What goes up must come down & vice versa
- Stocks move in Uptrend, Downtrend, & Sideways Trend.
- Spotting for an uptrend stock is important for an investor/trader to make profits out of it.
- But how many times have we ended up chasing high on an uptrend stock and ended up catching its reversal all the way down?
- What do we do when we are caught up in this situation? Buy more? Sell to protect profits/capital?
“The trend is always your friend until it starts to bent”
- Long Term Investor gain the most out of this as they have the patience on holding power.
- Mid Term Investor/Trader gain the most out of this as they have the patience on holding power.
- Short Term Trader gain as well on trading on each price retracement all the way up!
- Long Term Investor lose the most as they are literally holding onto a downtrend moving stock.
- Mid Term Investor/Trader lose the most as they are holding onto a donwtrend stock that can potentially last for months.
- Short Term Trader may potentially gain from this as they trade for its rebound movement instead.
When a Downtrend Cycle is spotted
- You have to start to be rational enough to act on your portfolio to sell for profits and to sell for capital protection.
- You will not buy nor average the price down thinking that is the lowest point.
- Until its evidently proven in your Technical Analysis a Trend Reversal (Uptrend Cycle), then you ACT!
10 Years Position Equities Trader
Founder of http://www.trendfollowingmalaysia.com
Chief Equities Market of TFM