Hi @edwardlobo
Yes, please further learn technical analysis and take baby steps while implementing in real world markets. Stay away from futures & options unless you have achieved razor sharp skills both charts wise and emotionally.
The below books helped me in technical analysis and behaviour and emotional aspects:
Remember: Books help only so far, after that more books do not make much difference, it’s all in looking at hundreds of charts and correlating the charts to “fundamentals & price action” to news/ rumours/ results. Do not bury into so many indicators, most of them are lag indicators. The below are the most important for any chartist:
- Price action
- Volume
- Visual patters
Technical analysis books:
- Technical analysis explained by Martin J Pring
- The Visual Investor by John J Murphy
- Japanese candle stick charting techniques by Steve Nison
- Market Wizards series of books by Jack D. Schwager
- Trade like a Stock Market Wizard by Mark Minervini
(First 3 books are theoretical in nature while 4 & 5 are practical in nature and easy reads). I like Mark’s approach to markets. Follow him on twitter, if you please.
Behavioural aspects books - most important:
- How to trade in stocks by Jesse Livermore
- Reminiscences of a stock operator by Jesse Livermore
- How I made $2000000 in stock market by Nicholas Darvas
Once you start reading, you will find so many books actually.
Happy reading!
I would not venture into justifying valuations. Stock market is like a buffet where one can choose per their liking - high growth high valuation, low growth reasonable valuation, dividend protection etc. All depends on what returns one wants to achieve and what risk one wants to take for those return expectations correspondingly.
I actually use EV/sales for such high growth, starting stage companies. Also, please compare our companies with companies with similar growth characteristics available in global markets. Do not compare a 45% revenue grower to a 15% profitable and stable company. You say, “OMG, 1 lakh market cap? - so expensive”, while I say “Only 1 lakh?”. May be because of our different observations, time frames etc? Again, this is not a recommendation for anyone to buy, these are just my thoughts based on my experience and as you have seen from my posts, I have got it so wrong in so many stocks, so many times!