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Discussion in 'Technical Analysis' started by sanjay_sansanwal, Sep 3, 2012.

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  1. sanjay_sansanwal

    sanjay_sansanwal Contributor

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    Shabbir, Can u plz tell us what to do in this type of stock.
    :confused:
     
    sanjay_sansanwal, Sep 3, 2012
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  2. shabbir

    shabbir Administrator Staff Member

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    Short answer is avoid and why because of many reasons.

    1. The stock goes from 5 to 20 backed by no news and so it clearly indicates some management ploy in this. You could make lot of money in this type of move but you should know how to play them and also should be ready to take big stop losses. These moves don't follow any trading pattern but penny stock patterns.

    Penny stock patterns works best when shorting (at least that is what I have learned reading Timothy Sykes) and we Indians cannot short those stocks because they are not in FnO and so a good solid reason for me to avoid.

    2. Stock is not traded in BSE and only in NSE and many financials are missing especially sales turn over in Indiaearnings as well. Something that does not make me comfortable going long in this stocks.

    Just don't apply Technical Analysis on stocks with low net asset
     
    shabbir, Sep 4, 2012
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  3. sanjay_sansanwal

    sanjay_sansanwal Contributor

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    Thanks for ur kind advice.
     
    sanjay_sansanwal, Sep 4, 2012
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  4. shabbir

    shabbir Administrator Staff Member

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    The pleasure is all mine.
     
    shabbir, Sep 4, 2012
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