57% Profit just by listening to the charts — Power of chart reading

Mathew Borges
Nov 1 · 4 min read

Whoa! 57% profit on an investment & that too in a span of 7 months. Sounds crazy, Right? Well, this is the stock market for you. And is the reason why zillions of them are attracted to try their hands at this venture. This attraction is the cause of heavy losses as well. Many might think that capital market is a promised land & it’s a place where you can make quick bucks(huge), which will change their fate for good. Being in this business for a long time one thing I can say for sure is this “return on your investments can be potentially huge if you understand how this game needs to be played but not at a faster rate” & “losses can be potentially huge if you do not understand how this game needs to be played at a much faster rate”.

The stock on which I made this profit is “Fine Organics Industries Ltd”. This particular stock was even discussed in one of my sessions. But, I do not recommend anybody to buy/sell a stock when I discuss about my holdings. What I believe is in empowering through teaching the interested participants who want to start their journey in the capital markets. There is a process involved & that particular stock has to fall into my process (system as it called), only then will I decide whether to buy/sell this stock.

I bought this stock at Rs.1231 in the last week of March 2019, & the reason for taking this trade was, it ticked all the buy criteria’s as per my system. But, let me tell you this, my system is not a “holy grail”. Once I buy a particular stock I have no idea what it will do. In this case I mean whether it will go up for “sure”, so I start thinking in terms of probabilities. This mindset of probability helps me to be grounded & follow my process which also includes & this for sure is the “holy grail” which is called as “Risk Management”.

Fine Organic Industries Ltd

The above chart shows how the stock price is moving & the circled zone is where I decided to buy this stock. This is all based upon the field of study which is called as Technical Analysis. In this type of analysis your main focus is on Price & Volume of the stock. I being a core Technical Analyst, I do not look at other data of the company like top line, bottom line, products etc. For me, I only rely on what the charts have to say to me which helps me to focus on the two important parameters of my analysis i.e. Price & Volume.

I bought this stock based on this chart, remember as I mentioned earlier I have no idea what this stock will do next. If you are looking to being right all the time then this is not the place to venture out with your capital & I don’t think there is one any where. So, the next thing I do after I buy this stock is apply my Risk management process through a mechanism called Stop Loss. Before I enter a trade I have already figured out where I will get out if this trade goes against me. Always, probabilities.

This trade went in my favour, not all the trades will go in your favour. These are the trades which will define your future participation in the market. As the price is rising & this stock falls in one of my many processes I have not set target. So, the idea is to hold on until the price tells you to get out. I hold on & this is were it gets tricky for a new comer to the markets who does not have a process in place. Since, my process is in place the chart has to tell me when to exit. Exit can be done via many ways but the important thing is the chart needs to tell when to exit. From March 2019 till Oct 2019 I was in this trade & I exited this stock at the price of Rs. 1939, the last week of Oct 2019.

Learn to read the charts & you will be amazed with the results

If you believe that you too can do this then you are right. For any queries in regards to mentoring, teaching then please contact me via mathewcb@gmail.com

#KNOWTHETERRITORY Learn #HOWTOPLAYTHISGAME

Mathew Borges

Written by

Independent Securities Trader/Trading Coach & Guest Lecturer in Capital Markets (Technical Analyst). Everything revolves around a process!!!!!!

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