Frequently Asked Questions
What is Stocks Buddy
StocksBuddy.com is a FREE Online Community for Indian Stock Traders and Investors to Share their views and opinions on Stocks, exchange ideas, track performance of fellow traders and establish a credible Traders identity. Communities build up a society.
Ask yourself very simple questions.
- Who really traders in stocks? Is it the analysts, media, websites or You?
- The obvious answer is You. Then don't you think Your Opinion matters the most than anybody else's?
Why Stocks Buddy?
Let us put ourselves in a small investor's shoes and think what he/she does before investing in Stocks. Owing to the growing online resources, It would not be unfair to state that online websites and media does not have any impact on one's trading ideas and decision making. The more websites there are, there more information one gathers and eventually it leads to more confusion than ever before, something like the picture below.
Look at the unfortunately plight of a common investor who visits 6 different sites and gets equally contradictory views on a single stock. What should the poor trader do, buy or sell reliance?
Every trader these days contributes to some website in some form or the other and which in turn increases the number of such websites where information could be found. Unfortunately, when you put yourself in a common investor's shoes you would realize that though there is plenty of information around, it is scattered and at times contradictory.
Now, What if, Just suppose, What if yourself and other intelligent minds/traders All of them contributed to a single website. Then you would need to just visit one single site. This is where you create a Trading Community where you share your thoughts, make friends and they in turn share their thoughts.
The above picture tells it all. The same set of intelligent minds picking stocks on StocksBuddy.com. Not only this, all the stock picks can lead further to healthy discussions and eventually a Great Stock Pick. Top stocks on StocksBuddy.com are considered based on a variety of inputs such as number of people recommending the stock, the amount of activity for that stock and much more. Hence, you get an extremely filtered and granular view of the entire Community.
At StocksBuddy.com, we track every member's performance on a variety of scales so as to present you with the fairest information as is possible.
Why a Trading Community?
- There is a saying in Investment community, "Go with the trend". Who creates this trend. Investors. And making friends with as many of these investors as you can, will give you a good chance of entering into winning stocks.
- Likewise, the most active stocks list that you notice on headlines of various websites is purely because there is some real activity going on. Identifying such stocks is easier if you are "in" the community that deals with Stocks "day-in and day-out".
- You get to know which traders are performing better than others and you can track every trader for their stock picks. Remember, someone would track and make friends with you too, after all this is a community of traders.
How do i get started?
As simple as creating a userid and then logging in. You are ready to interact with other fellow StockBuddy.com members by posting your own views,comments and Stock Picks.
What can i do @ Stocks Buddy & how to use/benefit from it?
You, as our Visitor is the single biggest entity. You can take up any of the following roles.
- Performer : You can share your Stock Picks with other traders in the community. All stock picks are tracked by SB. The more your Stock Picks hit their targets, the better your performance. Of course, there is a whole lot more to Ranking on SB than just picking stocks. Please review the article titled "How can I get Good Ranking on SB?".
- Contributor : You can share your Thoughts with others. When others pick stocks you can comment/agree/disagree/share your own views. Since this is a Community, every person has his/her own importance. A Contributor is respected as much as a performer because he/she is giving his/her valuable guidance to others in the community.
- Follower : You can just be a follower. Follow what other esteemed members have to say. Follow their stock picks, their ideas, their thoughts and benefit from it. Our site has specific investment styles to cater to specific audience. Meaning, if you are a day-trader, you could follow some member who is picking stocks and his/her investment style is "Day trader". This way you can follow specific picks from specific people. Likewise for other investment styles.
There are So many Stock picks and so many members picking stocks, What to do?
StocksBuddy.com is a Community where Traders just like you share their own views and stock picks. At times the information on this site could be overwhelming and difficult to dissect. Here are a few steps for you to make the most of this site.
- Most easiest approach is to browse through all the latest stock picks. This is the list of stock picks that are still Active/Open. Stock picks that have been closed because their targets have been met or the duration has been met would go into the Archives section.
- You can choose to only view stock picks or stock's popularity by choosing the specific stock you wish to invest in. For example, if you would like to know how many traders believe Infosys should be a buy or a sell, you could visit Infosys Technologies page. You can also pick this stock from the very same page if you would like to add it to your portfolio.
- You can browse stock picks using filters such as Groups or Trading Style. For example. If you are a day-trader, you would like to check out the picks within day-trading section under Groups.
- You could also check out what traders around your location are picking. For example, if you are from Mumbai, you can check all the members from mumbai. And then subsequently see what they are investing in and what they are recommending.
- Last and the Most important approach is to "Track" a member. If you like stock picks from a single person, you could "Start Tracking" that user and his/her picks. Just click on "Start Tracking" link of that person's profile. Login to your account and then click on "My Friends" link from within your profile. You can see all the activity of your friends whom you are tracking. This way, you are only viewing a very selective Stock Picks from a selected members.
