How can one predict stock price movement?
Everyone should know that stock will find buyer at this price and sellers at this price.
Price vs time curve should be running in your mind. You should know
- How much profits an intraday trader will be happy with?
- How much profits an short term trader will be happy with?
- What price will a long term investor will be happy to invest at/ Exit at?
90% of the Retail investors and traders lose their capital trying to predict. The remaining 10% do not predict, they know and understand.
You can see My weekly call: sell call on TVS motors and buy call on Eicher Motors given at 26th December 11.55 am.
Technical charts cannot give a sell call on TVS motors at 368 for a target of 355 in a week.
TVS motors has hit 350 in 2 trading day.
Eicher Motors was a buy on dips towards 20250, the stock has seen buying exactly at 20250 and has rallied to 20750.
You need not sit and watch charts all day long looking for indicators. All you need to know is to understand the behavior of the market.
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Edit: Few days back i was reading a book Money, Master the game – 7 Simple steps to Financial Freedom by Tony Robbins. The book had a phrase that was related to this article.
“Leaders Anticipate, Losers React.”
Just similar to the way i was trying to explain. I thought it could be a nice relevance to give. I haven’t completed the book yet, but still i can certify that this book is one of the best books on Financial Independence i have ever read.