consistent profits in the stock Market
What are the best strategies to earn consistent profits in the stock Market ?
It depends on how deeply you understand the stock Market function. In terms of Trading , plenty of strategies are followed by traders . Swing Trading, Momentum trading, Break out trading, and Fundamental trading.
Swing trading
It is one of the reliable strategies, the trades who need to use this strategy under the market condition.
Buy near the support level and book you profits near the resistance. Sell the securities near the resistance and cover your shot position near the support level
Moving averages such as 200 & 50 DMA would act like support & Resistance
Fibonacci retracement such as 38.2% & 61.8% levels would act like Support & Resistance ll
Double bottom, Triple Bottom and Double Top, Triple Top would act like Support & Resistance
This is common swing trading methods, which strategy will work out in the general market.if select a wong stocks from the wong sectors that causes huge loss
Stock selection
Select the stocks from strong sectors, Now, the manufacturing sectors are constantly moving upward, when you see the correction, buy at support and take out your profits near the resistance
On the other hand, Chemicals, CGD, Logistics, are in a weaker position, so you can short on the resistance .
NBFC, Metals, Auto sectors are neutral at this current juncture you can easily play in both sides
It is a very simple strategy but execution is complex. Momentum trading means just following the current trend. When IT goes up just buy IT stocks,, when Chemical stocks are weaker Put short on Chemicals.
Buy at Higher level and book your profits in Higher high.
Sell the stocks at a lower level , cover your short at lower low.
Risk & Reward
You will just move along with market trends, so the success ratio is quite high.
High profit with limited risk .
The market secors’ trend changes will lead to huge losses.
In the strong Bull and Bear market which trading strategy will pay great reward
Stock selection
Buy stocks in which sectors is constantly moving in the Market
Sell Stocks in which sectors is facing downward pressure despite Bull market
Always being a buyer in the Bull market Likewise being a seller in the Bear market . Never trade against the market trends.
buy the securities when prices are trading above crucial level, Sell the stocks when price cut down the crucial support level.
Trading area
Above 52 week High, Below 52 week low.
Above the all time High, Below the all time low
Above the 200 & 50 DMA , Below 200 & 50 DMA
For example, if Stock A went above the all time high, don't urge to take position , if stock is trading above the key level in a consecutive Two days where should be an entry point .
Its success ratio is moderate. To follow thi strategy needs a strong Technical analysis skill, and Sector analysis By following strategy, you can earn high profits within a short period. But it requires sector analysis, and traders who need to know the market sentiments.
I Offer an Online course which will teach Technical analysis, Stock selection strategies, and be abe to identify sector trends. WhatsApp : 8015837459
The corporate will post their Financial results in each quarter, which will determine stocks’ valuation. The financial result comes from the different sectors white traders who need to sort out its attribution based on the nature of the Business.
EBITDA margin, Net profit margin, Free cash flow, and asset qualities are scrutinized by Financial institutions and large investors. Here I give below a few examples to analyze valid points of Industries.
Financial stocks - NPA, NIM, CASA, povison and credit growth
IT stocks - Operating Margin, Employee costs, customer acquisition rate.
Metal & Mining - Market price, Raw material costs and energy costs
Each sector is viewed through a different lens .but Trades must know some basic elements to validate the stocks. If you can understand a few basic things that helps to exploit many opportunity when coming out the corporate result
If you have interested to join our online class, Ps contact this WhatApp NO: 80158 37459
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