For being a profitable Long Term trader you should first look at those stocks which have a “BUY” signal in the long term.
Trading is primarily driven by two strategies.
- To buy at breakouts.
- To buy after corrections.
Buying at breakouts
If the signal combination for both the Midterm and the Long term is showing “BUY”, it clearly reflects breakout and hence one can go ahead and buy the script.
Leveraging from corrections
Midterm Signal | Long term Signal | Interpretation |
BUY | WAIT (when the signal has changed from SELL to WAIT) | Buy When Long term changes to BUY |
BUY | WAIT(when the signal has changed from BUY to WAIT) | Book profit if bought in past |
WAIT (when the signal has changed from SELL to WAIT) | BUY | Buy It’s a breakout when Mid-term changes to BUY |
WAIT (when the signal has changed from BUY to WAIT) | BUY | Book profit if bought in past |
Using Stop loss function
Once you have identified which Scrip to buy, you should next take care of your investment against any unforeseeable losses on account of market fluctuations.
Therefore, use the Long term “stop-loss” which has already been mentioned in the “Cycle” app.
Please refer to How to use Cycle tutorials for learning how to make better decisions for long term investments with the help of various signal combinations along with CRS score, stop loss and reversals