Swing Trading Strategy Masterclass | Ft‪‬ Himanshu Sharma ji | ‬MastersInOne - EP 57

[Music] That was my big mistake that I used to average down a lot earlier. Portfolio was wiped out 70% once. In all these years, according to your experience, what are the things you follow now and what is your method now? There are 4 pillars of strategy. Stock selection, entry, exit and position sizing. When I studied all the past winners, in long term, price is a slave of earning power. Game is of probability. The stocks that have already doubled are likely to double. I observed that market change is rewarded. If I focus on price, volume and earnings. Then my probability of winning will increase a lot. Are you a swing trader, positional trader or an investor? Sir, what was your best year and what was the percentage of returns? Best year was... Hello friends, I am Vijay Thakkar and I welcome you all to our new podcast. Our guest in today's podcast is Himanshu Sharma. If I ask you all a question that as a trader, what is your biggest problem? You will say only one answer and that will be stock selection. In today's video, Himanshu has told us 3 different methods on which you can select strong stocks. Whether you are a positional trader or a swing trader, today's video is very important for both. Himanshu Sir has told us his complete strategy on how he selects a stock. How he plans his trade and how he plans his entry and exit. The biggest question is whether Himanshu is a swing trader or a positional trader. You will understand that today in this video. I had a lot of fun. I will not waste your time. Let's go to our podcast. Before that, I will request you to like our podcast if you like it. If you think that you are getting something valuable in this podcast, then share it with your friends and family. And if you have not subscribed to our channel, then do subscribe. Let's go to Himanshu ji and learn his method. Welcome Himanshu ji. I felt very good that you have come here. Thank you very much for giving me this opportunity. I will try my best that what I have learned in so many years should help in not wasting others time. They should quickly understand the concept. Thank you very much for giving me this opportunity. Thank you Himanshu bhai. That's your generosity that you're saying this. But I see you on social media. You have very good views. Your understanding towards price action. I feel that there are very few people who see anything in that way. I will definitely ask you about your method. But tell me that, I don't know you. What is your background? How did you start in the market? Tell me something about it. I completed B.Tech in 2013 from Delhi College of Engineering. My father was in Government service. So from the beginning there was an environment in the family that I have to go for a Government job. From there I joined Government service. I was doing a job in Ministry of Urban Development. But for the first time when you get a job, we had to invest 1.5 lakhs in Section 80C to save tax. So my friend told me about mutual fund. There was another friend who told me about ULIP. I did that too. For the balance they told me about mutual fund. So for the first time I started reading about ELSS and mutual fund in 2015-16. After that I started reading about mutual fund daily as its NAV used to go up and down. So I got fascinated by it. I started getting interest in seeing money going up and down. So I started tracking it. Then I saw what are stocks and shares. What are these people doing and what are they buying. So from the beginning I was very interested in reading. I read for a long time. Then after coming in this field I felt that here you get money to study. So this motivation came that knowledge will increase and investment will also happen. So I kept on reading. I started with fundamental analysis. From 2016 to 2018-19 I was running on pure FA(Fundamental Analysis). So I had a lot of losses too. Then I met someone who was in department of financial services, he saw me working hard and he told me about his known one in indonesia. In indonesia there used to be commodity trading, so in 2019 I resigned from my job and went abroad for crude palm oil and nickel trading, my guru was there with whom I learnt. There were 3 people, in starting when you are a beginner, you have to do all types of work, so I did the same, there were 2 people Sindhi and 1 from Karachi belt, so they started teaching me, I used to study for a long time. So in their guidance, I merged FA(Fundamental Analysis) and TA(Technical Analysis) and started my process, because I had a loss in fundamental analysis in 2018-19, it was my mistakes, so later when I understood TA(Technical Analysis), I am sitting here today, so it is a combination of techno funda in my process, which I follow personally, so this was my journey. Sir, after listening a lot, I feel that a person who was properly settled in his job and that too a government job, he left his job and started this thing, so sir what you said about Indonesia, was that peron a trader? Sir, it has been a long time since he was in the market, now he has expired he was very aged he was an investor for a long time, he used to not look at charts, you can say that he had experience of so many years that he knew which company to take and hold on, but my inclination in starting was towards short term trading. To be honest, when I was introduced in commodity and forex segment, there were no long term concepts which I had not heard. So USD-JPY or US currency pair trading or crude palm oil-nickel trading, so they were looking at short term time frame charts. As I was new in TA(Technical Analysis), so all the concepts like moving average, etc or whatever we use like indicator, Commodity Channel Index (CCI), stochastic etc, I was applying that on short time frame. So he was an investor and he was teaching from investing perspective, but we have that thing that we want to do everything in starting and check. So it took some time for me to grasp this concept. I understood the crux in 1-1.5 years with him, otherwise if I would have done it myself, it would have taken 5-6 years. That is there sir, if you have a mentor in your life, then you get an idea quickly. So sir, how much experience you have got in the market, since how many years you are working? Sir, if you will remove my beginner phase from 2016 to 2020, then you can say that it has been 5-6 years, but that was a phase in which there were a lot of mistakes. So once portfolio was wiped out 70%, so I understood what not to do. So if I count that phase too, it has been almost 9 years in the market. Definitely, it should be counted sir. Because I feel that you must have understood from that failure that you have to do something else. So in all these years, according to your experience, what are the things you are following now and what is your method now? Sir, I have read all the newsletters of Dan Zanger and he started writing from 1996-1997 it is almost 70-80 thousand pages. I have followed Nicholas Darvas. So in everyone's methodology and what I have learnt, one thing I found common is that there are 2500 stocks in the market. So instead of daily scanning and scanning 150-200 names, it is better to see those stocks where earning is good. When I studied all the past winners, I found that maximum majority of the winners were those who had good earnings. It had earning surprise, earnings accelerated and fund houses came to buy those stocks and those stocks became multi-bagger. So there were some winners who did not have earnings but their ratio was less and this is a game of probability. So if I want to improve my probability then I thought that I should see those stocks which have earnings in the back. So I will not have to do daily scanning and quarterly I will get a list of good earnings. In those earnings I will see which has the earning surprise because earning good means like there are some fertiliser companies, if you see in June quarter then their earnings will be good and then 2 quarters will not be good and then 2 will be good. There should not be such a cyclical nature. There should be some trigger in the business that can maintain and accelerate its earnings for 7-8 quarters so what I do right now is I run scanning, that is an earnings based scan I track the earnings of the companies where the earnings are good and those are small market capitalization stocks that is between 1000-10000 crores when I went to the database, all the multi bagger stocks came from the small cap space like Laurus lab, Dixon technology, Deepak nitrite, Tata Elxsi, Balaji, Alkyl Amines all these are covid winners and after 2022, you will see Elecon, Apar, Mirza international all these are small market capitalization stocks so I saw that there should be small M-cap and the earnings are surprised and accelerated then I see the recent PPT of the company and read what the company does if there is a new product or management that can accelerate the future earnings so my process is that first I will get a list of earnings and then I will apply technicals in those stocks I will look at the stocks that are buyable and then I will buy them so I don't want to look at the stocks that are