Best strategy for investment

Investing Strategies
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Hello everyone,
Appreciate all for there insightful knowledge sharing over here. Just started this thread to understand complete strategy for selecting any stock for long term.
As there are numerous ways to select and judge any stock ,its really confusing to know which way to select any stock .
There are many strategy like fundamental, technical, momentum, techno funda, etc but please show one which clearly define 1) what to buy, 2) when to buy,3) how much to buy, 4 ) when to sell…
Many of you would be saying that its upto individual to select its own way, but it would be of great help if you people can guide for me select which process to follow, so can focus and get deep into it.

Thanks
Jitesh

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For a company to be in business for years in the future, either it has to be in a sunrise industry, it is new, growing fast and will be important in the future like renewable energy, processed foods etc, or even if the business is decades old, the industry will grow for many more years like grocery, apparel, automobiles etc, we will eat, wear clothes, drive vehicles at least for a few couple more decades. So first think of what kind of business will exist in the future too, if you want to invest for long term.

Technical analysis assists in choosing a stock, it alone does not help when choosing stocks for long term. It tells you about the movement of the price, there by the mood of the market for that particular stock. If you want to invest for long term, then you have understand the business well and then take the help of TA, look at the price movement, price history, volume, crossovers etc and then make your entry.

Momentum investing is not for long term, it is to ride the momentum in a stock and exit when the momentum stops. It does not concern with the business.

Technofunda is also not meant for long term, the technical part gives you the information about the consolidations, breakouts, all time highs etc, and then you study about the company, this is the fundamental part.

If you want to invest for the long term, you have to understand the business.

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Thanks chaitanya for your nice input, but i needed specified solution… some defined strategy,or set up or something like that which clearly show where i have to focus on… understanding business would be very vast subject and differ with each individual.
Thanks

4

I presume you must be young, hence your question.

In stock market, one size does not fit all. Even intelligent members of this forum have changed their views and styles along with time. You should have your own thought process regarding investing, temperament is a part of it. And then know about different styles of investing, if possible try all of them, stick to one that appeals to you, or create your own, refine your process, become better. There are number of portfolio threads in the forum, go through them, perhaps you can relate to some style. Long term investing is a test match, not T20. There is T20, it is trading, but it is harder than investing.

If you are serious, I can tell you, you are in the right forum.

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Hi Jitesh,

Before I reply your answer, I just want to introduce myself to you. I am a young 60-year-old & recently retired. Till end of May 2021, I am not knowing abc of investment & share market. My son who is a follower of this forum, Suggested me to read the value pickers forum threads. Since Last 15 days I went through around 100 topic and 2.9 K post. Also, within month I studied lots about fundamental & technical analysis with around 40 % retain in memory.

This is my second post and first one about Algorithmic Trading / Quantitative Trading few days back.

Within one month I have invested in few stocks namely INFY, HCL Tech, Tata Elxsi, Laurusl Lab, Newgen, Navinfluor, CADILAHC, HAPPSTMANDS, PII, SANGHIND, GODREJCP, TRENT and APOLLO hospital enterprise. I know few of my stock not good which I have not study the fundamental and business of company, others are good which I know about company by heart.

Answer on the base of what I have learned within one month -

How to select the stock what to buy –

Depends upon individual what he wants to have in portfolio depends upon his risk-taking capability, age, liabilities, earning, retirement plan…… your Goals …. How much profit
How much fund individual having …?
you are accepting from stock & in how many years
Large Cap, mid cap & small cap … Blue chip stocks ….
Sector / industry wise
Finally, once you have selected the company, do well research about company before investment, same like you are buying an own property and do all research

How much to buy –

Do risk assessment … how much individual are ready to lose and sleep sound after losing the amount.
Example individual are comfortable with Rs 500 loss per stock. Now lets he buy the stock @ Rs 1000 and prepared to loss for Rs 50 per share, 500 divides by 50 equals to 10. So, individual can buy 10 qty.

When to sell –

Depends upon which type of investor? intraday, swing trader, positional trader, short term and long-term type.

I found investor from this value picker forum do not invest by thinking when to sell.

You can find very good thread in this forum which will answer your all queries. example of thread VP Chintan Baithak Goa 2017 – selling decision, stock selection model – investing strategies……

Lasty read the books recommended by Admin Donald’s sir, VP and others. Example Five rules for successful investing by Pat Dorsey, Intelligent Investor by Ben Graham, One up on wall street by Peter Lynch, Common stocks uncommon profiles by Phil Fiacher, The Future for Investors by Jeremy Siegal, Value Investing and Behavioural Finance by Parag Pariksh and Dhando investor by Mohnish Pabrai …… and will find all the answers.

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Sir, did you allocate capital in one go or are you planning to deploy capital step by step and increase allocation as your conviction builds?

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Hi Chaitanya,

As I am new to Lerner & this value picker forum helped me a lot to learn from all members especially Hitesh Patel VP, Basu Mallick, Tar, Sahil sir …

As of now my favourite sector is Information Tech ( 50 %), chemical ( 27 % ) , Pharma ( 7 %) & finance ( 5 % ) and others ( 10 % ). By nature I can take calculated risk , so as of now in my portfolio Large Cap ( 30 % ), Mid cap ( 60 %) and small cap is (10 % ).

As fund is not a problem for me but going slowly slowly with qty as trying to learning all fundamental ratio, valuation of stock, balance sheet etc and technically volume vs price, DMI, RSI, MACD, Support & resistance, Fibonacci retracement, Ichimoku Cloud , open = low and current price > previous high , break out with volume … within one month with 50 % retain in memory what I have learned.

Before buying the stock do all the homework 2 to 3 days before and wait for the opportunity to buy the stock. For the last 10 days I have been waiting to buy HDFC bank or ICICI bank stock but stock is falling down on a regular basis.

All critics are most welcome so my losses can be minimized,