Inverse head and shoulders pattern

What is inverse head and shoulders pattern ?
An inverse head and shoulders pattern is also called head and shoulders bottom. It is same as head and shoulders pattern but inverted. This pattern is identified when the price action of a security meets the following characteristics:the price falls to a through and then rises the price falls below the former trough and then rises again. Finally, the price falls again but not as fast as the second trough. Once the final trough is made, the price heads upward, towards the resistance found near the top of the previous troughs.

The inverse head and shoulders pattern is also as popular as head shoulders pattern. This pattern indicates the end of the downward and starts of the upward.

What does an inverse head and shoulders tell you?

Investors typically enter into a long position when the price rises above the resistance of the neckline. The first  and third trough are considered shoulders and the second peak form the head. A move above the resistance, also known as the neckline, is used as a signal of a sharp move higher. Many traders watch for a large spike in volume to confirm the validity of the breakout. This pattern is the opposite of the popular head and shoulders pattern but is used to predict shifts in a downtrend rather than an uptrend.

A suitable profit target can he ascertained by measuring the distance between the bottom of the head and the neckline of the pattern and using that same distance to project how far proce may move in the direction of the breakout. For example, if the distance between the head and neckline is ten points, the profit target is set ten points above the pattern's neckline. An aggressive stop loss order can be placed below the breakout price bar if candle. Alternatively,  a conservative stop loss order can be placed below the right shoulders of the inverse head and shoulders pattern.

An inverse head and shoulders pattern in comprised of three component parts:

1. After long bearish trends, the price falls to a trough and subsequently rises to form a peak.
2. The price falls again to firm a second trough substantially below the initial low and rises yet again.
3. The price falls for a third time, but only to the level of the first trough, before rising once more and reversing the trend.

Limitations of an inverse head and shoulders
Like all charting patterns, the ups and downs of the head and shoulders pattern tell a very specific story about the battle being waged between bulls and bears.

The initial decline and subsequent peak represent the building momentum of the prior bearish trend into the first shoulder portion. Wanting to sustain the downward movement as long as possible, bears try to push the price back down past the initial trough after the shoulder to reach a new low. At this point,  it is still possible that bears could  reinstate their market dominance and continue the downward trend.

However,  once price rises a second time and reaches a point above the initial peak, it is clear that bulls are gaining ground.  Bears try one more time to push price downward but succeed only in hitting trough. This failure to surpass the lowest low signals the bears' defeat and bulls take over, Driving the price upward and completing the reversal.

"Let's create wealth together"

Head and shoulders pattern

What is a head and Shoulders pattern  ?

A head and shoulders pattern is a chat formation in technical analysis that resembles a baseline with three peaks, the outside two are close in height and the middle is highest. A head and shoulders pattern describes a specific chat formation that predicts a bullish to bearish trend reversal. The head and Shoulders  pattern is believed to be one of the most reliable trend reversal patterns. It is one of several top patterns that signal, with varying degrees of accuracy, that an upward trend is nearing its end.

Latest share market news

As we all know market always react on news and events. So from the 27april another trading week is starting and end on 30 april. As on 1st may is holiday because 1st may is maharashtra day. So this trading week will end on 30April.

Market will be closed on may 1, on occasion of Maharashtra Day.

1.coronavirus count
The number of covid patients in india has passed 26000 with 850 death, and 6000 recovered.  Worldwide the number of fatalities are close to 2lakh over 1/4 of whom have died I'm the US some states in the US have also decided to ease lockdown even though the cases have continued fi rise rapidly.

2. Lockdown decision
This week, we will know whether the government will end the nationwide lockdown on may 3 or if it will be extended further.
While efforts are on to curb the spread of the novel coronavirus so that the economy can hit reopened, rising number of cases in Maharastra, the National Capital region(NCR), Gujarat and Madhya pradesh, among the other states, has led to concern over what happens next.

3.scare in Debt market : Franklin Templeton issue impact
The franklin Templeton fiasco has scared investors and they are rushing to withdraw funds. With the lockdown having a devastating effect on the balance sheets of the companies, fears of downgrades and defaults have increased. This in turn has increased volatility in the banking stocks.

