Money or Sanity

Money or Sanity By: Craig Rodrigues Kritika Ingole Mayank Singh

After working Hmm…Should I Oh, shut up overtime for the buy a new car or a Rishabh. I didn’t year, I finally got marry you so you jetski for the could waste our my bonus! weekends! money on crap! I don’t plan on working till I die. It’s about time we made some sane investments.

But that’s not fair! That’s because I already made an Sumit’s wife never Sumit started appointment with the says anything to investing a long investment manager for him about buying tomorrow. I DON’T CARE time ago! things! WHAT YOU THINK!!

Okay fine!! Ugh.. She never lets me have any Ugh…I should’ve just fun anymore! married Sumit. Good!

The next day

I could’ve Oh, hey Carl! My been name’s Sita and this is my husband, Rishabh. sleeping right now Abhiraj tells us you are the best investor there is and we’d love for you to handle our portfolio.

Oh, Hey there! That guy still owes me from last time Ahh yes….He and his wife have been regular clients of Nowadays I’ve been generally advising my clients interested in mine for he last 2 years! investing in the pharma sector!

Honey, let’s just leave SHUSHHHH!!! The pharma sector? Why there?

Pharmaceutical stocks On top of this, the Pharma sector is one of the most have done well beloved sectors in the Indian stock market. The for income-focused Pharma stocks gave a return of 30% CARG between investors because 2009 and 2016. That was the golden time for best many pharmaceutical pharma stocks. businesses pay high dividends. Even With the ever-rising industry size and through the pandemic, healthcare becoming a critical part of life, these stock weren’t even investors can make good returns if they half as badly hit as others invest at the right time. Further, being an which make them a safe evolving industry, innovation, scientific bet for long term breakthroughs, and technological advances investments. bring in exponential growth for many India is also the largest producer Pharma companies. of vaccines worldwide accounting for 60% of the total vaccines as of 2020

But, What about the risks!? It can't all be rainbows and sunshine I’ve worked hard this year! I cannot afford to let my bonus go to waste!

Yes, yes, you are right to be worried. Substitute threat is also another issue. People Every investment comes with its own seem to moving back to traditional set of risks, and it is my job as an medication in a country like India due to advisor to correctly present all superstitions and bad cost planning. This also information available to my clients. affects the business. It is said that 70% of Competition is a major threat. Indians go for traditional over manufactured Upcoming patent cliffs will be medication. bad news for some major pharmaceutical manufacturers, But from an investing but good news for companies standpoint, the rewards still that want to develop generic pharmaceuticals and consumers far outweigh the risks. in search of lower prices on medicine.

Well then that sounds perfect! Sign me up!! Perfect! Let me get the paperwork started and we should be good to go!

FEW MONTHS LATER

Anubhav, what you have Yes, my son. It’s high time Yeah mom, I have decided I decided for your future ? that you start thinking want to be a Technical about your future. Analyst.

Aaah! What bullsht Shut up! Risabh you Dad what you know about it, you talking about , don’t about this It can command higher salaries than is that even a job? functional counterparts if you really field, what else you are a master of your trade and your know than doctors skills are in hot demand. and Engineers. Great decision my child!

You will succeed, Anubhav, if Sure mom! I would love to learn from you start working for it now. You him, I can cover my basic concepts about should start taking lessons the market and analysis. about the stock market and We know you’re Technical Analysis. I know the dedicated, son. Hope best man who can teach you. it works for you!

Anubhav meet Mr Carl; he is Hi Anubhav, looking forward Hello Carl! I am Anubhav, pleased to our personal manager for to teaching you! meet you! investments and portfolio. He is very knowledgable about Stock market and Analysis.

Good morning Anubhav! Interesting! So we will start our first class with the basics: Stock market Technical broadly refers to the collection of analysts believe exchanges and other venues in past trading where the buying, selling, and issuance of shares of publicly activity and held companies take place. price changes of a security

There are two types of market, Bullish and Bearish Market. A bull market is a market Athat is on the rise and wherezthe conditions of the economy are generally favorable. A bear market exists in an economy that is receding and where most stocks are declining in value. There are different types of Indicators, RSI, Moving average.

Moving average is a calculation to analyze data points by creating a series of averages of different subsets of the full data set. It is also called a moving mean (MM) or rolling mean. As you can see the chart here, The daily fluctuations on a chart can appear to be random or even noisy.

Relative Strenghth Index, relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. I’m starting to No Anubhav! rethink my Don’t give up now! You’re decision here! going to own Maybe this! engineering is the better option...

Let’s learn about different types of Who is Charles Dow? trend discovered under Charles Can you tell me a Dow Theory, We will take little about him? Pharmaceticuals Industry for example to review their trends. Sure! Though he never served as a chief executive officer or built an empire from scratch, Charles Dow's name is forever entwined with the world of finance thanks to the market average that bears his name. However, Dow's contribution goes far beyond his famous average.

