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These are the user uploaded subtitles that are being translated: 1 00:00:00,210 --> 00:00:02,040 Hello, ladies, welcome back. 2 00:00:02,310 --> 00:00:06,300 In this session, we'll be showing you how to do fundamental analysis. 3 00:00:06,450 --> 00:00:11,670 I know a lot of you do not have time for him today because you might be busy with other things during 4 00:00:11,670 --> 00:00:12,410 the market hours. 5 00:00:12,450 --> 00:00:17,580 If you're one among them who do not wish to watch the market all the time, then swing trading or long 6 00:00:17,580 --> 00:00:19,680 term investment is the right choice for you. 7 00:00:20,650 --> 00:00:26,050 You can apply this method, which we will be teaching in this video, to find stocks for spring training 8 00:00:26,080 --> 00:00:27,610 as well as long term training. 9 00:00:27,640 --> 00:00:33,400 OK, so now before we discuss about fundamental analysis, first let us discuss about the rules. 10 00:00:33,430 --> 00:00:35,200 There are only two simple rules. 11 00:00:35,620 --> 00:00:38,600 Rule number one, invest fixed capital. 12 00:00:38,890 --> 00:00:40,230 So what do I mean by this? 13 00:00:40,540 --> 00:00:47,410 This means I will invest a fixed amount of capital, let's say five thousand rupees, ten thousand rupees, 14 00:00:47,410 --> 00:00:51,510 one lakh to lack any amount as your capacity. 15 00:00:51,790 --> 00:00:56,860 Once you decide a fixed capital, you need to have a dedicated trading account for this. 16 00:00:56,890 --> 00:01:02,660 If you're doing intraday, I suggest you not to use the same account for Suyin trading. 17 00:01:03,110 --> 00:01:10,150 OK, this is because if you have this capital in the same account in which you are doing intraday trading, 18 00:01:10,720 --> 00:01:16,450 there are high chances that you will use this fixed capital amount which you have kept for swing trading 19 00:01:16,810 --> 00:01:18,650 to buy stocks during intraday. 20 00:01:18,790 --> 00:01:23,800 So avoid having this fixed capital in the same account in which you are doing intraday. 21 00:01:24,960 --> 00:01:26,790 OK, this is the first rule. 22 00:01:27,150 --> 00:01:30,530 Now, the second rule is no withdrawal of profits. 23 00:01:30,570 --> 00:01:32,340 Why you should not withdraw your profits. 24 00:01:32,370 --> 00:01:37,290 I will explain why you should not withdraw your profits as we move forward with this session. 25 00:01:37,320 --> 00:01:37,740 OK. 26 00:01:38,930 --> 00:01:45,770 So if you are able to follow the rule number one and rule number two, then this matter I am teaching 27 00:01:45,770 --> 00:01:47,240 you will be very helpful. 28 00:01:47,270 --> 00:01:50,370 Now, let's understand this concept with an example. 29 00:01:50,810 --> 00:01:56,600 So now let's say you're fixed capital for spring training is to like rupee's the STOLOROW piece. 30 00:01:56,940 --> 00:01:59,750 You will divide it into 10 portions. 31 00:01:59,780 --> 00:02:03,790 OK, so Doleac divided by ten is twenty thousand. 32 00:02:03,830 --> 00:02:04,180 Right? 33 00:02:04,520 --> 00:02:08,010 So I will make ten columns like this each column. 34 00:02:08,120 --> 00:02:09,410 Twenty thousand rupees. 35 00:02:13,190 --> 00:02:19,130 Now, let's say you got to break out an A.C. bank and you'll want to enter the trade, you will use 36 00:02:19,130 --> 00:02:21,500 the amount which is there and call them a. 37 00:02:22,480 --> 00:02:24,160 Which is twenty thousand rupees. 38 00:02:31,030 --> 00:02:37,120 Addressed every column, you will market green or any color you want, the market green, which means 39 00:02:37,360 --> 00:02:38,170 free cash. 40 00:02:39,730 --> 00:02:44,500 I have so much cash with me even after investing in HDFC Bank. 41 00:02:45,460 --> 00:02:52,720 OK, now let's say after seven to eight days, you got 10 percent profit on the 20 thousand capital 42 00:02:52,720 --> 00:02:56,560 you invested in HDFC Bank after brokerage and taxes. 43 00:02:56,590 --> 00:02:57,580 How much will it be? 44 00:02:58,000 --> 00:02:58,960 Twenty two thousand. 45 00:02:59,260 --> 00:02:59,710 Correct. 46 00:03:00,310 --> 00:03:03,580 That amount will update it after this. 47 00:03:03,640 --> 00:03:05,450 You saw breakout and supply. 48 00:03:06,160 --> 00:03:09,850 Now you will use this twenty two thousand and Zoopla, right? 49 00:03:09,850 --> 00:03:10,780 Twenty two thousand. 50 00:03:10,780 --> 00:03:17,290 Because as a rule number two, rule number two says we should not withdraw our profit. 51 00:03:17,860 --> 00:03:20,720 We will have to use the profit and reinvest. 52 00:03:20,740 --> 00:03:22,300 So what are we actually doing? 53 00:03:23,500 --> 00:03:25,540 We are adding our base capital. 