How to Succeed in Stock Market ?? Core Strategies & Stock Examples! #Face2Face with Prabhakar Kudva
Published: 2024-11-22
Status:
Analyzed
Published: 2024-11-22
Status:
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Zentech is predicted to consolidate its price in the short term.
"we continue to hold it because defense we feel is a much longer story but for the time being you know from a price action point of view we expected to consolidate"
Pending
Novice market participants are predicted to incur learning costs, typically experiencing losses for 2-3 years after starting.
"generally two to three years from the time you start entering the market have it's part of the learning cost"
Pending
Swing trading is predicted not to work in the long term for market participants who cannot dedicate full-time screen time.
"swing trading it is not going to work in the long term"
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A significant change (increase or decrease) in a company's earnings level is predicted to continue that momentum for the next few quarters.
"if some company suddenly next you know level of earnings typically you will see that next few quarters will continue that momentum similarly if some some earnings fall off a cliff you will see that that trend will continue for the next few quarters"
Pending
A stock that goes up non-stop, indicating exhausted buying, is predicted to experience a very violent reaction to the downside.
"if you see a stock going up non-stop which means that all the buying is exhausted there will be a very violent reaction to the downside"
Pending
When volatility contracts, the market is definitely predicted to trend on either side very soon; a tighter contraction will lead to a more violent breakout.
"when the volatility contracts it is definite that it is going to trend on either side very soon so the more tighter the contraction the more violent will be the breakout"
Pending
Big moves or re-rating phases for stocks are predicted to typically last about two years (eight quarters).
"I found that the big moves or the reating phase is typically eight quarters which is about two years"
Pending
If a company's current quarter operating margin is significantly higher than its historical range, it is likely predicted that the margin will mean revert.
"if this quarters margin is significantly higher than that then that is a bit of a question mark because that means that either something new is happening here which you have to evaluate or it means that the margin is likely to mean reward"
Pending
Smaller companies are predicted to make bigger stock price moves than larger companies.
"smaller companies will make bigger moves and a bigger company will relatively make a smaller move"
Pending
IPOs (especially smaller companies) with improved earnings are predicted to perform well due to untapped buying power from funds.
"IPOs and smaller companies are your Best Bets because typically IPOs do not have much ownership right a lot of funds don't own them yet so there is a lot of buying power that can come and support an IPO if the earnings you know are ready to take off"
Pending
Lower float stocks with good earnings are predicted to make much bigger moves than higher float stocks.
"a lower float stock will obviously make a much bigger move the earnings are good compared to a much higher float"
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Diversification is predicted to lead to market surprises, where one stock will unexpectedly take off and become a significant contributor to the portfolio.
"typically the market surprise you and that stock will really you know take off and be one of your biggest owners"
Pending
Stocks with an earnings tailwind are predicted to be the first and most ferociously bouncing stocks after a market correction.
"if the earnings Tailwind is there then the first stocks to bounce back post a correction and with the most ferocious bounce will be these earning stocks"
Pending
Earnings momentum is predicted not to continue forever, and mean reversion will eventually come into play.
"mean reversion will again come into play earnings momentum forever continue"
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A stock's re-rating phase is predicted to end and de-rating will occur when the market perceives its underlying growth 'story' to be over.
"the derating will happen when the market feels that the power story is over"
Pending
The earnings surprise strategy is predicted to have an average hit rate of 60-70% (stocks being profitable), with a 90% hit rate in strong bull phases and below 50% in bearish phases.
"on an average the hit rate is 60 70%... 60 70% of the stocks are profitable... and maybe 30% of the stocks don't work. In very good phase like I said the hit rate can be 90% also and in a bearish phase the hit rate can be below 50% also."
Pending
The earnings surprise strategy is predicted to yield an average 40-50% upside for winning trades and an average 15% downside for losing trades, resulting in an average 1:3 risk-reward ratio.
"on an average you get anywhere between you know 40 to 50% upside and what doesn't work on an average you can get out at about 15% downside one is to three kind of a risk in in an average case"
Pending
Swing trading strategies will not be effective for market participants in the long term.
"swing trading it is not going to work in the long term"
Pending
Companies experiencing a sudden surge in earnings are predicted to continue that earnings momentum for the next few quarters.
"momentum company suddenly next you know level of earnings typically you will see that next few quarters will continue that momentum"
Pending
Companies experiencing a sharp decline in earnings are predicted to continue that negative earnings trend for the next few quarters.
"similarly if some some earnings fall off a cliff you will see that that Trend will continue for the next few quarters"
Pending
Company profit margins are predicted to revert to their historical mean over time.
"margins will to to me reward so again a very very strong struct tendency"
Pending
In a bear market, when seller exhaustion occurs (evidenced by very few stocks above key moving averages), even a small amount of buying is predicted to lead to an upward move in the market or individual stocks.
"exhaustion especially in bare markets and all we will see that the the bread will completely die your number of stocks which are you know above let's say 50 em or 20 EMA will come in single digits that time what has happened is all the sellers have sold and they have exhausted themselves and even a small buying can take the market or that stock up"
Pending
If a stock rises non-stop, indicating buying exhaustion, it is predicted to experience a very violent downside reaction.
"if if you see a stock going up non-stop which means that all the buying is exhausted there will be a very violent reaction to the downside"
Pending
A contraction in market volatility is predicted to definitely lead to a trend breakout on either the upside or downside very soon, with tighter contractions preceding more violent breakouts.
