Learning to catch High Probability Breakouts

[jain.er]

Further to the discussion of buying stocks at 52 Week high.

How about just blind buying stocks (a portfolio of say 20 stocks) breaking out to their 52 week highs. Keep a SL of say 5% and then trail. May be we could ignore fundamentals and just follow technicals. Keep a diversified portfolio. Get out of small caps but keep positions for long in high quality mid caps. This strategy is more suitable for small cap plays. SL is a must here. All trades are delivery trades. Is there any way to back test this. Please charts all have log scale so the rise is actually much more steep then it looks in the below charts. (We may have a good strategy in place if we can test this some way)

 

[prst]

Its a good strategy, but problem is with exit . How will we plan our exit?

 

[jagankris]

amit ji

what is this site from where u are posting fundamentals, looks good site.

thanks

moneyworksforme.com

 

[indianbank]

Further to the discussion of buying stocks at 52 Week high.

How about just blind buying stocks (a portfolio of say 20 stocks) breaking out to their 52 week highs. Keep a SL of say 5% and then trail. May be we could ignore fundamentals and just follow technicals. Keep a diversified portfolio. Get out of small caps but keep positions for long in high quality mid caps.

I have position in this stock called ISFT...

As you said Stoploss 5-10% will be ideal....

Divide capital to 20-30 stocks will be a good choice...:thumb:

 

[jagankris]

Check Kitex garments for example ,backed by good fundamentals.

Dear Amit,

The stock rallied may be backed by good fundamentals.

Current Fundamentals
BV - 55
PE - 49.71
P/B - 18 times the book
Div Yield - 0.12%

Does the stock price looks attractive at this price ?

 

[extremist]

the Bearish Three Driver pattern is about to be completed in NF if it crosses 8662-68 level.

though it does not crosses it can be considered as a valid.

those who r interested in understanding wht is Three Driver pattern can visit the following page.

http://en.tradimo.com/learn/technical-analysis/chart-patterns/three-drives-reversal-chart-pattern/

The 1st target can be min 38.2% of total swing right from start to end.

 

[mindgames]

the Bearish Three Driver pattern is about to be completed in NF if it crosses 8662-68 level.

though it does not crosses it can be considered as a valid.

those who r interested in understanding wht is Three Driver pattern can visit the following page.

http://en.tradimo.com/learn/technical-analysis/chart-patterns/three-drives-reversal-chart-pattern/

The 1st target can be min 38.2% of total swing right from start to end.

Looks like a good place to browse...

 

[jain.er]

I have position in this stock called ISFT...

As you said Stoploss 5-10% will be ideal....

Divide capital to 20-30 stocks will be a good choice...:thumb:

For example allot 1Lakh to this type of trading.
invest 5K into 20 stocks; keep 1K as SL for each, if you are lucky your money can double in no time.

On papers this looks good do not know how our physcology would play in real time.

 

[indianbank]

in trading diary section ... senior member Zuma is making profits using above method... go through it

 

[amitrandive]

Check Kitex garments for example ,backed by good fundamentals.

Dear Amit,

The stock rallied may be backed by good fundamentals.

Current Fundamentals
BV - 55
PE - 49.71
P/B - 18 times the book
Div Yield - 0.12%

Does the stock price looks attractive at this price ?

JaganJi

I am not a fundamentalist ,so cannot make any heads or tails out of this.

Just my views

Fundamentals can be used to check the stock ability and strength.Technicals can give you the entry and exit.

Both have to be used with a fine balance.We cannot say that one method is superior over the other.