Understanding the driving force behind movement of price of shares might be maddening considering the fact that on any given day, millions of stocks worth millions of Rupees change hands at the stock markets.
UNCERTAINITY IS the second name of Stock Markets. As volumes and diversity of opinion grows, it becomes more and more difficult to pinpoint the drivers of price movement. Over the last one year, we have seen India stock markets lose 60% of their value and bounce right back. In the same period, we have seen value being transferred from one set of stocks to another. For example, UNITECH have lost more than 50% of their value in the last one year, while HEROHONDA and MARUTI have gained more than 75%. The NIFTY is roughly at the same level where it was a year ago. Check our NIFTY constituents page to see the diverse performance of just the index stocks!
In the middle of all this, stock picking can be very difficult. This problem is compounded by noise in the media – “breaking news”, “expert opinions” and “technical analysis” floating around. we understand that cutting out this noise and getting to the fundamentals of companies is the key to wealth creation in a sustained manner.Remember, the reason why some stocks have gained 75% over the last year while others have lost 50% is because the fundamental outlook of their businesses has changed and not because of some “technical” factors. If we look at markets this way, we stand to cut out most of the noise floating around, take on less risk and make more money.1)All our members put up their Stock picks on the website, which everyone can see.2)Each of these picks is scored. Every member (player) has a score. When he/she makes a new pick, his score gets increased by a value equal to the outperformance of that stock over the NIFTY. For example: you picked MARUTI on 14-Oct-2008 at 738 (when the NIFTY was at 3624), your stock gained by 74% till today, while the NIFTY has gained 21%. So your score will be increased by 53 points.3)Members can make both long and short picks.4)Now, you can check for yourself which members have performed better over the long run from our leader board. You can track our top investors – what they are doing and saying. This is a big improvement over listening to some so-called expert on the TV. Do you really know how his picks have performed in the past? Has the TV channel bothered to tell you?5)Four Stocks now gives Ratings to its stocks. When more and more players on top of the leaderboard pick (long) a stock, the rating of that stock goes up (when they short, it goes down).Read ourHelp to understand all about FourStocks, its philosophy and how it works.The FourStocks community is founded on a strong belief in transparency and in putting one's money where one's mouth is. This emphasis on transparency and testing one's ideas in the form of concrete stock picks, helps investors get over some of the more self-destructive biases exhibited by humans (and monkeys!) on stock markets.How to participate? It is a simple process:1)Register - it's a simple form. Then login.2)Make picks. You need a minimum of four active picks to be an active member on FourStocks.3)Follow picks and comments of other investors.4)Use the Leader board and Stock Ratings to help yourself to better stock ideas.
