How to Time Your Entry After a Stock Breaks Out?

Our research indeed shows about 40% of stocks that ease back to the pivot (buy) point after a breakout will still go up. However, your best chances of success are when you buy a stock as it breaks out of a sound base on heavy volume.

The important thing to know is that breakouts can still be in good shape unless the stock dives below the pivot point. As always, sell the stock if it goes 8% below your purchase price. Sometimes, you may get away buying a stock when it goes back to the pivot. But that’s not likely to happen in a weak market.

William O’Neil to launch app for day-traders


The SWINGTrader product has been well received in the US markets and that prompted us to launch SWINGTrader in India, where we have an equally mature trading culture. In the US, our proprietary Investor’s Business Daily team uses over 20 proprietary screens that scan for key fundamental and technical criteria to develop swing trade ideas. It offers trading opportunities in any market whether up-trending or down-trending with the leverage of the CANSLIM strategy”, Anupam Singhi, CEO, William O’Neil India said.

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Why New Highs In Low Volume Are A Great Time To Sell Your Biggest Winners

In the stock market, a great company is like a Porsche car, and volume is the stock’s fuel. You can blather all day about the company’s potential, its fabulous new product, its incredible CEO and so on.

But if the company’s stock, after making a great run, begins to hit new highs on light or simply average volume, the stock will likely cease to act like a high-performance roadster. In fact, the stock may be beginning to put on the brakes on its spectacular run.

When new highs keep occurring on low volume, it is prime time to be watching for serious sell signals.

The Difference between Heavy Volume and Light Volume

Please go to a daily chart at MarketSmith India and look at the bottom part of each chart. Each thin vertically-aligned bar represents how many shares a stock traded each session. It is easy to tell on any given day whether trading increased vs. the prior day, decreased, or stayed virtually the same. Continue reading “Why New Highs In Low Volume Are A Great Time To Sell Your Biggest Winners”