What is a chart?

What is a chart? It is a mirror giving reflection of price movement of a indicating oversold/overbought position & trend etc.

Many stocks vanished from market after discovery of scam but till such discovery no one was aware of the fraud.

This does not mean that chart is of no importance.

I check chart but pays more importance to resistance & support level.

Best is to take entry in fundamentally good stock at proper level i.e. not when they are overbought.

My one simple rule is to ask myself before taking entry will I be able to buy it 10 more times at proper level if it falls?

Many people buy a stock with a stop loss figure in mind. They exits the position if SL hits, but this erodes there capital.

Best is take entry into good stock [ what is a good stock is another subject , I may write about it latter] with comfortable qty.

with regards

Mahesh Sawerdekar.