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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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...
this tweet might hurt some of my friends but if u want to bring change - better start putting more effort to educate(paid or unpaid ur choice)
Bring a Rating mechanism /feedback mechanism rather than day night trolling.
Focus on building product If you are visionary.
However I always say-- If you really want to show that u trade or have make money out of trading to put faith in people that yes trading me paise bante hai--
Login your account in front of people - show them everything...
be it loss or be it profit
PNL shd be a base to put faith
The purpose of Mtm Should not be to flex - I am Bigger than you but to put faith in non believer that yes money can be made through trading, at same time u should be able to explain proper logics and you should be on other interested in learning logic rather than praising for mtm
Last week CFA and CMT results came out.
Two of my focussed group member cleared third level.
Youngsters if u want to uplift your career - keep adding these degree and remain focussed.
This is the gateway to real world.
Also harsh cleared level 1 and best of luck to him for next 2 levels.
Some of student are appearing for upcoming level 1 exam and level 2 - CFA , best of luck to them too.
If u feel u need any help before your exam you can connect with me.