What to do when you get a friendly tip!

Occasionally, we get a friendly tip from someone supposedly ‘in the know’ of things! We could do one of three things: Ignore the tip, do what the tipster recommends, or spend a few minutes quietly looking at the charts to see what clues we see there. Recently, a high-net-worth individual told me about a stock he was interested in. (presumably, he has been tipped off!) The stock is Subros Ltd. (Never heard that name before). He is a friend. So I told him, look, I can analyze the broad market, and Subros is a component of the index. So I can use Subros as an example in giving you a brief introduction to my methods. What follows is an extract of what I shared with him, and you, too, should use it as part of your education. Remember, I am no longer a SEBI Registered Investment Advisor or a SEBI Registered Research Analyst. (I have surrendered the two registrations as SEBI’s compliance requirements were too onerous for what I did as a hobby). That means you should NOT invest in this based on what I publish here, rather, you should consult your financial advisor.

The screenshots produced below were taken on the 14th and 15th of January 2024, when the stock was trading at Rs.654. I use the professional version of Thomson Reuters Eikon, a fantastic piece of software that you should consider using if you can afford it. I have given some links below that you can use to get a special deal from them.

As always, I first look at what fundamental news is moving the stock.

Related News from Thomson Reuters Eikon

Interestingly, the tipster informed my HNI friend about this stock a month after the big move happened! That is quite typical, don’t you agree? Anyway, I have highlighted the dates in the above screengrab from Eikon News.

Then I looked at the overview of the company, and this is what I saw.

Overview of Subros Ltd from Thomson Reuters Eikon

I quickly looked at some financials and am sharing some screenshots for your understanding.

Getting the above information took me a few clicks on my software! Next, I opened up the chart of Subros and did my analysis. You will see that I started off with the MONTHLY chart! Most traders do the opposite. They start off with the 5-minute chart :)

Yes, there is a typo in the final green text, where I wrote ‘trade’ instead of ‘trader.’ But I am not getting younger.

Guess what happened!

That was an easy 10% picking there, wasn’t it? This is how you should use my method. If you haven’t mastered it, go back to my online program where I have discussed dozens of real-life case studies, and you will pick up more useful tips.

Before I sign off, here are the links for the Thomson Reuters Eikon:

1 month free trial of Xenith

buy 1 get 2 free trial of Xenith

I recommend that you purchase the Xenith FX only at the bottom of the page. That should give you almost everything that you need and it is economical. Although it says FX data, you will still get stocks/indices and commodity prices wherever the exchange doesn’t charge for delayed data. Remember, we are buying the program for the ease of use, and the quality of information, even if it is delayed by a few minutes. Good luck.

PS: I just discovered that my online program website is down because of an upgrade of security systems. It should start working in the next 24 hours.

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