As the COVID-19 crisis unfolds, the stock market is looked at with uncertainty by traders and investors. But at the same time we see that the Indian stock market has indeed not been greatly affected by the pandemic and in fact, to some extent has shown growth in the past three months. There is also an increase in the number of online retail investors amidst the pandemic.
Mr. Vivek Bajaj, the co-founder of StockEdge, a leading financial market analytics app in India, talks to the Business Upturn about the various parameters, analysis, trends, and other technical aspects in the market these days which a trader can consider while trading in the market.
“A trader should always look at the price. When you go to a temple you always pray to a god. In the stock market Price is the god. When you look at the price continuously for over a period of time you realize the movement in the price, and you enable yourself to predict the price in a much better manner than anyone else,” says Mr. Bajaj.
He explained that focus is a very important aspect of the trade. With many new people coming into the system, hovering around here and there figuring out what to do and what not to do, and ultimately doing things based on other people’s recommendations, it will create a tough time for them.
“Focus on 10 stocks for 10 months with a loss of a maximum of 10% per month of your capita. If you do that the maximum you can lose is 100% of your per capita. The process of giving discipline to yourself is vital,” he continues.
With regard to the spike in the number of retail investors amidst pandemic and how they can acquaint themselves with the technical aspects, terms, and trends of the market, he advises people to go through various contents available online such as in Elearnmarket and certain YouTube channels which provides free content. He also says that it is important to identify the area where you want to get into and access specialized training in that particular area. Along with this, using StockEdge to analyze the market would be highly effective.
On the matter of analysis of the stock market, Mr. Bajaj says, “If you are a trader and you are looking for a period of one day to probably 3 months technical would be more relevant and if you are an active investor and looking for more than 3 months then fundamental has more relevance.”