- Another very important factor in determining the credibility of a Stock Pick is by verifying the credibility of the Stock Picker. When you click on any stock pick (rate/read on/comment links), you will see a more detailed view of the stock pick including complete profile of the person who picked the stock. You can check how that person has performed in the past by clicking on Performance link. You can check how that person is doing right now by checking his/her portfolio and portfolio performance. Above all, check the person's StocksBuddy Rank. Though this should not be of a great importance, it does give you an in depth idea of how this person fares in comparison to other StocksBuddy members. Of course, the lower this number the better.
StocksBuddy Rank, How is it calculated?
We take into account all the following factors and beyond.
- Total Stock Picks
- Total Portfolio Return
- Total Pick Return
- Total Accuracy
- Total Success
- Amount of activity (How often the member logs in and posts his/her picks/views). Member should be active and login at least 2 times in a week with at least 1 Stock idea in a week.
The above details are calculated on a per user basis. The ranking is based on a Percentile ranking rather than a simple sum/average. This way, you are Not only competing against other members of StocksBuddy.com on daily basis, but also competing for an Overall rating on StocksBuddy.com. Ranking is the fairest possible representation of a member on StocksBuddy.com.
Many members and visitors ask as to how can someone with lesser returns/performance be ahead of others who have done better. It is not uncommon to see members in the top 100 with negative returns while there are many with double digit returns. Then why does this happen and what should you as a member/visitor believe and follow.
Unfortunately, there is NO straight forward answer. Should ranking be purely based on a stock pick or its performance or should it be on the total portfolio performance or should it be on the hit ratio. What about the activity? What if someone has a very good performance and has 100% accuracy but hasn't made a single pick/post in say a month. Should you consider him/her to be in the list. This list of doubts and questions go on...
The problem is that there is NO single way or answer that will address everyone's queries. Hence, it is extremely difficult to come up with ONE single solution. What you see on our site is closer to what we believe is "reality". Though some of you may not really like it, we believe StocksBuddy.com is NOT just about ranking. It is a community where members/visitors share their valuable thoughts on Indian markets and collaborate. We are constantly thriving to bring more to your doorsteps, so stay put. And as always, if you have any concerns or questions, we welcome your valuable suggestions.
What is the difference between Pick Return and Port Return?
Every Stock a member suggests/recommends, he/she has the option of Adding the stock to his/her portfolio. By default all stock ideas/picks are added to the member's portfolio. Member may however choose Not to add a specific Stock Pick/idea/recommendation to his/her portfolio. However, since every stock pick by every member needs to be accounted for somewhere, we follow the mechanism of calculating Portfolio return and Pick return separately. Which means, all stock picks by a member that were added to his/her portfolio will be shown under Port Return or Portfolio Return. All stock picks that were NOT entered by the member into his/her portfolio, will still be added to his/her overall performance as he/she is still accountable for picking those stocks. Hence, pick return.
What is a Beta and why is Stocks Buddy.com in Beta Phase?
Every product and website kicks off with an idea and improvises on a base model. StocksBuddy.com too is in it's evolving stages and which means we are constantly trying to add new features and resolve any bugs/issues that are noticed during this beta phase. A beta phase is the one where a website is still working through all of this while being live and accessible to general public. We appreciate your continued support during this phase.
Intraday and long term Picks
StocksBuddy.com does not evaluate Stock Picks that are for Intraday or beyond 6 months duration. At this time we do NOT offer intraday services. Please stay tuned. People have short memories and which means, a stock pick that is beyond 6 months timeframe is easily forgotten. Hence, we do not calculate any Stock Picks that are made out for either Intraday or over 6 months duration. Then the next question you will have is why did we have these two in the list at the first place? It is for two reasons. 1) To cater to those audience who deal in Intraday and long term investments. 2) Every stock pick made by you is visible to the entire SB community. Which means, even if the pick is not helping you with your SB rank, it sure does leave an impression on other members. Hence these options.
How does Stock Pick Work?
Simple. You pick a stock and all the information is automatically fed in. This is what happens once you pick stocks.
- If you picked Stock before 8am on a Trading day, your Stock pick is considered for the very same day. Otherwise, it will be considered for the next day. Why? Because, the stock may have already made the move during the day when you picked the stock. And what if you picked the stock after you realized that it had made the move.
- Once you pick a Stock, it will be assigned a Status of "New". Which means, it is entered into our database, but not yet being tracked.
- If you entered a stock say on the 10th at 7AM, at EOD (end of day) of the 7th, your stock pick will begin to be tracked. Meaning. Since you picked the stock before 8AM (our cutoff time), your pick will actually be considered for the very same day. The pick will change status from "New" to "Open" and will be assigned the "Opening price of the 10th". If you picked the stock After 8AM on the 10th, then your Pick will change status to "Open" on the immediate next trading day with that day's opening Price.
- Your Stock Pick is tracked for the duration of the pick. For example. You picked the stock for 3 days duration. If the stock reaches the target before 3 days, it will be closed on the day it hits the target with the target price as the selling/closing price.
- At the end of 3 days if the stock does NOT reach the targets, it will be closed using the Closing price of that day.
- If your pick hits the target, it will be considered a "Success", meaning a successful Stock pick. If not, it will NOT be considered a Success.