54 00:03:26,900 --> 00:03:34,160 Along with the non-profit and enlisting this so that the profit which we reinvest will bring in more 55 00:03:34,160 --> 00:03:35,120 profit for us. 56 00:03:36,400 --> 00:03:40,630 OK, this method is called compounding growth. 57 00:03:40,960 --> 00:03:42,940 What is it called compounding growth? 58 00:03:43,900 --> 00:03:49,810 So long story short, if the column is busy, then you will invest in Colombia. 59 00:03:51,090 --> 00:03:52,590 If Colombe is busy. 60 00:03:53,560 --> 00:03:55,280 You will use the funding column. 61 00:03:55,690 --> 00:04:02,200 Likewise, we will give chance to all the columns, there are two major advantage in following this 62 00:04:02,200 --> 00:04:02,650 method. 63 00:04:02,670 --> 00:04:08,140 First one is there is no need to go to your broker's account and see what is your capital, because 64 00:04:08,140 --> 00:04:11,110 this shit has all the necessary information that you need. 65 00:04:11,230 --> 00:04:16,750 Just see the column and you will know how much money is invested and how much free cash you have. 66 00:04:16,780 --> 00:04:24,160 OK, now the second advantage, if you follow this method, you would always have at least 30 to 40 67 00:04:24,160 --> 00:04:26,050 percent of free cash in your account. 68 00:04:26,170 --> 00:04:29,550 It is very important that you do not invest all your fixed capital. 69 00:04:29,590 --> 00:04:33,820 You should have a certain percentage of free cash in your account for emergencies. 70 00:04:33,850 --> 00:04:39,970 Let us say that a surgical strike or currency ban or any other situation which affects the stock market, 71 00:04:40,000 --> 00:04:44,020 you can use the situation to your advantage and grab opportunities. 72 00:04:44,020 --> 00:04:48,280 Basically, during the time when the market is making one side more, you need to have funds to buy 73 00:04:48,280 --> 00:04:48,490 them. 74 00:04:48,490 --> 00:04:48,850 Right. 75 00:04:48,880 --> 00:04:54,670 So if you have 30 to 40 percent of free cash with you, you can always use that to grab good trading 76 00:04:54,670 --> 00:04:55,540 opportunities. 77 00:04:55,570 --> 00:04:59,740 OK, now let me show you my data, which I have maintained during 2009. 78 00:05:00,010 --> 00:05:04,510 Traders, I'm not doing any swing trading because of the busy schedule, but the data which you are 79 00:05:04,510 --> 00:05:08,370 seeing right now will give you an idea as to how you need to maintain. 80 00:05:08,890 --> 00:05:13,510 OK, see, sixteen thousand capital became forty two thousand. 81 00:05:14,380 --> 00:05:16,720 Twenty eight thousand became seventy one thousand. 82 00:05:17,940 --> 00:05:20,950 Thirty four thousand became sixty four thousand. 83 00:05:21,720 --> 00:05:26,250 The stock is still in trade, twenty two thousand became eighteen thousand. 84 00:05:26,640 --> 00:05:28,080 I lost someone in the street. 85 00:05:28,110 --> 00:05:28,520 OK. 86 00:05:29,920 --> 00:05:32,890 And three thousand became fifty one thousand. 87 00:05:33,770 --> 00:05:38,940 OK, now, traders, how many stocks in this list do you have in your watch list? 88 00:05:39,110 --> 00:05:43,140 I'm sure that most of you wouldn't even have heard about these stocks, right. 89 00:05:43,820 --> 00:05:45,200 How did I find these stocks? 90 00:05:45,500 --> 00:05:48,270 I will tell you, there are two ways to find stocks. 91 00:05:48,470 --> 00:05:50,640 The first one is through Tretyakov. 92 00:05:51,530 --> 00:05:54,220 So this is my trade tiger account here. 93 00:05:54,230 --> 00:06:01,730 If I go to Tool and click on Best 20, the system will filter out and give me 20 best stocks out of 94 00:06:01,730 --> 00:06:02,850 these 20 stocks. 95 00:06:02,870 --> 00:06:08,150 I will consider the stocks, which are more than one hundred rupees and stocks less than that amount. 96 00:06:08,330 --> 00:06:13,640 I will not select because I feel the stocks, which are less than one hundred rupees returns, are very 97 00:06:13,640 --> 00:06:13,990 less. 98 00:06:14,390 --> 00:06:19,420 Sometimes the movement will be 50 percent to one rupee, which I don't think is attractive. 99 00:06:22,080 --> 00:06:27,540 So after filtering out stocks, which cost more than one hundred rupees, these are the final stocks 100 00:06:27,540 --> 00:06:34,500 which I have chosen from trade Tiggers Best 20 stock list, the same stocks I have added to my watch 101 00:06:34,500 --> 00:06:34,860 list. 102 00:06:36,030 --> 00:06:43,020 OK, now, before we discuss how to do fundamental analysis for these talks, let us understand why 103 00:06:43,020 --> 00:06:44,190 we selected stocks. 104 00:06:44,760 --> 00:06:48,360 We selected stocks not just because they have given breakout. 105 00:06:49,170 --> 00:06:55,440 The main reason is when these stocks could breakout, they increased by five to 10 percent. 