Interested in selecting high-quality stocks and growing your wealth through long-term investing? Today, I'll guide you through effective stock selection methods, including the top-bottom and bottom-top approaches. Remember, as Warren Buffett famously said, "The stock market is designed to transfer money from the active to the patient." 💼📈 Let's start with the...
Averaging down is rejected by all big Market Wizards. The problem is that the stock can always go another -90% down. The example of SKLZ shows that after 19 consecutive times the stock decreased -20%, it no where near the average dollar price, if you buy same amount after each 20% decline. In fact, it has to move +300% to get to break-even. How many of your stocks...
A moving average can act as support or resistance. In an uptrend, a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure. In an uptrend , a moving average may act as support; like a floor, the price hits the level and then starts to rise again. (1) In a downtrend , a moving average may act as resistance; like a...
You can make money from an uptrend or a downtrend in trading. Downtrends tend to move faster than uptrends, which is why you will find some traders who opt to only short sell assets in order to capitalize on the quick price action. Many kinds of research show that financial instruments can trend more than 30% of the time. The rest of the time, the active moves...
looks like we have some support at 6000 then again at 4000