Hello everyone,
This is one of those time when it is not so hard to find a good breakout stock, but even after that we tend to miss-out chances and that is because we think of stock to be overbought and wait for correction (which may or may not happen). Well in these times we have to stick to only two concepts and that is RR(Risk/Reward) ratio and position sizing.
Now look at this beautiful chart of BAYERCROP, it has given a breakout from its 3 years strong trendline with a huge volume. We all know in this type of breakouts the SL will be below the high volume breakout candle which comes out to be about 9%. It might be huge for many of us, so all we have to do is to put only that much capital in this stock of which 9% is within our risk apatite. The target will be at 7600 i.e,45% which makes the RR ratio to be 5. If you consider 5 to be a good RR ratio then this can be your one of the stock.
Thanks
This is one of those time when it is not so hard to find a good breakout stock, but even after that we tend to miss-out chances and that is because we think of stock to be overbought and wait for correction (which may or may not happen). Well in these times we have to stick to only two concepts and that is RR(Risk/Reward) ratio and position sizing.
Now look at this beautiful chart of BAYERCROP, it has given a breakout from its 3 years strong trendline with a huge volume. We all know in this type of breakouts the SL will be below the high volume breakout candle which comes out to be about 9%. It might be huge for many of us, so all we have to do is to put only that much capital in this stock of which 9% is within our risk apatite. The target will be at 7600 i.e,45% which makes the RR ratio to be 5. If you consider 5 to be a good RR ratio then this can be your one of the stock.
Thanks