out of this list it may be a short term trade but 99% of the time the earnings are back trading or investing so the scanner is also earnings based relative strength and IPO scan as I will explain to you, seen high RS stocks sometimes but I have read that those whose earnings is good, their relative strength is also good in majority of the cases because they are attracting institutions. Correct, so I liked your logic that technical analysis has to be used but it has to be used where the stock is fundamentally strong and it is continuously growing so I am very excited to know what your method is and I also feel that it will be useful for me to apply in some things. So sir this is about me, I cleared CMT level 3, I will get my chartered now I took CFTe certificate from International Federation of Technical Analysis I took MSTA from STA(Society of Technical Analysis) I am a member of MSTA, CMT association, IFT and ATA as I told you, I worked in Jakarta for 4 years and earlier I was in the ministry of urban development. So my 4 pillars of the whole process are the first process is stock selection, entry, position sizing and exit. So I think these are the 4 things on which you have control that which stock you want to buy, where you want to buy, how much you want to buy and where you want to sell apart from these 4 things, my fundamental principle is that where I am sitting and trading or investing, there should not be any news flow in the room so I don't follow news, I don't look at broker report, target etc I can look at it for learning purpose and I don't want to listen to the war of Iran-Israel, Russia-Ukraine because my basic principle which I have seen from past winners that this principle has been working for 20-30 years and everyone is applying it so obviously you can say that it is a noiseless method. So what I do in stock screening, like I told you that in all past winners everyone was in uptrend when they got a move of 3x, 4x, 5x so in starting everyone came above their 200 days moving average and everyone was at least 50% above their 52 week low like if you see the Genus power, when I traded it at 110, it was already 50% above if you see the Laurus Lab in Covid, whichever stock is making high, it is generally above 50% from its lows and earlier I used to think that why not take the stock below but there are a lot of stocks below and secondly we don't know how much time they will take so I believe that the portion that I am missing from the lows, I am paying extra premium for confirmation because I don't have any research analysis team, I am an individual investor so I believe that instead of keeping a employee, let me some premium to miss that stock from below and at least I'll have buyer confirmation. So all these stocks were close to their highs, within 15-20% and they were just starting off after a downtrend and a sideways trend this seems a bit confusing to people that they are close to highs and are starting off with a downtrend so sometimes it happens that a stock gets too correct from above and after correction, it creates a long base of a 1-1.5 year. In technical analysis, we call it a reversal setup. It went sideways from the downtrend and then it is reversing. Such a stock will be close to its 52-week high or 6-month high. It will also be moved a lot from its low. This happened in CAMS. If you see the weekly chart of CAMS, it was corrected a lot. After that, it made a long base and went sideways. There are volume spikes in all these. Generally volume tells us that it is an institutional footprint. As I said, I look at earnings. This is my observation. Generally, when I read the past database, the recently listed ones have become multi-bagger. Those who have been listed in 5-6 years. For example, if you look at many names of Defence, be it Mazdock, in Railway RVNL. There are many names who have been recently listed in 5-6 years. There is no such hard and fast rule. But I have observed that the younger and the smaller company is, it can run faster. Correct. For example, D-Mart also had an IPO of its time. That also gave a good run. Secondly, I learnt that there should be an infant industry. I learnt this from Nicholas Darwas. Nicholas Darwas has written a book in Hawaii in $2 million. In that, he is trading in theochol chemical, which makes fuel for rockets. After that, he is trading in a stock which is of filtered cigarettes. So, this infant industry means the industry on which a big catalyst is running. For example, you will hear about the battery energy storage system everywhere. Because if we need renewable energy, then we need the best to store that energy. Or if you look at it first, there was a period of defence and ship building. A capex of railway stocks was announced. That was one period. A period of transmission and distribution was run. So, infant industry means the industry which has the potential to grow for 5-10 years. For example, semiconductor. Correct. Or if you look at it after COVID, there was a period of pharma and IT. So, the starting PE of these multi-baggers is generally less than 30. The starting valuation. So, my mentor used to tell me that the correction that comes in the market, or a bear market comes, at that time, you have the chance of making biggest money. Because people sell all these stocks in panic. And their valuation comes down a lot. For example, if you read Deepak Nitrite at that time in COVID. So, the company was doing better than before. There was earning too. But the stock was corrected due to the COVID fall. So, its starting PE came down to 13-15 PE. So, it became such a cheap stock that it started its journey from 575 to 3000. So, generally, starting valuation, I believe, it matters a lot. Because if you are buying a stock which is at a PE of 90-100, then you can assume that to justify that much PE, it has to show growth. Correct. And if even 1-2 quarters of growth is missed, then the market drops that stock a lot. Like this happened in the case of TRENT. The same happened in the case of DMART. Competition came from the e-commerce space. So, now you need growth to justify valuation. Growth did not come. So, high valuation, I am not denying that you can buy it. But you have to ensure that the growth, which was given by Peter Lynch in his book, One Up On Wall Street, the PEG ratio formula, that we will compare the PE ratio with the earning growth. So, this was common among all the past winners. So, I generally run 3 scans. Earning scan, relative strength, and IPO is my screen. So, in the earning scan, generally, maximum names come where I have to focus. Now sometimes many people tell me that there is no earning in this force motor. Correct. But relative strength is very good for this. If you see its quarterly result, then it has very much other income. It is in exceptional item. So, I said okay. But relative strength is good for that stock. Like sometimes, there are some names of biotech or some name like Avocad. In this, there is no earning right now. But the chart is very good. Earning can come later. So, when I read my past database, then I saw that I traded a stock called Inox Wind. It was pre split price at 220. That company was loss making. So, the loss was decreasing. It was loss making. But it was going towards turn around. But the chart had already improved. Correct. So, such names, if you see, if you don't miss, if at least one look goes to it, for that I run a scan of relative strength. But this relative strength scan is very strict scan. Relative strength, I need high 80 and above and stock within 20% of near highs. Because in these, I am compromising earning. That's why I need a strict scan in that. Correct. I run IPO scan because both earning and relative strength will not be visible in IPO stocks. Some stocks have just been listed, for example, there was a chart of IREDA which made a base at 60-65 but you will not get RS or EPS in it because the stock has just been listed. There is an excerpt from Nicholas Darvas's book 'How I Made 2 Million Dollars' where he says when I observed that some stocks were not going downwards with the market even though the market was going downwards. So he is writing that I found the majority of these were companies whose earning trends pointed sharply upwards. So they earnings. So I got the conclusion that capital was flowing into these stocks. He said that just like a dog follows a scent, in that way even institutions also follow earnings so the long term price is the slave of the earning power. So he said that there can be 100 reasons for a stock to rise but I only need the reason of the earnings movement and I don't care about the other 99 reasons. So this is my bread and butter scan. To scan the earnings, I need to know the profitability of this recent quarter should be more than 25% from the previous quarter. So I will get a list of stocks. I call this earning surprise. It had more than 25% earning in this quarter. Some people ask me why you don't look at year on year. The reason is that, let me give you a simple example. For example, if your car is running on the expressway and the speed limit is 100, I want to catch that car as soon as it crosses 100. That's when your camera catches it at 100. So what