You all will agree that most of us love to ride momentum at peak for some quick gains.The evidence for this is that i have seen more users are online when markets are up 200-300 points than down or when markets are showing bullish signs.No doubt,the ideal thing would be to enter at lower side but then,this is not a perfect world.

The way to take advantage of momentum is like you have 2 lac to invest for quick gains.You must have observed operators are rotating money from one sector or scrip to other very fast.A scrip is taken up 20% one day and then abandoned for few days while turn of absolutely new sector or scrip comes.Last week,i caught spicejet,gitanjali,Surya Pharma for you, for abnormal gains.
What you should do in such cases is to take out ur profits and not redeploy it but only that principal 2 lac becoz sooner,rather than later,this cycle is going to end,and there is risk of getting stuck at higher levels,for sometime and then u wont have money to invest when opportunity comes at lower levels.REMEMBER,IF A STOCK CAN RISE 20%IN A DAY,IT CAN FALL 20% TOO.
Suppose,daily u are making 10-12,000 Rs profit on capital of 2 lac and this momentum continues for 10 more sessions,u can set aside profit of one or one and a half lac on tenth day and on trend reversal,i tell u to exit even at 2-3% loss,u would have still made a fortune and got ur capital back but if u keep on investing whole initial capital of 2 lac plus all accumulated profits of one lac,there is a risk of getting stuck with all the money at higher levels.In case of any clarification required,kindly reply to this thread.
THIS ADVISE IS ONLY FOR SHORT TERM MOMENTUM TRADERS AND GENUINE LONG TERM INVESTORS SHOULD AVOID TRADING.