If you are the trader then never hesitate in learning new tips. Even if you are an experienced trader, it is recommended to never stop learning as the Warren Buffet said that “keep learning, keep earning”. Hence, in this post, you will get to learn some quick tips that will help you in booking profit.
So let us get started.
Always remember to pick stocks from the leading industry groups or sectors. In general, all market leaders have a habit of investing in the top industry groups and sectors.
Large numbers of big winning stocks come from sectors like drugs, medical, computers, communications technology, software, specialty retail, and leisure and entertainment. Keep in mind the importance of volume. Here, the volume is the actual number of shares traded by a stock.
In the past stocks have never gone up by an accident. There is always a reason behind it. Large buying from big investors could be a possible reason behind a stock going up. You need to determine the bases that are formed before the stock broke out into the new high ground in price. You must also summarize the bases that get created when the stock went on to make their biggest gains.
In general, the most common pattern that occurs is a “cup with handle”. This is named so because it resembles a coffee cup when viewed from the side. You must know the optimal buying point of any stock and that is the pivot point.
Always remember that when a stock breaks out, volume should get increased by 50% or more above its average. Remember that when there is the decrease in price on decreased volume then it indicates no significant selling. Earlier might be informed about a saying “buy low and sell high” but now you must remember “buy high and sell a lot higher.”