How to Trade the Best Stocks in 2020

Jan 3, 2020

Apurva Sheth, Editor,Profit Hunter Pro

Hi, I am Apurva Sheth and this is the Fast Profits Daily.

I would like to wish you a very happy New Year.

In today video, I'll tell you how to pick the best stocks to trade this year.

In 2019, my subscribers received the following trade recommendations from me.

How can you pick trades like these?

Find out in the today's video...

Hello and welcome to this brand new edition of Fast Profits Daily.

I am Apurva Sheth and I want to wish you a very happy New Year.

Now, before I begin, I would like to remind you to subscribe to our YouTube channel so that you don't miss out on any of the information that we publish daily.

And I'd also like to remind you to sign up to our newsletter, the Fast Profits Daily, so that you can get instant updates of our videos and apart from that, you can also read the transcript of the videos that we post here regularly.

So now my topic for today is picking the best stocks to trade for the year 2020.

Now, a few days ago, I recorded a video wherein I shared views about the stocks, Maruti and Eicher Motors, how had recommended them a few months ago and the gains that they generated for my subscribers.

Now, these two were not the only stocks that I had recommended in the year 2019 to my subscribers.

At Breakout Profits, I recommended Kotak Mahindra Bank with generated gains of 9% in 36 days, 7.5% gains in GE Shipping in 22 days, 7.85% in Lupin ltd in just seven days, 9% gains in Balkrishna Industries in five days, and 8.86% gains in Page Industries in 17 days.

Now these are just some of the stocks that I'd recommended and they had gone on to become big winners. Now, how did I pick these trades?

So there is a very simple three-step process that I follow. Now, as you can see on your screen, this is the simple three-step process that I follow.

Now the first filter or the first step, which I follow or I use is, the qualitative filters. Now this is nothing but applying fundamentals or only picking stocks with good fundamentals. So how do I select these stocks?

Now these stocks are from the Equitymaster services. So out of all the services that Equitymaster has and the stocks that they have recommended there, forms part of my universe of stocks, which I recommend.

So this is the basket of fundamentally strong stocks which I have and I begin with, and after that I apply my visual chart analysis.

Now I am a Chartered Market Technician and I have been using technical analysis for the last 10 years to pick trades and recommend to my clients and subscribers. So, technical analysis helps me identify the right time to enter and exit these stocks.

So once I have identified these stocks, which are good, I later look at their price action and in case if I find that the stock is ready to move up immediately, that's when I recommend it and it becomes a top pick. I recommend it with a target as well as a stop loss.

So now this is a simple three-step framework that you could also follow. You can design your own fundamental filters, and based on that, you can have a basket of stocks which you would decide to trade, and you can then review this basket every few months or probably every few quarters. So once you have this list of fundamentally strong stocks, you can then apply technical analysis and then pick the best of the best trades.

Now I want to show you today a stock which I have recommended using these exact same three-step process and I have recommended this stock to my subscribers not once, not twice, but thrice.

This stock is NESCO.

Now NESCO is a hub of activity for promotions, conferences, and events in Mumbai. It is located in the Goregaon suburb of Mumbai. Now it owns about three million square feet of property and roughly 50% of the property is yet to be monetised. So there's already a huge property out there and there is also a large portion of the property yet to be monetised and apart from that, the cash and cash equivalent of the company, when I recommended the stock, was about Rs 500 bn which is 16% of the market cap.

So these were all the fundamentally strong points that were working in favour of NESCO. Now the price action of the stock was also pretty attractive when I recommended the stock for the first time in March 2019.

So as you can see on this chart over here, the first time I had recommended the stock, it was breaking out of a sideways consolidation. So I recommended it in two parts, one at 460 one at 483 and we closed this stock with gains of about 8% and 13.75% in a period of 12 days to two months. So that was the first time that I recommended this stock to my Breakout Profit subscribers.

After that, from the month of June till September, the stock was trading sideways with the slightly negative bias. So that's when we completely avoided the stock and the movement I saw it breaking out once again in September, after it had finished the consolidation, I recommended it to my subscribers, and we closed this stock with gains of about 8.46%.

After that again, from the month of September till November, the stock was trading in a consolidation. It was trading sideways and the movement it broke out in November, that's when I again jumped into the stock and recommended it for gains of about 10%. We closed it at a level of 670 but on the same day, the stock had moved to a higher level. It went up to levels of 694. Some of our subscribers could have even managed to generate higher gains.

So this is the simple three-step process that I follow to pick some of the best of the best trades. Now, this is how I have picked some of the best trades in 2019 and this is also how you could probably even try and pick some trades in the coming year, 2020. From my end, and I'll be continuing to use the same process and picking out stocks for my subscribers.

So that's all for today. Now, before I sign off, I'd like to remind you to like and share this video with your friends and family. I am sure that they will find this useful as well.

So that's all from me for today. Thanks a lot and have a nice day.

I'll be back next Friday, with another video in the Fast Profits Daily. Also, don't miss Vijay's video on Monday morning.

Have a profitable trading day and a great weekend ahead.

Warm regards,

Apurva Sheth
Apurva Sheth
Analyst, Fast Profits Report
Equitymaster Agora Research Private Limited (Research Analyst)

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Vijay Kumar Agarwal

Jan 4, 2020

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