There is a general belief that a smart strategy is BUY LOW SELL HIGH, but in reality much smarter strategy is BUY HIGH SELL HIGHER. Generally, the best time to buy is when stocks breakout to NEW HIGH because such stocks over a period of time go much higher..sometimes even beyond imagination. Let me share one example: In August 2012 - HCL Tech stock broke out to NEW HIGH.
HCL Tech breaking out above 520: http://t.co/OnLaA3tQ
— Deepak Singh (@smarket) August 2, 2012
In August 2012, HCL Tech stock broke out above 520. The company gave bonus in August 2015 and hence now adjusted for bonus, at current price, the breakout happened above 260 in August 2012...and see what it did over following 2.5 years
BUY High Sell Higher worked - and HCL Tech from 260 levels rallied to 1000 levels in next 2.5 years. That's 4x move in such a short span of time
Here's another example - Learning from Old breakouts and Following a New one
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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