Trading with Vivek - English Lecture
Lecture 1 notes -
1. All are working for 18 hours but do different things, they choose to do different things hence
they differ in success.
2. Take charge of your time, and choose to do productive things.
3. Opinion is not news, always ask for information not opinion. Make an opinion yourself.
4. Stop or remove applications like money control, and watching TV news.
3 groups of stocks, v40, v40 next, v200.
* Six conditions for a stock to become a part of v40 and v40 next 1.
Condition 1 - This company should be the market leader in its industry by Sales and by net
profit. Either rank 1, 2, or maximum no 3.
Condition 2 - The company should be in business for the last 15-20 years.
Condition 3 - The company should be debt-free.
Condition 4 - The company should have good growth prospects in the next 15-20 years. Low
penetration and high growth prospects.
Condition 5 - The Company should be in possession to increase the price of the product in case
of an increase in costs. The telecom sector does not have any pricing power. Pricing power is a
brand value. All utilities generally don't have a brand value.
Condition 6 - The company should not be a government company. The objective of a
government company is different.
Difference between V40 and V40 Next - V40 has a large and mid-cap company and V40 next
has Mid Cap and a small-cap company.
The top 100 companies based on the market cap are large-cap
101 to 250 companies are called mid-cap
and the rest of the companies are small-cap.
Multibaggers are mostly market leaders and small caps. But they must have a brand value.
Examples - Asian Paints vs Indigo Paints, Britannia vs Bector Foods, 5 Paisa vs Angel Broking
Trading with Vivek - English Lecture
* Condition for selecting V200 - 3 Conditions
1. Condition 1 - The company must have more than 200 cr of profit in the preceding 12 months.
2. Condition 2 - ROCE should be more than 20%
3. Condition 3 - Debt Equity Ration should be less than 0.25
Note: These above conditions will not apply to Banks and NBFC Companies. In the Bank and
NBFC company two conditions 1. Same as above Condition 2: ROE > 10%
* 3 Analysis we need to see
1. Business Analysis
2. Financial Analysis
3. Technical Analysis
1. Promotors - The Real Investors who just hold.
2. Institutions - FII and DII
3. Public - Rich People (HNI - Anyone who holds more than 1 % in a Company) and Retail
Public.
Strong hands never use stop loss and they make only money. Weak hands use stop loss and lose
money.
FII, DII and HNI are operators. One MF sells to another and the other sells back to First. They
do so because their expense is based on the valuation of the portfolio.
Ask yourself what should I do in the next half an hour.
1. Workout Everyday
2. Prayer Everyday
3. Read Everyday
4. Stop Eating Biscuits and Drinking alcohol
5. We should complete it immediately which can be completed within 3 minutes.
6. I have 100 Crores of Net Worth as of 31.03.2025.
7. Read the Book - The Secret
Lecture 2:
* In the stock market, 4 things are in our control
1. To find a good business
2. To find a market-leading company in our control (per capita income of India and US
Trading with Vivek - English Lecture
comparison)
3. To Buy that at the right price based on a technical analysis.
4. To Sell at a correct price based on technical analysis.
* And 2 Things are not in our control
1. Market Volatility
2. Holding Period
Focus on 4 things in our control
· Company should be market leader but financials should also be good examples given,
Tata Motors and Bharti Airtel both are market leaders but their financials are not so good.
Strategy 1 – Simple Moving Average
1. Simple Moving Average
a. 200 day - Black
b. 50 day - Red
c. 20 day - Green
Use this strategy only on V40 Companies
Select Daily Candlestick chart
In one trade, one stock, we will invest 3% of our portfolio. There will be no averaging, i.e. no 2nd
trade only one trade.
Buying Conditions
1. When 200 ma is on the top
2. When 50 days ma is below 200ma
3. Then 20 ma is below above 50 days ma
4. And Closing Price Is on the lowest level.
Selling conditions
Trading with Vivek - English Lecture
1. When 200 ma is on the bottom
2. When 50-day ma is above 200 ma
3. Then 20 ma is above the 50 days ma
4. And closing price is on the top.
Beauty of this strategy is that it will not allow you to buy at high levels.
There is no risk because we are always trading in the best of the best companies.
Interpretation – We use ma to find the price of the share, because every day trading price may
not be the correct price.
When price is below all ma’s it is the best time to buy the stock. Because everyone is in loss
This strategy works only in V40 and V40Next companies because large players come only in
large and midcap stocks and don’t come in small stocks.
Note: We will not invest more than 10000 In any one stock
Strategy 2 – Knoxville Strategy
Quote - We are not here to be a hero; we are here only to make money.
Knoxville strategy will only be used on the V40 Company. And there will be no stop loss. We can
average if 2nd trade is below 5% from the first trade.
Settings
Indicators >>RB_KnoxDiv>>Input Bars back 200>> RSI Period 14>>Momentum Period >> 20
Knoxville line are not curve they are different then ma since ma moves every day because they
consider candle every day. Knoxville uptrend lines are connecting uptrend lines to uptrend lines
and bottom lines are connecting bottom line. These lines can be of any size. The size of the line
doesn’t make any difference.
Buy point – End point of the downtrend line.
Trading with Vivek - English Lecture
Selling Point – End point of Uptrend Line. Only at the first end point of line.
Buying and selling is on the next day in the morning. I.e. opening of Market.
Specialty of above 2 strategies is that they will never allow us to buy at a higher price.
Strategy 3 - V20
This is Applicable on V40, V40Next, V200
We will use daily candle stick chart, there is no stop loss. We can average. For average there
should be a gap of minimum 10% between first and next. 3% will be invested in one stock in one
trade.
4 Steps
1. There should be a bunch of candles, movement from bottom of one green candle and top
of any green candle (any among the green candle) should be more than 20%.
2. Create a range from the bottom to the top.
3. We will be buying when the price comes below the range and we will be selling when the
price reaches the top range. We can average and we can take 3 trades, i.e. total 9% can be
invested into the stock. V200 does not have a condition of not choosing a government
company.
Lecture 3
RHS Reverse Head and Shoulder Pattern
Nech line should be a straight line not a upward trend and down trend line. We will be using this
in only V40 and V40 Next Companies. We will invest 3% of the portfolio in one stock, there will
be no stop loss. This is an optional, if potential gain is 40% plus gain we will use this.
There could also be more than one shoulder on the either side. All the shoulder can be of
different shapes. Depth of shoulder should not be deeper than head. When we have more than
one shoulder on either side it means a complex head and shoulder pattern. If there are more
shoulders than it is more reliable.
Trading with Vivek - English Lecture
We need to measure the dept, I,e, lowest point in the head and the neck line. And Selection
should be a normal chart and not a log chart.
The buying point is at the breakout with green candle on closing basis from base formation from
right shoulder
1. Breakout plus green candle plus closing basis plus form a base formation plus from the
right shoulder.
2. Create a range and port the range above the neck line and that will give a potential gain.
· Operators don’t have too much money that they can operate all the stock at same time.
· People who wait to buy at right price and wait to sell at right price make money.
Body of the green candle should not be crossed while making a neck line. Wick can be crossed
and body of the red candle can be crossed.
When the technical target is lower than the life time high, in that case we will sell at the life time
high. However, if technical target is higher than life time high we will sell at technical target.
(Technical target and Life time high whichever is higher).
While making a box of base formation we can ignore the vicks of intraday movements.
· When support is broken, retailers sell and operators buy for themselves.
· We just need to keep buying v40 companies, no need to go out side these companies.
Strategy - Cup with Handle Strategy,
1. Is applicable on V40 and V40 next
2. We will invest 3% of the portfolio
3. No stoploss
Similar to reverse head and shoulder pattern,
Reverse head and shoulder without left shoulder is cup with handle strategy.
Trading with Vivek - English Lecture
We will not mark technical target to life time high, we will not be raising upto life time high.
Shape of the cup could be a curved, v, box.
There could be more than one handle.
In case of more than one handle we will be calling it a complex handle.
One more handle means operator wants to buy more.
Handle can never be big than the cup. Cup should be bigger.
Operator does not hits the support line beause he fears that he may loose control.
Steps – 1. Itdneify Cup and Handle 2. Neckline 3. Wait for a breakout from a base 4. Technical
Target 4. Wait for Target.
If there is a chart pattern being built up the life time high, minimum potential gain should be
40%
Strategy –
1. V10 is based on Rhs and Cwh, i.e. this is only applicable in V40 and V40 next.
2.
3. V10 is applicable only from the buying point till the selling point based on Cwh and Rhs.
4. First stock need to qualify in Rhs or Cwh, Second it need to qualify on V10 conditions.
5. We will be investing 3% in this strategy and we can average also.
6. Any fall of 10% after the buying signal, The fall revesal of the fall is the target
7. The 2nd trade based on V10 should be at least 5% lower that the first V10 Trade (10%
fall).
At any point of time no more than 9% in a single stock.
Our point date should be within 12 months from the 20% movement
Trading with Vivek - English Lecture
Lecture 4
Jitna chalogey, utna chalogey
Business Analysis
Financial Analysis – LIC Tax Rates is above 70% consistently.
Most Important – 1. Market Cap
Almost all information are available in 2 forms
1. Per share 2. For whole Company.
Market Cap – Market Price * Total Number of share i.e. 100% shares.
Size of the company is always market cap of the company and not per share price of the
company.
Page industries is 10 times of lux industries.
Page industries sales number is 2 time of lux industries while value is 10 times. So, Page is
highly values.
