Everyone knows the Archimedes principle.
(That is a decent way of saying that hardly anyone knows or remembers what it correctly means!)
Well, lets first see the statement of the principle
"Any object, wholly or partially immersed in a fluid, is buoyed up by a force equal to the weight of the fluid displaced by the object."
In simple words
If the weight of the water replaced is less than the weight of the object, the object will sink, otherwise not.
If it is still not clear, forget it.
Just understand that
"If something is not sinking, there is a force supporting it."
In other words
"If something is not sinking, it won't and don't try."
This applies perfectly on stocks as well.
Many a times you will see that the nifty is falling but some stocks are not!
Archimedes principle is saving them from drowning.
There is force under those stocks.
When the markets stop falling, these will be the surest and the fastest stocks to rise!
Therefore, all you need to do is identify the stocks which are refusing to sink when the market is falling.
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