In this video of the InvestShala series, we have with us Mr. Vivek Bajaj, co-founder, StockEdge, Elearnmarkets, as he teaches us the basics of how to make money from the stock market on a long-term basis.
We will have Mr. Bajaj talking about his own experience in the market over the years, and the simple stock trading strategies he follows to make the best decisions for his portfolio management as a trader and an investor.
In his discussions around make money from stock market, firstly, Mr. Bajaj will talk about the various skills we need to sharpen to ensure long-term success in the market, like technical knowledge and temperament. He will talk about the circles of competence, influence, control and concern as environmental factors which can affect our investing and trading decisions.
He will give practical examples of who exactly forms a part of these circles in our environment, and the economy. After this, Mr. Bajaj will mention his stock trading strategy – the 10,10,10 rule.
After discussing the basics of the rule and how he uses it on his own, Mr. Bajaj shares some case studies which include some real-life examples from his own trading and investing decisions.
Our first case is Reliance Industries Ltd., and how Mr. Bajaj discovered potential in the stock from a stock investing point-of-view, over three years ago, with the help of the relative strength indicator (RSI).
Next, he will talk about Bharti Airtel Ltd. and its rising prices and delivery-based action. We will also discuss a case study on BSE Ltd, as an emerging stock exchange, especially for the cash segment of the market. Mr. Bajaj talks about the implications of dividend yield on our investing decisions, and his own views on the price behaviour of the stock.
In another case study from Mr. Bajaj’s own circle of competence, we move to talk about ICICI Securities Ltd., an integrated service provider in the brokerage firm sector. He will discuss the thought process behind how he identified this stock, and what he did after he identified this stock and how he actually started trading in the market.
The next case study refers to HDFC Life Insurance Company Ltd. in the insurance sector, and the logical reasoning behind why he chose to invest in the company.
Next, Mr. Bajaj will show the effects of a negative impulse on a stock trading decision, by showing us a case study on Cera Sanitaryware Ltd. We will also discuss case studies on Bajaj Finance Ltd., 5PaisaCompany Ltd., a discount brokerage firm and Godrej Consumer Products Ltd., an FMCG company that has innovated extensively over the years.
Lastly, Mr. Bajaj will put down his entire stock picking strategy in five simple but strategic steps that we can do investing in the stock market with ease.