Bata vs Relaxo
Almost same valuation and same sales. Both are in same industry and almost same price.
Whenever price is gone down due to external reason and there is no issue with the management,
business is ok, it’s a great opportunity to buy.
M/s Bector vs Britania
Both in same industry both premium brand but Britania is 40X more to Bector. Reason for
difference is reach, Britannia has a big network bector doesn’t
Kotak vs Punjab National Bank
Trading with Vivek - English Lecture
Kotak is 8 times Punjab National Bank. Inventory of PNB is 13 Lac crore and Kotak is 4 lac
crores. PSU banks are not making any new NPA’s all are old of before 2014. Both are equally
efficient and smooth.
We are going to have best 20 years which no country ever had.
Read book Factfulness.
5 Paise vs Angel Broking
13 times gap, only 2% stock market participation in India vs 65 % in US, So there is a big
opportunity in 5 Paisa. Plus people like to have a multiple accounts.
Strategy – Compare a company with a bigger company.
Indigo Vs Asian Paints. – 40 times opportunity, paint penentration are low and will grow
massively with time ahead. Asian paint has grown 100 time then indigo can also grow with
dhoni as its brand ambassador.
E rupee will be applicabe soon with low taxation on income.
PE Ration – Price / Earning , Price – Market Cap, Earning – Profit in Pevious 12m
PE – Pay Back Period. If we do get same profit every year then what will be the waiting period.
HDFC had in 2012 pe of 30 but because of the growth rate in the np target price was reached
much early. Hence, high pe ratio is ok. Coal India example, PE ratio is low its bad pe ratio is high
its not always bad.
PE Ratio is not important as all, for us as a trader. Its for cheap valuation i.e. Relevant for Long
term investor, i.e. we are Traders.
Book Ratio
Face Value = Initial Investment = Share Capital (/ by number of share = Per share Face Value)
Share Capital + Reserve = Book Value = Equity (/ by number of share = Per share Book Value)
Trading with Vivek - English Lecture
If Book value is higher than the price then it is good, But if share price is higher than book value
then it is not bad. (Land is recorded at cost in books)
HUL bought Horlicks for 40,000 crore however, before purchase its book value was way lower
due to its home grown brands.
Dividend Yeild – Ignore and Put money in FD if regular income is required
ROCE – Howmuch money is made with available capital. If a company is posting a ROCE of less
than 15% then we are not trading in that company. If it is higher than 30% then it is best. If this
is more than 20% than it is very good.
ROE – It is not relevant.
Debt Equity Ration – Should not be more than 25%, if DE ratio is less than 10% best, More than
10 less than 25% its very good. More than 25% not good. Debt – Borrowing, Equity – SC plus
Borrowing. In Banking and NBFC DE ratio is not importantly at all. Indireect Lending company
like brokers may have a DE ratio more its good.
Never compromise on stock quality.
Share holding should be analysed based on strong hands and weak hands. 1. Promtors 2.
Institutions 1. FII and DII 3. Public – HNI and Retail Public
Strong hands – Promotors, HNI, FII and DII
Weak Hands – Public (97% are not making money and rest are making money, academically
these 97% are people are not from top colleges)
Pledging Percentage means only by Promotors – Not all shareholders. This % is belonging to
promotors only. Promotors are pledging in their personal capacity. Company when borrows
then assets are pledged.
High pledge ratio is bad because in case promotors are not able to make repayment than bank
will sell the stocks in open market and there will be a flood of shares and prices will collapse.
If promoters holding * Pledging % is more than 10% of whole company, then we should avoid
that stock.
Trading with Vivek - English Lecture
More than 30% should not be with the retail public. Public exclude HNI. Reason being why are
strong hand not coming to capture the company. Karnataka Bank Ltd has more tha 70% retail
holding due to which books value is twice the market price.
Qtr Revenue and Qtr Profit should be compared with same qtr in the last year.
Other Income should not have any abnormality,
Profitablity can be postponed or preponed but cannot be vanished.
Lecture 4 part 2
After selecting a good company Quarterly result is not important. If company has in 10 years
price performance and profitability is strong bad quarter result is not important.
Lecture 5
New Strategy - 3 times in 3 years
It will be applicable on all stocks listed in the nse. I.e. all companies. If the company is not listed
on nse we will not apply. It should be listed in both nse and bse. We will be investing 3% of total
portfolio in this strategy. There is no averaging, there is no stop loss. In a single trade we have
scope of 300%. CAGR is more then 42-43%. We have to work hard in this one because of all
stock are not quallity. In this we need to understand the business also.
Pickup one industry in one week and study the same.
5 Paise, PnB, Bector foods.
Condition 1 - The stock price should come down atleast 67% from the life time high. I.e if Life
time is 300 rs then stock should be available at below 100.