happens in year on year is that one year is made up of 4 quarters. As long as you look at the data of year on year, it might have started running from the last few quarters. So I need to get it in my list first when the earnings surprise starts. I will give you a lot of examples of this. So the earnings surprise, where the earnings is 25%, like the June quarter has started, so in the June quarter, I will see that the profitability of the stock has come more than 25% from the previous quarter that is March 2025. I will get this list. In that list, I have divided it into 3 sections. The companies which are worth 1,000 crores to 10,000 crores, which I call the smaller list. The mid-sized list is worth 10,000 crores to 20,000 crores and the large list is worth more than 20,000 crores. So the companies which are worth more than 20,000 crores, like if you look at this stock, it is a stock of Precision Wires. This stock is still up even today. Now you see that the profitability of this stock was around 17-20 crores and all of a sudden it became 30 crores. So this is the same thing as you say, right? So it will come in my list first because there is an earnings surprise in it. So I will keep the surprise and Precision Wire in my list and then I will track that in this June 2025 quarter, whether this earnings will accelerate or not. Correct. Because in the past winner, I saw an example of Shakti pumps. I tracked and it had a PAT(Profit after Tax) of 1 crore here also surprise was there but it didn't accelerate. After that, when it got a surprise of 1-6, it came back in the list. After coming in the list, when I tracked it in the next quarter, the PAT became 45 crores. On 6, you will have to read what the management is saying and I told you that I don't scan daily. So I have around 140 names in the smaller list. Out of 140 names, only 40 names will have a surprise. The rest of the names will be like, if you study the quarter of March 2025, then the defence got the order in March only. If a company gets the tender order book of Cable Wire, then if it is the name of the fertilizer than it will run only for 2 quarters. So the names of the surprise are only 30-40. So here, the surprise came in Precision Wire. Now I have to track whether it will be able to accelerate further or not. So my observation is that in any multi-bagger, generally the market waits for 2 quarters. When 2 quarters are cleared, the story is absolutely clear then the entire chart is aligned. The stock comes up and becomes a base. After the earnings of the second quarter, the story is also cleared. Then the acceleration of the next 4-5-6 quarters, it comes out to become a multi-bagger. So initially you miss 2X, but the next 4-5X you catch it. This is an interview of David Ryan as Stock Investment as a Treasure Hunt with Jack Schwager in Market Wizard, where he said that the stocks that have already doubled are likely to double. So I can understand what he is trying to say from this story. This is the business of HPL Electric. Its profit is around Rs. 20-18 crores from many quarters and suddenly without any other income, the company got PAT of 37 crores. This is an earning surprise. Now when I opened its PPT, they have an order of Rs. 3500 crores for smart meter. Out of which 99% of our order book is filled with smart meter and there are 25 crore smart meters to be installed in India. So earning surprise, earning acceleration and then when you go to technical, you will see its chart also making a base. So if you see its weekly chart, the stock is making a long-term base. So what you just said, if the result of one more quarter comes out good and then there is still continuation, then there is a high possibility that this stock will also double. So we have to catch such stocks and market capitalization of HPL Electric is Rs. 3900 crores. 4000 crores. So small names can easily double. Now there is an example of Lumax Autotech, this stock has also run 50-60% from the result. If you see this, it had a PAT of around Rs. 50 crores, which all of a sudden became Rs. 80 crores. When you open the company's PPT, you will see that they are supplying to Mahindra and Mahindra and their booking is so high. The content cost per vehicle, this management is saying that it will increase so much. And they have done a lot of acquisitions, so the trigger is also ready, everything is ready and you will see the chart also as it is. So if it this earning gets accelerated, then again your multi-bagger trend will start running. If you read S H Kelkar correctly, you will feel that this is a surprise. But generally there is another income of Rs. 60 crores in it. So that's why I read the result very cautiously that there is no other income. And there is no cyclical name that 2 quarters is doing good and 2 quarters is doing bad. Because it will give you a scan in the scan. It will give you a scan. That's what I said that when you go to my trading view, I have a small EPS list here. These are the companies that have a market capitalization of Rs. 1000-10,000 crores. In these, not everyone has a surprise. There will be only 40 names with surprise. Now I will put my TA on those 40 names and I will read their trigger. I am trying to come closer to the multi-bagger with methodology. So these is CCL products. Its chart is also very good. You can see that this company was doing Capex. Now its PAT used to be of Rs. 60-70 crores. Suddenly its PAT came to Rs. 102 crores. Now if you see the margin, the margin used to be 15-16% and it became 20%. It also has all time high sales. There is no other income. When you study business, Continental Coffee is a white label manufacturer. Means if you also want to setup coffee divisional, you can get your coffee made from them. Branding will be yours. Like Dixon Technology works. So Continental Coffee's Capex that the management said is over. Only the maintenance Capex is left. The stock also caught its speed. So you will see the same chart of CCL products of the stock. It caught its speed from here and went to its all time high from down. Now what is the market waiting for? The same second quarter story. We need an earning acceleration. The earning acceleration that we saw in past winners. If it also comes in this, then all these methods that will take you to the multi-bagger stocks. In the earning scan, I have a list of 2500 stocks. Out of that, only 150 are left. In that also, I have a small cap category. Now I see where the surprise is. And after seeing that surprise, like I told you in surprise, sometimes it is cyclical or seasonal. I ignore that. Fertilizer company, like if I show you a company, it is called Insecticides India Ltd. If you see its P&L quarterly, it does only two quarters, June and September. After that, it does not do anything in December and March. After that, it brings good results in June and September. After that, it does not do anything for two quarters. My friend told me that this can also be a strategy. To buy it in June and sell it after two quarters. So this is the method of cyclical trading. After that, it did not do anything for two quarters. Now the chart is good because it has a tendency to do well in June and September. So I don't call it a surprise. I call it a surprise like the division of a value-added product in Garware high-tech film or the division of a composite cylinder in Time Technoplast. When Apar industry did good in conductor then story of 8-10 quarters was made. When I identified the surprise, the list of 40-50 names came then I open their presentation and find a catalyst who will change the business. And I have generally observed that many name of earning surprises come from one industry, sometime Like auto ancillary, this time there were a lot of surprises. Subros, Fiamma, Federal, Mogul, Gabriel, Lumax, Auto, all these names came from the same industry. There was a time of such transformer and distribution, so all those names started coming on our list. Now NBFCs started coming little by little. So when you get a lot of names from the same industry, then it becomes more beneficial for you that the sector has also been identified for you. Correct. So what I am seeing later is that the market values the sustainability of earnings. That your earnings can it come up to 8-10 quarters? Generally, I have observed that bullrun is 8-10 quarters in any stock. The more than 8-10 quarters names is very rare. Like Dixon was one name who participated in both cycles. From 2020-2022 and after 2023 also. BSE also participated in both cycles. Trent did it. Varun Beverages did it. Apart from this, you will not get many names who have grown more than 8-10 quarters. Because competition comes in that, Howard Marks has written a book called 'Mastering the Market Cycle'. In that, he has written that you have a first mover advantage in the starting. After that, Apar is making a conductor, so now everyone has to make a conductor. It is the same here. Everyone copies the format. Correct. So I am seeing that earning sustainability. I observed that the market rewards change. That change which can change the fortune of any business. Ultimately, you have to roam around on profit. How will the profit increase? Either you introduce a