4. Q4 earnings
A number if banks and insurance companies will come out with Q4 earnings this week, among major companies, Ambuja Cementsz HDFC life insurance company and indusind bank will declare their result on April 27, axis bank on April 28 while Hindustan Unilever and Tech mahindra result will be out on 30 April.

5. Bigger stimulus Package
The market stabilised and has been moving in a particular range in the last couple of weeks after a sharp fall. Apart from a rally in global peers, this is based on hopes of a big stimulus package.
Market is awaiting round two of an economic stimulus package from the government. Although given the limitations government has with its finances, not much is expected.

6.Technical view
The nifty50 formed Gravestine Doji patterns on daily charts on April 24, indicating lack of conviction among bulls.
The index consistently failed to sustain 9300 levels and has been struggling to head higher since the past few sessions.
Broad range could be 9500 to 8800.

7. F&O Expiry
  The options data indicate that the maximum put base has shifted to 9000 followed by 8800 strike.
The significant unwinding was seen in 9000 and 9300 put strikes, which hints that put writers may be covering their shorts fearing that Nifty may slip below 9000 levels.
The call writers were active in 9300 and 9500 strikes, where 9500 holds the maximum open interest. "So continuous call writing at 9500 hints that nifty is unlikely to surpass 9500 in the April series.

This are few news& events on market will react this week.

"Let's create wealth together" 

Five over bought shares

Today I'm going to share some stocks which are in over bought zone.

Five Over sold shares

Today I'm going to share about 5 shares which are highly over sold.

4 Best Shares for long term investment

 Due to Covid-19, slowdown in economy is expected. Not only in india but all around the world's know about the slowdown. & it is logical.

There's some sector where position can  be very good In coming years.

We have 4 best stocks which will multiply your investment in long term investment.

1. SBI LIFE INSURANCE COMPANY LTD.

SBI life insurance company is currently trading at 725rs.
If you check it's return you will see...
1week= +0.52%
2week= -4 74%
1month= +31.62%
3month= -28%
YTD =-26.7%
1year= -14.27%

Some experts says Demand in Insurance company will increase after this pandemic. And eventually this insurance company will get benefits. IF you are looking for long term investment SBI life could be a good option for you. It can be Beneficial for your long term investment.

2. HDFC LIFE INSURANCE CO. LTD

HDFC  life insurance co. Ltd is currently trading at 490rs. On23rd april  2020.
1week= +7.02%
2week= +6.68%
1month= +46.66%
3month= -17.79%
YTD =  -19.5%
1year= +26.79%

Investors who bought shares before 1 year is still in positive return of about 27% even After this Covid‐19 crash.

3. ICICI PRUDENTIAL LIFE INSU. CO. LTD

ICICI prudential life insurance company ltd is currently trading at 365rs.

1week= +12.47%
2week = +8.5%
1month = +54%
3month = -26.93%
YTD = -23%
1year = 0.31%


Also in this company if you bought shares 1year ago, today you are might not get big profit but you are at least not in negative returns. Even after this covid-19 crash.
Experts expects demand in insurance company will increase.

4. Icici Lombard general insurance co. Ltd 

SBI CARD Target

How to choose multibagger stocks ?

What is multibagger stocks?

- A multibagger stock is an equity stock which gives a return of more than 100%.

What Warren Buffett says on market crash ?

We are at the situation where Experience Matters more. In this critical condition what experienced investors thinks about this crash is matters more. Because they have experienced past crashes.

If you read US market, US GDP Is at -5% now it means US gone in recession. But still if you see market, market is still bullish and we are seeing its reflection on Indian stock market also.

If you are working in sharemarket since last 1or 2year or you are in new market then this crash can harm you badly because we have not seen this types of crashes yet. That's why we need their opinion for what to do in this situation. 

This types of situations comes once in 10to12years where your one right step can makes you millionaires/ billionaires& also one wrong step can harm you badly.

