Trading with Vivek

on


Class -1

  • Increase year of your life to trade for long - Take care of health 
  • Go for walk , do exercise do meditation , stop drinking and smoking 
  • Complete all the task which can be completed in 3 min.
  • Take information from other but make your own opinion
  • News is:- what happened already , Opinion is:- what can happen 
  • If we have 10K participant in stock market then only 1000 people are making more than FD money from market in period of 3 year. And there is only one Operator on each 1000 people.
We will be trading in 3 type of stock category. V40 , V40 Next and V200 - there are condition for companies to become part for each group.

V40 : - 

  1. Company should be market leader of the sector - by sales and profit it should be on 1,2 or 3rd position like if we are checking banking sector then company’s are HDFC, ICICI or Kotak bank
  2. Com should be in business for last 15-20 years ( not listed but in business )
  3. Comp should be almost debt free
  4. Company should have good future prospect for next 10-15 year ( means the less penetration of the sector on market )
  5. Com must have pricing power - com should be capable to increase price of product if raw material /manufacturing cost is high. It should have brand value ( Brand matters when product quality is different. ) 
  6. Company should not be a government company 
  7. Only Large and Mid Cap company should be in this list.
V40 Company list - https://parvejlearning.blogspot.com/2025/09/v40-and-v40-next-company-list-2025.html

V40 Next : - 

  1. Company should be market leader of the sector - by sales and profit it should be on 1,2 or 3rd position like if we are checking banking sector then company’s are HDFC, ICICI or Kotak bank
  2. Com should be in business for last 15-20 years ( not listed but in business )
  3. Comp should be almost debt free
  4. Company should have good future prospect for next 10-15 year ( means the less penetration of the sector on market )
  5. Com must have pricing power - com should be capable to increase price of product if raw material /manufacturing cost is high. It should have brand value ( Brand matters when product quality is different. ) 
  6. Company should not be a government company 
  7. Only Mid Cap and Small Cap company should be in this list.

V40Next Company list - https://parvejlearning.blogspot.com/2025/09/v40-and-v40-next-company-list-2025.html


Note : -  

  • a small cap or mid cap company can be market leader, for Example SIS, a largest company in the sector can be small cap, mid cap or large cap. 
  • Top 100 company based on market capitalization are categorized as large cap ( from 1- 100 )
  • Next 150 company are called mid cap ( from 101-150 )
  • Remains all companies are small cap 
  • There are almost 6000 are listed on BSE but Only 1500 com are listed on NSE


V200 : - 

conditions to select to v200 comp

  1. Company must have more than 200Cr profit during last 12 month.
  2. Return on capital employed ( ROCE ) should me more than 20%
  3. Debt equity ratio should be less than 0.25 ( less than 25% debt ) 

Note : - Above conditions are not applicable on NBFC and Banking Companies. 


Filter on Screener 

Net profit preceding 12 month > 200 

AND

Return on capital employed > 20 %

AND

Debt to Equity < 0.25



Note : -  Below will be conditions for banking and NBFC V200 Companies 


V200 NBFC and Bank : - conditions to select to v200 NBFC and Bank comp

  1. Company must have more than 1000Cr profit during last 12 month.
  2. Return on Equity ( ROE ) should me more than 10%


Filter on Screener 

Net profit preceding 12 month > 1000 

AND

Return on equity > 10 %



Stock Market can come down but can’t stay lower 


Market participants are  divided in 3 category : - 

  1. promotors ( they are real investors , they do not trade but just hold it. ) 
  2. Institutions : - they are divided in 2 category FII and DII
  3. Public : - divided in 2 category , Rich People ( HNI - holding 1% in company ) and retail Public.

Practically there is only two category 

  1. Strong hands : - Promotors + FII + DII + HNI ( they never use stop loss but only they make money )
  2. Week Hands  : - retail investor , Public - HNI ( they use stop loss and never make money )
  3. FII are mutual fund houses of India 
  4. DII are mutual fund houses of other countries. 


