Stock that breaks the uptrend are the one that can give massive upmove.
These stocks are considered as strong stocks in the market.
Timeframe should be monthly and if price closes above ATH on any day you can enter.
Investing in stocks is boring, but it can help in creating wealth for many investors.
Sharing 4 Simple Investment Strategies (sold as a ₹ 50,000 course!).
For guidance, shared screeners for all the strategies also.
Shared a bonus trading strategy at the end.
A thread 🧵:
Stock that breaks the uptrend are the one that can give massive upmove.
These stocks are considered as strong stocks in the market.
Timeframe should be monthly and if price closes above ATH on any day you can enter.
Bajaj Finance gave a breakout above ATH at around 55 and then it moved up till 5000 levels.
Total returns of 9000% in 10 years.
Simple Strategy, isn't it?
Reliance Chart.
It gave breakout above its All Time High level after 10 years and then never looking back.
Price moved up from 700 to 2600.
Returns of 270% in five years.
Initially keep stoploss at swing low on monthly chart and trail your stoploss accordingly to enjoy massive upmove.
Other ways of Trailing Stoploss can be using 200 EMA or any other indicator.
This screener will identify stocks that are breaking All time high (10 year high). It needs to be run daily to identify such stocks.
https://t.co/zEUg5SAkgs
It is one of the popular investment strategy widely used by traders/investors.
Common Golden Crossover that is followed is of 20 EMA and 200 EMA.
Enter if 20 EMA goes above 200 EMA.
Exit if 20 EMA goes below 200 EMA.
Time frame: Weekly/Monthly
Example 1:
Pidilite Ind gave golden crossover in 2009 at 71 and till now it has not given any exit.
From 71, currently it is trading at 2662.
Returns of 3600% in 13 years.
ITC gave golden crossover in 2003 at around 17 and after that it directly gave exit signal in 2019 at 238.
It gave returns of 1300% in 16 years.
Golden Crossover Strategy is completely rule based system and can be easily implemented.
This is a basic screener that will identify stocks that give golden crossover. You can tweak it if you want or add any other condition.
https://t.co/zZ2iuPO2QW
CCI is known as momentum indicator and can be a good for investor with shorter horizon of 2-3 years.
Strategy:
⚡️Weekly/Monthly TF
⚡️Enter: CCI crosses above -100
⚡️Stoploss: CCI crosses below -100
⚡️Exit if CCI crosses above +100 and then it goes below that
Bajaj Finance Monthly Charts.
CCI crossed above -100 in 2009 and price was around 5.
It gave an exit at around 58 when CCI crossed below +100.
Returns in 1 year: 1000%
This screener will identify stocks that are fulfilling entry criteria for CCI.
https://t.co/aGYyXh1tkp
CCI identifies stocks that are in momentum and can give decent returns in less duration.
Just like CCI, RSI is also a momentum indicator.
Strategy:
⚡️Monthly TF
⚡️Enter: RSI crosses above +50
⚡️Stoploss or TSL: RSI crosses below +50
It is also rule based strategy.
Laurus Lab Monthly Chart.
RSI crossed above 50 and entry was triggered at 90.
After that, RSI never went below 50.
So far, stock is up from 90 to 450.
Almost 400% returns in 2 years.
This screener needs to be run on month end and it will give out stocks that are fulfilling entry criteria of RSI Investment strategy.
https://t.co/jpr2ptWOSn
Also, note stoploss will be big in case of investment strategies so your quantities will be based on proper position sizing.
If you found this useful, please RT the first tweet.
Also, for live trading and stock market related updates, you can join our Telegram Channel ⤵️
https://t.co/RblJ0wWKCv
More from Yash Mehta
In the early stage, most of the traders & investors use indicators in their analysis.
Here is a master thread of how most of the indicators can be used in trading/investing to increase accuracy for free🧵:
Also, the last indicator and strategy is my favourite of all in trading.
1/ Moving Average is a very common indicator.
This thread is on what are the different ways of using the moving average
2/ RSI is one of the momentum indicator for traders.
In this thread, I have shared different ways of using RSI. Also, an investing strategy is shared, which can help you to pick stocks that can give you good
3/ CCI is another amazing indicator that is used by momentum traders.
Shared few strategies with CCI which a trader and investor both can
4/ CPR is one of the most popular indicator in the trading community.
