There is a very old trading rule:
When it comes to financial market, trust your eyes more than ear and brain. And when you see something that is opposite to your belief system, then trust it even more.
Let me give you one example: Post demonetization, everybody turned super bearish on Real Estate sector fundamentally and for right reasons. But I noticed something interesting about Real estate stocks back in March 2017
One sector in India where there has been pretty visible breakout in stocks with huge volumes: Real Estate
All Bad news priced in?
— Deepak Singh (@smarket) March 23, 2017
The first breakout that grabbed my attention: Brigade Enterprises when it broke out on 08th March 2017
But what looked like a one off breakout - became a sectoral thing - when Godrej Properties broke out to All time high. I covered the breakout as a Live Case study just when it happened
Here's what Godrej Properties has done post breakout - The stock up 40%
Now it was a simple - See and Believe trade but it would have been difficult had one started overanalyzing fundamentals around the sector. In financial markets, it's rewarding to keep things simple and believe what one witnesses on the screen.
Science of Stock Price Action
There is a logic that stocks follow when they make big moves. I have tried, to sum up, those concepts in a methodology called Science of Stock Price Action.
Do these concepts work all the time? Absolutely not. But when they work - they reward in a big big way. There are many factors at play primarily the overall market environment. The objective of my website is to put forward many Live case studies before you so that you can learn how these patterns work and why sometimes they fail too. The whole idea is to illustrate and make you understand the whole logic behind it.
If you find my work interesting - I will encourage you to buy the book and access Premium Case Studies. The idea is to demonstrate live how patterns unfold and work. They succeed, they fail but the whole process is real fun. I invite you to be part of it.
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