When a stock is going the right direction, your decision making is not as easy. How long should you hold? Here’s a specific rule to help boost your prospects for long-term stock investing success: Once the stock has broken out, take most of your profits when they reach 20% to 25%. If market conditions are choppy and decent gains are hard to come by, then you could exit the entire position. Continue reading “How To Accumulate Long-Term Profit In Stocks?”
This week has been a rather strange one for the investors. The Nifty registered a new closing high on Monday. As a result, we moved the market status from Uptrend Under Pressure to Confirmed Uptrend at the end of the session. Continuing with the positive momentum, the index scaled a fresh all-time peak in Tuesday’s session. However, the euphoria ebbed soon after, as the index ended the day with minuscule losses on Tuesday. The next three sessions, too, have not given anything to cheer for the bulls as the index ended in the negative territory, with today’s market action being particularly disappointing. Continue reading “Mayhem in the Market: What Should You Do?”
We hope that through our weekly learning articles, by now you might have got a basic understanding of market bottoms, market tops, and how to track them using CANSLIM investing system. Today, we move on to a new topic “Bull Markets, Bear Markets, and Interim Corrections.” Continue reading “Bull Markets, Bear Markets, and Interim Corrections”
“The whole secret to winning big in the stock market is not to be right all the time, but to lose the least amount possible when you are wrong” – William J. O’Neil, MarketSmith Founder
Whether you are a novice or an experienced investor, everyone makes mistakes from time to time. It is easy to get discouraged if your losses pile up faster than your wins. But, tackling your losses holds the key to success in the stock market. Continue reading “Secret to Success in the Stock Market!”
“For the best prospects, do a price and volume check of each week within the stock’s base to help you conclude if the stock is showing sound accumulation or too many price and volume defects. Next, do a fundamental analysis checking for excellent earnings, sales and return on equity..” – William J. O’Neil, MarketSmith Founder
In technical analysis, the process of identifying supply and demand in a stock starts with analyzing price and volume on the daily and weekly charts.
Are up days or weeks accompanied by heavy volume? Does the stock close in the upper half of the trading range, either on the daily chart or the weekly one? And on the down days, are they trading on light volume? If a stock falls on heavy volume, does it close in the upper half of the trading range? Answers to such questions in the affirmative strengthen the overall quality of a base pattern.
However, in some cases, the stock price might be volatile as the base takes shape, resulting in a “wide and loose” pattern. There might be a lot of institutional selling, in the form of distribution days or weeks, in the base. Both are negative and can keep a lid on a stock’s breakout.
Continue reading “Beware of Distribution: Too Much of it in a Base Can Play Spoilsport”