This thread covers everything about the CPR indicator and how to use this indicator in
Here is a master thread of how most of the indicators can be used in trading/investing to increase accuracy for free🧵:
Also, the last indicator and strategy is my favourite of all in trading.
1/ Moving Average is a very common indicator.
This thread is on what are the different ways of using the moving average
Moving Averages is a common indicator which most of us (novice/professional) use in the stock market for trading and investment.
— Yash Mehta (@YMehta_) October 11, 2021
This learning thread would be on
"\U0001d650\U0001d668\U0001d65a\U0001d668 \U0001d664\U0001d65b \U0001d648\U0001d664\U0001d66b\U0001d65e\U0001d663\U0001d65c \U0001d63c\U0001d66b\U0001d65a\U0001d667\U0001d656\U0001d65c\U0001d65a"
Like\U0001f44d & Retweet\U0001f504 for wider reach and more such learning thread.
1/10
2/ RSI is one of the momentum indicator for traders.
In this thread, I have shared different ways of using RSI. Also, an investing strategy is shared, which can help you to pick stocks that can give you good
#RSI is a common indicator which most of us use in the stock market.
— Yash Mehta (@YMehta_) October 22, 2021
This learning thread would be on
"\U0001d650\U0001d668\U0001d65a\U0001d668 \U0001d664\U0001d65b \U0001d64d\U0001d64e\U0001d644"
Like\U0001f44d & Retweet\U0001f504 for wider reach and for more such learning thread in the future.
Also, an investment strategy is shared using RSI in the end.
1/16
3/ CCI is another amazing indicator that is used by momentum traders.
Shared few strategies with CCI which a trader and investor both can
#CCI is an indicator which is used in the #stockmarket
— Yash Mehta (@YMehta_) February 26, 2022
This learning thread would be on
"\U0001d650\U0001d668\U0001d65a\U0001d668 \U0001d664\U0001d65b \U0001d63e\U0001d63e\U0001d644"
Also, an investment strategy and trading strategy is shared
If you appreciate this, a Like & Retweet will go a long way in maximizing the reach of this tweet\u2665\ufe0f
1/19
4/ CPR is one of the most popular indicator in the trading community.
This thread covers everything about the CPR indicator and how to use this indicator in
#CPR is an indicator which is used for #Intraday in Stock Market.
— Yash Mehta (@YMehta_) November 19, 2021
This learning thread would be on
"\U0001d650\U0001d668\U0001d65a\U0001d668 \U0001d664\U0001d65b \U0001d63e\U0001d64b\U0001d64d"
Like\u2764\ufe0f& Retweet\U0001f501for wider reach and for more such learning thread in the future.
Also, an investment strategy is shared using CPR in the end.
1/24
More from Finance
I'm lucky to attain financial freedom before 30.
I credit Fintwit for my learnings.
Here's 10 key concepts every investor must know:
1. $$ needed to retire
2. Researching a business
3. Reading annual reports
4. Reading earnings calls
5. Criteria of a multi bagger
(Read on...)
6. Holding a multi bagger
7. Economic moats
8. When to buy a stock
9. Earnings vs cashflow
10. Traits of quality companies
Here's my 10 favourite threads on these concepts:
1. How much $$ do you need to retire
Before you start, you must know the end game.
To meet your retirement goals...
How much $$ do you need in your portfolio?
10-K Diver does a good job explaining what's a safe withdrawl rate.
Hint: It's NOT
2. Research a business
Your investment returns are a lagging indicator.
Instead, your research skills are the leading predictor of your results.
Conclusion?
To be a good investor, you must be a great business researcher.
Start with
3. Reading annual reports
This is the bread and butter of a good business analyst.
You cannot just listen to opinions from others.
You must learn to deep dive a business and make your own judgments.
Start with the 10k.
Ming Zhao explains it
I credit Fintwit for my learnings.
Here's 10 key concepts every investor must know:
1. $$ needed to retire
2. Researching a business
3. Reading annual reports
4. Reading earnings calls
5. Criteria of a multi bagger
(Read on...)
6. Holding a multi bagger
7. Economic moats
8. When to buy a stock
9. Earnings vs cashflow
10. Traits of quality companies
Here's my 10 favourite threads on these concepts:
1. How much $$ do you need to retire
Before you start, you must know the end game.