106 00:06:57,620 --> 00:07:00,770 Is this the first time this dog apricot, no. 107 00:07:01,960 --> 00:07:03,190 It's going to break out here. 108 00:07:04,950 --> 00:07:06,230 It's given Prikhodko. 109 00:07:07,460 --> 00:07:08,600 It's given Briguglio. 110 00:07:11,410 --> 00:07:12,910 And if you choose the stock. 111 00:07:16,840 --> 00:07:20,530 Continuous three days rally and the future, Kristie. 112 00:07:21,840 --> 00:07:22,710 A rally here. 113 00:07:24,160 --> 00:07:25,420 Or you can check the stock. 114 00:07:27,550 --> 00:07:28,480 A rally here. 115 00:07:29,390 --> 00:07:30,350 Increase here. 116 00:07:34,990 --> 00:07:40,180 Again, it's trying to rally here, if you're planning on shorting the stock, then you have to go for 117 00:07:40,180 --> 00:07:41,720 futures, right? 118 00:07:41,980 --> 00:07:42,970 Only with futures. 119 00:07:42,970 --> 00:07:44,690 You can sell first and buy later. 120 00:07:44,710 --> 00:07:49,640 So if you had seen this breakdown and entered the street more than 40 to 50 percent, it went down. 121 00:07:49,980 --> 00:07:55,470 So all these stocks have very high potential of moving up or down on a frequent basis. 122 00:07:55,480 --> 00:08:00,310 It's very important that you learn how to find breakout or breakdown that we have clearly mentioned 123 00:08:00,310 --> 00:08:00,960 in our courts. 124 00:08:01,120 --> 00:08:01,500 Right. 125 00:08:01,550 --> 00:08:04,970 And all the strategies we have told you how to find breakout or breakdown. 126 00:08:05,050 --> 00:08:08,250 I'm not randomly telling you you had a shorting opportunity here. 127 00:08:08,440 --> 00:08:13,090 If you see this trend, this trend has one of the strategies from Marcus, right. 128 00:08:13,270 --> 00:08:17,980 If you are checked out, of course, you clearly know that we had a shorting opportunity because here 129 00:08:17,980 --> 00:08:19,810 one of our strategies works, right? 130 00:08:21,140 --> 00:08:22,070 So likewise. 131 00:08:23,710 --> 00:08:27,850 You can either use your own strategy or the strategy, which will teach you. 132 00:08:28,940 --> 00:08:31,620 OK, say again, the stock made a big rally here. 133 00:08:31,640 --> 00:08:32,810 Can you get up to this? 134 00:08:33,140 --> 00:08:38,150 The advantage that we have when we select these stocks are trading session will complete in just two 135 00:08:38,150 --> 00:08:38,870 or three days. 136 00:08:38,900 --> 00:08:42,460 Most of the time, there is no need to hold a stock for a month or so. 137 00:08:42,680 --> 00:08:47,450 The second way to find breakout stock is through a trading tool called Chatting. 138 00:08:47,450 --> 00:08:50,660 I have a video called How to Select Stock for interest in that. 139 00:08:50,660 --> 00:08:56,420 I have clearly explained how to find stocks using charting and that you will find trending stocks. 140 00:08:56,450 --> 00:09:00,110 OK, so you traders, if you don't have to Tiger, no problem. 141 00:09:00,110 --> 00:09:03,440 You can use chatting itself to find stocks. 142 00:09:03,440 --> 00:09:06,520 To be honest, in chatting you will get even better results. 143 00:09:06,530 --> 00:09:07,670 So have a look at that. 144 00:09:07,700 --> 00:09:13,670 OK, now just because Tiger give us a breakout of breakdown stocks or chatting, give us breakout Bricktown 145 00:09:13,670 --> 00:09:14,240 stocks. 146 00:09:14,240 --> 00:09:17,810 We will not just go and buy or sell before buying any stock. 147 00:09:17,810 --> 00:09:20,330 There are four important things we need to look at. 148 00:09:20,330 --> 00:09:25,190 Only if these four things looks fine, then we can think about investing in the stock. 149 00:09:25,190 --> 00:09:25,880 These four things. 150 00:09:25,880 --> 00:09:28,700 What we are going to look at that is a fundamental analysis. 151 00:09:28,730 --> 00:09:35,270 OK, now traders, can you see this list, this list as all the stocks, which is that in our stock 152 00:09:35,270 --> 00:09:42,620 exchange, OK, and in this section we have from which industry these stocks are from like I.T. software. 153 00:09:43,800 --> 00:09:46,660 Pharma, chemical, textile. 154 00:09:47,870 --> 00:09:55,190 Oil extraction, cement, plastic products, shipping, all the stocks from all the sector will be in 155 00:09:55,190 --> 00:09:55,670 this list. 156 00:09:55,700 --> 00:10:01,420 OK, now let's say tomorrow morning you watch the news and you got to know sugar industry is doing well. 157 00:10:01,430 --> 00:10:05,120 OK, so what do you have to do to click on this? 158 00:10:09,760 --> 00:10:11,680 Here you need to search for sugar. 159 00:10:18,850 --> 00:10:23,330 And you will get the list of all the sugar companies which is listed in the stock exchange. 160 00:10:23,370 --> 00:10:25,600 OK, traders, can you see one column called? 