The stock either sinks or leads to nowhere.
What happens when a car breaks down or you meet an accident?
The incident plays on your mind and you slow down and become more careful, even after few days and weeks of the incident. The same thing happens with even a good stock
Let me share the example of Lupin.
Lupin was a stock in Bull Market - doing everything right but the breakdown earlier this year has damaged the chart and despite strong Bull market - the stock has gone nowhere.
Do I look surprised at stock's underperformance? - No
I covered the stock in May 2016
Here’s one Trading Lesson you can learn from Lupin Chart https://t.co/qwubANPnZE
— Deepak Singh (@smarket) May 20, 2016
Science of Stock Price Action
If you find my work interesting - I will encourage you to buy the Science of Stock Price Action book and access all the Price Action concepts that drives stock prices. Science of Stock Price Action is a collection of training videos and daily posts in which we discuss various price action concepts. The objective is to help one learn and master the concepts. What makes the book different: It comes with recent case studies so that one can understand the concept better
1. Chapter: Doing the Same thing
2. Chapter: What can we learn from Big Sugar rally in 2016?
3. Chapter: Technical Turnaround 101
4. Chapter: The Simple Trading Rule
5. Chapter: What can we learn from Bullish Journey of TVS Motors?
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