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Nifty down over 1% again. Small cap Index just made a new 52w low. But I'm not losing sleep over it as my system of trading only 52w high stocks & strict risk management got me out of this mess way before.
Sitting on 90% cash & making a list of leaders of the next bull market.

A leader does not necessarily mean some familiar BIG name like Reliance or the likes of it.
Find the next big thing growing at an exponential rate studying its price action alone.
#BroTip

How to make a list of the next probable leaders. Read on:
Mar'15 to Feb'16
Nifty down 23%
SmallCap down 23%
Nifty made a low of 6825 on 29th Feb 2016 & then never looked back. So, let's study stocks which were trading around their 50dma 2 months before this bottom was made.

#BODELCHEM
The encircled area is Jan-Feb 2016.
The stock was basing around 50dma, up around 100% from 52w lows & close to its 52w high when in the same period Nifty was making 52w lows.
Nifty bottomed out and the stock exploded. Eventually touched 193; up almost 4x

#DALMIASUG
It was around 250% up from 52w lows, close to 52w high & around 50dma.
Nifty bottomed out and it also went up 4x

#DWARIKESH
The stock was up 500% from 52w low & was trading above 50dma close to its 52w high in Feb 2016.
Exploded when nifty bottomed out and went another 750% up from there.
Chart not attached. Verify on investing or tradingview.com

tradingview.com

#ENERGYDEV
Feb'16 - It was up 250% from 52w low, close to highs & base around 50dma.
Like others, it also exploded and went up 6X from there

#MANAPPURAM
Similar signs - Up 75% from the lows, close to 52w high & base around 50dma.
Went up almost 4x in few weeks after Nifty had bottomed out

These are just a few examples & I can show you many more. I think by now it should give you all clarity of how you make a list of 'LEADERS for the next BULL market'.
Look for strength. It's that simple.
#BroTip

In short, the point I'm trying to make here is - Leaders will emerge BEFORE the bottom is made. Pay attention to stocks & their price action. Not what indices are doing. The fastest money is made just when an index low is made.
Do your homework if you need serious gains.

Continuing the above exercise to verify what transpired in 2011.
Nifty made a bottom of 4531 on 20th Dec'11; down 29% from the peak.
Let's focus on the price action of stocks above 50dma 2 months before this bottom was made

#AJANTPHARM
Between Oct & Dec'11, the stock was up 100% from 52w lows, close to 52w high & strong 2 month base around 50 dma.
It exploded just when Nifty stopped going down further. Ajantapharma went up another 3x in only 9 months.

#GRUHFINANCE
Again even this one was trading up 100% from 52w low, close to 52w high & a base around 50dma.
Eventually went up 3X+ in no time.

#KAJARIACER
Stock up 75% from 52w low, close to 52w high, C&H formation around 50dma.
The stock ended up going 2.5x from there as soon as Nifty stopped going lower.

#KSCL
Up 75% from the lows, close to 52w high & strong sideways base around the 50dma.
Ended up going up 3X from there.

2016 - Done
2011 - Done
Also, I have nowhere hinted we are going to make the bottom anytime soon. I am absolutely clueless about it. But what I know is where to look for to grow my money faster.
#BroTip

And, I don't know how many of you noticed most of these stocks were trading in double digits when they exploded.
This is your another hint what & where to concentrate on.
#BroTip

Some more evidence of where to look for to grow your money faster right around bearish market situations like we are in currently.
2004
Nifty down 36% (marked in red) from the peak made on 09-01-04.
Let's focus on stocks trading around 50dma during the same period

#BLUESTARCO
Up 50%+ from the 52w low
Close to 52w high
Forming base around 50dma
Broke out and went up 3X

#DHAMPURSUG
Up 100% from the 52w low
Close to 52w high
Base formation around 50dma
Broke out & went up 4X+

#GLENMARK
Up 100% from 52w low
Close to 52w high
Base formation around 50dma
Went up 4x

#GODREJCP
Same as above.
Went up 3x
2004 Done
2011 Done
2016 Done

Confidence & the hopes of many of you must naturally be higher after this thread. But, let me pop the bubble & give a reality check.
Spotting an opportunity plays a very minuscule role. You make money only by deciding how much to bet, when to bet more, where to exit etc
#BroTip

Some 2020 Covid crash examples
Nifty cracked like never before in March'20 but some stocks fought it well by dropping with less severity, bounced & then never looked back
#JBCHEPHARM