When this types of situations comes every retail investors, mutual fund, and fund manager everyone has eye on Warren Buffett to know what he thinks about crash? What he is doing with his cash and etc. Because he has faced more crashes than any other investors. He is 89 years old and he has more than 77years experience in stock market. Warren Buffett's partner and wise chairman of the Berkshire Hathaway  Charlie Munger has gave an interview on last friday.

Charlie munger said 3 most important things in an interview 

1. Well, I would say basically we're like the captain of a ship when the worst typhoon that's ever happened comes. We just want to get through the typhoon, and we'd rather come out of it with a whole lot of liquidity. We're not playing, oh goody, goody, everything's going to hell, let's plunge 100% of the reserves( into buying business).

2. Warren wants to keep Berkshire safe for people who have 90% of their net worth invested in it. We're always going to be on the safe side. That doesn't mean we couldn't do something pretty aggressive or seize some opportunity. But basically we will he fairly conservatives. And we'll emerge on the other side very strong.

3rd and last thing munger has said what everyone wants to know is where Market will make bottom ?

3. I don't have the faintest idea whether the stock market is going to go lower than the old lows or whether it's not. 

From this most experienced person of the sharemarket we get to know that this is not actually real time to buy anything because warren Buffett has $128 billion cash and still he is not aggressively buying anything. And he only want to get out of this crash. So we should also wait and watch. 

STAY HOME, STAY SAFE

Golden rules for intraday trading

Whenever you go in any field you have to follow some rules. Sometimes this rules are not compulsory but that rules make your work easier and good for your work.

We have 10 golden rules which is not mandatory in day trading but if you follow that rules this rules will make your journey little easier and reduce your risk.

Follow this rules this will help you to create good wealth.

* Trading only in best Day Trading stock

This is  a basic rules for intraday traders. Every stocks are not good for intraday trading.
For intraday it requires Liquidity, volatility, volume.

* Strict entry, exit and stoploss.

Before you trade, Find best entry point and exit point. And follow strict Stoploss.

* Trade with money which you ready to lose 

Day trading is most risky in share market. That's why this rule is very important.  Your money can be vanished even in a minute if you trade  Wrong.

* take positions with limit order

Some time You can't get perfact entry point with market order. That's why use limit order instead of Market order.

* research and analysis 

Research and analysis is key to success in stock market. You can beat some speculators with your search.

* Trade record 

Saving your trade record will help you to know that where you are good in trading.  This will help you to make strategies in future.

*Don't trade Daily

  You shouldn't do trading just because of sharemarket is open. Trade only when you have researched well & you are getting best entry points.

* don't Use your emotions 

Don't use your emotions during  Day trading. Someone has said "if sharemarket makes you feel high and low you are more likely to loose money in market".

* Trade in few stocks

Don't trade in every sector and every stocks. Trade only in those stocks where you are good. Use your saved trade record and find out where your success ration is good and try to trade in that known stocks.

* Use strict stop loss

Stock market is highly volatile in nature. So use stoploss very strictly. It will help you to reduce your risk of losing your capital.

This Rules are not mandatory, even you can trade without using any of this rules. But this rules will help you to achieve your Goal this are some golden rules for intraday  Trading.

What is swing trading ?

 We have received so many emails, asking what is swing trading? How to do swing trading in stock market? &all.  So I decided to write article on swing trading so let's start...

Swing trading is really very vast topic in stock market, I will try my best to give more n more knowledge in this article and share another article on swing trading soon.


We will use daily time frame for swing trading and for crosscheck we will also use monthly time frame just for confirmation.  If stock is bullis stock will make higher highs and higher lows. Same as if it is bearish than stock will make lower lows and lower highs. And this waves called swings in trend trading. In swing trading we will catch this waves/ swings and trade.

Swing trading works on structure support and resistance.  Let's learn this with an example.
Let's assume ABC company's share is trading at 100 and when it goes up and touches 110 and start showing correction till 107 and get bounce back un moving upside till 113 and when this stock will again shows correction  this stock more likely to get support on 110  because 110 is now support for this stock. And 107 is 2nd support.  If you want to trade at this time you can trade with strict stoploss of 107.