Condition 2 - We must understand the reason of this fall.
Reason of the fall
a. There was a business fall and financials got impacted and due to the poor financial stock
came down. (Revenue fall, Net Profit came down, Stock Prices Came down).
b. There was no change is business, however there was fall in net profit. Hence stock price
came down.
c. Financials were intact, Business were intact, but still share price came down.
Trading with Vivek - English Lecture
Condition 3 - The reason for the fall does not exist anymore.
Condition 4 - The company must have a proven past performance.
Condition 5 - The company must have good future growth prospects.
Condition 6 - There should be improvement in the latest quarterly results
Condition 7 - At the time of meeting the above 6 conditions the stock price should be below 50%
below a lifetime high
Condition 8 - If we make a 100% gain within 12 months we will book profit and exit the stock.
Condition 9 - If we don't get a chance to book a 100% gain after 12 months after buying then we
will hold the stock till the lifetime high.
Condition 10 - Even though we do know this strategy we can't make money if we are not blessed.
At lease 40 Mins we should chant.
Vallient organics, Vaibhav Global, 5 Paisa, Indigo paints.
Strategy Understanding - Motilal Oswal - Category a - Business and
Next Stock is JP Power -
1. See for a fall of 60 % and more from life time high.
2. Interest cost was going high. Even high to go above the total operating expense. Delay in
execution was the reason for fall.
3. Company became a loss making company
4. Such conditions do not exist.
5. Company has become a profit making company.
6. 1
7. If meeting above condition is the stock available within 50 %
We need to see that data wise there is improvement and stock price wise there should be no
improvement.
Equitas Holding Next Example.
Confidence was down at the time of covid. People left the stock in fear whereas there was not fall
in sales and profit.
Lecture 6 -
Trading with Vivek - English Lecture
For making more money it will not require more strategies, we will need to implement few
strategy consistently and with discipline.
We need to keep away from companies which are impacted by government policies. Product
which is a commodity does not have a brand value.
ICICI Lombard analysis.
Strategy No 8 -
Being in a best of the best company, we have an opportunity to make 30-40% gain in a single
trade.
ICICI Lombard, HCL, TCS all were posting life time high profit and sales plus were available at a
low valuation due to some global effect.
1. Company is a part of V40 and V40 Next
2. When a company is posting life time high TTM
3. Price is below by 30 % from life time high.
4. Its a Buy
5. In this case if the price go below by 10%, we can average at every interval
6. At the time of averaging if the TTM numbers are not highest, we will not do the
averaging.
7. Based on this strategy we should be comfortable to invest even 10 % of the total portfolio.
8. If above conditions fullfill then target will be always life time high.
9. Just if you keepusing this strategy then no one can stop you from becoming a billionaire.
10. When the markets are bullish then this strategy works, there is euphoria in the market
but we have 30% in cash.
All great companies (v40) would be down by 30 % from life time high only with the bad news
and it will create a opportunity to make 50 % in a single trade. These stocks may be trading at
lower level for few months (because operator would be accumulating these stocks and retail
public will be taking time to sell and exit). These 50 % will be making on an average in 1 year. In
this scenario if the stock goes further down by 30% or more we can average. The target will
remain same i.e. life time high.
1st Category -
Life time high Strategy - 1. Trade based on life time high strategy. I.e Use only this strategy i.e.
keep unutilised cash (80 Companies)
2nd Category -
Trading with Vivek - English Lecture
Use all strategy (of 8) in v40 group, and 3times in 3 years. However when we are taking 2nd
trade, there should be difference of at leats 10% in 2nd trade and 10 % in 3rd trade.
To become a billionaire we should be in a position of not loosing money.
3rd Category
Use moving average in V40 companies, Reverse head and shoulder method and cup with
handle, V10 (V40 and V40 Next).
4th Category
Use only v20 strategy (applicable to all).
Whenever you choose a category stick to it for one year for best results.
Manner -
I am having a net worth of 100 crore rupees as on 31.12.2027. I am very happy. I am enjoying it
with a good health.
Satyendra Varma
Har Har Mahadev
3 things every day -
1. 40 Mins of reading. Solve 2 purpose. Its improves our skills, keep us motivated and it is a
best way of meditation to be wiser. It is exercise of the mind. It keeps us away from
mobile for 40 Mins.
2. Do workout for 40 mins everyday. Based on your age. Best is to walk.
3. 40 Mins should go to chanting. Maha Mtirunjay Mantra. It should be vocal.
Course ahead -
Analyse the current holding. Apply the money as per new strategies.
Stocks spoken of - Pnb, 5 Paisa, Muthoot Capital Services, Ujjivan SMall Finance, Vaibhav
Global, Indigo Paints.
Listen to the interviews of CEO and all of the companies to know first hand information about
the business.
Trading with Vivek - English Lecture