value added product of your own. That you have a high margin. Or you have done such a capex where you will see growth in the future. Which Deepak Nitrite did in the case of Deepak Phenolics. Now if you are a hospital chain, then going to Narayana Hrudayalaya Cayman Island started his business Which took good run So you have to find a catalyst. You have to find a trigger. Which can improve the profitability of the business. After that, I will focus on earning acceleration. By keeping these 40-50 names. Correct. And some new names will come in the next quarter we will see that accordingly. As I gave you this example, this was an earnings surprise and then it also accelerated. Now when I will look for the catalyst, the result of September 2023 came in November 2023. Now this is the con call of November 2023, if you open it, the company is saying, we started receiving orders under PM Kusum scheme, these solar pumps were to be installed and we are getting so many orders. So you got this catalyst, you got the earnings surprise and you got a vision. When I was in TA, people used to say that don't trade before earning, there are chances of it falling. So I am telling you that the earnings surprise is in your hands. After the surprise, you saw in the presentation that what they want to do, what is their vision. So there are many chances that the earnings will also come in your favor. That stock will go to become a multi-bagger. So here there was a trigger of Kusum scheme, that stock took PAT from 6 CR to 45 CR and 90 CR. So the earnings alone was so big and the PE re-rating was also done, so the stock became a multi-bagger. Similarly, you will see in the case of Anant Raj, the multi-year breakout that you use, you will also see in this at Rs. 105 So at Rs. 105 , when its long term breakout was happening on monthly, I went to read it. I saw that it has earnings, it has everything, it is the data of the past 29, 40 to 57. PAT of 20-22 CR is coming at 70-100 CR. And when you will see its PPT, the management is saying that we have made a data center in Rai, Manesar. We will give it on rent on a per megawatt basis. So the theory of data center has become a story, that a trigger has come, a catalyst has come. Now whether management will do it or not, that will be with the execution chart because you have TA with you. So earning surprise, acceleration and this trigger. Now in winning stock, I have learnt from Dan Zanger that if I will focus on price, volume and earnings, then my probability of winning will increase a lot. When I used to do daily scanning, I used to take 100 names and filter 10 out of them and then trade them. So I thought the peaceful method is to track the earnings list and apply technical in it. So this is my first basic scan of earnings. I check if someone is making a long base or a flag or a pennants. A flag is generally a stock that went up very fast and consolidated for 2-3 weeks and then went up again like in NACL and many other cases. So I saw a flag and pennant which starts the journey with a long base of a stock. For example, I just showed you a chart of HPL Electric or you can see this chart. So there is a long base in it. So when it leaves the long base, suppose a strong trigger is going to come, it will go up very fast and make a flag. You will say that I will trade the flag only. So the flag is an extension of the long base. Generally I have seen that long base breakouts give a very good move. For example, there is a chart of Advait. Advait is also a battery.. So this is also a long base. So this is also a methodology that I am applying TA in it and then I am looking at the long base. So long base generally I am looking at EPS, quarter on quarter is 25%. I say this P-Vise, price, volume, infant industry, sales and earnings. Sometimes the earnings increase so much that the sales do not increase, some expenses are reduced by the company. So that is not sustainable. If the sales are increasing, the earnings are increasing, the margin is also increasing, then it is a very good thing. This is what Mark Minervini calls code 33 in his book that the earnings, sales and margins are increasing. So this is a weekly chart like I am telling you about a long base in Anantraj. If you look at the weekly, then it was breaking out at 105 rupees here. So it should have come to your radar before the break out because you are applying the earnings scan. All those characteristics are there. It has run more than 50% from below. It has made a long base. Long base, when I studied the chart and fundamentals together, I saw that the market is always waiting for two quarters. In the case of Shakti pump too, the stock is waiting for two quarters. When the earnings of two quarters are cleared, the stock does not stop generally. So when I read in Anantraj, I saw that the play of data center is going on. On basis of Per mega watt they are taking the rent Actually, Anantraj was the name of their grandmother. So there is a company named after her. Earlier, they used to see contracts for DDA. When I read in the 1980s, they bought cheap land from the money they earned at that time in Gurgaon. All that land was lying with them, which you saw in the balance sheet at a very low price. And you know about real estate, like the cycle started after COVID. So they also did a good job. So they sold some Anantraj estate projects from that land in Gurgaon. They made a data center on the remaining Rai, Manesar and ran that story. If you note well, at the beginning of 2023, no one was talking about a data center in India. So sometimes you wonder how to identify the sector. How will I know that this industry is strong? So I said that when you listen to the management where the earnings are coming, they will make the same sector in the future. So it will not happen that if you think that I want to buy the data center stock, first identify the theme of the data center, by then you will be very late. So if you want to identify the theme from the beginning, then only these stocks will guide you, the strong stocks, where the earnings are coming, there only institution will go and the theme will be made there. This happened in defense and this happened in shipbuilding. This is the chart of Genus Power. It ran more than 50%. I traded this, it is on my Twitter too. I took it around 90 rupees. It is coming out from a very long base. When I saw the same story, the earnings were good and there was a theme of smart meter installation. So that stock ran more than double very quickly. Because it was a long base breakout. This is my earning scan. This is a recent example of the Camlin fine science. It came out from a very long base. This is a turnaround story. Its loss was decreasing. This company makes products by vanillin from catechol. America imposed an anti-dumping duty on China. Their golden period started. The stock went from long base to 160-170. It doubled very quickly to 340. The whole story is the same. Catalyst, small cap and earning acceleration surprise. This is the ITD cementation chart. I didn't trade it but I have mentioned it in William Jiler's book on page no. 88 where he has talked about shakeout. Whenever in a long base, if there is a shakeout, shakeout means it breaks the support and comes back in 2-3 days. This is what we call shakeout. William Jiler has written in his book that the base which has a shakeout becomes even stronger because all the weak hands are removed from it. When a stock gives a break out, it is a very strong break out. Here the trigger was already known that Adani is taking over this company. So if Adani is taking over this company, he is saying that he is taking 67% stake, then it was common sense that maximum orders will come to ITD cementation. In the base, there was a shakeout. After the shakeout, the stock came back. After that, this is the flag where I took entry for a trade. Because I missed this long base. The same story happened in ITD cementation. Shakeout and then the move came. In this, the earnings will increase because of the takeover of Adani. When the order book came. Later you will see that the order book kept coming. The stock easily went from 500 to 900. So I am looking at the long base or I am trading the flag. But those which have earnings, that is my earning scan. If you have any questions related to earnings. No, what I am thinking is You tell me. Because whatever you have said so far, sir. I feel that a lot of questions are getting solved automatically. I don't know about you. But there is a very common question for every trader. Which watchlist should we make of our stock? Should we follow Nifty 500? Should we follow Nifty 50? Or should we follow Smallcap? So here, sir, a different approach came to my mind. Listening to you. That I don't have to follow Nifty 500 or Smallcap 250. I simply have to make my own universe. Which you can give any name. Fundamentally strong stock or whatever name. Now obviously trading in the stock market is a game of probability. If your method is correct, then your probability can be better. Correct. But here I am noticing. That suppose you made a method in which your probability is good. But you increased your probability in stock selection too. Correct. So here