An educational #Thread on when to exit a stock near its top even when the picture looks rosy both technically, fundamentally.
The current fall in market has given a good lesson to #investors that EXITS r equally imp. vs entries as even good stocks hv fallen 30-40% from top.
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The current fall in market has given a good lesson to #investors that EXITS r equally imp. vs entries as even good stocks hv fallen 30-40% from top.
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Offcourse 1 cannot sell at the exact top & buy at the exact bottom as no 1 knows where it would be formed but 1 can try to analyze events such as quarterly no.'s with charts which can give u an ideal exit from the stock.
Let's understand the abv with recent practical e.g's.
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Let's understand the abv with recent practical e.g's.
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#Gujaratalkalies - Posted a blockbuster Q3. Co. posted highest ever Sales, EBITDA, Margins & PAT with huge jump both qoq & yoy. Despite such a great set the price couldn't cross previous high infact the stock formed kind of doji & saw a sell off with volumes which continued.
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The main things to note from abv e.g:-
* It didn't make a new ATH/52 W High despite blockbuster set
* It made an indecisive candle with huge vols. & crossed earnings day low within 3 days
* Markets didn't hv confidence for such earnings to continue hence biggies sold off!
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* It didn't make a new ATH/52 W High despite blockbuster set
* It made an indecisive candle with huge vols. & crossed earnings day low within 3 days
* Markets didn't hv confidence for such earnings to continue hence biggies sold off!
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#allcargo - Similar story as abv. Despite blockbuster set it made a big red candle with volumes & broke the low within 3-4 days.
Markets r always forward looking & price always discounts the future. Hence both the statements r the basis here explained with practical e.g's.
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Markets r always forward looking & price always discounts the future. Hence both the statements r the basis here explained with practical e.g's.
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Both the stocks discussed abv are down more than 20% from highs despite all going well. So when should hv 1 exited ???
1 can plan partial exit if a stock doesn't react to blockbuster set & we see a volume sell off & a full exit with the low of earnings candle being broken.
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1 can plan partial exit if a stock doesn't react to blockbuster set & we see a volume sell off & a full exit with the low of earnings candle being broken.
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To make this theory more powerful 1 can see GNFC which is continuously making new highs after a great set despite current market scenario.
This is not a holy grail exit #strategy but 1 can use it to exit timely & not regret later on.
THE END.
Feedbacks, views are appreciated.
This is not a holy grail exit #strategy but 1 can use it to exit timely & not regret later on.
THE END.
Feedbacks, views are appreciated.
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