What stocks to buy?
Is a common question that every investor/trader ask themselves daily. The ultimate goal is that so long as the price of the stock goes up over a period of time, profits are generated in the portfolio. But if the price of the stock goes down over a period of time instead then losses are generated in the portfolio.
How do I know if a stock moves up or down over a period of time?
Clearly with the usage of Technical Analysis & Strategies Applied, it enables an investor/trader to study and understand the trend movement of a stock. By doing so it will then allow the investor/trader to make a Trading Plan for the stock. Lastly the execution of one’s Trading Plan will be put at work in the Stock Market and here is where the investor/trader starts to invest/trade with a Trading Plan!
What happens when I bought into a wrong stock?
It is not about holding the “wrong stock” in the stock market. Rather it is how will you execute your Trading Plan when the price of the stock goes in the opposite direction of what you anticipated. That makes you being a rational investor/trader instead being a
“Hopeful” investor/trader. Hence when a stock turns bearish, it is important for you to know how to execute your Trading Plan to manage your risks. Likewise when a stocks turns bullish, it is important as well on knowing your Trading Plan to manage your profits. On either side it all comes back to knowing how to apply your strategies in Technical Analysis and having a Trading Plan on the stocks you choose.
(Stocks turn bearish)
Stocks turn bearish are simply when the technical indicators are showing to us that the trend has reversed. For a period of time the price of that stock will be expected to trend lower and lower until it has been evidently proven on a reversal of trend once again using the technical indicators. In that period of Price Trending Downwards, price does not move down on a straight line but with multiple rebounds and further price retracement which are suitable only for short term trading only.
(Stocks turn bullish)
Stocks turn bullish simply because the technical indicators shows us that the trend has reversed from a downtrend to an uptrend. That being said, prices will tend to move up higher creating higher highs over a period of time. The trend of the stock is said to end when it is evidently proven with a reversal of the trend with technical indicator. Hence a bullish stocks allows both long,mid,and short term investor/trader to reap the most out of the bullish stock.
These are the stocks you may follow/execute when you have a trading plan
JOIN US IN OUR UPCOMING EVENT AND LEARN MORE ON HOW TO AVOID PICKING BEARISH STOCKS IN YOUR PORTFOLIO ON THE 25TH JUNE 2016!
CLICK ON IMAGE TO GET MORE INFORMATION!
(10 Years Position Trader, Founder of http://www.trendfollowingmalaysia.com)