How to Find Upper Circuit Stocks ? Globus Spirits Share News

Where to Invest in Stock Market

30 Aug 202408:06

Summary

TLDRThis video script is a guide on identifying 'apart circuit' stocks using a systematic approach. It emphasizes the importance of practice and analyzing stocks that show significant movement. The speaker encourages viewers to subscribe for notifications and highlights the significance of the 'practice month' to improve trading skills. The script also discusses a case study of 'Global Spirits Limited,' illustrating how to follow a stock's momentum and quality divergence. The video concludes with a focus on risk management, advising viewers to base their position size on potential loss, and to learn from the provided examples.

Takeaways

😀 The video aims to teach viewers how to identify 'apar circuit' stocks, which are stocks that show significant movement and are discussed in the script.
🕒 The script emphasizes the importance of practicing stock analysis using monthly, weekly, and daily time frames to understand stock behavior.
📈 The presenter suggests analyzing 100 stocks that show significant movement each month, which involves reviewing 400 charts on a monthly basis and 800 unique charts on a weekly basis.
📊 The video mentions the importance of observing 'lower low' patterns in stock charts, which can indicate a stock is gaining momentum.
🔍 The script discusses the 'two-point system' for identifying entry points in stocks, which is a part of the overall process for selecting stocks.
📉 The presenter uses 'Global Spirits Limited' as a case study to demonstrate how to apply the discussed stock analysis techniques.
📝 The video highlights the significance of understanding the production process and chemical components of products, such as ethanol, in relation to stock performance.
🌐 The script touches on the impact of government policies on stock prices, particularly in the context of blending ethanol with petrol.
📉 The video provides a detailed analysis of 'Madira' stock, discussing its price movement and the importance of risk management in stock trading.
💡 The presenter stresses the importance of practice and using the discussed techniques to identify unique stock behaviors and entry points.

Q & A

What is the main topic of the video?
-The main topic of the video is how to find upper circuit stocks and the strategies to analyze them effectively using various time frames.
What is meant by 'upper circuit stocks'?
-'Upper circuit stocks' refer to stocks that have reached their maximum allowable increase in price in a single trading session, as per the rules set by the stock exchange.
Why is practice emphasized so much in the video?
-Practice is emphasized because analyzing numerous stocks across different time frames helps in understanding their unique behaviors, patterns, and the 'Two Point System' more effectively.
What is the 'Two Point System' mentioned in the video?
-The 'Two Point System' is a strategy used to identify potential entry and exit points in stocks based on certain chart patterns, like lower lows and divergences.
How many charts should one analyze for effective practice?
-The video suggests analyzing 1,200 charts across different stocks on monthly, weekly, and daily time frames to enhance understanding and build trading skills.
Why are 'Global Spirits Limited' and other stocks like it discussed?
-'Global Spirits Limited' is discussed as an example of a stock showing significant movement in the upper circuit, illustrating the strategies and patterns discussed in the video.
What role does the government policy on ethanol blending play in the video?
-The video mentions that government policies, like using ethanol in petrol blending, can greatly affect the stock prices of related companies, such as sugar mills and alcohol manufacturers.
What is the importance of risk management as mentioned in the video?
-Risk management is crucial because it helps traders manage potential losses, control their exposure, and make informed decisions on their positions.
How does the speaker suggest handling stock losses?
-The speaker suggests understanding and managing losses by setting appropriate stop-loss points and controlling position size to minimize risk.
Why does the speaker mention using a weekend and month-end for analysis?
-The speaker recommends using weekends and month-end periods for analysis as they provide an opportunity to review stock movements without real-time market pressure, leading to better understanding and preparation for future trades.

Outlines

00:00

📈 Stock Market Circuit Breaker Strategy

The speaker introduces a video focusing on a stock market strategy involving circuit breakers. They emphasize the importance of understanding the process and architecture of the stock market to identify potential circuit breaker stocks. The speaker encourages viewers to subscribe to the channel for notifications and mentions a practice month where analyzing 100 stocks that have shown significant movement can help in learning. They discuss the importance of analyzing stocks on a monthly, weekly, and daily basis and provide a detailed example of how to find circuit breaker stocks using the Global Spirits Limited as a case study. The speaker also touches on the importance of risk management and understanding the entry and exit points in the stock market.

05:01

📉 Analyzing Stock Trends and Risk Management

In the second paragraph, the speaker continues the discussion on stock market strategies, focusing on risk management and the importance of understanding the behavior of stocks. They use the example of a stock that has shown a significant price drop and rally to illustrate how to identify key support and resistance levels. The speaker emphasizes the importance of practice and provides guidance on how to analyze stocks using the two-point system, which involves looking at divergence and the starting point of a cycle. They also discuss the concept of loss control, suggesting that viewers should plan their trades based on their risk tolerance. The speaker concludes by encouraging viewers to practice and learn from the provided video series.

