Breakout point for a stock

POSTED BY Rajendran ON October 9, 2010 12:13 am COMMENTS (4)

Hi,

 It looks like everyone is conspiring against me i.e. Whenever I buy a stock, the stock keeps going down after number of weeks/months/years somehow stock is coming back to a reasonable profit (Say 8%) 

2nd Conspiracy is that: after I sell my shares, the stock keep going up and up and up… (say it goes up by more that 20 %)

B’coz of this way to investing my friends are earning a lot by doing just opposite to what I am doing. 

I am wondering is there any tool or method available to find out what is the best entry point and what is the best exit point for a stock.

For the benefit of all this blog readers my disclosure is:

Recently I started accumulating Satyam and sold IFCI.

 

 

 

 

4 replies on this article “Breakout point for a stock”

  1. This problem is with 90% investors and only 10% make money in stock market directly.

    You should have knowledge of reading balance sheet & profit & loss statement along with technical charts. That will give you breakout. Read about indicators like Ichimoku, Parabolic SAR, SMA etc. You can also go through some articles on same on http://www.DodaCharts.com

    If all this does not suits you, go with equity mutual funds via SIP and have a sound sleep everynight.

    Hope it will help you.
    InvestmentKit

    1. Rajendran says:

      Another disclosure:

      Today I sold Bhari Airtel @ 341 (stop loss triggered ),

  2. bharat shah says:

    my view is, when one has no access to the whole or major market data continuously updating mechanism, analysing and understanding the financial statements, own certain philosophy of investment, but have confidence in economy and so to equity investment, better to do direct equity investment through some trusted portfolio adviser’s continuous advice or indirectly equity investment through by self selected diversified mutual funds with help of well known sites like ‘valueresearchonline.com’ or /and ‘morningstar.co.in’ . of course for long term. i experience that for a lay investor ,it is futile going for direct equity investment on one’s own ,and dangerous simply follow some one else’s tips.

  3. Ram says:

    🙂 Please publish here too what your actions are so that we can all benefit like your friends.

    On a serious note, there is no real entry/exit point for any stock. Yes, you can buy a stock when it looks undervalued. Many times, stocks which are trading at half or less of their 52 week highs are undervalued. This is not a thumb rule though.

    Also, research your stocks well. Especially the management, the financials of the company, history, etc. For example, Satyam now has a shady history attached to it. While I’m not an expert on saying whether to buy it or not I do know that its better to stay away from such stocks because you can never know what the market is thinking of it.

    Regards,
    Ram.

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