Before you take check that stock on daily time frame and also on monthly time frame if this both is bullish than this is strong buying opportunity. 

If you follow this strategy your win ratio will definitely increase. Whenever you do the swing trade. First analys that stock on monthly time frame& daily time frame because when you work on multi time frame your chances of winning is increased.

* Advantages of swing trading.

-swing trading is very technical in nature

- you can generate regular monthly income

- it will save your time
    You only need to do technical analys and when you done. You just need to get an entry with strict stoploss and target.

- risk control
When you do swing trading always follow risk reward ratio very strictly. It will reduce your risk of losing your capital.  Trade only when risk reward ratio is favorable. 

Wipro Multibagger stock

Wipro is an indian multinational corporation that provides information technology, consulting and business process services. It's  headquarter is located in Bangalore,  karnataka, india.

The company was incorporated on 29 December 1945 in Maharashtra.( about 74 years ago).

In 1966, after Mohamed Premji's death, his son Azim Premji took over Wipro as its Chairman at the age of 21.

During the 1970s and 1980s, the company shifted its focus to new opportunities in the IT and computing industry, which was at a nascent stage in india at the time. On 7 june 1977, the name of the company changed from western india vegetable products limited. To wipro products limited. In 1982 the name was changed again from wipro products limited to wipro limited.

In 1988 wipro added mobile hydraulic cylinders and heavy duty industrial cylinders to its line of products.  A joint venture company with the United states General Electric in the name of wipro GE Medical Systems pvt. Ltd.

In 1995 wipro set up an Overseas design centre, Odyssey 21, for the projects of overseas clients. Wipro infotech  and Wipro systems were amalgamated with wipro in April. Five of Wipro's manufacturing and development facilities secured the ISO 9001 certification during 1994-1995.


In February 2002, wipro became the first software technology and services company in india to he ISO 14001 Certified.  In 2008 , wipro entered the clean energy business with wipro Eco Energy.

In April 2011, Wipro signed an agreement with Science Applications International Corporation for the acquisition of their global oil and gas information technology practice.  In 2012, Wipro employed more than 70000 temporary workers in the US.

In 2019, Wipro consumer care and the Anghortaleza Corporation signed a share purchase agreement for the sale of 100% of the latter's stake in the personal care business of splash Corporation,  the companies announced on monday, April 29. Wipro partnered with moog soft, a AIOs company.

You will definitely be shocked if I told you someone turned 10000rs to 3,69,00,00,000rs (369 crore)

You will Definitely ask me who has done it ?

Well I don't have proper Data on this. But I can say promoters of the company has done it.

 Turning 10000rs into 369cr is same as growing your money 49%  year on year for 32 consecutive years

You might not trust on this, but we have proper data which will prove you that it is true and promoters has done this.

If you had investment of 10000rs on 1980 and you bought shares of wipro at 100rs per each so you will have 100shares of wipro.

1980- 100 shares in your Dmat account

1981- wipro gave 1:1 bonus = 200 shares in your Dmat account

1985- again 1:1 bonus= 400 shares

1986- stock splits = 4000 shares

1987- again 1:1 Bonus= 8000 shares

1989- again 1:1 bonus shares = 16000 shares

1992- again 1:1 bonus shares= 32000 shares

1995- again 1:1 bonus shares  = 64000 shares

1997- 2:1 bonus shares= 1,92,000 shares

1999- stock splits to rs 2 face value= 9,60,000 shares

2004- 2:1 bonus share= 28,80,000 shares

2005- 1:1 bonus share= 57,60,000 shares

2010- 3:2 bonus share= 96,00,000 shares

Value of one wipro is around rs 385
So total value of your investment of 10000 in 1980 is about 369600000rs.

And we are not done yet.
Wipro pays regular dividend to the shareholders. Last  year wipro paid dividend 6rs per share so you would have 5.76crore dividend. Just imagine how much could you have made from dividends alone in last 32years.

You can't go back to 1980 and buy wipro.
But can dene

Calculate fair value of any shares

How to calculate fair value of any share?

