HOW TO CHOOSE STOCKS TO INVEST FOR LONG TERM WEALTH CREATION ?

A THREAD🧵

In this thread I'll list down all the checkpoints to find multibagger stocks by doing self-search even if you are new to stock markets

Let’s check 👇

1. Think yourself about a business which you wanna start to invest in as an entrepreneur

2. It should meet the following criteria :

i) Good Sustainable Margins
ii) High Growth In The Years To Come
iii) Require less Regular Capital Expenditure
iv) Pricing Power

3. List out the sectors like Chemicals, IT, FMCG, Media, Etc

4. List out the companies operating in that sector. You can use google and business magazines like Dalal street, etc for the same

5. Filter companies which are promoted by reputed business houses or good promoters

6. Check there products and reviews from clients/users or stakeholders engaged with them like retailers, consumers, etc. Whether they like it and what’s there view

7. Check demand elasticity of the product like if it’s medicine/consumer goods then demand is almost inelastic

8. Check government regulations if anything can cause severe impact to the industry or to the business like cigarettes or Alcohol if banned or duty increased by Govt can severely impact the Company

9. Try to avoid highly government regulated industry.They are generally laggards

10 can't miss Excel skills every single user should know: 📊

Custom Lists:

Stop wasting time entering the same customer names, product types, and generally repetitive data.

Creating custom lists is easy.

• Excel
• Preferences
• Custom Lists
• Create and click "Add"

Type the first item, then drag, and the rest of your list appears!

Data Types:

Data Types is a relatively new feature that was added to Excel in 2020.

It allows you to enter text, select data type, then extracts information based on the criteria you select.

Here's a pretty cool example using states where we can pull population data instantly:

SORTBY:

I'm a fan of organized data.

What I'm not a fan of?

Manually updating my sort every time something changes or new information is added.

Here's an easy fix.

With the SORTBY function, we can create a table that dynamically adjusts along with our data in real-time.

Unique:

Back in the day, Pivot Tables were my go-to for identifying unique items within large data sets.

Not anymore.

Now I use the "Unique" function in MS365 to easily identify and separate repeated items.

So simple.

Don't blink or you'll miss it:

Trading on chart patterns is difficult, Until you see this:

Free Technical Analysis course (1/10) 🧵

Rounding Bottom or U Pattern or Saucer all are one and the same with different names and it is a bullish pattern.

Technically, it can be used for both continuation trades in an existing uptrend and reversal trade as well in the case of the downtrend.

Now how we trade rounding bottom pattern?

We try to find out stock that has the pattern but has not given a breakout above the neckline.

Generally, we have observed that majority move happens on breakout itself hence; we keep this stock in the watchlist just before breakout.

What does this mean?

Basically, we look out for the charts where price is consolidating just below the neckline or resistance.

As seen from the below chart where price was consolidation just below the resistance before the breakout and massive upmove.

Also, you would lot of Rounding Bottom Patterns when a stock is in uptrend. That's why this pattern is also called a bullish continuation pattern.

In below chart you can see 4 Rounding Top pattern in an uptrend for a stock.