161 00:10:25,620 --> 00:10:29,590 Chuckling So what we use this link for us example. 162 00:10:31,280 --> 00:10:36,130 All this a sugar company right now, let's say you want to check if there is breakout and rain sugars, 163 00:10:36,350 --> 00:10:36,800 OK? 164 00:10:37,640 --> 00:10:38,990 Just click on this link. 165 00:10:44,770 --> 00:10:47,350 You'll be taken to the chuckling website. 166 00:10:47,680 --> 00:10:50,160 OK, so here's what you can do. 167 00:10:50,230 --> 00:10:50,950 You can check. 168 00:10:50,980 --> 00:10:53,290 You can check for breakouts, OK? 169 00:10:53,320 --> 00:10:54,640 There's no breakout in this. 170 00:10:54,670 --> 00:10:56,640 You can check for other shugar industries. 171 00:10:56,650 --> 00:10:58,900 Also, if I choose Rahner shugar and check. 172 00:11:00,000 --> 00:11:03,050 Here, there is a possibility for a breakout, right? 173 00:11:03,420 --> 00:11:09,420 Likewise, what you can do is you can check for Breakout directly, go into the chart using chuckling 174 00:11:09,420 --> 00:11:14,970 We need to know the breakout because we need to enter the trade during the breakout rate so that we 175 00:11:14,970 --> 00:11:18,750 make maximum profit into the trade quickly and exit the trade quickly. 176 00:11:18,780 --> 00:11:21,480 We need to enter trades when there is a breakout of Bricktown. 177 00:11:21,520 --> 00:11:24,510 OK, break down when you're working on futures. 178 00:11:24,780 --> 00:11:30,990 And now just because a stock breakout, we will not enter because we are doing swing trading and long 179 00:11:30,990 --> 00:11:31,790 term investment. 180 00:11:32,190 --> 00:11:34,750 So we need to check the fundamentals of the stock. 181 00:11:34,770 --> 00:11:38,240 OK, so there are two ways to check fundamentals. 182 00:11:38,400 --> 00:11:41,760 The first way is through market model with market model. 183 00:11:41,760 --> 00:11:45,370 Getting to know the fundamentals of a company can happen very quickly. 184 00:11:45,390 --> 00:11:49,020 OK, but the problem with market mojo is it has a monthly fee. 185 00:11:49,020 --> 00:11:51,230 Initially you will have five times trial. 186 00:11:51,450 --> 00:11:53,280 You can trade with five or six stocks. 187 00:11:53,280 --> 00:11:54,470 They will give you some trial. 188 00:11:54,510 --> 00:11:58,480 After that, they will charge it somewhere around thousand five hundred rupees also. 189 00:11:58,770 --> 00:12:02,670 OK, so if you are interested, the easy way to check. 190 00:12:02,670 --> 00:12:05,310 Now, let me quickly check for one company and show it to you. 191 00:12:05,500 --> 00:12:08,340 OK, now let's say I search for Axis Bank. 192 00:12:09,550 --> 00:12:11,800 Axis Bank as I click on this link. 193 00:12:15,490 --> 00:12:18,280 I've been taken to Market Mujo website. 194 00:12:18,700 --> 00:12:25,240 OK, so how to do fundamental analysis, we will see this is a simple way of doing fundamental analysis. 195 00:12:25,450 --> 00:12:29,440 OK, now here you can see for section one is quarterly financial trends. 196 00:12:29,470 --> 00:12:30,970 Another one is technical. 197 00:12:31,000 --> 00:12:32,350 Another one is quality. 198 00:12:32,560 --> 00:12:34,030 Another one is valuation. 199 00:12:34,270 --> 00:12:37,500 OK, so let's not get confused about what is written here. 200 00:12:38,200 --> 00:12:38,850 Flat. 201 00:12:38,890 --> 00:12:39,460 Good. 202 00:12:39,730 --> 00:12:40,330 Fair. 203 00:12:41,360 --> 00:12:46,160 Mildly bearish, mildly bullish, whatever it is, we don't care anything about that. 204 00:12:46,340 --> 00:12:50,900 OK, the first thing what we need to do is we need to ignore the section. 205 00:12:52,550 --> 00:12:56,390 The technical section, OK, why we need to ignore. 206 00:12:57,550 --> 00:13:03,670 Because we are price action traders, the stakes are as they might be, all those things into consideration 207 00:13:03,670 --> 00:13:09,430 and it gives technical analysis, all those indicators is not useful for us because we are price action 208 00:13:09,430 --> 00:13:09,910 traders. 209 00:13:10,150 --> 00:13:10,500 Correct. 210 00:13:10,600 --> 00:13:13,210 So we will completely ignore technicals. 211 00:13:13,520 --> 00:13:17,770 OK, remaining, we have three sections, one, two and three. 212 00:13:18,160 --> 00:13:19,510 Correct out of this. 213 00:13:19,780 --> 00:13:22,110 Now, let's say quarterly financial trend. 214 00:13:22,150 --> 00:13:23,740 This section is green. 215 00:13:23,740 --> 00:13:29,770 If it is green, then we say, OK, 50 percent confirmed this stock is good. 216 00:13:30,960 --> 00:13:37,950 OK, this has to be green, apart from this, any one from these two, if it is green, then we say 217 00:13:37,980 --> 00:13:39,090 this is a good stock. 