there are a lot of chances of percentages. That the trade you will do is going to be right. If you have selected the stock in this way. So till now I don't have any doubt. There are a few doubts related to chart. If you go back to the chart. So here I am noticing that you are not following the normal candlestick. This is a bar chart, right? Yes sir. So sir, if you can tell our viewers about the bar chart. Tell them that first. Sir, if I explain it from the basics. In the 18th century, there was a rice trader named Munehisa Homma in Japan. He started candlestick. All the terminology in Japan is war related. Evening star, morning star. So he made a lot of money by using candlestick. There was an author named Steve Nison from western world. Who went to Japan. He introduced candlestick from there to western world. In western world, there was a bar chart. So you see candlestick something like this. In candlestick, this green candle means the price is closed up. So if the price is open at 1230. Then it is closed at 1620 this week. This is candlestick. Now what happens in bar chart. That we mark the closing price with a right tick. Open price is also there. I have off the setting. Let me show you. This is open price on the left. And the right tick is closed price. So the left tick. I have set the color so that you don't get confused. You will see candlestick like this. If you join closing and open and make a rectangle. Then it is candlestick. So you have to mark the closing price with a right tick. And open price with a left tick. This is called bar chart. Now I don't want to be biased. Sometimes it happens that your stock is running well. It fell this week. You saw the red candle. You got scared and sold it. So I keep the color similar. Means you don't play with psychology. I just want to see the price and volume. I don't want to see anything else. I don't even see open price. because I feel the closing price is the most important thing that where it is closed. Now this week, wherever it is open, but if it is close to high then it is a very bullish bar. Correct. So my focus is only on the value and volume of this bar. Correct. That's why I use the bar chart in this. Okay sir, and the second thing, whether you have noticed or not, I have done it. Sir, here the price is not visible in the normal price, the column on the right side of the price. What have you done there that the price, like after 720, it went straight to 840, after 1000, it went to 1200, then you have changed the logarithmic chart. Yes, I am using the logarithmic chart. Yes. So what is the logarithmic chart? Like this is the monthly chart of Advait. Right. Assume that I turn off the logarithmic setting. Yes. So this is the normal one. Yes, it is the normal one. So this Advait of Rs 100 has become Rs 300 here. Correct. Where my cursor is this week. Yes yes. I mean this month. Correct. Now here the Advait of Rs 500 has become Rs 1500, where? Here. Yes. So you will get confused, you will think that Advait has given a return here, but there is no return here. Yes, even there it has doubled. Whereas both the parts have the same return. Correct. Here it has tripled, here it has tripled. Correct. So to remove this illusion, we use the logarithmic scale. So it will look like here it has tripled and here it has tripled. Right. So that is why we use the logarithmic scale. This is generally preferable on the long term chart. There will not be so much difference on the daily chart of logarithmic and arithmetic. Correct. And now there is a last question sir. Yes. You have put some moving average in this. Yes. If we go to the small time frame, it is visible there. This is a purple line and this is a maroon line. No, it is a chocolate line. Okay, moving average in every time frame. On the weekly chart, I am using 10 or 40 week moving average. 10 or 40? Yes. Simple moving average. Correct. Right. This 40 week moving average is the long term moving average. Which we call 200 days on the daily scale. Because there are 5 days in a week. Like this. 10 week moving average is 50 days moving average. This was written by Welles Wilder in 1978 by the name of New Technical System. In which he had introduced RSI. For the first time, he had given a description of the lunar cycle. The cycle of the moon for 14 days. Okay. He kept doubling that. Like 14, 28, 56. He rounded it off and brought it to 50. Okay. That is why it became popular in technical analysis. From 1970, 50 period, 100 period, 150, 200. It became a multiple of this. Correct. So, 200 days moving average generally represents the long term trend. If there is an investor, it is generally recommended that if you follow your 40 week moving average on the weekly chart. Then it will become a big money for you. You will not exit quickly. Okay. In the stock. Yes. So, this was it. And are there any changes in the daily time frame? In daily, sir, I will tell you when I will come to your exit. This is 21 days moving average. The purple one. Purple. This is 50 and this is 200. 50 and 200 are the same. Right. But there is an additional 21 days moving average. Okay. Because sometimes if you want to take a short term trade, this is 21 days moving average. Okay. I understood. So, these were some questions related to charts. Sir, whatever you have told us till now. This surprising result. I think it is a very logical thing. The logic that you have given that you are checking 25% growth quarterly. So, maybe you will get to know the journey of a multi-bagger stock very quickly. Correct. Correct. Right. It is correct, sir. So, sir, this is my second scan of relative strength. Relative strength has been used by many traders. It has been used without taking any name. Relative strength has a very simple example. Suppose in your English, you got 70 marks in school. Topper got 90 marks. So, you are not relatively strong. They are relatively stronger than you. They are stronger. For example, for the first time I was asked to find the charts of Korea and which are good. So, I was a beginner in starting. So, I sat down to check all the charts manually. The experience that I have now, they told me to use relative strength. So, the Korean index is KOSPI. Look at KOSPI. How much return did KOSPI give in 3 months? If KOSPI has given a return of 12 percent, then give me the list of stocks that had moved more than 12 percent. That means they are relatively strong. It also runs in reverse. That means if the index fell by 40 percent in COVID, then the stocks that fell less than 40 percent are relatively strong. Correct. This concept of relative strength has been used by many traders for many years. Like Livermore has used it. For the first time, H.M. Gartley's wrote a research paper on this in 1945 Relative velocity statistics. Then in 1963, Robert Levy wrote then in 1973, Richard Love wrote a book called 'Superperformance Talks' and in its chapter 7, he talked about Relative Strength which was credited by Mark Minervini in his book. Then in 1993, Narasimhan Jegadeesh wrote a research paper and in 2010, Venti Faber wrote a research paper in Cambria School. I am telling you all this because this is a more than 100 years old time-tested concept. The first research paper was in 1945. In fact, when Viet and Corn Bushel were trading in Livermore in 1910, they were also teaching about Relative Strength indirectly. I have just taught you the paragraph of Nicholas Darvas and he is also seeing Relative Strength. So this is a more than 100 years old principle and mathematically also, it is very sound because if a stock has to run for 500% then it will definitely beat the benchmark. So you have identified it by applying the filter of Relative Strength. So you can find the multi-bagger in two ways. If you don't want to see the earnings, then you can come from this way. You can say that it is beating the benchmark and I will see it. My methodology is that I focus on the earning one but you can say that the earnings of any stock can come later. It is not coming now but now the data is visible that the booking of Force Motor's Force Urbania has increased a lot. The is visible on Vahan portal and the Indian Army is buying a Gurkha vehicle from them and Blinkit is buying an ambulance from them. So the stock of Force Motor, you can say that the stock of Rs 7000 has become of Rs 16000 but the earnings are not visible now. Now only the surprise is visible on the sheet. So to hold such a stock, if you don't want to miss it, there is a scan of Relative Strength. But I have seen that by applying the scan of Relative Strength, if 200 charts are coming on your radar, then there is a 160 overlap in earnings and RS. Because I have shown you the CCL product, I have shown you HPL, I have shown you LUMAX AUTO, all of them have high RS rating. Because if there is earnings in them, institutions came there, price moved, then RS also caught it. There will be very few names which will be a unique name in Relative Strength, on which there is no earnings now. Now it is your choice that how much headache you can handle. If you say that I have to take more headache and catch everything, then this is the scan. In this, as I said, you still want to trade it on any story or news. For