If someone is trading a stock within a specific range, then it is possible to consider trading in such stocks by looking at support/resistance levels, but it is not advisable for long-term investment.
For investment, one should always wait for the stock to break out of that consolidation range and provide a closing confirmation. Then, you can consider it for investment using this technical parameter.
For example, if you look at Reliance Industries on a monthly chart, it was consolidating within the same range from 2009 to 2017. In such a scenario, you could have traded it, but it was not suitable for long-term investment. However, as soon as it broke out of that consolidation range and closed above it in March 2017, it almost grew 5 times (500%) in just about 5 years.
📍 The larger the consolidation, the higher the likelihood of a significant breakout after breaking the range on a closing basis.
📍 If the consolidation lasts for more than 5 years, large-cap stocks tend to grow 2-3 times in the next 3-5 years (in 75% of cases).
📍 If the consolidation lasts for more than 5 years, small/mid-cap stocks tend to grow 3-7 times in the next 3-5 years (in 75% of cases).
📍 As long as the stock is within a range, you should avoid investing because your returns may not be substantial even after 5 years. There's no problem with trading.
📍 When it comes to investment, you should always understand the fundamentals of stocks, and these rules work well when combined with fundamentals.
📍 Whenever you think about investment, you should use higher time frames (quarterly/monthly).
For investment, one should always wait for the stock to break out of that consolidation range and provide a closing confirmation. Then, you can consider it for investment using this technical parameter.
For example, if you look at Reliance Industries on a monthly chart, it was consolidating within the same range from 2009 to 2017. In such a scenario, you could have traded it, but it was not suitable for long-term investment. However, as soon as it broke out of that consolidation range and closed above it in March 2017, it almost grew 5 times (500%) in just about 5 years.
📍 The larger the consolidation, the higher the likelihood of a significant breakout after breaking the range on a closing basis.
📍 If the consolidation lasts for more than 5 years, large-cap stocks tend to grow 2-3 times in the next 3-5 years (in 75% of cases).
📍 If the consolidation lasts for more than 5 years, small/mid-cap stocks tend to grow 3-7 times in the next 3-5 years (in 75% of cases).
📍 As long as the stock is within a range, you should avoid investing because your returns may not be substantial even after 5 years. There's no problem with trading.
📍 When it comes to investment, you should always understand the fundamentals of stocks, and these rules work well when combined with fundamentals.
📍 Whenever you think about investment, you should use higher time frames (quarterly/monthly).
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Out of 11 players 1 player changes the game
The same way One stock in your portfolio can change the game
Don't be disappointed by one or two stock underperforming.
#Investors
The same way One stock in your portfolio can change the game
Don't be disappointed by one or two stock underperforming.
#Investors
💯23👍11❤1
TD Power reports
#Q2 earnings
- Net profit up 64.3% at ₹32.7 cr vs ₹19.9 cr (YoY)
- Revenue up 28.7% at ₹273.7 cr vs ₹212.6 cr (YoY)
- EBITDA up 83.5% at ₹47.2 cr vs ₹25.7 cr (YoY)
- Margin at 17.2% vs 12.1% (YoY)🔥8
Forwarded from AHTESHAM ANIS
Redtape reports #Q2 earnings
- Net profit up 6% at ₹28 cr vs ₹27 cr (YoY)
- Revenue up 6% at ₹325 cr vs ₹306 cr (YoY)
- EBITDA up 32% at ₹58 cr vs ₹44 cr (YoY)
- Margin at 17.8% vs 14.4% (YoY)
- Net profit up 6% at ₹28 cr vs ₹27 cr (YoY)
- Revenue up 6% at ₹325 cr vs ₹306 cr (YoY)
- EBITDA up 32% at ₹58 cr vs ₹44 cr (YoY)
- Margin at 17.8% vs 14.4% (YoY)
👍3🔥2
Welspun Living.
CMP 149
Indowind Energy
CMP 16.80
Infibeam
CMP 20.00
Suzlon
CMP 12.00
Motherson sumi wiring
CMP 60.00
Akshar Spintex
CMP : 7.10
Only for long term.
CMP 149
Indowind Energy
CMP 16.80
Infibeam
CMP 20.00
Suzlon
CMP 12.00
Motherson sumi wiring
CMP 60.00
Akshar Spintex
CMP : 7.10
Only for long term.
👍15🔥1
शेयर बाजार में जब दुनिया डरे तो खरीदो लेकिन दुनिया खरीदे तो आप डरो- रामदेव अग्रवाल
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#ChartPeCharcha Is Back!
Assalamu alaikum.
I hope all of you doing v well..
Let's start #ChartPeCharcha By SCSM Gurus.
How to participate: Share charts 📊 of minimum one stock of your choice. The more you share the more points you score.
1. Just chart - 10 points
2. Chart with Explanation like support resistance etc - 15 points
3. Chart with explanation + price action pattern name - 20 points.
Note : You can edit your chart/message as well until winners are announced.
Do remember to tag your chart with #ChartPeCharcha.
Weekly Winners will be announced on Sunday 10pm. We may be sharing their charts on our YouTube channel as well. InshaAllah
Come on ChartGurus!
Start sharing!
Assalamu alaikum.
I hope all of you doing v well..
Let's start #ChartPeCharcha By SCSM Gurus.
How to participate: Share charts 📊 of minimum one stock of your choice. The more you share the more points you score.
1. Just chart - 10 points
2. Chart with Explanation like support resistance etc - 15 points
3. Chart with explanation + price action pattern name - 20 points.
Note : You can edit your chart/message as well until winners are announced.
Do remember to tag your chart with #ChartPeCharcha.
Weekly Winners will be announced on Sunday 10pm. We may be sharing their charts on our YouTube channel as well. InshaAllah
Come on ChartGurus!
Start sharing!
❤11👍5
Protean eGov IPO listed at par
IPO Price 792
Listing Price 792
IPO Price 792
Listing Price 792
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