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Market is not something linear but it will have that up and down to scare the life out of you. That zig-zag is what makes it lethal. Most people are not trained to stomach the volatility that is the nature of the market and precisely why it offers great rewards if followed a process over …
Multiyear Breakout (price crossing at least 5-year-old level or more) is a structural tendency of the market. When a stock is crossing 5 year or older level that means something has changed for business which will lead to rerating in stock valuation and if business is able to grow earnings at fast clip too then …
Market offers many ways to make money. Problem is most people do not focus what are those ways and how each of them are different from each other. In the process they keep doing things mindlessly in market without making any progress. You have to understand what is your edge and delve deeper into it …
When you look back everything looks blindingly obvious in market as to why something should have done well as it did and why something should have not done well as it did not. It is only when you are asked to look ahead you find everything is full of anarchy and chaos. You need to …
Just because it does not involve physical work people think making money from stock market is easy. Making money from stock market may be simple but it is not easy. If it was easy then everybody would do it. But certain things come naturally to some and for them it is not work hence they …
When something new is on the block then not enough information is with most of the market participants and this leads to misunderstanding about the business and share. But as the bigger players with better understanding – information and insight keep piling on others in the periphery start to understand things better and stock catches …
Sometimes market catches fancy to certain infant industry that is often coupled by negative sentiment in other party. That leads to excesses in terms of crushing the valuations beyond recognition. As if the business is dead. But as most other things, business world is cyclical so some of these businesses survive and some adopt to …
One should always focus on some key set ups and themes of making money in market. When few disparate ways come together you get the lallapaloosa effect. That is where the high probability high return scenario may form which one can milk with big position. You always want more and more factor to be going …
Market finds a theme with some possibility of good time ahead and then as things start to pan out as envisaged, often much better, stocks part of that theme keeps doing great. If you get the market direction right then half of the work is done and if you add good themes in the mix …
In the last blog, we talked about PRAD – post result announcement drift. There is another concept called Episodic Pivot which is popular as EP. EP as the name suggests means anything that is strong enough to create a pivotal shift in stock move. Every PRAD is EP but not every EP has to be …