example, there is a chart of NACL industry, that is a very strong chart. In that, the earnings are not that good now, but the chart is very good. That is because Coromandel International is acquiring it. It is taking a stake in it, so it is a company of Murugappa Group. So Murugappa is a very reputed group, so somewhere the news came out here, after that it became a flag, you didn't said that I have to trade it. So this is a story-based trade. So this is a little strict scan, in this I am seeing RS rating more than 80. See, there are many platforms to filter RS. So the platform I use, on that platform there is a concept of RS rating, if it is above 80, it means that the stock is in the top 20%, this is a percentile score. RS rating 99 means that your stock is in the top 1%. So more than 80 means that your stock is in the top 20%. In that, I am putting some other filters that it should be within the highest 20%. And its market capitalization should be this much. Liquidity means that the rupee volume should be more than 5 CR. Means more than 5 crores, average rupee volume of 30 days. If it is less than this, then it is not tradable. And it should be above 200 MA. In this, you get about 120-130 names in the smaller category. And most names, as I told you, will be overlapping, because they also have earnings. So it is more beneficial for you that you get confirmation from there too. So as I told you, this is the chart of Force Motors. This is a very long base. Now the platform I have taken from, this is the Marketsmith platform that I am using. If you are able to see up here, it has written EPS rating of 62. EPS rating is generally considered good above 80. Above 80 means that it is in the top 20%. So Force is not fulfilling your criteria. But its RS rating is very strong. Its RS rating is 97. So if you say that I don't want to miss this stock, I should not miss it. So that is why I said that RS is another scan. In which multibagger will not be missed. So this is one methodology. Now I found out that I traded in Inoxwind. So I tweeted on 6th November 2023 that I am buying it here. Base is also good, everything is good. Correct. This is of about 2023. Now we are in 2025. When I saw this, when I went to this stock Inoxwind, around November 2023, this is company loss making. Right. But in this, RS is very good. Yes. Now when there is loss making, but the loss is also decreasing, the loss of 288 is remaining at 27, so the company is going towards a turnaround. You can see later that by 2, 33, 50, 90, the loss of 200 has come down to the profit of 200. But for the first time I understood that it is possible that you may not have earning at that time on the chart. And still if you want to buy it, then it is a concept of relative strength. Then this stock was a pre-split price, from here the stock doubled very quickly. So this is an example of RS scan. Now the quarterly result that I showed you, the stock went from loss to profit making. Similarly, I am seeing the same chart setup here as well. Here I am seeing a long base breakout, or a flag or a pennant, or there is a gap up on strong earnings. So technically I am seeing this on the chart. For example, if you take the example of Anand Rathi, there is still a gap up in it. You can see that earning came gap up took place and then this stock went up. Before this, you can see that in Anand Rathi, even before this it has happened like thar when the previous leg started, there was a gap up in earnings here as well. So the gap up of 480, at that time the price was around 960, before the split. After that, this chart made a very long base and again this chart came back to the same base. Similarly, it happened on the chart of Narayana Hrudayalaya. This happened in the case of both Anand Rathi and Narayana Hrudayalaya. Here also, there was an earnings gap at 790 rupees, which is still not filled. So the stock of 790 has gone to around 1900 or 2000 rupees. So if long base breakout, flag or gap up took place in earnings, There is a recent example of LUMAX AUTO for gap up. It happened recently? Yes recently. So there was a gap up after earnings and the stock went straight up. So my third scan is of IPO stocks, because as I told you, these are the stocks that they might not have earnings yet, they don't have that much listing history. Secondly, they might not have relative strength as well, because they have just been listed. In this, I see those IPO stocks that have been listed within a year. Because after a year, they will go in the crowd and compete with the other stocks in the relative strength scan, because our relative strength is measuring the performance of 3-6 months. So after a year's listing, it means that it will compete with the other stocks and will come in the other scan. So within one year, I am seeing that there is more than 500 CR market capitalization, I am keeping the price above 20 rupees, I get around 80-85 names. So after seeing this, I get an idea as to where our money is flowing. Like this week, Prostarm, Quality Power, Mamata Machinery, Enviro Infra, these 4-5 IPO moved so fast. So I get an idea that yes, money is moving in IPO stocks. This is why we keep on scanning these lists. I first take them on the IPO base. I learned this from Mark Minervini and Dan Zanger. Dan Zanger traded Google in 2006. So it was the first IPO base. So he says in his newsletter that IPO is the fastest time when you can catch a growing company. After that, it is possible that you might not get that price. Like when you caught DMART or IRCTC, you might have seen around 320 rupees. So that price didn't come again. So scan 3 is a very simple scan. Once the stock is listed, I generally wait for the base formation. Base can be of 4-5 days tightness. So I always see a tight consolidation on the chart. Tight consolidation because my stop loss is very less there. So I know where to take exit so the position size is made bigger This is the example of IREDA, Indian Renewable Energy Development Agency. It followed through and formed a second base. So the stock easily doubled. So IPO scan throws from here. Transraill is a very recent trade of mine. This stock came up. After coming up, it gave a pullback to the high. Then it made a pivot in a very tight consolidation. So took entry here. This stock came from a recent IPO scanner. My entry criteria is that I see a tight consolidation on the right side of the chart. That consolidation should be less than 8% depth. The difference between high and low should be less than 8%. I put a stop loss at its base low. If I give you an example, For example, this stock is now in Precision Wire in my list. You can see that this stock went up after the shakeout. So if I measure from here, this consolidation is of 7%. So if this stock comes out of this consolidation, then I know that my stop loss is 7%. This means that if I want to take 1% risk of the portfolio and my stop loss is 7%, then I can make a position size of 14%. There is a shortcut formula for this, 100 divided by stop loss percent. If the stop loss is 5%, then the position size can be 20%. If the stop loss is 7%, then I can make a position size of 14%. So I keep the stop loss at the base low and take 1% risk. So in this case, my position size will be 14%. Now if the stock went up on the same day and came down and went back to the same range, then I trim it in half. I trim it in half because I took 1% risk. But actually, I will lose less than that if it does not work in my favor. So the remaining half will remain with me until the original stop loss is not hit. But if that stock recovered from the top again, a very strong recovery came after consolidation for a few days, then I will add it again. So in this way, when that stock goes down, my position size becomes half. But when that stock goes up, my full position size is with me. So in this way, my entry criteria remains on the chart. But this chart, as you know, I have a small list in which they have earnings. And the names I have flagged are those names which have surprises. So I look at these flags carefully. Like if I do this, then these are all the names which have flags and which have earnings surprises. So I look at these stocks first to make sure that if anything is happening in them. And in the names below, I generally read those names like Advait, Time Techno or CSB Bank Federal Mogul. So you have given a different color to those stocks in the flag as well. Yes, this is generally Time Techno and SJS which I have recently traded. So that's why I have given it that color. If you look at the chart of Time Techno, it is a perfect example. If you look here, its right side consolidation is almost 6% deep. Correct. So now this setup will come on my radar. I will get an alert here. As soon as it goes up, 6% stop loss means I can make a position size of 16% at 1% risk. So I will take a Time Techno of 16% if I have cash. And if it goes up, I will have full 16%. If it goes down again, I will trim it by half. But I will have half from the original stop. Correct. Half is there because even if this base breaks, it is called a false breakout in technical analysis. So many times people think that if it goes up and comes back, it is a false breakout. It is