If a stock is at 52 week high that doesn't take huge matter, thing is if that stock is giving breakout there that means that stock is going to form new high, because buyers are taking more interest on that stock they are pushing up & there may lack of sellers, so that the buyers are taking more dominance, so the intellegent investors mostly likes this pattern recently many stocks are forming such action like amber enterprises today formed all time high, that doesn't mean after forming new high immediately that stock will come down until market pressure, similarly pilani investment is such stock which is forming higher high since last week, another example nalwa sons it is forming also higher high, similarly recently BSE formed such pattern, now it is falling from top.
Thing is if a stock is forming higher high, you can take position with any stock but here you should apply strict stop loss, which should apply as atleast 5%, if you are applying any stop loss & your stop loss is closer to that stock price, there is more chance of hit the stop loss because on live market the operator closely watching the stop loss, first on running market there intention is hit the stop loss first then they will run that stock to higher side. Today in these paragraphs which stocks I discussed they formed upper circuit, one stage amber enterprises was also formed upper circuit 20%, but at end someone sold therefore it dropped down to near 17–18%.
In this volatile market investors may get fear, I am also fear, today again market was so volatile, that means today FII’s must come slightly big, till now I haven't seen the FII vs DII data but I guess, anyway on tomorrow same situation may come because global market looks weak, USA, Europe, Asian market all indices looks red this evening. Here one thing I learned from this market that if you have more cash in your hand then you should not fear, we are the retail investors, we have no such big cash in our hand we are investing in market with limited money, and we don't think what will be future, we are ignoring market volatility and we are putting all our money very quickly in share market.
There is the problem, if we are investing in share market we should have fare amount in our hand so that if the market will crash we can put our money at right time, one procedure works in share market I,e buy on dips sell on high, it is looking so simple but if you will apply this strategy in share market, you will be irritate, because we don't know to which level a share will fall, when that stock will recover, so many things makes fragile to investors. These days how foreign investors are selling, these things creates more problems to retail investors.
I realise specific this market is not suitable for short term investors, yes if you are looking to invest in share market, go for long. Because in this market there is more chance of trap. Because on next day how will be the market, you never know, here BTST calls are more risky, every day market is changing its direction, one day rising one day falling. The experienced investors are going with there own strategy, problem is coming for new investors, who are investing since last 2–3 years, till now after COVID they haven't seen any severe volatility. That comes the problem.
Your question is what next in this volatile market ?
1- if you are looking for investment in share market, I must say wait for market stability, these days more correction is going, so wait with patience.
2- if you have cash in your hand, keep that money in a safe place like debt mfs, just park that money in any liquid or ultra short term funds.
3- till now no such clearance of market reversal, from here market may show more volatility, yes we are investing in share market, we know how to exit.
0 Comments