To calculate fair value of the stocks you need to follow 4 steps

Step:- 1

Calculate the P/E ratio.

P/E ratio = current stock price per share/ current earnings per share.

Step:- 2

Compare the P/E ratio for your company with other peer companies.  For instance, if you want to find the fair value for IT company, you must compare the P/E ratio to other P/E ratio in IT industry.

Step:- 3

If company has high P/E ratio it means company is overvalued. And if low P/E ratio it means company is undervalued. If I own a company with P/E ratio of 5 when the average P/E ratio for the company in same industry is 3, then I can say my stock is overvalued.

Step:- 4

Adjust the stock price down to the average P/E ratio for the industry. If the average P/E ratio is 3, and the P/E ratio on my stock is 5 ( current price 10rs) / earning per share (2rs) . Then I can use the p/e equation to find what the stock price would need to be in order to have a P/E ratio of 3.

The equation is: New P/E ratio × Earnings per share.

The answer is 3×2 =6rs . The fair market value for this stock is 6rs not 10rs.

Benefits of the Bluechip stocks

WHAT ARE THE BENEFITS OF BLUE CHIP STOCKS?

Blue chip stocks are shares of large, established, and financially stable companies that have been around for a long time. The term " blue chip" comes from the game of poker where blue chip holds the highest value.

Blue chip stocks stability 

Most investors understand that blue chip stocks have stable earnings. During an economic downturn, investors mat turn to these perceived " safe havens" because of their steady nature. Some people believe that blue chip companies can offer security during periods of slower growth due to their experienced executive teams combined with their ability to generate stable profits.

A blue chip stock is typically large in size ( with market capitalization in the billions) and a leader in its sector or industry. The company is usually a familiar and easily recognizable name, which gives investors a sense if added confidence when adding the stock to their portfolios. That's because, if stocks fall into a bear market, these well established popular names will likely be among the first to recover. There is little risk that they will go out of business during an economic downturn.

Blue chip and Dividends

Since blue chip shares are typically mature companies that have achieved large market caps, most pay dividends. Dividends represent a portion of the company's profits  that are distributed to shareholders in the form if quarterly payments. Smaller companies that are growing fast typically retain all of their earnings in order to invest in future growth. These growth stocks may eventually pay dividends once they are of sufficient size and begun to see fewer opportunities to invest in themselves.  At that point, they begin distributing excess earnings to their shareholders. Until then, a fast growing or young company is not likely to pay any dividends.

A blue chip stock, on the other hand, has seen increased and uninterrupted dividends over time. In the long run, the benefits to the shareholder from the dividend payments is portfolio income, regardless of the daily swings in the share price. Dividend payments can also help to protect against the adverse  effects of inflation because dividends represents earnings, which can increase along with the general cost of living.

The Bottom Line

Blue chip stocks typically have solid balance sheets, steady cash flows, proven business models, and a history of increasing dividends. For the reason,  investors generally consider blue chip stocks to be among the most secure stock investment because of their track record and performance history. So, while blue chip are not immune from losses if the broader stock market enters a bearish phase, the idea is that these names will be less volatile than smaller growth companies and will also be the first to rebound when the market eventually recovers.

Why do we need to invest ?

Infosys, the multibagger Stock

Let’s figure out everything about Infosys ltd. The multibagger stock

Infosys limited is multinational company and it’s head office is located in Bangalore, india.

Infosys is the one of the biggest it sector company in india. Infosys ltd provides information technology, bussiness consulting and outsourcing services.

Infosys limited founded on 7 July 1981 about 38 years ago.

Founders: N.R. Narayanan murthy, Nandan nilekani, S. Gopalkrishnan, S.D. Shibulal, K.Dinesh, N.S. Raghavan, Ashok Ansari.

