My first Rodinhood Open House and Maruti Suzuki

The 22nd June 2012 Rodinhood Open House was the first one for me.

Many thanks to Alok Rodinhood Kejriwal and Himanshu Mody.

Why?

Because at the Rodinhood open house you meet Ideas (and creators of those ideas called ‘entrepreneurs’).

I was carrying an idea too.

If there was a meter to measure entrepreneurial energy, the meter would have exploded. Simply because 15 unique ideas were unpacked with strong entrepreneurial passion.

The passion to make it work.

              

I unpacked www.ChaiStocks.com

Is it about Chai/tea or Stocks/shares?

At ChaiStocks, you get stock market trading calls and investment ideas - free, every day.

Immediate questions fired...Why is it free? How will you earn?

The ChaiStocks.com team believes – “Let the user get it for free and ask someone else to pay for her”.

Such type of business model works well if you are confident that your product/service meets a particular need and makes the user come back to you, regularly.

Naturally, Alok Kejriwal had a question.

Can you give one stock tip Now?

And another one followed,

Explain it Why?

 

10 seconds later...I replied Buy Maruti Suzuki.

Why?

Because, technically, Maruti Suzuki had given a Japanese candlestick pattern called Hammer (a bullish reversal pattern) on the daily price chart. And the momentum indicator too supported the bullish view.

Result (as on 4th July 2012):

In the next 8 trading days, Maruti’s stock price is up 11%.

 

www.ChaiStocks.com gives many such ideas, daily.

The Rodinhood open house not only shared business ideas but also a trading idea!   ;-)

Budding entrepreneurs should not miss the next open house on 6th July 2012 at NSE, BKC – Mumbai.

See U there!

 

Written by Milan Bavishi, Founder – www.ChaiStocks.com

Milan can easily be reached at www.facebook.com/milanbavishi

Views: 1085

Tags: ChaiStocks, Entrepreneur, Hammer, Ideas, Investment, Maruti, Milan Bavishi, Open House, Stocks, Trading

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Comment by Vijay Khubchandani on July 11, 2012 at 1:57pm

@Milan, would recommend you to add a "How It Works" link for an InfoGraph / Video / Flash etc. on your website to educate people about the Technical Analysis procedure.. All the Best..

Comment by Nishant Agrawal on July 7, 2012 at 3:38pm

@Vishal: There's one advantage with this luck stuff. When the going is good, praises flow in. When things go bad, one can always blame the stars.

Comment by Milan Bavishi on July 7, 2012 at 3:25pm
@Ankur: for registration, enter first 3 characters of your city and wait for suggestions. Once you click on your city name. the pin codes will appear.

Hope this helps. :)
Comment by Ankur Sharma on July 7, 2012 at 1:50am

@Milan I am unable to register as stated below. Can you please help?

Comment by Milan Bavishi on July 6, 2012 at 11:56pm

Thank you very much, Vishal Sir.  :-)

Comment by Vishal Khandelwal on July 6, 2012 at 11:49pm

@Milan - "Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks." (Courtesy Mr. Buffett)

So all the best!

Comment by Milan Bavishi on July 6, 2012 at 11:46pm

@Vishal: Let me share with you a secret. Do Technical Analysis on fundamentally good companies! 

Vishal said: "But I fail to understand why I don't find any technical analyst among the world's top 5/10/15/20 investors!"

Vishal Sir....you have given me a direction. :-)

Comment by Vishal Khandelwal on July 6, 2012 at 11:28pm

I understand that, Milan. But I fail to understand why I don't find any technical analyst among the world's top 5/10/15/20 investors! In fact, here is what Warren Buffett (and you know he's the world's best investor by far) had to say on TA - "I realized that technical analysis didn't work when I turned the chart upside down and didn't get a different answer."

Also as Peter Lynch, another great investor, says, "People may bet on the hourly wiggles in the market (as suggested by TA), but it’s the earnings that waggle the wiggles, long term."

I'm sure you understand that a stock is a share in a business, and that's why its value is derived from how a business does and now how its price has done in the past. The funny thing is that when a stock price rises, TA would tell me that it will rise even further and when it crashes, TA would tell me to avoid the same!

It's the failure to do fundamental analyses of businesses and depend on TA that leads investors to wealth erosion. We see this day after day!

Now you may wonder why am I bashing TA so much. Let me disclose that I have 9-years of experience being a equity research analyst (100% fundamental analysis) and currently run an investment education initiative called Safal Niveshak, which aims to make small investors independent and sensible in their stock market investing. And I've heard several harrowing tales from people, who had been bitten by the TA bug in the past, and then were bashed up by the results they got from it!

My biggest question to you is - have you assessed the cost that investors might have to bear in the long run from your free tips?

If yes, all the best! If not, why not?

Comment by Milan Bavishi on July 6, 2012 at 11:10pm

@Vishal khandelwal: Several traders and investors across the world have a similar concern that you have.

For the 'smarties': There are two ways to research any market. Fundamental & Technical.

Fundamental analysis is about understanding the business and reading its balance sheet & P&L. And then you try to forecast future. And based on that, you value the company.

Technical analysis is about reading the price history and psychology behind the price movements. It is a well defined art. For India it is relatively new, but internationally Technical analysis is well a accepted discipline of trading and investment. Infact Technical analysis as a study is used since last 400 years.

http://en.wikipedia.org/wiki/Homma_Munehisa

Hope this helps, Vishal Khandelwal.  :)

about me: out of my eight years in stock market...i have invested 4 years in fundamental research (including i-banking) and the other 4 years i have grown with technical research.   :) 

Comment by Vishal Khandelwal on July 6, 2012 at 8:13pm

Hi Milan,

Do you really believe that an investor would do himself justice by following your advice that is based on simple charts and no fundamental research?

I mean, almost all stocks have risen in the past few days, so not sure if Maruti could be an exception here.

I am not trying to be critical here, but do you believe this initiative of spoon-feeding investors (and not backing your advice by any fundamental research on companies) will benefit them?

I fail to understand how a stock's price can indicate the direction in which a company is going! And as you know, a stock isn't just a piece of paper but an ownership in a company with real business and real earnings.

I have seen a lot of investors losing all their hard-earned savings buying stocks that they themselves don't known anything about. So I am worried here!

Regards,
Vishal

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