- There is a right time and a wrong time to buy stocks.
- Stocks with capability potential of earning super profit are identifiable before they increase dramatically in price.
- By correctly investing in these stocks, it is possible to build a small amount of capital into fortune in a relatively short period.
The specific entry point analysis is a strategy that tells about methodology of how to identify specific points to enter in market and how to earn a super profit.
The objective of SEPA is to take all important information available on internet, various platforms like stock reports by brokers, etc. and pinpoint a position to buy stocks with a high probability of earning profit. It combines both fundamental and technical analysis to take position.
The 5 key elements of SEPA
- TREND ANALYSIS (TECHNICAL ANALYSIS)
- FUNDAMENTAL ANALYSIS
- CATALYST
- ENTRY POINT
- EXIT POINT
Now Lets analyse 5 elements in detail:
- Technical Analysis The technical analysis means analysing stock trends using various indicators like Relative Strength Index, Bollinger Brands, Exponentional moving average, golden triangle, etc. When a stock is about to show a superperformance trend it can be identified well in advance, IT shows a uptrend in stock market.
- Fundamental Analysis. The fundamental analysis means analysing operations, profitability, sales, EPS, Earnings,management composition, management quality,etc.The superperformance stocks shows improvement in all fundamental factors in its superperformance phase.
- Catalyst Every stock that gives a super profit has a catalyst behind it. The catalyst may not always be apparent upon a casual glance, but a little detective work on company's story could tip you off to stock with superperformance potential.For example A new hot-selling product that would accounts for a meaningful portion of a company's sales may provide hint of superperformance.
- Entry point MOST of superperformance stocks give at least one opportunity or multiple opportunity to enter before superperformance stocks, A wrong entry would result in less profit or even loss.
- Exit Point Even if you have entered correctly you may suffer a loss because fundamentals may have changed or there may be change in macro environment. So you should always use stop loss .
We will learn later on about these in detail subscribe for more detail.
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