Nandan Nilekani is the chairman and salil S. Parekh is the MD and CEO of the company

Company’s official website is http://www.infosys.com

After TCS( Tata consultancy services) Infosys is the second largest indian IT sector company by 2017 revenue

Credit rating of the company is A

Infosys’s total market capitalization is about $46.52 billion

Infosys was established by seven engineers with small amount of $250

Infosys IPO came in February 1993. With an offer price of 95rs per share & book value if 20rs per share . Was undersubscribed but it was bailed out by Morgan Stanley.

Infosys share was listed in stock exchange In June 1993 with opening at 145rs per share

PRODUCT AND SERVICE

infosys limited provides software development,maintenance and independent validation services to company in finance, insurance,manufacturing, and other domains.

One of its known product is finacle which is a universal banking solution with various modules for retail and corporate banking

Its key product and services are :

*NIA: next generation integrated AI platform ( known as Mana)

*INFOSYS COMSULTING: a global management consulting service

* IIP: analytics platform

*edgeverve systems which includes finacle,a global banking platform

* panaya cloud suite

*Sķava

Listing and shareholding pattern

In india,share of infosys are listed on BSE and NSE exchange. Its shares are listed by way of ADRs (Americal Depositary Receipt) at the New York stock exchange.

• Promoters group : 12.75%
• FII : 37.47%
• ADR : 16.70%
• Individual : 9.83%
• Banks,financial institutions and insurance companies: 11.24%
• Mutual funds :8.97%
• Others :3.04%
• Total : 100%

CEOs

• Narayan Murthy:1981 to march 2002
• Nandan Nilekani: March 2002 to April 2007
• S.Gopalkrishnan: April 2007 to August 2011
• S.D Shibulal : August 2011 to July 2014
• Vishal sikka: August 2014 to August 2017
• UB Pravin Rao: August 2017 to December 2017
• Salil S. Parekh: January 2018 to onwards

Infosys has a total of 243454 employees at the end of the 2019 year out of which 38% were women.

229658 are software professionals and remaining 13796 work for support and sales

89% of employees were based in india.

Multibagger History

If you invest 10000rs in year 1993 it would have 

Warren Buffet: The king of share market

Warren Buffett was born in Omaha (US) in year 1930. His father was working in a stock broking firm as a salesman. Due to 1929 great depression he lost his job after that with a small capital he has started his own stock broking firm. When other kids were playing in garden, Warren Buffett likes to read books and watching financial reports he was happy with doing that .

When Warren Buffett was 8 year old he has read a book name one thousand ways to make one thousand dollar, from that 1000 idea’s Warren Buffett was attracted with one pinball machine idea so he has researched everything about pinball machines cost,  profit and etc. Finally he bought pinball machine and put that machine into the saloon. So the people who are in waiting will play this game. After getting profit he invest that money inti pinball machine business and typed with other saloons warren Buffett sold his business for $1200 in his child time.

After that he has done many small business like selling newspaper, selling door to door coca cola, chewingum and etc. At the age of 14, he has bought 40 acre land from his savings.

Warren Buffett earned huge profit after learning Benjamin Graham’s value investing and became millionaire. Value investing means buying under valued stocks, in the value investing they were buying those stocks which are trading below it’s intrinsic value.

Warren Buffett has bought Berkshire Hathaway‘s shares in 1962 for the first time, at that time Berkshire Hathaway was big textiles business and Berkshire Hathaway’s business were performing too poor. Company was selling their meals and from those money company were repurchasing shares from shareholders. That’s why Mr. Buffett bought many stocks till 1964. And when company has sold it’s all meals and repurchasing shares, they asked mr.buffett that at which price do you want to sell shares? So Buffett replied at $11.50/ share and manager has agreed to buy shares at this price but when Mr. Buffett got offer letter the price was mentioned $11.375/ share. Warren Buffett was very upset with this cheating behavior of the management and continued to buying shares till Mr. Buffett got control of the management. And when Mr. Buffett got control he has fired those cheater manager from the company.

Mr. Buffett has closed his partnership firms business in 1996. And became chairman of the Berkshire Hathaway. When he has not seen any growth in company’s textiles business. He made berkshire Hathaway’s holding company, through this they invest in different different company’s stock like Washington post, coca cola ,Geico etc. And closed company’s textiles business completely and also entered in insurance sector.

