Because Remember that Large cap company will never hold their position at below 200days....
You can also back test this things...
2)Invest Maximum 3% to 4% of your total capital if you are looking such a opportunity like stock trading below 200 day EMA
Why 3% to 4% only ???
Because large cap company can also goes through bankruptcy...ex :#yesbank
✓Our Capital must required Protection...
3)Hold till the Stock come back to their 200days level.
Ex:
ABC stock Price:1700
Now trading at 200day Moving average:1400
Hold till the 1700
As per my trading exp. large stocks come back within Maximum 06-07 months it will never hold at their position because of #Largecap
4)If stock prices fall more than your buying price then you can Add more up to 2% to 3% of your total capital.
Why???
Because of large cap it can never hold their position so Thier is a Maximum change to come back so can add up to 2% to 3% for Benefit of lower price...
5)Daily do Analysis of Minimum 50 to 60 charts..
Why???
Because you can not miss the opportunity....
6)In #SwingTrading before entering to any stock must check the balance sheet of the company.
Why????
After checking balance sheet if we found major abnormalities in balance sheet then avoid such a trade in #largecap company.
6) In #swingtrading Fundamental and Technical Analysis both are important..
-Many Swing traders are working upon only chartpattern.Never only depend upon charts try to analyse balance sheet also for Maximum benefit.
7)Many Swing traders are only trade based on charts patterns but if you involved the Fundamental and Technical Analysis you will have perfect reason to hold....
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