Finding reason for a stock direction


#1

Hi
My question may be silly but wanted to know what’s happening in market.
How can we find a defined decision without using charts everyday for a stock to have possibility of increase or decrease in stock price ( how demand / supply determined each day ) ?
If there is no news or no events related to that stock then what factor will boost stock price growth.


#2

If you want to completely avoid technicals, then you could buy fundamentally strong companies. Good fundamentals will eventually take a stock price up. If you are looking for short-term trades without using technicals, then you could track stocks that could benefit from upcoming policy announcements etc to enter a trade. If you want to trade intraday with no charts at all, I wouldn’t suggest that.

Supply and demand for a stock are usually determined on a real-time basis.


#3

Where can I able to find fundamental strong stocks?


#4

The same way which we apply for Our Life.

We choose the best school.
We choose best college.
We choose best company for job.
We choose the best better half (wife)
We choose the best location for home.
We choose the best car ( as per in our budget)
We choose the best Mutual funds.
We choose the best doctor.

Then why not best stock???


#5

Am asking what factors to decide. I don’t know which factors to choose for stock


#6

You’ll have to do your own research for that. Start learning fundamental analysis. Make sure you ate able to decode cash flows, balance sheet, financials etc. See the overall growth, debt, NPAs etc. of the company you are interested investing in. You shouldn’t invest in any company if don’t know how it earns. Fundamental research takes time. It comes along with experience. If you are interested, I can tell you two such companies that are fundamentally very strong. It’s my own research and I don’t want anyone to act upon it without thinking.


#7

Can I consider operational revenue & ,debt as factor?


#8

Yes! Consider everything because you are putting your hard earned money.


#9

This was discussed in another post:

Key fundamentals people study while evaluating a company:

Consistent EBITDA, good cash flow for liquidity, discounted cash flow valuation to ensure current market value < intrinsic value of company, low debt so debt to equity ratio < 1, increasing EPS and profit margins, consistent ROE and ROCE, low PE growth ratio to buy cheap.