Analyzeequity.com is an effort to help you, interpret markets. People base their decisions on two basic analysis, Fundamental and Technical. Both of which are extremely important for trading and investment decisions in the markets.

 

Fundamental analysis is the basis of any investment to be made, quality of management, cash profits,  return on equity (roe), return on capital employed (roce), earnings per share (eps) etc. Reports by research analysts are based on these fundamental parameters, by which they arrive at a target price/fair price of a stock. As they say, the only thing constant in this world is change and so according to us at analyzeequity.com the most dynamic parameter is what price earning ratio to assign the stock, i.e.  pe ratio is the constant change taking place in markets and the valuations of stocks largely depends on this parameter. Analyzeequity.com endeavors to help you interpret all of this. At analyzeequity.com, it is an attempt to use our experience to interpret the fundamental research with the data available to us for you.

 

If fundamentals are the backbones of any market then price movements are the souls of the markets. 

Technical analysis is the interpretations of prices. There are moving averages, stochastic oscillaters and other technical indicators but for us at analyzeequity.com the trading screen is our soul mate. Markets talk, prices speak, and indicate something everyday and which we respect and not challenge, because ultimately prices reflect everything.

We do not follow any written technical parameters but base our decissions on intutive price study.

 

We at analyzeequity.com make a distinct difference between making money & creating wealth from equity markets which in our opinion is a very difficult task requiring quite a few attributes to be possessed like a strong temprament,sound investor psyche & devotion of time on a regular basis.Making money from equity on the other hand is a far simpler & more scientific approach to be followed where the main attribute to be possessed is discipline.

We at analyzeequity.com base our investment decisions by interpreting the fundamentals of a company together with intutive price study & forecasting stock prices based on rerating of stocks due to expansions in price earning multiples due to a variety of set parameters & pre defined exit points thus reducing the risk quotient.

 

To conclude we at analyzeequity.com beleive that the strategy for investment in equities is to make a distinction between creating wealth & making money from equities.A basket of diversified large cap mutual funds are an ideal vehicle for creating wealth whilst a portion of investible funds should be allocated to invest in stocks recommended in our stock ideas section for making money in equities thus enhancing overall portfolio returns. 

These 10 commandements are aimed at making money by trading in stock markets on a regular basis and not extraordinary money or wealth. These rules are collection of my thoughts. These reflect the stock markets through my eyes. These are not directed at anyone as much as it is to provide another way of looking at stock markets.

 

   1.  Treat stock market trading as a business activity and not as a casual way of parking your funds.

 

2. Stock market trading is a game of probability, there is no sure shot formulae so allocate only a small part of your investible funds for this activity which you would not require.

 

3. Never try to invest at bottoms or to maximize returns by endlessly holding rising stocks in bull markets. Remember you are here to make money not hold stocks and get illusionary happiness.

 

4. Trade without emotions you are here to make money and not to be emotionally attached to stocks, maximise returns, inflate egos or become multi-millionares, remember there is only one Warren Buffet. Don’t emulate him.

 

5. Initiate a token trade if favourable increase quantities gradually(which indicates you are on the right track). Because you need only a few trades of progressive movements to make you lots of money and to make provisions for your plenty small stop loses trades. Trading is an activity that requires confidence.

 

6. Keep strict stop losses, small stop losses one can always re-enter stocks. It pays to have a few profitable progressive trades even if you have to sacrifice with it lots of small stop loss trades. The objective is to make money on those progressive movement trades.

 

7. Loses should hurt you, even small losses, value money. Do not be casual even about small losses. This would really help you avoiding disasters. Treat loses from earned profit also as loses. If wrong or the story has not panned as you thought simply sell the stock.

 

8. Money made from the stock markets should be taken out of the markets. Keep your core capital intact and take out excess money made out of the markets at regular intervals, even if core capital depletes do not put in more capital become cautious and limit your trades till you recapitalize.

 

9. Hear all tips, recommendation, views, read all research reports stock market related websites(including analyzeequity.com), but always with suspicion and trade without inhibhitions and flexibilty and open mind because it is neither the bear nor the bull who makes money consistently it is the chamelion(who changes colour) regularly makes money.

 

 10.  Discipline, discipline, discipline follow the above commandements with discipline.  

 

Analyzeequity.com is founded by Mr.Sumeer Kumar. Sumeer kumar is the managing director of S.N.Shares & Stockbrokers Pvt Ltd, channel partner of Sunidhi Securities & Finance Ltd undertaking stock broking business.

Sumeer kumar invests and trades in stock markets for a living and is associated with stock markets since 1992.

The team at analyzeequity.com also includes Mr. Nishant Thakkar who is a practicing attorney specialising in direct tax laws.