In Ask me Anything Kalpesh asked few of interesting questions and one of them was
How do you find a good stock for value investing? I mean what factors attract you to analyse the stock and invest in it for a long term perspective.
I don’t find stock myself but it is my brokers who suggest me stocks. Once I get the stock it goes into my list of interesting stocks.
Once I have the list of interesting stocks I do some basic fundamentals of the company like market cap, type of business and sector, quarterly earnings, management background …. If I see things are in favour of the stock, the stock moves from interesting list of stock to good list of stocks.
Now on the list of good stocks I apply technical’s to find the support and resistance for the stock and see where I should be getting into the stock and what should be my stop loss. In my eBook on Technical Analysis I have explained how to select the right stock at the right TIME and at the right PRICE.
For investment I prefer to get into stock which has good fundamentals but very good technical’s because according to me market movement is based more on sentiments and technicals depicts the sentiments more than fundamentals. So I prefer technical’s slightly more over fundamentals.
Have more questions? Ask them in the comments below. I will be more than happy to answer them all.