Ask me Anything on Trading & Investing

#1

Hi, I’m Karthik Rangappa. I’ve been an active market participant for over 14 years. I’ve had my fair bit of success, failures, and learning from the markets. I’ve been sharing all of this and more on Zerodha Varsity. Ask me anything about trading and investing in the Indian markets and I’ll be happy to share my experience with you.

By the way, Zerodha or any of its employee do not give out stock tips. So I’d suggest we stick to broader topics please. :slight_smile:

Thread closes on 30th Nov 2017.

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pinned globally #3
#4

Thank you karthik sir for this initiative.
On lighter note there is discrepancy in your market participation years on your main profile and in note here.

#5

What are the best stock available at very fair value to invest for long term
What are the best indicators to choose value stock? P/e i think misleading many times
Whts your view on pharma ?

#6

Lol :slight_smile:

Markets are all about discrepancies, isint it:?

This profile was created about 4 years ago :slight_smile:

1 Like
#7

I have bought delivery of yes bank@368.Please suggest

#8

The best stocks are the once which can showcase balance sheet strengths and consistency in terms of revenues, profitability, and associated margins.

Basic ratios like PE, ROE and Interest coverage helps. I particularly like the ROE for its ability to convey how good the promoters are doing on their own investments.

Pharma has had a great bull run for the last 22 years. I get a feeling, that the sector may not be in a hurry to bounce back anytime soon.

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#9

You will have to check with your registered investment advisor for this.

#10

Hi Sir Karthik
can you help me regarding buyback offer of Infosys
thanks

#11

@jamalss4 This post has everything you need to know about the buyback.

#12

Hey @Karthik Thank you for AMA.

I’ll complete my 3 Years of Trading on this 12 December 2017.
I see myself as a Technical Analyst in upcoming years.
I love doing Technical Analysis.

I would Like to hear from an expert what are Technical things to keep in mind while doing Technical Analysis.

Thank you.

removed this banner . It will no longer appear at the top of every page. #13
#14

Congrats!

If you wish to take up TA seriously, then I’d suggest you do a CMT certification. The rigor of the certification will ensure you are on top when it comes to technical analysis.

6 Likes
#15

Hi @Karthik, it’s a pleasure to see an AMA with you.

1 Like
#16

Hi Karthik,

Thanks for the AMA.

Do you see bearish movement in Indian market anytime soon as we have already witnessed bullish trend for almost 1.5 years now.

#17

Hi karthik, please enlighten us regarding simple strategies which even a newbie can get benefited with while trading intraday.

I m not asking about doing detailed technical analysis. All I want is if you can guide everyone of us regarding some basic strategies (if any), which can reward a trader with decent profitable rate.

Majority of the time, I don’t trust or rely solely on Technical analysis. I have seen indicators going wrong. I have seen stocks giving false breakouts only to trap the traders in the end.

I have seen huge bidders comparatively to sellers & still price going down and vice versa.

I have seen despite all the fundamentals, technicals in place, its always a 50- 50 chance. Either you win or you make a loss.

To add more, despite the odds being 1/2, the success ratio as told by many intraday traders who are obsessed with chart patterns, indicators, etc etc, is not even upto 50%.

I m sharing the experience(s) of many traders including this forum & other than this forum who have shared this.
Yes I know about what matters is as long as you make big percentage gains comparatively to minimal stop losses. Even at an overall success rate of 40%, you are profitable in the end & you make money.

But I m not happy with 40 - 50% success rate as told by many full-time traders who duly practice technical analysis.

Disclosure - I m not a fan of technical analysis & only apply it minimally. But I have been more than successful. My success rate has remained 70 - 80%.
I do make nominal losses too. Its impossible to not make losses. But still the overall success rate which I hear from others is extremely discouraging.

2 Likes
#18

Hi @Karthik thanks for the AMA. You’ve answered a similar question above. But can you give a brief framework when it comes to picking quality stocks? What has worked for and what were your experiences. Can you give a brief about which valuation metrics you use and any resources you would recommend? I remember reading your post about a checklist when it comes to analyzing companies which are coming out with an IPO. I’m hoping if you could create sort of similar checklist/vague framework when it comes to analyzing, screening and picking stocks, Hope I’m not being too imposing with the question.

#19

Hi Karthik,

Given your 10 + years of Involvement in the Indian stock market industry,

What are the 3 things you would implement immediately if you were to be appointed as the next SEBI chairman ?

2 Likes
#20

Hi @Karthik,

I have been investing/trading in Indian stock market for around 10 years(without learning , just random trades based on gut feeling, a friends advice etc.) and have not achieved good success yet.
Its been past 6 months i have started learning about the core principals, basics of trading and technical analysis. Can you please suggest good books(in order of complexity ) which have helped you in great deal to become a successful trader.

PS:- I have gone through most of the zerodha varsity chapters already :slight_smile: and keep revisiting them as an when i feel to refresh my concepts.

Regards
:slight_smile:

#21

Hello Karthik,

I have asked this question on the forum but not been received any follow up to the below questions.

Considering your 10+ years of experience in and out of the Indian Stock Market Industry, hopefully you can clarify the below in this AMA session.

  1. On Screen Shot 1: How does so many prop desks end up trading the same stocks on the same day, are these a lobby or a group of friends with a specific agenda for each day ?
  1. On Screen Shot 2: Is the BUY and SELL price on this particular Bulk deal Real ? . If yes, why do they risk so much money for so little profit ? What is that a retail trader do not see in this kind of bulk deals information ?

Thank You.