To meet your retirement goals...
How much $$ do you need in your portfolio?
10-K Diver does a good job explaining what's a safe withdrawl rate.
Hint: It's NOT
1/
— 10-K Diver (@10kdiver) July 25, 2020
Get a cup of coffee.
In this thread, I'll help you work out how much money you need to retire.
2. Research a business
Your investment returns are a lagging indicator.
Instead, your research skills are the leading predictor of your results.
Conclusion?
To be a good investor, you must be a great business researcher.
Start with
1/ Thoughts on Research Process
— Mostly Borrowed Ideas (@borrowed_ideas) September 27, 2021
I was invited to present my research process at a college in the US. I am sharing all ten slides here. pic.twitter.com/z0tjZcogfH
3. Reading annual reports
This is the bread and butter of a good business analyst.
You cannot just listen to opinions from others.
You must learn to deep dive a business and make your own judgments.
Start with the 10k.
Ming Zhao explains it
\U0001f9d0How to Read 10Ks Like a Hedge Fund\U0001f9d0
— Ming Zhao (@FabiusMercurius) May 7, 2021
\u201cFundamentals don\u2019t matter anymore!\u201d I\u2019ve heard this a lot lately on Fintwit.\U0001f644
But, for those who\u2019ve diversify beyond $GME and $DOGE, here\u2019s a primer on what metrics fundamental buy-side PMs look at and why:
(real examples outlined)
\U0001f447 pic.twitter.com/tLlNRvpnDK
THREAD: Who are the rising stars of Chinese elite politics in the central Party-State bureaucracy?
For @MacroPoloChina I analyzed last year's ministerial-level promotions to posts in Beijing
TLDR: Ties to Xi Jinping—or a Xi ally—are very helpful! (1/14)
https://t.co/kO2A0Efyq2
Seven politicians were promoted to ministerial-level positions in central Party agencies last year
All are likely to feature on the next Central Committee selected at the 2022 Party Congress
Some could make the CCP's elite 25-person Politburo (2/14)
https://t.co/kO2A0Efyq2
Likeliest for the Politburo is Meng Xiangfeng, new Executive Deputy Director of the CCP General Office
He would replace Xi ally Ding Xuexiang as CCP chief-of-staff if Ding is promoted further in 2022
Meng worked under Xi allies Cai Qi in Hangzhou and Chen Xi in Liaoning (3/14)
Less likely for the Politburo but still important is Jiang Jinquan, new Director of the CCP Policy Research Office
He replaces 5th-ranked leader Wang Huning who led the Party's brains trust for 18 years
Wang remains prominent and will be <68 in 2022, so he'll stay around (4/14)
Other notable central Party promotions include Li Shulei and Liang Yanshun, who both assisted Xi when he led the Central Party School from 2007-2012
Li is a political conservative who is said to be quite close with Xi, even drafting his 2014 speech on culture and art (5/14)
For @MacroPoloChina I analyzed last year's ministerial-level promotions to posts in Beijing
TLDR: Ties to Xi Jinping—or a Xi ally—are very helpful! (1/14)
https://t.co/kO2A0Efyq2
Seven politicians were promoted to ministerial-level positions in central Party agencies last year
All are likely to feature on the next Central Committee selected at the 2022 Party Congress
Some could make the CCP's elite 25-person Politburo (2/14)
https://t.co/kO2A0Efyq2
Likeliest for the Politburo is Meng Xiangfeng, new Executive Deputy Director of the CCP General Office
He would replace Xi ally Ding Xuexiang as CCP chief-of-staff if Ding is promoted further in 2022
Meng worked under Xi allies Cai Qi in Hangzhou and Chen Xi in Liaoning (3/14)
Less likely for the Politburo but still important is Jiang Jinquan, new Director of the CCP Policy Research Office
He replaces 5th-ranked leader Wang Huning who led the Party's brains trust for 18 years
Wang remains prominent and will be <68 in 2022, so he'll stay around (4/14)
Other notable central Party promotions include Li Shulei and Liang Yanshun, who both assisted Xi when he led the Central Party School from 2007-2012
Li is a political conservative who is said to be quite close with Xi, even drafting his 2014 speech on culture and art (5/14)