generally called a hard pullback in TA. It is a false breakout when the consolidation itself breaks. So false breakout is the first signal of market distribution. If you want to come out before COVID, it will take you to a false breakout. If you want to come out before a major correction, it will automatically empty your portfolio. So if someone asks me how I will identify the market top, I will not do anything. That stock will automatically empty it. So Darvas wrote a book called 'How I Made $2 Million.' He wrote a line in it, I decided to let my stop loss decide. He said that he is not an expert enough to read all the macro and identify the market top. That is why my half position is open on the base low. That is because I am willing to give that much amount to the market. So that the market tells me that it is making a top here. If I have 8 stocks in my portfolio and if 5-6 stocks come down in 3-4 days after a false breakout, then I know that I have to come out of this. So this is a small list in which I also check the funda. In medium and large, I do not check the fundamentals in large. These are companies worth more than 20,000 crores. If there is a long base or a set-up, then I check it. But in these, my position size is a little big. It is a full size position. And in medium cap name, I do not check the fundamentals because these are proven businesses. But in small, because they are a small company worth 3-4 thousand crores. So I read the fundamental, I see its presentation and then I get an idea whether there is a catalyst in this business or not. So I will trade in all these stocks. Now I will see which are the buyables in these stocks. Those buyables will go in the list. Like in my list, Thyrocare was a buyable. I have not taken it, I am invested now. But if you see, it was a very small consolidation of 4%. And if you see the long term chart, there was a buy here and there. If you see its long term chart, it is coming out of a very long base in weekly. So it was in my list today. So if we take it here, it will become a full size position in this case of 4% stop to 25%. So your risk will be 1%, but if the stock moves in your favor, then you will get 2- 3 R on that day. It means that if there is a stop loss of 4% and if the stock moves at 12%, then I can sell 1 third and make it risk free. My original stop loss will be there, still I will not lose anything. So it will become a free roll trade. There are many such charts that I am seeing on my radar today. Mangalore chemical is in a very tight consolidation. So this Precision wire is an example. This is also a tight consolidation. I am tracking Power Mech. In JSW Infra, you will also have a setup where you will see a very long base on the weekly chart and it has stopped going down. So there is a news of port sector also. So there is an Oriana power. In this list, in earnings, RS or IPO list I will filter those charts where I am getting a consolidation of less than 8% on the right side. So that I can do my buying in them. That will get the preference. My weekend homework is to visit the presentation, find the catalyst and then make a list of those stocks. So in this way, I do entry in them. For example, Samhi hotel is a recent entry of mine. In this, I am getting a stop loss of 7.5%. So my position size becomes 12.5% on 7.5% and 8%. So my entire position is 12.5% in this. Now if this stock would have squatted below the upper line, that is, if it would have broken day low, then I would have trimmed it in half. That has not happened in this case till now. So that is why Samhi's position size is active at 12-12.5%. So you can say that I have 2 stop loss generally, day low and base low. Half at day low and half at base low. So I don't have to keep the size complete while going down. Similarly, I had a recent trade of SJS. I took it here at 949 If you go to SJS enterprise earnings, then you will see that there is a jump of 28-34 crores, around 20%. And you can see that the margin in SJS is also consistent of 25-25%. Stock is making a base below. If you read this, then SJS is a company named after 3 promoter Shivarama Krishnan, Joseph and Srinivasan. And this is an auto ancillary name. Now they are doing a capex of 70 crores for cover glass. The infotainment screen in cover glass cars, we import it now. So cover glass is different from optical glass In an accident, the cover glass flies off but doesn’t cause injury. So they are doing a capex like this. So if this is successful then their content cost per vehicle will increase a lot. So this is becoming a trigger in SJS. And they are going towards premiumization. SJS, Lumax auto, Mahindra and Mahindra are their key customers. There is a premiumization of new electric vehicles. So SJS is also in the same category. So if you see the stock, then there is a reversal setup from the bottom to the top. So this trade was a tight consolidation here also, if you miss here. So if you see the base low is almost 5% deep. So I have to take the risk up and down also. So if I take risk in such a place, then my risk will be the same. So here my risk reward comes in my favor. And the position size also becomes big. So if the stock of 20% position size runs for 20%, then my portfolio increases by 4%. Earlier what mistake I did was I used to have 15-16 stocks in covid time. So the position size of one stock was 4%. So even if it doubles, then the portfolio will run only for 4%. Then I realized that if the entry is good, stock selection is good and the risk is also less, then the risk is 1% only. So if I take the position size big, So what will happen is — the stock that was 4% of the portfolio and had gone up by 20%, after doubling, will push the portfolio up by 4%. Same thing the stock of 20% will only move by 20% and do it and then realize that position size is also important which I told you in the beginning that there are 4 pillars in this strategy. Stock Selection, Entry, Exit and Position Sizing. So SJS was traded. I recently took this Saksoft trade. In this also, initially there was a thrust prior to uptrend. Stock was up. When I read this, management is going in a digital transformation initiative. They are forecasting a revenue of $500 million by 2030 which is 800 crores. So they are saying that they will make a revenue of 4-4,500 crores by 2030. So it is a very small IT cap. It is from a small cap space. The earning rating was good. So the stock moved up from there. So this also has the same concept that your position size will be big because consolidation is good. So this is an example of CDSL. This is the trade that did not work. That's why I don't take the entry first. Now in this also, according to the stop loss of 6%, 16% position size will be made. But it went in the other direction. So I said that market health, falls break out or premature fall shows that the market is getting choppy. So these are the areas where accumulation is going on or distribution is going on. That's why I don't take the premature entry. This is also an example of BDL. This was a cup and handle type structure. Stop loss was 6.5%. And everything was ready. But it went in the other direction. So I take premature entry very rarely. Now my exit criteria is that this has evolved. Exit criteria, like long back during COVID time, my mentor was also with me. He said take Laurus, Deepak Nitrite. He used to follow on the weekly chart. So on the weekly chart, Balaji Amines consolidated for 3-4 months between 2400-2600. So the return of portfolio was very good. But later it was realized that what could have been better by selling stocks that were not doing anything for 3-4 months. Tata Elxsi was also not doing anything for a long time between 5000-5400. Then it was realized that we can sell it and go to the other side. So sold it and went to the other ones. So had sadness that I sold it at 30-40% It is not stopping, it is going up without stopping. So it was realized that the mentality is not of swing trading and it is not of sitting for long term also. So thought of finding something that will suit me. So my method is that I follow the combination of swing and positional trading. Like I told you that I made 10% position size. So when that stock goes up by 15-20%, then I sell 30%. Because that trade was done in my guaranteed gain. So the remaining position size, like I took 100 shares and sold 30, so there are 70 left. In those 70 left, I follow 21 EMA on the daily chart that we saw now. So on the daily chart, 21 EMA or swing low whichever is higher is my strategy. Like in the case of SJS, if I hide all this, then I took it here. After taking it here, the stock went up. It made a base. Correct. When it went up making the base, then I will shift my stop loss on this swing low or this box low. Correct, this is swing low. And when it is going up, I will not shift the stop loss until it becomes a new high. Till then, I will observe manually in 21 EMA. Swing low or 21 EMA whichever is higher. This is my method. Now when it becomes a new high, then I will bring the stop on this box low at 1080. After that, the stock made a base here for 4-5 days and went up. Then I will shift the stop loss on the box low at 1125. After 1125, now I would have shifted the stop