Monday, April 11, 2011

Stocks forming big bases *******

When stocks form big bases and break the resistance with high volume like ENDO from last week and SHS and many others that is the time to get in. These stocks usually move 30 percent within a week. I could not understand it for till now and did not observe them and suddenly they climbed and I missed the change. So I made a separate portfolio for big base stocks to observe them when they break. There are innumerable instances when I missed big opportunities because of not following those stocks in a separate portfolio.

1 comment:

Gade said...

There are many false break outs. These can cause loss. One can do day trading on big bases. Buy below base sell above it. One can do this several times. When the stock moves 10 percent above the base only then there is a real break and going to the next level.