What will be impact on earnings of mid cap and small cap companies after sebi order?
Okay so few people will start judging without understanding why i asked? So i will ask webinar members to tell what i explained to them few min back on this sebi move..
Price in stock market moves basically due to two things
A) liquidity push
B) earning push
To make it more easy i will use this formulae which most of you are aware of -
Price of asset= pe*earnings.
So price can increase by either increase in pe or earnings.
Pe is nothing but
All other things except earnings like sentiment(news), liquidity push.
Now earnings- companies net profit we call earnings.
Now before going further i will quote this line -
"In the short run, the market is a voting machine but in the long run, it is a weighing machine"
By Benjamin Graham.
Also i will put a video
Which means in short run price of asset can go anywhere based on news liquidity push or rumours but in long run it will only and only evaluated based on their earnings, if earnings r good no matter what bad news
Comes price will come up eventually in long run, if news is very good and there is no earning, upmove remains short lived - we have many examples like Adag group (price surged many times 100-300%) jet airways (150+% in one day) most imp if u remember in 2017 oct government
Announced psu recapitalization and price of all stocks surged but what happened after few days later can be checked on charts.
So my point is as an investor u need not to get over excited with such news, focus on earnings and pick ur companies irrespective of which mutual fund
Is dumping what or buying what.
However if u r trader - only one thing, why u need news if u have charts with u.
when u r confused about what to buy what not to always go with index.
u dont need to search thousands of stock and keep asking everyone what to buy what not to.
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#nifty topped out on 27th sept
on 30th sept gapped down
so first significant bear entry came there- #monday gap
but lets see few stocks where gap happened in either Aug or in 1st week of sept which were easy to catch as a short trade.
#Sail corrected 20% from 30th sept
this stock didn't had any gap down but it was most easiest breakdown patterns we can
1) Never mess with trend 2) Never anticipate reversal unless u get a signals on higher time frame
and most important - In strong trend - never see RSI or divergence especially on upside - u will be butchered.
😎
thats how i used extension to derive bnf target...
either it has to be imp level or it has to be candlestick signal
lets say if i m in trade - i will find out imp resistance zone
and will keep riding trend by using any indicator or swing
like this was support for me as I was in Long trade.
chalo u missed early move and wanted to catch momentum -- check chart 2
above 61.8% momentum
now people say -- day trading kaise karein?
go check the retracement both day
Both day were easy to hit long
u needed to understand trend and where to exit.
both day have suggested long in #innercircle same. #bnf
let me post some 100 #fibbonaci number wonders on long term chart.
Post your chart too with #fibbonaci, make sure chart is clean.
this is number 1 in list #ibrealestate
in 2021 it was one of the hot stock - Infact I was also excited took entry at top despite I was seeing Golden ratio rejection.
what happened next is history.
the very same stock took eyeball again few months back -- people went gaga
even we went long -- but exited sharp at 61.8%
Most of young boys who came to me for Job are-
1)Not even Graduate 2) Think for stock market related Job - degree doesn't matter* 3) No communication skill 4) No Financial Backing 5) Highly motivated from social media. 6) Know how to plot Trendline on name of skill.
We are seriously rotting down our youth - One through excessive use of CC another by Encouraging a lot to Take Trading as profession( its not bad though but not easy though)
Majority of youth build their initial capital either by taking loan from family or from friends or bank
and start trading, majority of them are in Debt as they are highly motivated to Build cap big and hence take Insane leverage and fuck up...