TRADING STRATEGYHi Friends,
Today I am going to teach you a strategy that work for life time and applicable eternally. ✔
This strategy I learned from Greatest of great trader JESSE LIVERMORE.
What is it.
Go long on Strong stock or leader in the sector on first indication of uptrend in respective INDEX.
similarly
Go short on weak stock or laggard in the sector on first indication of down trend in respective INDEX.
Example: NIFTY AUTO sector.
HERO MOTOR is undisputed leader in 2 wheeler sales in INDIA. It reflected by stock behavior. It first brakeout to upside before the auto index brakeout. (30th April 2020)😎
TATA MOTOR is struggling with sales and going to sell some of its units to reduce debt. This is clearly shown by stock behavior as it gave brakeout after auto index brakeout. Now it cracked important level to down side (22nd September 2020)😢
NOW TIDE IS TURNING. (closing below the red lines which shows the investors behavior )
So it is better to short the laggard than winner.
It clearly shown by Tata share price fall during last 3 days.
YOUR HUMBLE TRADER
KIRAN