218 00:13:39,090 --> 00:13:41,410 Fundamentals is good about this stock. 219 00:13:41,430 --> 00:13:45,330 OK, see, traders are doing fundamentals is not that easy. 220 00:13:45,330 --> 00:13:50,070 But when it comes to market module, the way how they do fundamentals is very good. 221 00:13:50,070 --> 00:13:51,320 It's very reliable. 222 00:13:51,330 --> 00:13:52,710 So you can depend on this. 223 00:13:53,180 --> 00:14:00,150 OK, but if this only is red, orange, yellow, whatever color it is, apart from green, immediately 224 00:14:00,150 --> 00:14:02,510 we will see the stock is not good for swing trading. 225 00:14:02,550 --> 00:14:04,810 It is better not to invest in that kind of stock. 226 00:14:04,830 --> 00:14:06,800 OK, so this is a simple way. 227 00:14:06,810 --> 00:14:09,150 Quickly, you can get all the information that you need. 228 00:14:09,230 --> 00:14:12,410 OK, but market model is expensive, right? 229 00:14:12,420 --> 00:14:13,770 Because it's expensive. 230 00:14:13,920 --> 00:14:16,670 A lot of people might not be interested in this. 231 00:14:16,680 --> 00:14:19,550 That is why we have screen Adut and Linko. 232 00:14:20,500 --> 00:14:27,190 If you click Screener Dotan for access back, you will get the fundamentals of access bank OK, in this, 233 00:14:27,190 --> 00:14:29,450 there are four factors which you need to consider. 234 00:14:29,530 --> 00:14:32,830 So let's discuss about all the factors one by one. 235 00:14:33,100 --> 00:14:38,990 OK, now let me take panish sugar as an example to understand fundamental analysis. 236 00:14:39,010 --> 00:14:43,740 OK, I will try to explain all of these metrics in a very simple tone. 237 00:14:43,760 --> 00:14:49,600 I will tell you at what level you can consider the stock and at what level you cannot consider the stock 238 00:14:49,600 --> 00:14:50,440 for swing trading. 239 00:14:50,500 --> 00:14:57,370 OK, so the first thing we need to look at is speculation to earnings growth ratio or peg ratio as a 240 00:14:57,370 --> 00:14:58,840 stock valuation metrics. 241 00:14:58,840 --> 00:15:02,800 This metric help us to know the growth potential of a company. 242 00:15:03,010 --> 00:15:09,550 This will tell us if the company has good growth potential or is the company already reached the growth 243 00:15:09,560 --> 00:15:10,020 level? 244 00:15:10,030 --> 00:15:16,480 We can also know if the company proprietor's has interest in growing the company any further or not. 245 00:15:16,640 --> 00:15:23,530 OK, now if the peg ratio is between plus zero to plus one, we will see that this company has potential 246 00:15:23,530 --> 00:15:23,960 to grow. 247 00:15:24,520 --> 00:15:31,810 OK, like zero point to zero point seven zero point five zero zero point nine nine anything for that 248 00:15:31,810 --> 00:15:37,890 matter, if it is between plus zero to plus one, we can consider that stock. 249 00:15:38,020 --> 00:15:44,860 If the stock peg ratio is lesser than plus zero, like minus zero point one minus zero point five seven, 250 00:15:45,040 --> 00:15:52,870 whatever ratio below zero, we will see that this stock has no potential to grow as per the PANKRATION 251 00:15:52,870 --> 00:15:53,590 metrics. 252 00:15:53,590 --> 00:15:59,860 And if the stock peg ratio is more than plus one, then we will see the stock has already grown enough. 253 00:15:59,860 --> 00:16:06,040 There are chances that this stock will not grow any further, or even if it grows, the growth percentage 254 00:16:06,040 --> 00:16:06,940 will be very low. 255 00:16:07,240 --> 00:16:10,960 Now, if you see the stock, the peg ratio is zero point one one. 256 00:16:10,990 --> 00:16:17,670 So we can see the stock has potential to grow so we can consider the stock only as the first metrics. 257 00:16:18,020 --> 00:16:24,010 OK, and just in case, if the payout ratio is not visible for you here, you have an option called 258 00:16:24,010 --> 00:16:26,110 a ratio to table right here. 259 00:16:26,110 --> 00:16:30,010 If you enter BTG, you get a peg ratio. 260 00:16:31,710 --> 00:16:37,170 OK, and I think what I'm seeing in this video, if it's not visible here, if you enter that here, 261 00:16:37,470 --> 00:16:38,250 you will find it. 262 00:16:38,340 --> 00:16:43,450 OK, so the second matrix which we look into is pledged percentage pledge. 263 00:16:43,620 --> 00:16:46,770 What do they call it in Hindi Greevey Rachna, they say. 264 00:16:46,770 --> 00:16:47,060 Right. 265 00:16:47,100 --> 00:16:48,040 That's called pledging. 266 00:16:48,060 --> 00:16:50,460 Now we know all the company has proprietor's. 267 00:16:50,880 --> 00:16:57,840 Correct when the proprietor's pledged their share of the company and take loan from the bank and return 268 00:16:57,840 --> 00:17:00,120 and use this money for something else. 269 00:17:00,130 --> 00:17:01,290 We call it pledging. 