Tag: Trading

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How to Take Cues from Earnings to Identify Successful Breakouts

The earnings season has already started and there will be more companies that will release their quarterly results in the coming weeks. This period of the quarter is important in determining the pace of economy as well as the outlook for individual businesses and sectors. The stock market is obviously highly sensitive to earnings’ outcome, specifically to whether consensus estimates were missed or bettered. But these earnings reports can also cause needless volatility, bringing losses in the short-term. So, what is the best way to leverage the earnings season to make profits in stock markets?

Things to Keep in Mind

Continue reading “How to Take Cues from Earnings to Identify Successful Breakouts”

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Swing Trading

In the weekly learning article published on July 15, 2017, we discussed “A Stock Drops Below your Entry Price; When Should You Get Back In.” We hope that the article was useful. Today, we move on to a new topic, where we are going to discuss “Swing Trading.”

What is swing trading?

Swing Trading is a strategy focused on achieving small profits and cutting losses in short term trends. Compared to long-term investment periods, the gains you make from swing trading might be small, but if done consistently over time they can compound into excellent annual returns. Swing Trading positions are usually held a few days to a couple of weeks or can be held for a longer period. Continue reading “Swing Trading”

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How to deal with IPO Frenzy?

“The safest time to buy an IPO is on the breakout from its first correction and base-building area. Once the new issue has been trading in the market for one, two, or three months or more, you have a valuable price and volume data that you can use to better judge the situation.” – William J. O’Neil, MarketSmith Founder

 With the recently concluded IPOs of Hudco, CDSL, and AU Small Finance Bank making the news, we ask if a retail individual invests heavily in IPOs? A common notion in the market is that IPOs are easy money with minimal risk. We would rather ask our readers to be cautious with IPOs for the following reasons:

● Nearly all of the good issues end up with a tiny allotment for the retail investor due to huge institutional demand for the stock. Continue reading “How to deal with IPO Frenzy?”