Jeet Shah Profile picture
Nov 8 19 tweets 6 min read
When it comes to #Momentum investing or rather any other type of investing, knowing when to exit > knowing when to enter!!

#MostlyMomentum #investing #StockMarket

Following are few basic types of technical ratios, indicators, other methods, etc., you can use for exits. This is mainly for rule based investing, and non-discretionary type of investments!­
All following examples are just for illustration purpose, go with what suits your behavior as an investor, but once selected, do not change it again and again.
I am using default settings, test and try what works best for you, I use some of these to check potential candidates for exits.
1.       Hard Stop loss: Meaning certain % from investment rate; e.g., 10%, e.g., if you bought something at 1000, your stoploss in this case would be 900.
2.       Basic Trailing stoploss: e.g. If you bought something at 1000, and it goes till 5000, you should ideally not wait for 900, so your trailing stoploss should be 5000*90% i.e., 4500.
3.       #RSI: Default settings are 30-70, that means below 30 you sell.

4.       #MACD: MACD line cuts the MACD Signal line from below: “Buy,” and vice versa.…
5.       #ADX: ADX basically tells the strength in the trend, so this cannot be used alone, buy lower ADX means there is no strength in the trend, so you can exit when there is no strength.…
6.       #MovingAverages: Sell if the stock falls below the moving average line.

7.      Moving Average Crossovers: Sell when the lower period moving average line crosses higher period line from above.…
8.       #Supertrend: It is by default a Volatility adjusted trailing stoploss; if you have no idea what it is, do check, sell when stock price goes below Supertrend line.
I do not know how to read chart patterns; but I have been doing Momentum Investing since almost 5 years; you can too, few other points related to exiting a stock in #Momentum investing:
a.     Sell when your system says “Sell” don’t go looking for reasons not to sell just because you have a gut feeling.
b.     Don’t regret if you sold something and it doubles in next few days, there is no one way of Momentum Investing.
c.     Momentum investing does not mean short term investing; I will show you some examples after this list; that momentum did not end for years together.
d.    If you do not have a new stock after exiting; cash can form part of your Momentum portfolio.
Few examples of Long-Term Stocks that did not break Default “Supertrend” line and Default RSI for years (Monthly Timeframe), just for illustration purposes, no recommendations:

Atul Limited: Sep 2009 (86) till date (8400) IRR 42%; Image
Bajaj Finance: July 2009 (19) to Mar 2020 (2200) IRR 56%;

Aarti Industries: Dec 2007 (11) till date (740) IRR 33%. ImageImage
So, my basic points above are:

1.       In Momentum investing keep stop losses;
2.      Do not get emotionally attached to a particular stock;
3.      Get rid of losers, ride the winners;
4.      Use combinations of 1-3 indicators as stoploss; do not use all available indicators, it will mess you up;
5.      Do not keep changing indicators, saying it with experience, it will hurt you;
6.      Decide your timeframe, frequency of checking conditions and number of stocks does not matter 10 or 200;
7.      Personal Bias point: I do not like ETFs very much; if you cannot plan well, there are 8 momentum/ alpha based indices by NSE, check those.

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with Jeet Shah

Jeet Shah Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @Mostly_Momentum

Nov 7
07-11-2022: #MostlyMomentum- Flexi Cap Daily Update



Top 3 Gainers💚:
#MAZDOCK: 3.76%
#MIDHANI: 3.51%

Top 3 Losers❤️:
#GANECOS: -2.11%

#StockMarket #Investing #Stocks
Comparative Performance, Drawdown, and Investment Value v/s Portfolio Value:
Read 5 tweets
Sep 22
#StockMarket #Nifty #OptionsTrading #investing #trading
(Data: 17th Sept. 2007 to 21st Sept. 2022) (Nifty Levels: 4,518.45 to 17,718.35) (data source: @YahooFinance):
From the above chart it is clearly visible that more than actual gains came over night.

Note: Decimals have been ignored, that’s why actual calculation might slightly differ.
Read 10 tweets
Nov 30, 2021
Monthly updates for all 3 portfolios for the month of Nov- 2021:

No recommendations, just sharing my journey!!

#MostlyMomentum #stockmarkets #StockMarket #stocks #investing #trading

⬇️ ⬇️ ⬇️ ⬇️ ⬇️ ⬇️


Starting NAV (12-03-2021): 100.00

Current NAV (30-11-2021): 150.49

Compounded Annualised Returns: 90.23%

Annualised Standard Deviation (Based on daily closing): 24.76%

Maximum Drawdown: -12.80%
Trailing Returns:

Since Inception:
#MostlyMomentum (Daily Reconstitution) Portfolio: 50.49%
#NIFTY100: 12.99%
#NIFTYMidcap100: 22.42%
#NIFTYSmallcap100: 26.32%
Read 22 tweets
Nov 4, 2021
“Last Diwali to this Diwali: Summary of Momentum Investments/ Trades taken (#MostlyMomentum)!!”:

Introduction of my journey so far:
I started my #StockMarket journey Jul- 2016:

•During 2016-17, as a typical new investor, started with TV Tips, and IPOs,
this (IPOs) helped in a way, best #DMART has still been the best of IPOs I applied for, got allotment, and kept for couple of months and captured fastest 282% of my #StockMarket journey.

• During 2017-18, decided not to go after TV Tips,
and started doing something on my own including a little Option “BUYING” 12, lost some funds in Option Buying, but gained a lot of experience regarding not to so something you don’t know. Alongside this, also started exploring cash market strategies of buying what is going up and
Read 25 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!


0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy


3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!