Winners win consistently and losers ... ?

Of course, they are consistent in losing.

Have you found yourself at the top of the world from time to time in life. Everything works the way you want it. You seem to be in total control. Whatever problems come, you brush them aside and go on doing what you want to do and many a times achieve it. Have you found opposite happening in your life too ? Do not tell me, you have not. I would not believe you.

The same thing happens with scrip prices and investment which are a reflection of mass mood and psychology. When a scrip shows a new high (say new 200 day high), it may get some selling pressure, but it would again go on to make newer highs and when a scrip shows a new low (say new 200 day low), it may get some support temporarily, but it would again go on to make newer lows.

Lesson : Stay with a winner and at least, do not short it. And get out of your loser portfolio and at least don't buy it in a hurry.

Caveat : If the new high has happened out of a very extended broad base, the scrip has strong potential to go far and vice versa. If the scrip has run up a long way to just touch a new high which it had touched 2oo days ago, then it is not very easy to guess its further potential for further tops. This applies in opposite manner for new lows.