How To Analyze The Stock

Today I got very interesting PM from someone, here I am not disclosing his name but PM sounds Interesting about my picks and in forum I found very few members are analyzing stocks by himself, most of all members are asking about few tips on daily basis.
Here I want to tell u that basically ebook from shabbir is to teach u and forum is to help u so that u can analyze by yourself and after analyzing u can ask views from others so that u can be aware that you are doing right or wrong.
I am not telling u that I don't want to disclose about my picks but if I disclose then what will be difference between me and those so called tips provider/advisor who is behind of your every loss.

So I can tell u the way how I started analyzing stocks but step by step and I am sure If u do these steps then u don't have to ask any one about his picks.

I request all other members too and even shabbir to share his experience how they have started and how they are able to pick stock now. So that every one in the forum can take benefit of it.

One more thing here in forum we always discuss about technical but not about fundamental so I think we should start discussing about fundamentals also cause for long term fundamentals are very important, so I request shabbir and others to do so.

Below is the conversation which I had in PM and where I have tried to tell him the ways about my picks.

Hi sanjay,

good afternoon .I am new to this forum .I got ebook from shabbir .I am ready now .I was seeing all your blog updates on stocks and looks interesting .Can you please tell me how you picking stocks and etc ..



Hi,

I think u have read the book now u just do one thing start analyzing the charts alphabetically from www.chartink.com. Daily analyze atleast 10 charts for 1 year then 6 months and just try to find out the trend of stock (up trend/down trend).
When u r able to find out that stock is in uptrend or downtrend then try to find from how long it is in uptrend or down trend.
When u r able to do this also then trying finding the level at which point stock price got stock and not going higher level (resistance point), that is the point where everyone start booking profit/fresh shorts and stock will not able to move up further, same way trying finding the level at which point stock price got stock and not going down level (support point), that is the point where everyone start fresh buying/short covering and stock will not able to go down further.
After learning resistance and support u r able to find out the break out point which I will tell u when u r done with above mentioned points.
Don't start trading before knowledge and don't believe any one blindly like tips provider/advisor.
Best of luck.
Regards
sanjay

 

Hi Shabbir

It is not about today, it was about how I started and now days I am also looking for the stock is @ 52 weeks high or all time high, volume shocker, top gainer etc.
According to me the more charts a new comer see and analyze before trading is very good learning process and after learning the chart patterns correctly one can do good in market.

 

dear sanjay
you are absolutely right.after reading shabbir book iam watching and analysing stocks which are 52 week low.eg adani ent,beml,optocircuit.earlier i used to buy stocks which have fallen 50perecent are more.now with the helf of this forum iam learning a lot.thanks to shabbir and all forum members.
from mahipalreddy