Suzlon - Over 4X in Laidback Strategy
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I have been regularly sharing insights about the Laidback Strategy on our forum. I would like to revisit an important example that underscores the power of sticking with a well-defined trading system.
Last year, I authored an article discussing how Suzlon Energy Ltd. triggered a buy signal in the Laidback Strategy after 15 years at a price of Rs. 14. Fast forward to today, Suzlon is trading at Rs. 64.98 and still going strong, marking an impressive increase of over four times in just a year. Read here
The primary purpose of this note is to underscore the critical importance of patience and consistency in following a trading system. Many traders often get disheartened or lose faith in their strategies when immediate results are not evident. However, as Suzlon's example illustrates, a well-crafted strategy can yield significant returns, potentially even fourfold, if given the time to mature through various market phases.
Here are some key takeaways from this experience:
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Patience is Key: The Laidback Strategy identified a buying opportunity in Suzlon after a long period of dormancy. This underscores the importance of waiting for the right conditions and signals, even if it takes years.
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Trust the System: The remarkable growth in Suzlon's stock price over a year, from Rs. 14 to Rs. 64.98, demonstrates the power of a systematic approach. Had we not adhered to the strategy, we might have missed out on this substantial gain. This should reassure you of the effectiveness of a well-defined trading system.
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Market Phases: Every trading system will encounter different market phases, from bullish to bearish trends. Observing how your system performs across these varying conditions is crucial to truly understand its potential and limitations.
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Conviction Through Experience: The real test of a trading system's efficacy comes through prolonged usage. Until you've applied your system for an extended period and seen how it navigates different market environments, you won't fully grasp its strengths and weaknesses.
Below is Suzlon's chart, highlighting its significant rise from Rs. 14 to Rs. 64.98, as identified by the Laidback Strategy.
The Suzlon example should serve as a reminder and motivation to all of us to stay committed to our trading strategies. Consistency and a long-term perspective are essential in reaping the benefits of a well-designed trading system.
Are you thinking of Yes Bank and Idea whether they are a buy in Laidback?
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Thanks Brijesh ji for your valuable insights.. Any more laid backs that are showing signs of waking up anytime soon
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@Kamal Arora Do check Laidback stock which I keep sharing every week.