270 00:17:01,470 --> 00:17:04,630 But why will the proprietor pledger shares any idea? 271 00:17:04,980 --> 00:17:07,310 It's not because the company needs more money. 272 00:17:07,320 --> 00:17:13,710 If that was the case, they will issue right and introduce fresh stocks to the public or existing shareholders. 273 00:17:13,720 --> 00:17:15,960 From that, they can easily make money, right? 274 00:17:16,020 --> 00:17:17,180 Issuing new shares. 275 00:17:17,190 --> 00:17:18,000 They'll make money. 276 00:17:18,000 --> 00:17:18,390 Correct. 277 00:17:18,510 --> 00:17:23,330 Or if they do not want to issue fresher's, then they can take loan from the bank. 278 00:17:23,760 --> 00:17:31,320 But without doing this, if the proprietor is pledging your shares and taking money and investing somewhere 279 00:17:31,320 --> 00:17:35,310 else means he's losing confidence on the company's growth. 280 00:17:36,150 --> 00:17:39,600 Trader's proprietor is a board member of a company. 281 00:17:40,020 --> 00:17:40,460 Correct. 282 00:17:40,470 --> 00:17:43,770 He will be a part of all the internal discussions. 283 00:17:44,550 --> 00:17:51,330 Then, of course, he will know all the information's first correct during the board meeting, any time 284 00:17:51,510 --> 00:17:54,910 he will get to know all the information before the public knows. 285 00:17:54,930 --> 00:18:01,020 So if the proprietor pledges a share, then it is a caution that there is something fishy in the company. 286 00:18:01,530 --> 00:18:03,210 We should avoid that stock. 287 00:18:04,160 --> 00:18:11,210 If the pledge percentage is less than 10 percent, then it is fine because some proprietor's pledge 288 00:18:11,210 --> 00:18:17,410 this year and with the money they get, they will use it to run new businesses or parallel companies. 289 00:18:17,420 --> 00:18:17,910 Correct. 290 00:18:17,930 --> 00:18:22,320 But if the pledge percentage is more than 10 percent, we will avoid. 291 00:18:22,340 --> 00:18:24,560 OK, this is a second validation. 292 00:18:25,340 --> 00:18:27,320 Now, let us see the third validation. 293 00:18:27,620 --> 00:18:30,220 We need to check cash flow, OK? 294 00:18:30,470 --> 00:18:34,340 For any company to grow, it needs regular cash flow, correct? 295 00:18:34,430 --> 00:18:39,270 Only when there is a continuous cash flow, the business will run smoothly. 296 00:18:39,440 --> 00:18:46,490 A company will always have expenses like salary, rent, maintenance and lot of other expenses to run 297 00:18:47,030 --> 00:18:48,170 day to day business. 298 00:18:48,410 --> 00:18:48,820 Correct. 299 00:18:48,980 --> 00:18:54,560 And even if they want to do any kind of innovations, anything, for that matter a company, if it wants 300 00:18:54,560 --> 00:18:58,240 to reach to the next level, it needs to be more innovative. 301 00:18:58,250 --> 00:19:01,610 They need to maybe create more branches and all those things. 302 00:19:01,610 --> 00:19:01,970 Right. 303 00:19:02,030 --> 00:19:06,060 So for that, they need cash flow with them without having liquidity. 304 00:19:06,080 --> 00:19:07,170 Can anybody grow? 305 00:19:07,370 --> 00:19:12,880 So it is very important that end of a financial year, a company has enough cash flow. 306 00:19:12,890 --> 00:19:19,460 If a company has enough cash flow, then we can think like, OK, this company is a bit secular. 307 00:19:19,640 --> 00:19:26,410 It has little funds with them so that in case they have more expenses, it will be taken care of with 308 00:19:26,410 --> 00:19:27,650 the cash flow that they have. 309 00:19:27,650 --> 00:19:31,770 They need not lend from someone or take loans, anything as such. 310 00:19:32,420 --> 00:19:39,050 OK, now how do we check cash flow as the company has to have positive cash flow for the latest two 311 00:19:39,060 --> 00:19:39,520 years? 312 00:19:40,100 --> 00:19:41,930 So these are the latest two years. 313 00:19:42,880 --> 00:19:49,330 Twenty, twenty, twenty, nineteen, the year before that, we do not worry, but the latest two years 314 00:19:49,330 --> 00:19:55,760 at least, the company has to have positive cash flow supernational recent year. 315 00:19:56,110 --> 00:19:57,790 They do not have enough cash flow. 316 00:19:57,820 --> 00:19:58,230 Right. 317 00:19:58,240 --> 00:19:59,680 So this can be a problem. 318 00:19:59,720 --> 00:20:06,880 So if a company's cash flow isn't positive for at least the latest two years, then we say this company 319 00:20:06,880 --> 00:20:09,420 has enough cash flow to take care of them. 320 00:20:09,460 --> 00:20:11,440 So there is potential to grow. 321 00:20:11,470 --> 00:20:13,330 So when a company grows, what happens? 322 00:20:13,360 --> 00:20:15,720 Obviously, the value of the company increases. 