The title for this post should be “How Sachin hits a sixer on every ball”, but bulls eye sounds a little more professional.
SantoshG asks the method for identifying two stocks that will likely gain 10% the next day.
This is like asking Sachin to hit a six with every ball he faces in his cricket games. I have two points:
First: Why should Sachin hit a six on every ball? His career is one of the best in the world of cricket. That does not mean he has to be a superman.
Second: The expectation then is that Sachin will not get out. We expect the Master to keep on hitting six after six after six, because if he gets out that will prove that he is not a good cricket player and we all know that he is a good player.
Now I come to the method of identifying two stocks likely to move 10% the next day.
We cannot predict how Sachin will play in the next game. So, also, we cannot predict which two stocks will move up tomorrow.
We can predict that over a period of time, Sachin will play the best game among all players. So, we can predict that over a period of time, stocks x,y and z will outperform the market.
But, tomorrow? On a day to day basis, outcomes cannot be guaranteed.
So, we should go with market flow.