One of the most important things traders learn over period of time:
- The importance of Market cycle. No stock can hold on its own. It needs the support of the market
- When it comes to stock picking, one should give tremendous weightage to the sector while picking the stock
Let’s take one example: Dyes, Pigment, Chemicals/Specialty Chemicals Sector. (Buzzing Sector)
Just see how rewarding these technical setups have been in this sector. The single most important reason that happened – they all belonged to the right sector and market environment was super supportive in last few months. Luck favors the prepared setup 🙂
Navin Fluorine at 200 dma
Source: Chartalert.com
Meghmani Organics Breakout
Source: Chartalert.com
Kiri Ind Breakout
Source: Chartalert.com
Sudarshan Chemicals Momentum
Source: Chartalert.com
The Most Important Lesson:
Never underestimate the importance of luck when it comes to trading but even luck favors the prepared setups. When it comes to stock picking – focus on the right sector for big gains and then hope and pray that Luck favors you.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers