I follow fundamentals only to see how it impacts Price Action. Any fundamental news flow that does not change the trajectory of stock is of no significance.
Let's take a Case Study of TCS. A true multi-bagger stock which broke out in CY2009 above price levels of 700 and rallied 4x to 2800 in following 5 years. But then what happened after that: 2015 tweet
TCS: Settled in a range.
Buy Low Sell High Stock Now... pic.twitter.com/jIR2Ro5CMd
— Deepak Singh (@smarket) June 3, 2015
When a stock rallies a lot - it settles in a range. I explained it: TCS stock is now stuck in a range for long long long time. This is 2015 presentation.
In a range - the only thing one can do: Buy Low Sell High. Also, the range can expand with few points down or few points up but the structure remains intact
Now imagine how many quarterly results TCS has declared in last three years but nothing seems to have changed the structure of the stock. Here's the latest Price Action Chart and see for yourself
I am making a simple point: If you want to make good investment decision - how important it is to analyze chart because what's the point being stuck in a stock that's going nowhere
I have started a new feature: Multibagger Case Studies. I am going to cover as many Multibaggers as I can to demonstrate the similarity and how majority of the stocks follow almost similar script when they make that 3x-5x move. The idea is to share as many case studies as I can to strengthen your conviction in the script. So, If you are interested in Learning - It's time you start reading Science of Stock Price Action
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One of the objectives of writing stateofthemarket.net blog posts is to demonstrate how price action works in a very simplistic manner. I have been writing about markets for years now and have developed a unique way of looking at the market. I have developed a course material if you are interested in learning about this whole space which comprises of the following
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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