Promotors and Retail public and not operating the market and they cannot - only FII , DII and HNI can operate the market , these people are capable enough to drive the price of stock from 1 RS to 100 Rs and from 100 RS to 1 RS , they are capitalist . They are managing their money and clients money.

Investing is buying and not selling ever where Trading is buying to sell, in investing we cannot make more than 20% CAGR but in trading we can reach up to 40% CAGR





Class -2


 Only few things we have in our control in Stock market 

  1. Finding good business for 10-15 year ( penetration )
  2. Finding a good market leading company in that Business. 
  3. To buy this company at right price
  4. When to Sell the stock 


Things not in our control : - 

  1. Market vitality
  2. Holding Period 


So Focus on first 4 thing  



Strategies - we will be working on below strategies 


SMA - Simple Moving Average Strategy -

This forms a line patter based on 20,50 and 200 day moving average of a stock price


below are condition to apply this strategy. 

  • Simple Moving Average ( SMA ) - this strategy uses 200, 50 and 20 Days of moving average of a stock price.
  • Conditions : - 
  • use this Strategy on only V40 Companies 
  • Days Candle stick chart 
  • No stop loss in this strategy
  • In one stock, one trade we will invest only 3% of portfolio but not less than 10K 
  • Based on this strategy we will not average anything - no averaging ( if we bought on 100 RS and price is now 90 we will not take second trade ) 
  • Buy when 200 line on top, 50 day line in middle and 20 day line on down and the price on bottom for the day.
  • Take tetrode next day
  • Sell when above conditions are exact opposite


    Indicator Setting - name:  SMAs

    Inputs

    SMA 50 - Green

    20

    SMA 100  - Red

    50

    SMA 200 - Black

    200


    KnoxVille - applicable only on V40 Companies -

    In this strategy top candle connects to top candle and bottom candle connects to bottom candle and forms a straight line, Line can be of any size. This line will appear when start point and end point is available. Start point of line is not important only end point is important. This strategy will never allow you to buy on top lever . 
    • Apply this only on V40 company 
    • There is no stop loss
    • Buying point is end point of down trending line 
    • Selling point is end point of up trending line 
    • Alway buy/sell next day in the morning ( 9:15 is best time ) 
    • We can average if second trade is below 5% from the first trade 
    • We will invest only 3% of portfolio in one trade - to total 6% allowed on this including averaging

      Indicator setting : -  name :  RB_KnoxDiv

      Inpute 

      Bars back 

      200

      RSI Period 

      14

      Momentum period 

      20


      V20 Strategy - this strategy applicable on V40, V40Next and V200 Companies  ( all 3 Group )  


      1. There should be a bunch of green candles continuously ( no red in between ) and movement from the bottom to the top should me more than 20% 
      2. create the range from bottom to top 
      3. Wait from price to come on bottom level again 
      4. Buy
      5. Wait for price to go again back till top of this range 
      6. Sell
      • Daily candle stick chart
      • No stoploss 
      • We can average one time but gap from first trade to second trade should me minimum 10 % 
      • 3 % will be invested in one trade 
      • Can be a government company too.
      • Can buy and sell on same day if target are achieving 
      • Can place GTT order as we know the target price



        Class - 3


        Today we will lear few more strategies 


        RHS - Reverse Head and Shoulder : applicable only on V40 and V40 Next Companies 


        1. We will use V40 and V40 next to apply this strategy
        2. No Stop loss
        3. Only 3% of portfolio amount in one trade 
        4. Its recommended if potential gain is more than 40% then use it 
        5. There could be more than 1 shoulder either side of head 
        6. All the shoulders could be of different shape and size
        7. The depth of the shoulder should not be deeper then head 
        8. When there is more than one shoulder on either side then this pattern is called complex reverse head and shoulder patters 
        9. Complex revers H&S patter is much more reliable then normal patters 
        10. Make this one Daily Normal chart and not on Log chart 
        11. To major the profit potential measure the depth of the head (Lowest point of the head till neckline) 
        12. And place the measurement above the connecting horizontal line of head and shoulders 
        13. The buying point is at the breakout with green candle on closing bases from the base formation of the right shoulders 
        14. Breakout + Green Candle + Closing bases + Base formation + on the right shoulder 
        15. Body of the Green candle should not be crossed by horizontal line while making the line , how ever we can cross the Wik of green candle and full red candle