loss here if it had become a high. It did not make it, then I breached it in 21 EMA. On a good volume, I exited here. So almost here, my buy price was 970-949. I took almost 30% return and exited. There are some trades like BSE. It was moving up from 547 to 2100 without breaching in 21 EMA. If you see the chart of BSE, In the previous cycle, this was the trade of 547 of BSE at that time when I had also tweeted it. After that, the stock did not breached in 21 EMA. After that, it breached at 2100-2200. I missed such a stock that is Anand Rathi which I was telling you about. Anand Rathi also did the same. That also did not breach in 21 EMA and for a very long time this stock doubled so easily. It went up to double or triple and the breach that you call decisively was here. So this is my exit criteria that I take in swing low and in 21 EMA whichever is higher I will follow it. But sometimes what happens is that the stock runs vertically up 40% or 50% so in that case I trim it half. In that case, I have learned from Dan Zanger that there is also a trend line based methodology. Like you will see a chart of Cupid. So here you will see that this is a trend line. This chart is very steep. So as long as you wait for 21 EMA, you will lose a lot of gain. This is still fine. Sometimes the trend line becomes very steep. So in that case I sell another 50% And I keep trailing the rest of the portion. It can be added later too. This stock is still running. So the same concept was there in this too. You see that. It went down. After going down, it quickly came up and it had such a good consolidation on the right side. So this is my complete methodology. The trade that I explained to you about SJS. And entry, exit, position sizing is the complete method. Right. So now I was going to ask you this only. When this presentation was going on, a question was going on in my mind. That are you a swing trader, positional trader or an investor? I consider myself a positional trader a little more. If I would have been a swing trader, then I would not have checked the fundamentals. Then I would have traded. Generally, as I told you that sometimes when a stock was missing, I used to feel very bad. That this was with me and I sold it and it is going on. So I keep a little portion of it with me. I keep trailing it freely. But I don't put a weekly chart in that case. I run it daily. And now I am thinking that because I have 40 names in the list. If I will exit from one, then the other will give me an entry. So I keep churning like this. But in some portions, from 21 EMA till the time that stock is going, I trail it till then. Correct. And sir, your returns of the year. Which was your best year and what was the return percentage? My best year was my covid one. But I will not say that I was alone. I also had a mentor. He was also guiding me. So that year I had a very good return. At that time, there was an Indonesian account and an Indian account. At that time, I made 140% in India. I made more returns in Indonesia. Because there he was guiding me. So this was his mastery in it. So he said that yes, take this. So I also studied. I studied. We studied. So the patience to sit. Like I said that if you have a mentor, then your learning curve gets a little short. So that 2021-2022 period. The period of 20-22 was a very good period. Very much. Okay. And your most, I mean, as you said, here you take risks very calculatively. But has it ever happened that you have made a mistake? Something like this. Which you still remember today. That how I made this mistake at that time. How did you do it? No, mistakes generally happen. Like in 2020-21-22, we used to sit to fill the trade journal. So used to realize that there was no entry here. Why did I take entry here? There used to be such mistakes. The mistake that happened in the starting in 2019 was that my portfolio was completely wiped out. Because I had one SME stock. At that time, I didn't knew TA at that time. And it was a Gujarat-based company Jiya eco products. I had invested a lot of money in it. Position size etc. I didn't know anything. So in the office, as we were roaming around, we identified something. I studied Fundamental. So the PEG ratio should be less than 1. ROAS should be more than 25. Applied all the filter. In that, SME came. There was a legendary investor. I heard his interview. He used to say that if you want to make money in India, then HDFC, Asian paint will not be made by them. It will be made by small ones. So I merged those two things and made blunder. And took that company. And that is his story. How the process went in that company. They will collect the forest waste of the farmers and make a bio pellet. Bio pellet. They will replace all the coal that is used in Gujarat. So I took that stock for Rs. 24. It worked. And as you do in starting. You also give to your relatives. You also give to everyone in your office. So I also did that. It became Rs. 36-38. Then the promoter came. He said that look, export order has also come from Qatar. They have asked for quotation. That stock moved more. It became Rs. 50-55 at that time. That company was also doing con call. So micro cap company is also doing con call also. And then there was one promoter named Harsh bhai. He sold his whole stake of 37%. Someone asked him in con-calls he is saying he want to do meditation, etc so the stock started coming down from around Rs. 85. So I kept averaging, that was my big mistake. I started averaging and I kept saying buy more. To your friends. And later in GST fraud, some issues were caught and that stock is a penny stock of Rs. 2-3. Is it still with you? It is still listed, I don't have it. But it is a stock of Rs. 2-3. So that was my big mistake that I used to down the average a lot earlier. So even after learning TA, I used to think that it will make a base and down the average or it became premature buying. So that mistake used to remain a lot generally. It was a lot of fun with you sir. I have also learned a lot of things in this session which I will add in my things. Because even though my method is different, but if I add your quarterly results logic in my method, then maybe I will also start catching multi-bagger stocks very soon. And let me tell you that all the charts that we have shared here, that is no buying selling recommendation. Just to tell you his method, obviously if you want to tell the method, if you want to tell some concept, then we will have to tell practical examples. That is why we have selected it. So I hope you also enjoyed watching this podcast that sir has shared his learning. My personal intention is that as sir said that if there is a mentor in every trader's life, then the learning curve becomes small. So I try to bring videos of such traders to you who will teach you a good learning. Sir, it must have taken you 8-10 years to learn this. Today, after watching this video, they will learn in an hour what to do and what not to do. They will get the right direction. Yes, they will get the right direction. So I hope you also enjoyed it. And sir, you tell us how was your experience with us. It was very good. As a platform, there are very few dedicated trading investing platforms in India. Because if you see in foreign countries, there are channels who do methodology. But in India, our literature has come very late. So there are very few dedicated channels who tell the literature together. And especially for traders, the content is very less. But for investors, you will still get it. So it was very nice to come here. I got the opportunity to come here. Thank you, sir. And I noticed that you read a lot of books. You also know the page number, sir. Yes, I have been reading for a long time. There are some books that I read again and again, so I remember them. It is very good, sir. It shows how much you have read from the base and understood those things. Sir, you talked about some indicators, some scanners. If you give us those scanners, we will add them in the description below. So that people will benefit a little. Thank you, sir. It was a lot of fun with you in this video. You are most welcome. And if you also liked our video today, then like. And if you think that you have got a little value in this interview. So you tell your friends, family, as sir used to say, that whatever he used to buy, he used tell someone. Same way, if you have learned this thing well, then share it with your friends. I wish that they will also say thank you to you for sharing this video. And if you are new to our channel, then do subscribe. Sir, I have seen you on Twitter. Are you in any other place where people can follow you? No, I just have a platform called Chartitude where we interact. I take classes on weekends. I am not in any other place right now. So I will put sir's social media link in the description below. If you have any questions, you can ask in the comments below. Otherwise, you can also ask sir on Twitter. And what was your best part in this interview? Do tell us in the comments below. And if you cut that part of the video and tag us on Twitter, we will like it. So that was our today's video. Thank you sir. Thank you very much. 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