The idea of this section is not to "pick stocks" but rather understand on how to pick right Stocks with appropriate risk management, so that we can benefit from gains as well as cut short our losses.
Lets look at few candidates...
Lets look at few candidates...
What is most obvious pattern in below chart?
Very clear pattern on weekly chart:
- Price has tried to break above 260 area but not successful
- 3rd time may be charm!!!!
- Once the breakout occurs the stock shall soon reach initial target of 380 and that might be followed by higher target of 460 area
Items you should focus on:
Things to remember:
Be disciplined and manage risk appropriately...
- Find out earnings date for stocks you have in your portfolio, so that you are aware of major events
- Understand current market direction and decide if you want to remain invested based on market scenario
Things to remember:
- No matter how great the company is and how stellar the earnings are, if market is in correction then the stock performance will be affected
- All boats rise in a rising tide, in short if market moves up then most stocks will also move up and vice-verse. If market is doing well then selectively chosen stocks have higher probability to provide good returns in short duration
- If a stock position does not work in your favor then get out, cutting losses is not easy but necessary, ONLY a disciplined investor/trader will be successful in long term
- Use trade size calculator to manage risk per position
Be disciplined and manage risk appropriately...