Thread by @dmdsplyinvestor

Powerful INVESTING STRATEGY that helped me..🎯

• Identify turning points in stocks
• Find quality stocks
• Not panic & ride trends
• Finally make 💸

CCI & Pivot Strategy🧵..

Ready to learn?🤓

Let's go...🧵

1⃣ How to filter stocks? Is there a scanner?

There are 1000s of stocks in the market & you need to invest in only a few.

How do you narrow it down to a select few?

Use this simple CCI based scanner (CCI Weekly crossing 100) every weekend👇

chartink.com/dashboard/34179

2⃣ Which stock to select from the scanner?

In @screener_in

• ROCE should be > 10
• Ratio of Stock P/E to ROCE should be < 2
• D/E ratio should be < 1
• Sales & PAT should be in uptrend continuously

Consider only those stocks that meet at least the first 3 criteria.

3⃣ When to invest?

In @tradingview @in_tradingview

• Identify the previous pivot high for the stock on weekly TF

• In the below case of Shakti pumps, the previous pivot high was 174.9. Only buy the stock above this high next week.

• Once bought trail stop to pivot low

4⃣ How much to invest?

• Invest only 5% of your capital in the stock i.e. if you have 1 lakh capital, invest only 5000 in one stock

• Do not invest in more than 20 stocks

• Remember, the more the number of stocks the lesser the probability of higher returns

5⃣ When to add more?

• After investing initial 5% in a stock wait for a new pivot high to be formed

• Once the new pivot high is crossed, invest another 2.5% of capital

• Allocate only 7.5% (5% the 1st time & 2.5% the 2nd time) of capital in one stock.

Refer 👇

6⃣ When to exit?

• Whenever the price goes below the previous pivot low, you MUST exit the stock no matter what and find the next opportunity and move on

Refer 👇

7⃣ Pros of this strategy

• Chance of you losing a major part of capital is very less

• Peaceful method to invest even if you have a full-time job

• Filter conditions mentioned will ensure quality companies are held and hence higher chance of multifold returns

8⃣ Cons of this strategy

• Not a get rich quick strategy

• Need patience and discipline when the stock is going down after gaining very well.

• Remember, we are looking for multi-baggers – so, you will have to experience some decent moves down for some great moves up

Learnt something? If yes, please👇

1. Retweet the first tweet

https://twitter.com/dmdsplyinvestor/status/1651136143822315520?s=20

2. Follow @dmdsplyinvestor

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