323 00:20:15,730 --> 00:20:19,510 If company value increases, what happens are stock value increases. 324 00:20:19,510 --> 00:20:22,630 If stock value increases obviously will make more money. 325 00:20:22,660 --> 00:20:23,060 Right. 326 00:20:23,140 --> 00:20:27,150 So it's really important that we see cash flow, not the final validation. 327 00:20:27,150 --> 00:20:35,590 This market cap, OK, market cap means the value of the company that is traded on the stock market. 328 00:20:35,630 --> 00:20:43,120 For example, if you want to check the market cap of a company, you need to multiply the total number 329 00:20:43,120 --> 00:20:49,820 of shares of that company by the present share value in the stock market. 330 00:20:50,050 --> 00:20:58,840 Companies are grouped as per market cap that is small cap, mid-cap large cap and ultra large cap. 331 00:20:59,020 --> 00:21:03,610 But to make things simple to understand, I have made small changes. 332 00:21:04,530 --> 00:21:09,340 OK, now this is how I will group the stocks as one market cap. 333 00:21:09,340 --> 00:21:13,810 Any stock was market cap is from zero to two hundred crores. 334 00:21:13,810 --> 00:21:18,940 They fall under microcap from two hundred to two thousand crore. 335 00:21:18,940 --> 00:21:23,740 The stock fall under SmallCap from 2000 to forty thousand crore. 336 00:21:24,250 --> 00:21:26,020 They fall under mid-cap. 337 00:21:26,990 --> 00:21:32,540 Any stock whose market cap is more than 40000 crore, they fall under Large-Cap. 338 00:21:32,570 --> 00:21:37,220 OK, now if you go and check for Sugar Panish, you go. 339 00:21:37,220 --> 00:21:39,970 Market cap is one focus. 340 00:21:40,010 --> 00:21:43,140 OK, that means it falls under microcar. 341 00:21:43,190 --> 00:21:50,420 OK, when you find a breakout in Perny Sugar, you will not go and enter the trade before you enter 342 00:21:50,420 --> 00:21:51,000 the trade. 343 00:21:51,020 --> 00:21:54,490 You need to see how the index is performing. 344 00:21:54,530 --> 00:22:02,120 OK, so for example, panish you go for Thanda Microcap but there is no separate index for microcaps. 345 00:22:02,120 --> 00:22:05,730 So we will check SmallCap one hundred. 346 00:22:05,780 --> 00:22:16,640 Now this is an index index means it has got one hundred companies which are there in SmallCap and it 347 00:22:16,640 --> 00:22:24,890 tells us the overall performance of the small cap companies, just like how Nifty 50 shows the overall 348 00:22:24,890 --> 00:22:33,950 performance of Nifty 50 stock sameway nifty small cap shows overall performance of the small cap companies. 349 00:22:33,950 --> 00:22:41,570 When you get a breakout and pony sugar, you should also see that the small cap index is also giving 350 00:22:41,570 --> 00:22:42,020 a break. 351 00:22:42,200 --> 00:22:48,950 For example, if I draw a trend line like this, OK, and I'm getting a breakout here in nifty small 352 00:22:48,950 --> 00:22:56,960 cap country at the same time, if I get a breakout in sugar, then there is high chances that for the 353 00:22:56,960 --> 00:23:04,350 stock price to go up, OK, we need to use even the index as a confirmation signal to enter the trade. 354 00:23:04,370 --> 00:23:10,730 So if you get a breakout in Pudney Sugar and you also get a breakout in the small cap index, what do 355 00:23:10,730 --> 00:23:14,030 you think will happen that the high chances for the market to go up? 356 00:23:14,040 --> 00:23:20,390 But if you see a breakout and punished but the small cap indexes and consolidation at that time, there 357 00:23:20,390 --> 00:23:23,940 are high chances that the market can go against you and hit the stock. 358 00:23:23,970 --> 00:23:31,370 Plus, OK, so it's very important that we check the market cap of the company and see under which category 359 00:23:31,370 --> 00:23:38,090 of market cap it falls is a small cap, mid-cap or large cap, and then we need to go and check the 360 00:23:38,090 --> 00:23:40,080 index of that particular stock. 361 00:23:40,100 --> 00:23:45,560 Now, let's say a potential market cap, for example, is two thousand five hundred crores. 362 00:23:45,890 --> 00:23:51,620 OK, if the stock is two thousand five hundred close, it falls under midcap. 363 00:23:51,710 --> 00:23:51,990 Right. 364 00:23:52,040 --> 00:23:56,760 So what we need to do, we need to see Nifty Mid-cap Hundred. 365 00:23:56,990 --> 00:24:05,150 If Nifty Mid-cap Hundred is performing well and giving us a nice breakout, then there are high chances 366 00:24:05,150 --> 00:24:07,820 even for one Nishioka to perform well. 367 00:24:07,820 --> 00:24:10,400 OK, traders, I hope your understanding my point. 368 00:24:10,400 --> 00:24:16,880 If the market cap of a particular company is under SmallCap, then we need to see how small cap index 369 00:24:16,880 --> 00:24:17,540 is performing. 