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Review: MoneyVidya.com

Review: MoneyVidya.com Just took a deeper look at MoneyVidya, a community site for Indian stock market investors. Given I’ve just come off Moneyoga, the space still retains my interest, and then I know one of the founders (Gautam) so if you’re looking for an unbiased view, this is not it.

Moneyvidya is a stock picking system – you choose a stock, you put a buy or sell rating for it, and specify the time period – from Intraday to 2 years. You can also choose to say why, choose a target exit price, set up a limit (don’t buy above “x”) and set up a stop-loss point.

Picks are automatically closed by the system once they pass the duration specified or hit targets/stop losses. In this, they differ from Motley Fool’s CAPS which asks you instead. (also, CAPS focusses on relative returns to S&P, and is US only)

People are rated by their pick performance, on a scale of 1-5 stars, and there’s some more stats like average return, success rate etc. I like this idea – my strong belief is that the best stock pickers could come from anywhere, not just from the few desks of mutual funds or investment banks. To be able to track the very best, you need a third party rating system that is purely performance driven – to unearth the smart traders and to “unmask” any investment gurus who ask you to pay for their advice. (You should be able to say “Whats your ranking on [site]?”) And of course, if you want to build a business that provides stock picking advice, it’s good to build credibility on such sites.

About 2200 members seem to have registered, though not all may be active. Once this number grows and the site collects data, I’m sure there will be more analytics to compare users (intraday versus long term, return versus risk etc.).

The charting is limited to price/volume, with no indicators. There aren’t any fundamentals shown, no P/E or EPS or profit figures. I couldn’t get their Compare Stocks bit, or their watchlists to work at all. You can look at news and posts for any stock, aggregated from various sources.

The stock focusses on picks, not portfolios. So if you have a lakh to invest, you can’t quite use the site to figure out how much to put in which stock; so you won’t find the great portfolio managers here, only the best stock pickers. A reasonable part of trading and investing is money management and position sizing; some would say you could have a 50/50 win-loss ratio and still make great returns if you lose much lesser per losing pick than the amount you profit on a winning pick. Still, that might be in MoneyVidya’s future plans, I won’t write it off.

The site’s early stage, so there’s not much discussion on the mainstream stocks – most of it seems to be in the mid or small-caps. But there are reasonably active polls, news links and Q&A – interesting from the perspective of reading up views on a stock. Their blog is educative on both technicals and broad market terminologies; well worth the time reading, if you ask me.

A pain point: To look at members or stocks you need to log in. For one, this destroys a considerable amount of Google juice – behind a subscription wall, none of the stuff people have written, or your stock data, gets indexed. Plus, you shouldn’t need to subscribe unless you want to participate. Another suggestion is to have a facebook plugin or such, that allows people to pick stocks in a different and more famous community platform. There are sites like this for the US market, not for India.

This review’s already gotten longer than I thought it would, so let me stop here and wish the MoneyVidya team a ton of luck. And do let me know what you guys think.

  • MoneyWise says:

    >Awesome review Deepak.though i am not sure why the compare stocks and the watchlist din work fr u.
    Moreover,a good list of to-implement things around there.M sure Gautam and team are listening and they get implemented soon.
    I have been using moneyvidya exclusively for basic fundamental resarch,since technical anaylsis fundas still elude me:D

  • shyam says:

    >During my early Network18 days (in 2005-2006), I’d pleaded with the powers-to-be to do something similar with Moneycontrol and also start putting a monetary value to quality information that is being provided on a person-to-person exclusive basis. I’m glad someone is finally doing it and doing it quite well. If they continue on the same track, they should do really well.

  • Gautam Kshatriya says:

    >Hi Deepak, Gautam Here – thanks for the in depth review of MoneyVidya.com. Also really appreciate the feedback and just wanted to respond to a couple of points that you brought up:

    1) Do let me know what problems you faced in getting the watch list and compare stocks feature to work… we’ll address this issue immediately.

    2)We’d love to add more powerful features to the site, such as technical charting, and show more company fundamental content *now* but unfortunately, being a startup, we’re restricted on money/resources. I do assure you that we’ve thought about this a lot, and just need a nice injection of cash and/or some developers to come on board to join the team in order to make this happen.

    If anybody is interested, get in touch with me on gautam.kshatriya@moneyvidya.com!

    3) You’re right, our website is currently individual ‘pick’ rather than ‘portfolio’ driven. There are advantages and disadvantages to both models: for example the ‘portfolio’ mechanism may not really be valid for those with a shorter time horizon / trading mentality. Moreover, we’re really keen on maintaining ‘fresh’ advice on our site. So for example, somebody could have created a portfolio of stocks X, Y and Z three months ago. This might have been a great mix at that time, but no longer since market conditions would have changed. Therefore, it may not be advisable for somebody to replicate that portfolio. On our site, we ‘close’ or ‘expire’ picks a short time after they’re made, indeed much before their time period has ended. So for example, if you make a 1 week pick, we ‘close’ off the pick after 1 day (of course we continue to calculate returns etc. generated) because since the market would have moved considerably, it may no longer be safe for users to follow the pick the very next day… We are still however considering adding ‘conviction level’ (such as low/ medium/high) to stock picks which would to an extent work like indicating relative allocations. Would love to know your thoughts on this.

    Still early days for us. We’ll continue to do our best to evolve / improve the website with the support of the Indian investor / trader community.

    Thanks again,

    Gautam

  • jumpup says:

    >Some very good points from Deepak (which I happen to firmly believe in)

    a. Have portfolio based performance.

    b. Don’t concentrate on pure trade based results, instead concentrate on performance based. Like find out their RAR%, CAR%, Per Trade DD, Portfolio beta etc.

    c. Secondly have a provision for including the short side players as well brotha’

    Soham

  • Anonymous says:

    >leaving everything aside what about the SOS strategy,you said 3400 is the stop loss now nifty is at 3500 almost,what r u doing????????????

    sworry to be sarcastic but abt the short only strategy?if u dare post ur comments deepak sir

    u r great,
    abhijit