- If your pick was closed with Profits, irrespective of whether it was a success or not, it will be considered an "Accurate" Pick. Why do we have two measures, Success and Accuracy for a single stock pick? To give you and your visitor a clear picture of how your pick performed. For example. You may have picked a stock with an expectation of say 20% profits and your pick did NOT hit the targets. However, it did close with handsome 15% profits. Now, it would be unfair to say that your pick was a failure because it did end up giving good profits. Hence the distinction. In this case, success may be 0, but you are right on target with Accuracy as you did make 15% with your stock pick.
- Once the stock pick is closed, calculations are made to figure out how much your Portfolio and Pick returns were. Your SB Ranking is then calculated based on SB percentile. Which means, we take EVERY SB member and his/her performance into account and then rank them on the basis of percentile.
How can I get Good Ranking on SB?
StocksBuddy.com is a Community of Traders just like you. Though Ranking is important, one Must take it in a positive spirits. This is NOT a battle ground where you are fighting with fellow traders to beat them and be on the TOP. This is a community where you share, discuss stock ideas and make new friends. Having said that you must know how to get better ranking. Most important thing that matters to your ranking is How you pick stocks. We strongly recommend you to Read How to Pick Stocks tutorial Over and Over again. You Must understand what fields are important and how they affect your ranking.
Apart from picking stocks, your Performance also matters. How many stocks did you pick, how many were winners and how many people actually support your picks and much more. To sum up, there is NO simple and easy way to be at the TOP. Only those who consistently perform and pick stocks that work are at the top. Our Rating mechanism is the most fairest one available around and if you look carefully on your own stock picks and performance you will Definitely agree to it. To better understand the rating, try viewing Performance of some of the top traders on SB and then try to compare their results with yours.
I do not think the Ranking is Fairly Calculated
We have tried to adopt a complex calculation mechanism for Rankings so as to present to you the Most Fairest performers. For example. If Ravi Picks a Stock ACC with a target of 100, and Hari too picks ACC with 100, they too could still end up being 100 or even 1000's of rank apart even when ACC hits 100. Why? Because there are other factors such as Weight. What weightage denotes is how Confident are you with your stock pick. Ravi may be 100% confident on his pick, while Hari may be only 30% confident. Likewise, they pick the same stock with different weights. There are 2 conclusions to this.
- Ravi invests a Huge amount on ACC pick and makes a killing. While Hari invests only a small amount of his total capital and makes a small profit.
- Similarly, you as a Visitor also would be tempted to follow Ravi.
Hence, it is extremely important that you go through our tours/self-help (?) where available and make the most of this site and your valuable picks which in turn helps you with your ranking.
I do not think the Stock Pick is Fairly Calculated
With regards to Stock Pick calculations, make sure you enter Target and duration Accurately when making the Stock Pick. If you believe the stock will hit 100 in 5 days, enter 100 in target and choose 3 & 5 days within duration. Your analysis has Nothing to do with the actual calculations. You may add your comments in your Analysis, but SB ONLY uses what you enter in Target, Timeframe, Weight for Stock Pick calculation purposes.
For example. Ravi thinks ACC will hit 100 in the next 2 weeks. He picks ACC and in Target he mentions 100, however he forgets to change the Timeframe which is set to "<3" days by default, to 2 weeks. The pick is closed at the end of 3 days probably with a loss. The stock actually hits 130 in 2 weeks. Now if only Ravi had picked the correct option in target, both His ranking and performance would have been completely Different.
This suggests the importance of TimeFrame, Target and also Weight. The more accurately you enter values for these 3 fields, the more accurate will be your Stock pick computations and eventually SB Rankings.
What is a 15% Rule?
15% rule states that all Stock Picks made on SB will by default have a 15% protective stop at 15% below/above the entry price for long/short positions respectively.
Why did we introduce such a rule?
When markets crashed all picks that were made out for 1 month or even 2 weeks, saw major losses. However, since the target durations (2 weeks/1 month) was never met, such picks still stayed on course. And Not surprisingly enough, most of these picks were closed in profits. How? Because, market came back up around the time the pick was about to be closed.
Under normal circumstances one would have definitely sold their position off due to the whole market conditions turning bad. And this is the approach we would like to take. Hence the 15% rule.
Summary is. If you enter a Stock pick at say 100 with a target of 130. If the stock hits 130 Great. If the stock goes below 100, that is still fine. If the stock goes below say 85, then the pick is automatically closed because it hits the 15% "Protective Stop" rule irrespective of whether the duration criteria is met or not AND if the stock eventually closed in profits or not.
The above rule is introduced to protect investors interests and be as close to human emotions as possible. After all, your picks and analysis is being followed by someone and neither of us want him/her to suffer.
What happens if the Stock Opens Higher than the Target price while still in New State?
Let us take an example and clarify the stance.
A stock trading at 100 with a target of 120 on 1st march and the stock opens on 2nd march @ 125 how should that pick be treated. If the pick opens above the Target of 125 on 2nd march, we will open that pick @ 125. If the stock closes above 125, say 130, we will close the pick on the very same day with the differential. (130-120). And this pick will go as a success and accurate too.
If the pick opens above the target of 125 but closes below 120, say 110, we will still close the pick with "No Profit No Loss". And we will NOT touch the success and accuracy.