Intrinsic Compounding
Intrinsic Compounding

@soicfinance

7 Tweets 1 reads Jan 07, 2023
@charts_zone For me its a mix of two :)
TA would have shaken me out plenty of times in a Microfinance company I hold. Fundamentals were indicating solid results going forward. Fundamentals are abused, not thought about the right way due to general perception
@charts_zone Just like in TA, when a trader objectively cuts his position. Similarly in Fundas, one has to be nimble and not fall in love with buy and hold
@charts_zone Using Technicals to:-
Know about market psychology,
Sectors showing strength,
exits or if I am missing something?
Screening (v important)
@charts_zone Fundaments for:-
1. Avoiding crap (inspite of chart being strong)
2. Earnings momentum (Holy grail)
3. Identifying operating leverage
4. Where we are in the cycle in terms of margins/Happy to leave money on the table, and not go over the board
@charts_zone Thus, taking best of the two world or trying to. Fit it into my framework- Hit rate has improved in last 9-10 months ever since started doing it
+Losers I cut ruthlessly, especially when fundas deteriorate (given I track rm prices etc) There TA can also be lagging sometimes
@charts_zone Eg:- Have been tracking rail stocks- all the sector is showing strength. Don't have additional capital at the moment. RS threw up these names since last 2 months
@charts_zone Eg:- Banks, this one I was positioned fundamentally first- TA (liquidity entered later)
Mix and match, not perfect by any means. Still learning

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