        CwH- Cup with handle : applicable only on V40 and V40 Next Companies 


        Technical target is actual target








        V20 Strategy

        1 applicable on V40, V40 Nxt and V200 group ( on V200 with 200 Day MA )

        2 we will invest 3% of total portfolio in one Trade

        3 There is no stop-loss

        4 a bunch of continuous green candle and the movement from lowest low till highest high should be more than 20%

        5 Draw the range of 20% ( or more ) movement

        6 buy when the price is agin on lowest line level

        7 sell when price is again on highest line level

        8 we can average only one time ( 3% more ) in only V40 and V40 Nxt companies if another opportunity comes like V20 strategy before achieving first v20 target

        9 on V200 Company use it with 200 Day Moving Average and buy when the buying signal is below 200 Days MA

        10 buying is only Valid for 12 month from the day of 20%+ up move

        KnoxVille

        1 applicable only on V40 Company

        2 we will invest 3% of total portfolio in one Trade

        3 There is no stop-loss

        4 we can average once with 3% more

        Simple Moving Average

        1 200,50 and 20 day moving average will be used

        2 we will average if price is 10% down from buying price

        Reverse Head and Shoulder

        1 applicable only on V40 and V40 Next companies

        2 we will average if price is 10% down from buying price

        3 this chart pattern should not develop on life time high price of stock / if the pattern on life time high, potential gain should be min 40%

        4 if the technical target is lower than the life time high, we will sell on life time high. if the technical target is higher that life time high, then we will sell on technical target.

        3X3

        1 Stock Price should be down more than 67% from the life time high.

        2 we must understand the reason of the fall ( for this we should have business understanding )

        A. Sales is down and because of this net profite is down so the stock price is down too

        B. Sales is OK, Net profit came down so the stock price is down

        C. Sales was Ok, Net Profit was Ok, Only stock price is down ( bad sentiments )

        3 The Reason of the Fall should not Exist anymore

        4 there should be a proven track record of good performance in the past

        5 there should be a improvement in latest quarterly result.

        6 there should be a good future prospect of company product or services

        7 after meeting above 6 condition, shock price should still be down 50% or more from life time high.

        8 we will buy if stock is meeting above 7 conditions.

        9 if there is 100% gain within 12 month, we will sell ( book profit )

        10 If there is no 100% gain within 12 month of buying then we will sell on life time high

        11 if we are not blesses then above 10 points are useless , so be lucky - time management, exercise , meditation :)



        Always give preference to V40 company, in V40 also give 1st preference to Averaging trade

        Sr.
        Strategy
        Works on Company
        invest %
        Averaging 
        1
        SMA
        V40
        3%
        only once, if 10% down from first buying and sell if its 10% up and repeat
        2
        KnoxVille
        V40
        3%
        can average only once ( 3 % more ) if again buy signal comes before target
        3
        R H&S
        V40, V40Next
        3%
        only once, if 10% down from first buying and sell if its 10% up and repeat
        4
        CwH
        V40, V40Next
        3%
        only once, if 10% down from first buying and sell if its 10% up and repeat
        5
        V10
        V40, V40Next
        3%
        its averaging of SMA, H&S and CwH strategy
        6
        V20
        V40, V40 Next, V200
        3%
        once based on V20 strategy( V20 down ) but only in V40 &V40nxt Company
        7
        3x3
        ALL NSE listed Comp.
        3%
        No Averaging









        Class - 7 


        • IF you don’t want to see your portfolio in red more than 10% , always trade in V40 companies. 
        • There are a lot opportunities in V40 companies. If not getting any opportunities then market will crash soon. 
        • If you dont have time for 3-4 year then 3X3 is best strategy.

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