Take a look at this chart Anubhav, there’s a primary trend in Company Sun Pharma, the blue chip, top company in Pharma Industry. It shows you the trend of the market in Sun Pharma over the years. Primary trend is the major trend for the market. It indicates how the market moves in the long- term. A primary trend could span many years.

Secondary trends are short-term changes in price direction within a primary trend. They may last for a few weeks or a few months. In this chart it shows you the weekly trend In Sun pharma monthly. Focus on the trend lines.

Minor trends are fluctuations to Yes Carl, got a the market movement on a daily clear idea. basis. These trends last for less than three weeks and go against Thanks, it was the movement of the secondary a great trend, This chart shows you the session. daily changes in Sun pharma stock. Are you clear with these trends and basics, Anubhav?

She never get What else my jokes, she is is Carl so boring! there for, he is our Sita, I am not able to All charts look the personal Very funny read the charts of same! Like a heart investment Risabh! different manager. companies… beat monitor!

I hate this Hey Carl, can you I would love to, man! please explain chart ma’am. reading to my husband?

My neck is Watching the stock not a spring markets, as you can to read the see by this meme, chart man gives the neck a real workout!

Why my wife Penny stocks are common There are three appointed him.. shares of small public types company stock, Penny stocks, companies, growth stocks is Growth stocks and any share in a company that is Blue chip Stocks. anticipated to grow at a rate significantly above the average growth for the market. Blue chip stocks re shares of very large and well-recognised companies with a long history of sound financial performance.

$#3@@ Now we will see some examples of Blue chip stocks and Penny stock for Pharma Industry, there chart types.

A daily chart is a graph of data points, where each point represents the security's price action for a specific day of trading This is a daily chart of SUN PHARMA STOCK,

A weekly chartset to display in a weekly time framewill show high, low, open, and close for the entire week but will not show the day-by-day trading movements within that week. This is a weekly chart of SUN PHARMA STOCK,

Monthly charts! These are trading charts that illustrate the movement of price over a long- term horizon. This is a monthly chart of SUN PHARMA STOCK,

This stock show the daily price movements of a security over a specified time frame. This is a daily chart of AARTI DRUGS STOCK, penny stock

Tell me about this On a weekly chart, each candle, bar, candlesticks chart here or point on a line represents the price summary for a single week of trading. Candlestick charts and bar charts are the most common types of charts used by traders and investors. This is a weekly chart of AARTI DRUGS STOCK,

Monthly charts are most often used by long-term investors and will most often represent many years or even decades of price data for that particular security or market. This is a monthly chart of AARTI DRUGS STOCK,

I’m gonna learn Now, I’ve shown you different chart more than him time frames. If you really are and show him whose boss! interested in the subject, why not watch a few videos on YouTube about technical chart patterns.

YOUTUBE Welcome to Raju's café where we make technical analysis easy! Let's focus on sun pharma In today's episode of dummy investors lets take a deep dive into chart patterns

We shall divide this into 4 patterns 1. Head and shoulder 2. Double top 3. Triple top 4. Triple bottom

In this we see the head and shoulders trend which is a bearish trend. When the pattern below is shown, it shows a downtrend which is called the neck

A double top is a bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times with a moderate decline between the two highs. It’s an indication of a fall.

A triple top is formed by three peaks moving into the same area, with pullbacks in between. It indicates a further price drop, once the price moves below pattern support.

A triple bottom is a visual pattern that shows the buyers taking control of the price action from the sellers. This is the opposite of a triple top and indicates a bullish market

Heyyy, Thank you Soo much, I Slow down there cowboy! I still think I'm ready to start haven't told you about the trading! technical indicators.

HUHH?! Oh yes yes, these are very important. Technical analysis indicator determines the support and resistance levels.

Bollinger Bands are a type of Moving average The relative strength index is a statistical chart characterizing the convergence/divergence, is a trading technical indicator. It is intended to prices and volatility over time of a indicator used in technical analysis of financial instrument or commodity stock prices, It is designed to reveal chart the current and historical strength or weakness of a stock or Simple moving averages calculate changes in the strength, direction, market based on the closing prices the average of a range of prices by momentum, and duration of a trend the number of periods within that of a recent trading period. in a stock's price. range. A simple moving average is a technical indicator that can aid The stochastic indicator is a in determining if an asset price will popular trading indicator​ that continue or if it will reverse a bull is useful for predicting trend reversals. It also focuses on or bear trend. price momentum and can be used to identify overbought and oversold levels in shares

YES YES THANK YOU SO MUCH You are finally ready! Hopefully, I don’t gamble away all our savings first