Stocks to BUY once correction is over?

[swingtrader]

SwingTrader,

Have u identified any such stocks during this correction?

Rgds
Raju

Raju,

The list posted above by Traderji is very good. I have not yet compiled my list, once I do it I will post it here. But make sure you monitor the above stocks, my list probably would have many of these same stocks (many of the stocks in the above list are holding up very well in the correction).

--SwingTrader

 

[karthikmarar]

Thanks, Traderji.

Whenever there is a correction I start looking carefully at relative strength rankings of various stocks. As the correction proceeds further there would be few stocks that would continue to maintain high relative strength vs the market. Most of the time these would be the new leaders after the correction. I usually concentrate on identifying such stocks and then adding them to my portfolio once the correction is done.

--SwingTrader

Swing Trader

That is very nice stategy.. It will be intersting to see your shortlist...Tragerji's list seems excellant.

Thanks

regards

karthik

 

[karvind79]

Dear Friends and TRADERJI,

Happy to see the posting.But I have one question that how u find that Correction is over? when u have an idea to buy the script analyse it's fundamental if u are an investor and if u are day trader use TA.If u are Short term use both FA and TA.Are u able to predict the mind of people? Now my opinion is Buy the best scripts when u feel that rate is good and the script was eligible for the rate.We can't buy shares at LOWER END as well as can't sell at HIGHER END.we shd fix our price range target for both buy and SELL.
So don't expect correction more and more in the falling market and don't expect move more towards higher in UPWARD trend.Always try to move with market and Swingtrader concept(RSI) is good one to buy at this time.

Seniors post ur views and bye

Take care

From,

Arvind K

 

[Sharestar]

Traderji,

I agree with u and also thanks for the list. For a small investor like me can u still filter the list and bring down the no.s to 4 or 5 scrips which will make it easy for a newcomer like me to keep track and benefit the most.

regards

 

[dheerajmehta]

Hi swing trader & trader ji,

Could you shed some light on how relative strength rankings are calculated? do is it require some specific tool or can i also try it myself?..i'm currently using Metastock 9 Pro...could i calculate the same using this software?

and how does one interpret high/low relative strength vs the market.
would be highly obliged if you could explain this....i have read the tutorial in tradersedgeindia about external relative strength..but i believe you have to subscribe to their newsletter in order to see their results.
would be highly obliged if you could instruct me on how to calculate the rankings.

Regards,

Dheeraj M

 

[karthikmarar]

Dear Friends and TRADERJI,

Happy to see the posting.But I have one question that how u find that Correction is over? when u have an idea to buy the script analyse it's fundamental if u are an investor and if u are day trader use TA.If u are Short term use both FA and TA.Are u able to predict the mind of people? Now my opinion is Buy the best scripts when u feel that rate is good and the script was eligible for the rate.We can't buy shares at LOWER END as well as can't sell at HIGHER END.we shd fix our price range target for both buy and SELL.
So don't expect correction more and more in the falling market and don't expect move more towards higher in UPWARD trend.Always try to move with market and Swingtrader concept(RSI) is good one to buy at this time.

Seniors post ur views and bye

Take care

From,

Arvind K

Arvind

A combination of FA and TA works well. Choose a set of fundamentally stronger shares and use TA for entry and Exit. This way you reduce the risk.

Buy when you feel the right time and right price.!!!mmmmvery subjective, isnt it? Remember the market does not run purely on Fundamental. If the market is running on fundamental alone the prices of good stock should be going up always. Why do they come down? Market is driven by greed and fear and of course manipulations. The TA is the mapping of this fear and greed. Acting on feeling and impulses in the stock market is is more like what should I say. betting on horses

Selling on Fixed price target !! Ya some people do it. The problem is that you may be exiting earlier and loose good opportunities of making much more money. One should try to take out maximum from the trend.

With your idea you may still make moneybut again the idea is that one should always try to Maximize Profits and minimize losses.

You said Dont expect more and more corrections in a falling market.. Turning a blind eye does not help. In a falling market expecting further correction and taking safeguard only helps. Here TA helps one to gauge the bearishness persisting in the market. Of course one can never say that correction is finished and now the market will move up. Only when the market starts moving up again we are sure the correction is over. Here again TA helps to judge. Waiting for the market to correct fully gives better entry opportunities. One thing you rightly saidmove with the marketdont ignore the correction..

Also note TA helps not only in day trade and short term but also in the medium terms. It is a helpful tool for Position Trading.

So wait the correction to be over you will get all your fundamentally strong shares at much better price.

regards

karthik

 

[Saint]

Dear Friends and TRADERJI,

Happy to see the posting.But I have one question that how u find that Correction is over? when u have an idea to buy the script analyse it's fundamental if u are an investor and if u are day trader use TA.If u are Short term use both FA and TA.Are u able to predict the mind of people? Now my opinion is Buy the best scripts when u feel that rate is good and the script was eligible for the rate.We can't buy shares at LOWER END as well as can't sell at HIGHER END.we shd fix our price range target for both buy and SELL.
So don't expect correction more and more in the falling market and don't expect move more towards higher in UPWARD trend.Always try to move with market and Swingtrader concept(RSI) is good one to buy at this time.

Seniors post ur views and bye

Take care

From,

Arvind K

Hi Arvind,

Agree with you that for a daytrader,tech analysis is everything......fundamentals and news may alert him to a particular stock,but TA is everything.Also agree with you that investors buy based on FA........but would be wonderful though if investors could buy a stock based on fundamentals,and using monthly charts,time an entry.I suppose then he would be called a long term trader instead.

How do we know that the trend is over?When weekly pivots are taken out we say that an intermediate top has been reached,when monthly pivots are taken out we say that a long term top has been reached.Certain indicators and volume analysis aid in assessing the change in trend.Just as a change in trend can be figured out,so too can the end of the correction...........we can't divine the exact low,but what we want is a higher pivot low,threatening a possible change in trend and an end to the correction.

But pain you will feel,my friend,extreme pain you will go through(forgive the Yoda-style)if you feel that a stock corrects from 100 to 80,and you believe it's a perfect buy and that this particular rate is good...........either because your broker said so,or that valuations are now great,and all that blah blah......and buy it then,you are catching a falling knife,and the very nature of the falling knife is to pierce through your hand.When the stock now falls to 60,you'd say that the market is unfair,makes no sense,market manipulations,government conspiracy theories abound...............so please don't buy when you think the script rate is good,please don't guess the bottom,the pain that will follow will be too much to bear.

So too,please don't have a fixed target as well.........Great to have a target just as a guide,and then try to stay with the trend.Guessing bottoms,limiting profits,.........dangerous,my friend.Else the end result would be minimum profits and maximum losses,pain and finally the disenchantment with the stock market.

Wishing you the very best......

Saint

 

[Sharestar]

Saint,

I always read your replies and am fascinated by your views. It is my dream to do TA and FA and have trying hard to gain knowledge but in vain. I think my system is wrong or am doing it in a very crude way. Though it has been many times mentioned here and u have always been doing it but still I will repeat the same question one more time. How? How can we analyze like saint,amit,traderji . Find on our own supports , resistance, fibonacci levels , H&S pattern, time the market etc, etc, etc.

I have been reading each articles differently at different places but still has not reached anywhere. Not able to synchronise different indicators and make my own judgement.

Your reply will help me and increase my confidence. Can u suggest a systematic approach or relate us your experience when u were learning and finally what approach made u the master in this art?

Regards

I hope i am not posting in a wrong thread.