"when the volatility contracts it is definite that it is going to trend on either side uh you know very soon so the more tighter the contraction the more violent will be the breakout"
Pending
Stocks that exhibit breakout earnings, which then continue for multiple quarters, are predicted to experience significant price appreciation over several quarters.
"stocks which make big moves typically have breakout earnings... and that breakout earnings then if it continues for multiple quarters then the stock makes a big move and continues like that for you know several quarters"
Pending
Both growth candidates with breakout earnings and turnaround candidates (those exhibiting mean reversion in fundamentals) are predicted to generate significant stock price movements.
"I'm looking for breakout earnings in stocks and I'm looking for mean reversion in you know fundamentals which means that I'm also interested in turnaround candidates so I am interested in growth candidates and I'm interested in turnaround candidates both of these can provide us you know big moves"
Pending
If a company's current quarter profit margin is significantly higher than its historical range, it is predicted that the margin will mean revert in the future, unless new fundamental changes are at play.
"if this quarters margin is significantly higher than that then that is a bit of a question mark because that means that either something new is happening here which you have to evaluate or it means that the margin is likely to mean reward"
Pending
In a bull market, if a stock's earnings analysis is correct, the stock is predicted to gap up with high volume and rally, indicating a likely re-rating.
"if it's a bull market and your analysis is right the stock will Gap up with huge volume and the stock will just take off right if it is a that is a sign that you know that your analysis is correct and the stock is likely to get reated"
Pending
In a bear market, even with positive earnings analysis, a stock may gap up but then fade, consolidating within a range before rallying when the overall market environment improves. However, in strong situations, it can rally even in a bear market.
"if it is a bare Market the behavior will be very different the the reaction it will still open Gap up but it may the gap May fade the stock may you know come back into the range and they spend some time there and then when the market environment improves it may you know take off or even in a bare Market if the situation is so good then even in a bare Market the stock may continue to Rally"
Pending
The earnings breakout strategy is predicted to have a hit rate of 70-80% or higher in a bull market, potentially exceeding 90%.
"the hit rate the hit rate of the strategy in bull market can be 70 80% or more uh you know last year it was probably more than 90%"
Pending
The earnings breakout strategy is predicted to have a hit rate of 50-60% or lower in a bear market.
"hit rate of the strategy in a bare Market is maybe about 50 60% or even less"
Pending
If earnings improvement is observed across an entire sector, rather than in just one company, it is predicted to signal a major sectoral change, leading to a re-rating of stocks within that sector.
"if the Improvement is earnings is happening across the sector and not just one specific company then that that means uh you know that uh what you've probably got it right you know that this is a major sectoral change and uh you know the stock can actually get rated"
Pending
Smaller companies are predicted to make larger stock price moves compared to bigger companies when favorable conditions arise.
"if you have a choice between a smaller company and a bigger company always pick a smaller company because smaller companies will make bigger moves and a bigger company will relatively make a smaller move"
Pending
IPO stocks that have corrected post-IPO and then show improved earnings are predicted to be strong performers because low institutional ownership allows significant buying power to support their rally.
"IPOs and smaller companies are your Best Bets because typically IPOs do not have much ownership right a lot of funds don't own them yet so there is a lot of buying power that can come and support an IPO if the earnings you know are ready to take off"
Pending
A lower float stock with good earnings is predicted to make a much bigger price move compared to a higher float stock with similar earnings.
"a lower float stock will obviously make a much bigger move the earnings are good compared to a much higher float"
Pending
Stocks identified by this strategy are predicted to make quick 20-30% price moves immediately after market open.
"you have to immediately buy it you have to buy it as soon as the you know Market opens because these stocks make very quickly 20 30% moves"
Pending
By diversifying and picking multiple candidates, the market is predicted to surprise with some stocks taking off significantly and becoming major portfolio contributors.
"you can pick more more candidates and typically the market surprise you and that stock will really you know take off and be one of your biggest owners"
Pending
Investors should start trimming positions around the fourth or fifth quarter of consistent good earnings results, as the market is predicted to have already priced in the positive news and may not continue to re-rate the stock.
"Market doesn't wait right so you have to start trimming around four or fifth quarter"
Pending
If a company's earnings and margins are exceptionally high, making significant further improvement difficult, the stock is predicted to stagnate in price, indicating a point where trimming positions is advisable.
"if the results are so good and the margins are so high that it's hard to significantly improve on these numbers right then you have to you know look at trimming them"
Pending
Stocks with strong earnings momentum are predicted to be the first to bounce back after a market correction.
"when the markets turn around correction so these are the stocks which are the first to bounce back"
Pending
Strong earnings momentum is a temporary phenomenon and is predicted to eventually mean revert, indicating a need to exit positions.
"otherwise reversion will again come into play earnings momentum forever continue we are betting on very you know very good or very strong earnings momentum by definition forever it's a pH have exit"
Pending
On average, the earnings breakout strategy is predicted to have a 60-70% hit rate, meaning 60-70% of selected stocks will be profitable, while 30-40% will not work.
"on an average the hit rate is 60 70% okay right when I say hit rate it just means that 60 70% of the stocks are profitable right and maybe 30% of the stocks don't work"
Pending
On average, the earnings breakout strategy is predicted to yield 40-50% upside for successful picks, with losses averaging about 15% for unsuccessful picks, resulting in an average risk-reward ratio of 1:3.
"on an average you get anywhere between you know 40 to 50% upside and what doesn't work on an average you can get out at about 15% downside one is to three kind of a risk in in an average case"
Pending