370 00:24:17,540 --> 00:24:22,130 If the stock is a mid-cap, we need to see how mid-cap index is performing. 371 00:24:22,160 --> 00:24:23,680 OK, this is how we check. 372 00:24:23,690 --> 00:24:29,450 It's very important that we checked this before we entered the trade or else that high chances for the 373 00:24:29,450 --> 00:24:30,880 market to go against us. 374 00:24:30,900 --> 00:24:37,010 OK, now traders, if you're trading in nifty 50 stocks and the time frame in which your trading is 375 00:24:37,010 --> 00:24:45,230 less than a daily timeframe, that is if you're trading on 15 minutes, 30 minutes, one hour, 120 376 00:24:45,230 --> 00:24:52,040 minutes or daily timeframe, if you're doing swing trading in nifty 50 stocks and these timeframes, 377 00:24:52,040 --> 00:24:59,810 then there is no need to check the fundamentals because these stocks came into Nifty 50 only because 378 00:24:59,810 --> 00:25:02,930 these stocks, all the thorough research has been done. 379 00:25:02,960 --> 00:25:07,480 Only then the quality stocks has been picked and put in 50 50. 380 00:25:07,490 --> 00:25:10,050 So the market research has already been done here. 381 00:25:10,070 --> 00:25:15,620 So 15 minutes, 30 minutes, one hour, one, 20 minutes and daily time frame, you can do swing trading 382 00:25:15,620 --> 00:25:18,650 with a nifty 50 stocks without doing fundamentals. 383 00:25:18,650 --> 00:25:24,800 But if you're trading on nifty 50 stocks on a weekly timeframe, then fundamentals is needed. 384 00:25:24,800 --> 00:25:25,160 Why? 385 00:25:25,280 --> 00:25:28,370 Because you're keeping the stock with you for a longer duration. 386 00:25:28,760 --> 00:25:32,510 So it's important that you do the fundamental analysis. 387 00:25:32,870 --> 00:25:41,780 OK, now, if you're trading in micro-cap, small cap and mid-cap stocks all the time frame, you need 388 00:25:41,780 --> 00:25:43,320 to do fundamentals, right? 389 00:25:43,430 --> 00:25:44,840 All these are small stocks. 390 00:25:44,840 --> 00:25:49,100 It is important that you do thorough research because we do not trust these stocks. 391 00:25:49,100 --> 00:25:49,450 Right. 392 00:25:49,520 --> 00:25:56,060 So if you're working on micro-cap, small cap and mid-cap stock, do not do swing trading without doing 393 00:25:56,060 --> 00:25:57,020 fundamentals. 394 00:25:57,020 --> 00:26:04,220 OK, and by the way, there's no point in trading on micro-cap, small cap and mid-cap on a lower timeframe 395 00:26:04,220 --> 00:26:06,650 because let's take panish as an example. 396 00:26:06,650 --> 00:26:11,810 Can you see random selling against random selling, random buying a big quicks here? 397 00:26:11,930 --> 00:26:17,930 So when you trade with small stocks on a lower timeframe, the movement of stock cannot be predicted. 398 00:26:18,500 --> 00:26:20,840 OK, so what kind of movements these are? 399 00:26:22,960 --> 00:26:29,190 Right, but if you trade on a weekly timeframe, at least now you're getting a better idea of how the 400 00:26:29,190 --> 00:26:30,720 market is moving, right. 401 00:26:30,750 --> 00:26:36,450 So when you're trading with microcaps SmallCap and midcaps, it's better you trade on a higher timeframe. 402 00:26:36,490 --> 00:26:39,510 OK, now, traders, you know, I am a technical trader. 403 00:26:39,520 --> 00:26:46,110 I feel these four fundamental validations is more than sufficient for me to choose stocks for swing 404 00:26:46,110 --> 00:26:46,590 trading. 405 00:26:46,590 --> 00:26:54,060 The importance I give for this 10 percent, that's 90 percent completely depends on technical analysis. 406 00:26:54,070 --> 00:26:58,710 I rely more on technical analysis in a price action lecture series. 407 00:26:58,710 --> 00:27:03,570 Course, we have explained all the technical strategies which we use to trade. 408 00:27:03,570 --> 00:27:10,190 A lot of fundamental traders check many more fundamental data to choose the right stock for swing trading. 409 00:27:10,200 --> 00:27:14,330 But this is how I do, and it has given me very good results. 410 00:27:14,340 --> 00:27:18,960 I rely more on technical analysis in a price action lecture series. 411 00:27:18,960 --> 00:27:23,900 Course, we have explained all the technical strategies which we use to trade. 412 00:27:23,910 --> 00:27:27,910 I have shared the multi by the Excel sheet link and thus we do. 413 00:27:27,960 --> 00:27:29,980 You can go ahead and download it. 414 00:27:30,000 --> 00:27:32,880 It will be very useful for you traders. 415 00:27:32,880 --> 00:27:34,460 I hope you have enjoyed the session. 416 00:27:34,470 --> 00:27:35,720 That's all for this we do. 417 00:27:35,730 --> 00:27:36,900 I'll see you on the next one. 40348

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