'EPS growth, chart patterns, and ego checks': Financial advisor lays down strategy for investors as market bounces back

After weeks of whipsaw moves, the markets have staged a sharp comeback. But for investors looking to ride the rebound, success lies not in chasing the rally but in sticking to a game plan. Discipline, risk control, and stock selection are what separate a winning trade from a costly mistake.

To help investors navigate the current volatility, Vivek Mashrani, Founder of Technofunda Investing, shared a detailed checklist on X (formerly Twitter), offering a step-by-step breakdown of how to approach the market now.

“Screening Process”, he wrote, starts with identifying consistent growth stocks:

• Create a list of growth stocks where each of the last 3 years EPS have been up at least 20% and the next year's expected (guidance) earnings is up 20% or more.  
• Make sure the last two or three quarters earnings per share growth of 20-22%
• See that each of the last three quarters sales are growing at least 10-15%  
• Closely monitor promoter buying activity...  

“Filter companies in terms of quality of earnings and sales growth, ROE, profit margins and product superiority,” he added.

Mashrani also laid out clear rules for entering and exiting trades.

“Entry Rules: Learn to read charts and recognize proper bases and exact buy points  

• Use daily and weekly charts to materially improve your stock selection  
• Buy stocks when they initially break out of sound and proper base with strong price volume action or are turning around.

Exit Rules: Write down your sell rules that determine when you will sell or trail your profitable position. Maintaining a journal is very important to track your progress. Carefully average up, not down, and cut every single loss quickly with defined risk management,” the financial advisor wrote.

But his most valuable advice came with a warning. “The last and most important point to remember. Forget your pride and your ego; the market doesn't care what you think or want. No matter how smart you think you are, the market is always smarter. Your ego could cost you a lot of money.”

In fast-moving markets, where liquidity thins and emotions run high, it’s vital to act with purpose. That means favouring liquid names, defining stop-loss levels, and sticking to setups that meet your risk-reward criteria. The goal isn’t to catch every move — it’s to survive and thrive when conditions align.