Though #Bullmarket is continue since Apr 20.
But not every stock remain in Bull run.
Few rises up gradually and continuously but few get exhausted and gone into side ways consolidation or shifted into downtrend there bull run has come to halt.
So, the point is we need to(1/n)
Either trim our position or exit that stock which not only saves our hard earned money getting stuck for longer period of time with no return.
So, exit from a Stock which gave multibagger return is also imp.
Sharing few examples where Bull run is halted long back , 2/n
Which if u have exited could have save ur capital getting stuck and u could have compounded that in other better stocks.
I did that with many stocks in last 1 yr. Which helped me compound my money faster.
Sharing few for ur study.3/n
#Astec
Stock gave 2.5X return in 3 months
After that it gone sideways for more than yr now. 6/n
#Indiamart
Stock gave 4X return in 6 months after BO
But after climax top going down in last 6 months 7/n
#Neulandlabs
Stock gave 10X return from koee and 6X after BO in just 9 months
I bought at 470 and exited at 2500
But after bad result it gave climax top
And going down after that fall almost 50% 8/n
#Tanla
Gave more than 12X return in 8 months
But gone into sideways in last 5 months 9/n
#Granules
Stock gave 2.5X return in 6 months after BO
I bought at 170 and exited at 370
But stock is stuck in sideways for almost 10 months now 10/n
So, finding multibagger is imp but it is also imp to exit from a stock after a decent run up when it starts to give sell signal. That's helps ur capital to compound and not get stuck.
@RajarshitaS @nishkumar1977 @caniravkaria @MashraniVivek @chartmojo @equialpha @MarketScientist
#Hikal
Gave 4X return in just 4 months
But now shifted in downtrend.
Indication:
Made double top
Breaks 50DMA
similar to Aarti drugs example
Whatever be the fundamentals (I know it's good) but stock lost its momentum
Hikal ki nikal gayi hawa
#Persistent
Stock gave 6.5X return in 20 months after giving Break out around 780 level.
Stock respected 100 DMA very well through out before topping out.
Gave double top alert.
Get rerated from from high single digit PE to 40+ PE multiple.
Breaks last laxman resha 200DMA
Practical significance of ROCE apart from it's definition which everyone knows...
ROCE plays major role in stock price appreciation and depreciation
A stock whose PE ratio is less than ROCE is considered as relatively cheap
Different sector stock has Different ROCE 1/n
Depends on the capital required for their business expansion/working
A company whose ROCE is stable and high is considered as good for long term
Cyclical stocks has fluctuating ROCE while consumer, IT, Pharma, FMCG usually has high consistent ROCE.
ROCE plays significant 2/n
role in stocks rerating if company start producing high earnings growth rate.
For example, if Company delivering good results YoY for few years and has stable high ROCE. Then market start to rerate that stock such way that its PE goes above ROCE after rerating.
3/n
I never used the Indicator called Relative Strength no. as given by some sites like MS.
Instead I gauge relative strength through my eyes by observing charts of individual stocks relative to others & index with context of market
Here are some points u can consider while (1/n
Looking at stocks chart when market is in correction or pullback phase.
🔶 When there is panic situation in market on 1st day of panic Stronger stocks fall less as compare to broader market may be less than 2%(just a no. & not a thumb rule) or some might close in green also (2/n
🔶 Sometimes Good stocks which shown strength earlier due to sudden panic situation falls hard along with market on 1st day of panic may be more than 5% to 8%. they fallen more that doesn't mean they can't go up now. Obeserve them on next few days.
If they have stronger (3/n)
Stock market journey that started with just 5000, now with 7.2X return on PF from Apr20 With Capital in Apr20 was 14.5L &
With 617%(7.2X) return in 17months PF increased to 1.04Cr₹(equity trade only)
Here is my journey in brief,
In 2011, when I joined my 1st Job, A banker came to our hostel to open Bank Acc. of all new Joinee along with that he also opened our Demat acc. in HDFC sec by taking many signs
Few of my colleague (from metro cities) started dabbling in share market, So I also thought to (3/n)
Start as I was always curious about share market from college days but does not know anything other than sensex headline in TOI paper.
I bought Indiabulls Power share worth Rs 5000 only as was working in same and in 2 months I earned 500₹.
Then from one of my friend 4/n