Tuesday, May 6, 2014

Catch The Trend

         Here is a chart of Arvind Industries which is in a continuous strong up move since last July. The stock almost tripled during this time period from 64 to 193.

         Many traders advices that Buy at low and sell at High, but they never tell us that, how can we find the low and top of a trade, because we can never predict the future. These kind of suggestions keep many traders in dilemma and most of time in a wrong trade. My theory is different from others, i like to catch the trend and love to follow the market.

        As prices are moving upwards, it means there is something good is going on with company hence we should buy and if they are declining continuously it means there is something wrong with company, and we should short sell it or keep ourselves away from it.

         How someone can say that this is the top or bottom of the stock?

       Those who like to catch the trend must have benefited from this stock and those who like to predict the top and bottom of a stock, must have booked loss.

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