First Microfinance Laghubitta Bittiya Sanstha Limited (FMDBL)
What does it mean when a stock has a consistent spike in volumes while the price is fairly stable?
It means that some big player is buying in bulk without letting anyone know. And what does that mean? It means that the big player knows things about the stock that other investors do not.
This is what I like about technical analysis and chart reading. You can know about insider information, price cornering, and manipulation without actually being an insider. This is because all price movement is seen in the chart.
Somebody was buying FMDBL. And they were buying in bulk. Something was surely cooking. I thus bought a few shares at Rs. 612. Like I speculated, the price then began to gain indeed. I made a nice profit of about 15% by selling at Rs. 700.
Just because I watched the charts.
Mahalaxmi Bikas Bank Limited (MLBL)
This is undoubtedly the first stock that I bought that fell so neatly into my trading strategy. The stock had a healthy gain in the long term and the intermediate-term. It had then had a small correction in the last 30 days or so. A correction in a bull market is a perfect time to enter.
Using my strategy, I waited for the MACD and the RSI to be bullish. I then bought a few shares on January 07 at Rs. 256. The stock then had a healthy uptrend. After about 20 days, I sold the shares at Rs. 294 per share. This gave me a profit of about 15%. Not bad, huh.