Warrent Buffett has purchased first share at the age of Eleven. They always says “I made my first investment at age eleven, I was wasting my life up until then“

Don’t waste time,start Investing

Warren Buffett has read all those books available in his father’s office after reading that books he was attracted to the investments, he made his first investment in cities services, He bought share for him and for his sister at the price of $38 when it reaches $40 he has sold all stocks and booked profit from them. After few time that stock reached $200 that’s why they always says “Successfull investing takes time, discipline and patience, no matter how great the talent or efforts somethings just takes time” that’s why they always invest for a long term,he bought Washington post shares in 1973 and he earned more than 9000% returns.

When he buy shares he always think like owning that business that’s why he only invest in those business which he understands well. From 1988 he has bought coca cola shares, and still holding that shares. He is 7% shareholder of the coca cola company.

Prof. Benjamin Graham said in his book intelligent investor,

“Investing is most intelligent, when it is most businesslike”

Mr. Buffett says this nine words are most important words written on investment.

Mr. Buffett has always followed Philip Fisher and Benjamin Graham‘s philosophy.

They always says “I’m 15% Philip Fisher and 85% Benjamin Graham “

Philosophy of Benjamin Graham is buy undervalued stocks

And Mr. Philip Fisher’s philosophy says invest in quality business.

As he told he is a combination of philip Fisher and Benjamin Graham . His own philosophy is ” Buy quality stocks at lower valuation”

Warren buffet’s 2 rules

Rule no. 1 never lose money

Rule no. 2 never forget rule no. 1

Warren Buffett always read books about 5 to 6 hour / day. He is 87 year old and still when he is investing he thinks for the longterm investment.

In his childhood he always told her sister that I will become world’s richest person. And in 2008-2009 he became richest men and since many years he is at 2nd and 3rd rank in world richest person’s list.

Still he lives in that house which he has bought in year 1958, he drives his car never hired driver for him. From the year 2000 to till now he has donated $46 billion (about 34,04,000,000,000 Indian rupees) he is biggest charitable person, he is still investing because investing is his passion he has earn 90% of his money after his 50year age.

So 87 age is just a numbers don’t give up think for a long run , hold for a long you will definitely earn money from stock market

According to Warren Buffett loosing money in stock market is about to impossible.

What is trend Trading ?

What is technical analysis?

Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends. Gathered from trading activity such as price movements and volume.

What is trend ?

A trend is the general direction of a market or asset’s price.

In trading TREND IS YOUR FRIEND always trade in trend’s direction so that you can easily get 70to80% accuracy, even you if you have 60% win ration than it is enough to make money in share market. If you will trade in trend’s direction than definitely you will achieve this win ratio easily.

* Never predict the trend, only follow the trend.

* Never trade against the trend.

*trend is your friend.

In the stockmarket 95%lost their money when they trade against the trend. If you want to stay in a market and want to make healthy wealth than understanding trend is very important, so let’s learn about trends and learn how to identify the trends..

Types of trend

A stock market go through 3 types of trend no matter how you look at it, the market moves in trends and they repeat it again and again.

3 Types of trend

* Uptrend

* Downtrend

* Sideways Trend

UPTREND (Bull market)

It is very is to identify stock that is in Uptrend

“When stock moving in uptrend, stock will make higher high and higher low and continue to repeat it again and again.

And the stock will move above the 20, 50 and 200 Day moving Average most of the time .

Downtrend (Bear market)

It is also very easy to spot a stock that is in down trend.

When stock is in down trend stock will break support and make lower low and lower high hqne continues to repeat it again and again.

The stock is below its declining 20,50 and 200 moving average most of the time.

Don’t buy stocks which are in downtrend and if you are investing in this types of stocks you are more likely to lose money.

Sideways trend

When you find the stock trade within a range are called sideways trend

The stock usually zig zag between the moving average.

Don’t trade in this types of stock because this types of stock can change its trend anytime.

Always make watchlist with your favourite stocks and when they start moving in uptrend get entry and exit when downtrend.