How we deal with the fall
A Technical Analysis topic is presented simply and concisely for beginners. ___
HOW WE DEAL WITH THE FALL
Stocks don't go up forever. There are also periods when they fall by
making small, large or even huge corrections to their prices.
Big falls also make the stocks that are considered top today, either
because they are highly overvalued or because their fundamentals are
going to get worse in the coming period or simply because some intend
to gain from undervaluing speculation.
The stock No 2 was considered a blue-chip for 17 years. Now is doubtful
if anyone has the same attitude after a 93% decline.
We don't care about the reason for the fall. We care not to be in the
stock when it falls.
We never get emotionally attached to a stock. Good are all the stocks
that go up and bad are all the ones that fall.
The fall begins when all the general public interested in the stock has
bought it while it is at its highs and ends when it sells it while it is at
its lows. At the beginning of the fall the volume is small because sells the
smart money and at the end it is large because sells the general public.
Every big fall ends with panic, and every big rise begins when the
general public either doesn't care about the stock or is afraid to buy it.
The golden rule to save your capital is to sell a stock when its price breaks
downwards either its 30d SMA or its 200d SMA, with a 2-3 days time filter.
As long as a stock's price remains below its 30d SMA or its 200d SMA, you
must not buy this stock.
It's better to buy a stock only when its price is over its 200w SMA too.
More information about protecting your capital during a fall, you can find
in my post "You can't beat the market".
----------------------------------------------------------------------------------------------
Prompt: New traders should take some time and carefully read the post entitled 'You can't beat the market' that is located in my profile.
Disclaimer
The author of this text is not an investment advisor. The preceding content is intended to be used for informational and educational purposes only.
It is not an advice or inducement for the purchase or sale of the products mentioned. Before making any investment based on your own personal circumstances,
it is very important to do your own research and analysis and also take independent financial advice from a professional to verify any information provided here.
HOW WE DEAL WITH THE FALL
Stocks don't go up forever. There are also periods when they fall by
making small, large or even huge corrections to their prices.
Big falls also make the stocks that are considered top today, either
because they are highly overvalued or because their fundamentals are
going to get worse in the coming period or simply because some intend
to gain from undervaluing speculation.
The stock No 2 was considered a blue-chip for 17 years. Now is doubtful
if anyone has the same attitude after a 93% decline.
We don't care about the reason for the fall. We care not to be in the
stock when it falls.
We never get emotionally attached to a stock. Good are all the stocks
that go up and bad are all the ones that fall.
The fall begins when all the general public interested in the stock has
bought it while it is at its highs and ends when it sells it while it is at
its lows. At the beginning of the fall the volume is small because sells the
smart money and at the end it is large because sells the general public.
Every big fall ends with panic, and every big rise begins when the
general public either doesn't care about the stock or is afraid to buy it.
The golden rule to save your capital is to sell a stock when its price breaks
downwards either its 30d SMA or its 200d SMA, with a 2-3 days time filter.
As long as a stock's price remains below its 30d SMA or its 200d SMA, you
must not buy this stock.
It's better to buy a stock only when its price is over its 200w SMA too.
More information about protecting your capital during a fall, you can find
in my post "You can't beat the market".
----------------------------------------------------------------------------------------------
Prompt: New traders should take some time and carefully read the post entitled 'You can't beat the market' that is located in my profile.
Disclaimer
The author of this text is not an investment advisor. The preceding content is intended to be used for informational and educational purposes only.
It is not an advice or inducement for the purchase or sale of the products mentioned. Before making any investment based on your own personal circumstances,
it is very important to do your own research and analysis and also take independent financial advice from a professional to verify any information provided here.
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