Are trading ideas a good idea for your portfolio?
What’s the most resilient parasite?
A bacteria? A virus? An Intestinal Worm?
An Idea. Resilient, highly contagious. Once an idea’s taken hold in the brain it’s almost impossible to eradicate. A person can cover it up, ignore it- but it stays there.
Well this is an exaggerated filmy version of the meaning of Idea from the movie “Inception”. Imagine this, you’re out with your friend and get an idea of opening up a lemonade stall but when you look into the roots of how you got this idea it was because you were walking since 30 mins in scorching heat and feeling really thirsty.
Every idea that is generated into your mind is a combination of some external observations and provoking thoughts.
Trading ideas are no different, when research analyst and investment advisors observe companies rationales and combine them with industry wide sentiment, they generate a trading idea which is recommended to people who are into active participation of stock market and then they on their own perusal pick ideas which makes sense to them.
In common usage and in philosophy, ideas are the results of thought.
We at STRATZY have 2 segments Strategies and Ideas. Strategies are investment instrument which builds portfolio of stocks for you and rebalances your portfolio with new stocks at regular intervals but today is not the day we talk bout it. Today, we’ll explain how one of our recent trading idea “Kamai Ka Compressor” gave a massive return of more than 20% in two days.
We published this trading idea called “Kamai ka Compressor” on our mobile app on 1st of February which was about Elgi Equipments a company that manufactures a wide range of air compressors and automotive equipment. On our app we give a detailed description of rationales that we have of the company and why we feel it should move up in relevant timeframe. This description of the trading ideas helps users make their investment decisions.
In our idea description we stated below information about the company.
Elgi is the second largest player in the Indian air compressor market (~22% market share) and is among the top eight players globally.
India business has started seeing good traction and would further aid topline. Also, Elgi is on track in its strategic investment initiatives worth 180 crore in Europe. Expansion in new international markets is expected to drive long term incremental growth.
Company said with commitments made to government related orders, for supplying compressors for oxygen generators as well as longer gestation for price corrections in the markets, margins shrunk significantly. However, the management expects that price correction and cost management would result in gradual recovery of the margins.
Also, Stock price has corrected from 383 levels to 306 levels and stock price action indicating resume of its up trend after brief profit booking which provide good entry point for investors.
We published this idea by finding out an investment opportunity stating our various reasoning for the stock price to surge and it worked on our favor.
Within 2 days, stock price surged more than 20% and it achieved our targets. We sent out exit notifications to all users invested into the idea and all of them booked profits on the same. Although we also have a risk score associated with every idea this indicates the users risk involved in the idea as risk management is our top priority. (All details on Stratzy Mobile App)
This is how a trading idea is generated and executed on STRATZY platform. We are working on building a platform which provides all investors a helping hand in their investment journey through our experienced team and amazing tech flow. Stratzy provides a perfect combination of attachment and detachment to users where they are in control of everything along with not worrying about anything. We want everyone to invest like the Ultra Rich do!
