have thousands of methods to tell but very less time to write.

Where can I do stock market training?

Shraddha Nanchahil, Professional Stock Market Trader at National Stock Exchange

Updated Jun 12
Hey.

Congratulations that you have decided to get trained.

Since I have started writing on quora, many people have been commenting on my posts
that regular profit is not possible, you can't make this much profit daily and what not. I
proved many people but then some people don't want to believe.

What I can do is train people and make them believe that trading can serve you good
money.

What all I will be covering in my training - everything from basics to advanced.

Technical analysis

Back tested strategies

Order placements

EQUITY full fledged

Futures

Commodities

Swing trading

Anyone who's interested in getting trained can dm me.

Thankyou.

WhatsApp at-

8014690786
I use a very simple strategy for day trading.

Buy the Strength….

Sell the Weakness….

1. Go to NSE website before market opening. Go to Nifty 50 stocks.

2. Look for 52 week high ( strong stocks) and 52 week low stocks ( weak
stocks).
3. Pick 2 stocks from each and keep it in your watchlist.
4. After market opens see how Nifty is performing. If Nifty is positive then
go for 52 week high stocks and if Nifty is negative then 52 week low stocks.
5. Now come to indicators. I use PSAR, VWAP and CCI.
6. In 5 mins candle, Buy when PSAR is below candle and and candle is
above VWAP. CCI should be trending up or above 0.
7. Stop loss will be when PSAR turns signal.
8. Vice versa for sell.

As you can see some of these decent profits. I always prefer slow and
discipline trading.

Discipline trading is the only key to sucess into Stocks market. One
should have a good analysis of stock and disciplined trading in terms to
get good profits.

Get in touch with one of the best adviser in terms of advises and strict
discpline trading.

Share on WhatsApp

Share on WhatsApp

The concept here is buy the strength and sell the weakness..

What are some good intraday trading strategies?

Answer

Follow· 702
Request

Ad by Moneyjar

Still depending on your salary? Invest with as low as ₹1,000.

Invest in mutual funds and create an alternate source of income today. Start with just
₹1,000.

Learn more at moneyjar.in

100+ Answers

Kirubakaran Rajendran, Algo Trader, Founder, www.squareoff.in

Answered Aug 13, 2018 · Upvoted by Sagar Sharma, Former Stock Trader and Investment Advisor at
Stock Markets (2008-present)

Failed Breakout Intraday Strategy

It is one of the high probability intraday strategy that provides great returns with least
risk.

I would pick stocks every day based on NR7 criteria and wait for the stock to break
its previous day high or previous day low and then enter in the opposite
direction expecting a failed breakout.
For example, in the above chart - Ambuja Cements on Friday 10/8/18, after market
opened, the stock immediately started moving up and tried to break yesterday high.
However, the stock did not move up further and I immediately place a short order for
Ambuja with a trigger price as previous day’s low price.

I have an automated alert mechanism, where it would scan for such stocks and alert me
when condition satisfies, and all I need to do is, just click on the execute button and
relax. As its gonna place both target and stop loss for me, since its a bracket order.

The rules are simple:

1. Prepare a watch list of stocks, preferably NR7 stocks

2. If the stock break its previous day high first, then place a short order with
trigger price as previous day low with stop loss as prev day high.
3. If the stock break its previous day low first, then place a Buy order with
trigger price as previous day High with stop loss as prev day low.
4. Keep a fixed target of 1% and Exit.
Here’s the daily performance result of this strategy
I have been testing this strategy live since May 2018, it has a greater accuracy compared
to other trend following system or break out system, because it works on failed breakout
principles, when a stock moves up and breaks previous day high and if its unable to
move up further, the stock would witness more selling pressure and when it breaks
previous day’s low, then more selling pressure sets in which pushes the prices further
down which helps us to make profits.

source: Zerodha charts