Mindmap

Keywords

💡Upper Circuit

An 'Upper Circuit' refers to the maximum price level that a stock can reach on a trading day, beyond which it cannot be traded further for the day. In the video, the speaker emphasizes the importance of identifying such stocks that hit the upper circuit, as they represent significant momentum and potential investment opportunities. The process of finding these stocks is a key focus.

💡Two-Point System

The 'Two-Point System' mentioned in the video is a trading strategy or concept used to identify key entry points in stock trading. It involves recognizing patterns, such as divergences in stock behavior, to make informed trading decisions. The speaker highlights this system as a crucial tool for traders, emphasizing the importance of practice and mastery in identifying such patterns.

💡Divergence

'Divergence' is a term used in technical analysis to describe a situation where the price of a stock is moving in the opposite direction to an indicator, such as moving averages or relative strength index (RSI). In the video, the speaker discusses how divergence, particularly lower lows combined with divergence, can signal a potential shift in momentum, making it a valuable tool for traders.

💡Risk Management

'Risk Management' involves strategies to limit potential losses in trading. The video emphasizes the importance of understanding and controlling risks before entering a trade, particularly by setting stop-loss levels and managing position sizes. The speaker illustrates this with an example where a trader decides on a stop loss and target to balance potential losses and gains.

💡Momentum

'Momentum' in trading refers to the strength or speed of a stock’s price movement. The video talks about how identifying stocks with strong momentum, like those hitting upper circuits, can be crucial for traders. Momentum indicators are used to gauge the continued direction of a stock’s movement, and recognizing this early can provide profitable opportunities.

💡Weekly Chart

A 'Weekly Chart' is a type of stock chart that shows the price movements of a stock over a week, with each candle representing a week of trading. The speaker refers to analyzing weekly charts to identify patterns like lower lows and divergences, which can indicate potential trading opportunities. This chart is essential for understanding longer-term trends.

💡Ethanol Blending

'Ethanol Blending' refers to the process of mixing ethanol with petrol to create a cleaner fuel alternative. In the video, the speaker discusses how government policies supporting ethanol blending can positively impact related companies, such as sugar mills that produce ethanol. This discussion is tied to identifying stock opportunities in industries benefiting from such policies.

💡Practice

'Practice' in the context of the video refers to the repeated and consistent analysis of stock charts to identify patterns, such as the Two-Point System. The speaker encourages viewers to practice regularly, particularly during weekends and month-ends, to hone their skills in identifying profitable stocks. The emphasis is on the continuous effort required to master trading techniques.

💡Global Spirits Limited

'Global Spirits Limited' is used in the video as an example of a stock that hit an upper circuit and showed strong momentum. The speaker discusses how identifying such stocks early, when they show signs of momentum like divergences or lower lows, can be highly profitable. This company represents a case study for the trading strategies being discussed.

💡Stock Analysis

'Stock Analysis' involves evaluating a stock's past performance, technical indicators, and patterns to predict its future movements. The video underscores the importance of analyzing stocks on various timeframes (monthly, weekly, daily) to identify unique behaviors and profitable opportunities. The speaker advocates for thorough analysis as a fundamental aspect of successful trading.

Highlights

Introduction to the concept of 'apar circuit' and its significance in stock trading.

Emphasis on understanding the process and architecture of trading to grasp the concept better.

The importance of subscribing to the channel and turning on notifications for updates.

The 'Practice Month' strategy involving analyzing 100 stocks that show significant movement.

The process of analyzing stocks on a monthly, weekly, and daily basis.

The challenge of reviewing 400 charts over the weekend to identify potential stocks.

The importance of focusing on 'adar deno doj monthly stocks' for better stock selection.

The concept of 'apar circuit stocks' and how they are part of the trading process.

The example of 'Global Spirits Limited' and its performance in the 'apar circuit'.

The significance of discussing stocks that have been in the news or have been trending recently.

The process of identifying 'apar circuit stocks' through a systematic approach.

The importance of following the trading process to consistently find 'apar circuit' opportunities.

Learning from 'Global Spirits' about the importance of lower lows and divergence as indicators.

The 'Two Point System' and its role in identifying entry points for trading.

The discussion on 'Madira' shares and their connection to the Chinese market and ethanol production.

The significance of understanding the chemical composition of ethanol and its impact on stock prices.

The example of how 'Madira' shares performed before and after being discussed, highlighting the power of trend analysis.

The importance of risk management in trading and how to set stop losses based on potential loss.

The concept of controlling losses and the impact of position sizing on risk management.

The call to action for viewers to practice the discussed strategies and utilize the weekend to improve trading skills.

The conclusion of the video with a reminder to use the weekend for practice and to watch the series on the section for better understanding.