(1/n) Some notes from my trading journal – A thread
With this thread I shall attempt to explain how I select my trading picks.
I have learn't this concept from @markminervini 's books. Hope it helps.
#Trade #Investment #invest #StockMarket #stocks #india
(2/n) Stock trading above 200 and 50 DMA
Buy high to gain higher. CMP above 50 Day Moving Average (DMA) and 50 DMA above 200 DMA signifies the stock to be in an uptrend. This is an uncompromisable rule. @ZerodhaVarsity @zerodhaonline
#stocks
(3/n) Volume
Volume is the key factor. The stock should show clear signs of accumulation. Generally, accumulation should happen over multiple periods of time. Attached image in the case of #BALAMINES can be used as an eg.
@ZerodhaVarsity
#stocks #StockMarket
(4/n) Surge
A stock should be bought either when it’s in stage 2 or when it’s forming a base after a surge. Surge is an upward move in a stock. The best trades are those when a huge surge happens in a very short time frame. Eg #FILATEX
@ZerodhaVarsity
#stocks #StockMarket
(5/n) Consolidation
After a good surge, a stock generally consolidates. This means the stock is in its resting period and will trade only in a range. This phase will be coupled with volume dry up. Tight range with low volumes are the best setups. @ZerodhaVarsity
#stocks
