The WeekendInvesting Newsletter - 16 Feb 2024

Pareto Rule in Investing

Have you ever wondered why some investments skyrocket while others languish? The answer might lie in Pareto’s principle, also known as the 80/20 rule. This principle suggests that in many contexts, roughly 20% of the causes are responsible for 80% of the effects. In the world of investing, this translates to a powerful truth: a small handful of stocks will likely generate the bulk of your returns.

Let’s take a look at a striking example. . . . . .

Reading Time : 2 Minutes

The Golden Rule of catching falling stocks

Investing can be a thrilling rollercoaster, but when stocks plunge, it’s easy to feel like you’re clinging to a plummeting cart with no brakes. Especially for discretionary investors who don’t follow rigid value strategies, navigating falling stocks can be a nerve-wracking experience. But fear not, intrepid investor! This video unveils a powerful tool to help you avoid getting trapped in the downward spiral: the 2-day high closing rule.

The Core of the Rule:

The 2-day high closing rule boils down to one simple principle: . . . .

Reading Time : 3 Minutes

WeekendInvesting Daily Bytes

Today has been a good day with Nifty scaling another high, marking the fourth day of positive gains and closing above 22,000. This is our third attempt at crossing the 22,000 mark. As illustrated in the chart, we saw our first attempt early in January, followed by a correction, then a second attempt that just surpassed 22,000, creating a double top, and now we’re making a third effort. Interestingly, we’re observing a cup and handle pattern. If this pattern breaks out, we could be moving towards 22,900 or 23,000 levels.

My speculation for several months has been that . . .

Reading Time : 4 Minutes