Breakout Chart Pattern is my favorite pattern for trading in market and this time it was not only me who made tons of money with this pattern but also forum members took the most out of this pattern. I suggested forum members to look into V-Guard Industries on 11th June 2012. Stock was showing breakout pattern. This is what I shared with them on 11th June 2012.
Some members nailed to perfection the support and resistance levels.
And some traded with cautions.
But when you know the support levels along with reason for the support, you can trade with lot more confidence and it was the case with many others.
Final Thoughts
As of today July 15th 2012, we see chart of V-Guard as follows.
Charts by Chartink.com
The stop loss of 200 to 210 was never hit and so a purchase around 225 means we are making around 40% in just one month with one stock. So if we can make one such profit why do we need to trade the whole year? Few perfect trades are good enough.
So finally my question to all my readers is – are you still running after each trade and each stock? Share your thoughts in comments below.
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{ 16 comments… read them below or add one }
Sir.
sometimes i have seen huge rise in volume at the peak of the curve or bottom of the curve and then gradually a fall or Rise in the price of the stock.
Can you please explain such nature.
Asish, the most important thing is to predict them and we have been predicting them to almost perfection. Share such pattern and I will be more than happy to explain.
Sir.
Recently ,I have observed OISL.(OCL iron and steel ).
Suddenly there is a huge increase in volume on 18-12-12,and also it creates a new low-28.40.And then suddenly it started flying like a rocket and reached 44 rs.
Your reply will be deeply appreciated.
Thank you.
Asish, what reply you want from me. This is a stock that you should never be looking into because of multiple reasons.
Low Floaters.
Cracking all supports all the time.
And so it should not matter to me or anyone what happens to these stocks at all.
dear shabbir
today breakout pattern formed in granulesindia with a good volume.can we enter with a stoploss of 125. what is your view .
You have already missed the breakout now but yes you have spotted it rightly.
Dear Shabbir,
You are absolutely right. Few trades like this enough instead of running after each trade and each stock & incurring losses. By such greediness, I have lost huge amount of money by trading in options & I’m unable to recover the losses. In fact I have missed lot of opportunities like such trades for example: I bought Wockhardth last year when it was trading at around 258 & sold at 370. Now the stock price is around 900. Tata Motors bought at 143 & sold at 190. Yes Bank bought at 250 sold at 300. Nitin Fire bought at 28 & sold at 52. I have sold these stock way to early & waiting for the stock to again buy at sold prices. Now I regret my decision sell these stocks too early & decided to make quick money in options trading. What is your opinion on options trading & do you trade in options?
I don’t trade in options and I don’t recommend that to my readers as well because for retail investors, it is not needed to trade in Futures or options.
Could not agree more. A few good trades should be enough to build wealth. However greed is what gets most people down under and they then blame ‘luck’ and other factors for their failure.
Very true
dear shabbir
you are 100% right.besides technical analysis one has to develop patience and decipline which will give consistent profits. there is no need to trade daily.market will give us plenty of oppurunities ,provided we will have strict decipline in identifieng the opprtunities.
Yes very true Mahipal Reddy.
Sir, there are thousand of stocks in the market.How can we find out the the right stocks to trade at right time as you did with Vguard and please suggest which stocks to trade in intraday.
Sachin, you have to build your own list of stocks which you are comfortable investing into and then as you move along, you have to add stocks to your lists which you can trade. I prefer not to suggest stocks but prefer to suggest the right time to invest into stock.
Great pick, we have to learned lot from you.
The pleasure is all mine.