What is Relative Strength and why we are #RSWarriors ?
Relative Strength is measure of the price trend of a stock or other financial instrument compared to another stock .
In simple words, you can calculate it by dividing one stock with another .
1. For us.
We take Index as the main thing which is NIFTY..
For me, Its basically a tool which helps you in finding the strength of the stock in overall market .
It is one of the indicator but it acts as a tool which is ahead with respect to most of the indicators.
2. When you take the stock which is outperforming the NIFTY, chances are high that you will be saving your portfolio from big loss.
Infact, if you use it by following Proper rule, chances are high that you will succeed ..
3. In India, there are very few people who are using and following this concept on broader scale.
One person who has given his most of the time in this strategy is @premalparekh Sir..
He is the one who has introduced RS System to many..
4. Why we call ourself as #RSWarriors ?
Because we are very focused on using this system and we as a group are trying our best to make some modifications and inspire other people to use this.
5. What is the best thing about RS System ?
It gives you peace and it saves you from all the noise . The best thing about RS is - It gives you a system by which you can keep your portfolio in green as well as you can sleep peacefully.
Ends.
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This is one topic which I have been asked many times plus this is one thing where we as a community has been working on from last few months.
So here is what You should know about RS (my opinion)
Sorry in advance for mistake
1. Relative Strength is basically the measurement of the price of any stock or any financial instrument with respect to another stock .. Most of the time, we measure this with our Index which is NIFTY..
In simple words, Divide any stock with NIFTY and it will give you an idea.
2. The biggest advantage of using Relative Strength is -
We do this to find the outperforming stocks..
When I say outperformance , I am comparing it with our Index which is NIFTY..
In last 4 months, finding a stock and entering into that is no big deal... Every single person can suggest many stocks to enter.. But the biggest problem which they face is - EXIT
Lets discuss the ways to exit -
1. One popular trader said -“ Entry is a choice but exits are mandatory “
And your overall performance depends mostly on your exit strategy.
In any public places (Movie hall, Auditorium) , EXIT signs are in big letter for a reason..
2. You should have a clear rule of entering and exiting any stock before entering any trade. Most people enter the trade in FOMO but they don’t know when to exit?
In Mahabharata, Abhimanyu did the same mistake and you know the result.