Because Price Action works and it positions you for the big move that's about to happen.
Let me explain with one example:
I noticed this in March 2017 and shared it on twitter and on smarketpremium.com
It was fairly obvious at that point of time that something big is about to happen in Real estate stocks and following Price Action - means you should go with the best breakout. At that point of time - the stock was Godrej Properties. The chart shared back then:
Here's what Godrej Properties stock has done since then:
A big big move and it is not happening without reason. Well here's what Godrej Properties is doing fundamentally
— Business Standard (@bsindia) November 3, 2017
One of the big myth that's spread by fundamental investors: Price Action is for trading. No, Price Action is a great tool to make good investment decisions. You don't need to read Balance Sheet, P&L A/c. Let the big money managers do that job. All you have to do follow their actions on charts. Price Action helps you be ahead in the game. Now today everybody will say...Oh Godrej Properties what a great investment but who was talking when stock was ready to make the big move.
Godrej Properties - Breakout Stock in 2017 - now the best player when it comes to Real estate stock
— Deepak Singh (@smarket) August 8, 2017
Price Action is one of the best ways to make good investment decisions. That's what I teach all the time.
If you find Price Action fascinating - then Science of Stock Price is a good place to start. It's a website designed to help you learn various Price Action concepts.
Science of Stock Price Action
Science of Stock Price Action is a training course designed to help you understand the price action mechanics with Live case studies and real life applications. It's not a recommendation service but help one understand this fascinating world of how price action results in a sustained trend.
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
Do you want to Learn Science of Stock Price Action with more Live case studies covering Indian and Global stocks - www.smarketpremium.com
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