Investing Basics - Feel free to ask the most basic questions

Yeah but In general if we use common sense and a little probability based on previous data that what will be my chances of succeeding also taking into fact the resources we have. As a retail investors traders are just losing money. Yes there are many ways money can be made but not everyone can make that money in same way!
I am saying this because even if the retail investor (trader) got and big opportunity he won’t make wealth because it’s not like he is having crores in his trading account and 1 great trade will make him rich.
And to say this that “I’ll make many small trade and increase my capital then 1 big trade will make me rich” is a stupid proposition.

Just like with investing, trading also takes a lot of time to learn many different aspects, money management, risk management, trailing profits etc. It is a different world. And also, to some extent, investing and trading are connected, the knowledge of one will help doing the other. And, I am talking about cash segment here, stocks, not derivatives. Derivatives is a different segment, completely different ballgame, a big one, and it is complex.

You might be inclined towards Buffett and Munger, your brother might be inclined towards Minervini, nothing wrong with that, per se. To each his own. Whatever we choose there is so much to learn and practice.

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There is enough research by entities such as Zerodha, SEBI etc. which shows that most of the day traders lose money. Just google for their reports. Theoretically, the justification for the argument (against day trading) lies in the fact that shorter the time horizon of your investment, higher is the random element in share price movement. Also, unlike long term investing, F & O is in theory a zero-sum game, and for every winner there will be a loser. So inherently, the odds are stacked against you, the hurdle is higher and you need to cross it every day. This is not the case in long term investing.

Finally, no harm in letting him try it out with small amounts. He will know for himself. If he is in the small minority who consistently and successfully make money, no harm in letting him continue. The skill sets for day trading are temperament, risk management etc. which are different from long term investing. He should do what suits him.

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Are there any companies that do quarterly earnings calls in Video format? Listening to audio or reading transcripts is good enough but video would be even better. Facial expressions, body language of management etc. would add an “entertainment” element to it all.

Also with Billions, Ozark, etc all wound up I’ve run out of business related shows to watch on netflix and other otts. Video concalls would be a way to watch some real billionaires and money managers for an hour or so.

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Just curious to know…Your screen name is Nifty investor…Does it mean you invest in nifty index or stocks of nifty universe?

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So a general question,
what can be infered for stocks (if the stocks are not cyclical and are also not comodities)
these stocks are like a lethargic or even move southward in a optimistic market condition when market has rallied close to 1.75% ?

Could someone please tell which is one of best mobile app for tracking stock market?

I presently use the moneycontrol app. I used to use Webull, which I really liked, but I believe it no longer supports the Indian market.

I primarily want to use it for watchlist / price and volume spikes.

how to check if company is investing its profits back into the business

Do unlisted shares without ipo confirmation trade cheaply in the grey market?

Recently saw NSE is trading at 24 pe. So wanted to know if that is the expectation or could it be because of the colocation scam?

I am using Zerodha for investing. I want to know how can we see PE of Individual stocks and entire portfolio? One way could be manually exporting the portfolio stocks and checking PE. but is there any better way to see PE at real time of portfolio stocks?

You can go to individual stocks and click on fundamentals, there you can see PE, market capital etc.

I was looking for quick way of seeing PE if there is any option in Zerodha or any other tool which can show PE of all portfolio stocks. e.g. in an additional column so that I can see and compare PE of portfolio stocks

You can create your watchlist on screener of your portfolio stocks. There you can see all your stocks PE at one place as a column.

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hi,

How to generate and use a regression equation for investing.

Please elaborate or share some link.

Regards

I ran this by ChatGPT (GPT-4) and it gave an interesting insight into your query! Please find below:

The announcement about Sigma Solve Limited (SSL) increasing its stake in Sigma Solve Inc. to 100% through a buyback of securities, without any cash outflow from SSL, can be explained through a financial maneuver often used in corporate restructuring. Here’s how it works:

  1. Buyback of Securities by Sigma Solve Inc.: Sigma Solve Inc. initiated a buyback of its own securities. This means the company repurchased its shares from shareholders other than SSL.
  2. SSL’s Non-participation in the Buyback: SSL, which held a 59.81% stake in Sigma Solve Inc., chose not to participate in the buyback. This decision meant that SSL did not sell any of its shares back to Sigma Solve Inc.
  3. Reduction in Total Outstanding Shares: As Sigma Solve Inc. bought back shares from other shareholders, the total number of outstanding shares in the company reduced. Since buybacks typically involve the company repurchasing its shares and then retiring them, the overall share count decreases.
  4. Proportional Increase in SSL’s Ownership: Although SSL did not actively purchase additional shares, its proportion of ownership in Sigma Solve Inc. increased automatically due to the reduction in the total number of shares. When other shareholders sold their shares back and those shares were retired, SSL’s 59.81% stake became a larger portion of the now-reduced total share count.
  5. 100% Ownership Achieved: The buyback was substantial enough that all shares not owned by SSL were repurchased by Sigma Solve Inc. As a result, the only remaining shares were those owned by SSL, effectively making Sigma Solve Inc. a wholly-owned subsidiary of SSL.
  6. No Cash Outflow from SSL: SSL did not spend any money to increase its stake; the change in ownership percentage was a result of the buyback mechanics and the consequent reduction in total share count. SSL’s stake increased purely because the number of shares it owned became 100% of the company after the buyback.

In summary, SSL’s ownership of Sigma Solve Inc. increased to 100% without SSL spending any money because its existing shares became the entirety of the company’s shares after the buyback and retirement of the other shares. This is a strategic way to consolidate ownership without direct financial expenditure by the parent company.

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Any website to get historical data trends for example if i want history of current ratio,ROCE,ROE etc trend of company?

please share

What’s the imporatnce of technical analysis of a stock?.
I am a newbie and have some knowledge on fundamental analysis but have no knowledge on technicala alaysis. If you had to give weightage fundamental analysis and technical. what scores you give?. What indicators should I look in technical analysis while buying or selling stock?. In what aspect technical alaysis helps me in terms of stock picking?

TA in its broader sense concerns with price, and not fundamentals. It can help with entries, profit booking, even exits. It can even help staying put. Basic form of TA can be charts.

While FA tells about the fundamentals of a security, TA of the same tells what the market participants are thinking in a particular time period, and how strong is that involvement, price along with volume. And using this information, we can try to gauge the next possible price movements. As with FA, TA too can go wrong.

Many use MACD and RSI indicators.

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How to find proxy business using any tool like screener,Tijori ,Trendlyne etc. ?

proxy business are to be identified by studying the entire value chain of any Industry. The good source for studying value chain is freely available in IPO documents go to SEBI website under DRHP and RHP page, QIP and Rights documents available in BSE and NSE websites (Thanks to @Worldlywiseinvestors for introducing me about these documents).
The real issue is the patience to read the documents and further reading the peer companies mentioned in the value chain.
Happy Reading… :smiley:

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