Ways to identifty a multibagger and a good stock for positional trade: The stock should fulfill the following criteria 1.It should be from a booming sector and the broader index should be uptrending 2.The relative strength of the stock to Nifty 50 should be in uptrend 3.RSI should be above 40 4.The stock should be in a stage 2 uptrend structure (breakout with good volumes + consolidation --> breakout with good volumes as shown in the structure of sun pharma) 5.The stock should have low volume consolidation.
Many more examples are there from the realty sector and few from the financial sector and I will be uploading them very soon FOLLOW me to get notified when i upload a new idea Till then, Happy Trading :)
@RahulJain_1604, Wait for the breakout of the channel pattern, then enter with a stoploss below the breakout candle.Do check the volume of breakout.
RahulJain_1604
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@keshevdugar0210, breakout at??
keshevdugar
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@RahulJain_1604, It cannot be an absolute number, breakout of the channel pattern
guide733
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I have been holding Sun Pharma for over 6-7 years ,following warren Buffets advice that you should never sell a good share. Stock which I purchased around 500 levels saw a level of 1100 , which I never encashed ( Heeding the above advice ) . Then I realized that this is no good strategy. Then encashed some at around 620 on its downwards journey again entered around 550 , but I still carrying a small loss . Saving grace was bought some qty around 400 levels .The point is it is no multibagger . You are now recommending at above 800 levels ? It will take 5 years to double from here ,if at all .
keshevdugar
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@guide733, Sun pharma has already given a multi bagger returns in the past...thus this stock was chosen as an educational point of view not a recommendation...I have tagged this as an educational post as well...and i never recommended this at 800 levels to buy...please don't misinterpret this post
Thank You
Highest-Bidder
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@guide733 very well said. profit is only that which we book. Book 📕 profit is no profit.