Archives of “volatile stock” tag

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Nuggets

  
  Education
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Price — The Truth, The Light, The Way

  • Work to understand price
  • Price does not move in a straight line
  • Big moves take time
  • Volatility is your friend and helps to compress time
  • Although volatility is your pal, it can cut both ways
  • If a stock moves 30% a day, then you can’t trade with a 5% stop
  • Don’t expect a volatile stock to stop behaving as it has been and only move in your favor just because you’re now in it.

 

Random Thoughts:

  • Observe but be slow to shift gears — we are trend followers, not predictors
  • It’s the market’s “job” to shake you out
    • The market will do what it has to do to create the most pain (for the most people)
    • The market will often do the obvious in the most un-obvious manner
  • Err on the side of the longer-term trend
    • DO wait for entries
    • DO use protective stops
    • DO trail and scale as offered

Nuggets

  
  Education
#  #  #  #  #  #  #  #  #  #

Price — The Truth, The Light, The Way

  • Work to understand price
  • Price does not move in a straight line
  • Big moves take time
  • Volatility is your friend and helps to compress time
  • Although volatility is your pal, it can cut both ways
  • If a stock moves 30% a day, then you can’t trade with a 5% stop
  • Don’t expect a volatile stock to stop behaving as it has been and only move in your favor just because you’re now in it. Unless you’re Bill Clinton, what is, IS.

Random Thoughts:

  • Observe but be slow to shift gears — we are trend followers, not predictors
  • It’s the market’s “job” to shake you out
    • The market will do what it has to do to create the most pain (for the most people)
    • The market will often do the obvious in the most un-obvious manner
  • Err on the side of the longer-term trend
    • DO wait for entries
    • DO use protective stops
    • DO trail and scale as offered

Nuggets

  
  Education
#  #  #  #  #  #  #  #  #  #

Price — The Truth, The Light, The Way

  • Work to understand price
  • Price does not move in a straight line
  • Big moves take time
  • Volatility is your friend and helps to compress time
  • Although volatility is your pal, it can cut both ways
  • If a stock moves 30% a day, then you can’t trade with a 5% stop
  • Don’t expect a volatile stock to stop behaving as it has been and only move in your favor just because you’re now in it. Unless you’re Bill Clinton, what is, IS.

Random Thoughts:

  • Observe but be slow to shift gears — we are trend followers, not predictors
  • It’s the market’s “job” to shake you out
    • The market will do what it has to do to create the most pain (for the most people)
    • The market will often do the obvious in the most un-obvious manner
  • Err on the side of the longer-term trend
    • DO wait for entries
    • DO use protective stops
    • DO trail and scale as offered

Trading Nuggets

  
  Education
#  #  #  #  #  #  #  #  #

Price — The Truth, The Light, The Way

  • Work to understand price
  • Price does not move in a straight line
  • Big moves take time
  • Volatility is your friend and helps to compress time
  • Although volatility is your pal, it can cut both ways
  • If a stock moves 30% a day, then you can’t trade with a 5% stop
  • Don’t expect a volatile stock to stop behaving as it has been and only move in your favor just because you’re now in it. Unless you’re Bill Clinton, what is, IS.

Random Thoughts:

  • Observe but be slow to shift gears — we are trend followers, not predictors
  • It’s the market’s “job” to shake you outErr on the side of the longer-term trend
    • The market will do what it has to do to create the most pain (for the most people)
    • The market will often do the obvious in the most un-obvious manner
  • DO wait for entries
  • DO use protective stops
  • DO trail and scale as offered

The Inanity Of Asking Questions On Blue Channels

  
Analysis, Education
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Last week I was watching a investor query an analyst on a television show , the analyst in his most humble opinion on a particular stock said “Fundamentally it is good , technically it is not looking so good ” . What should I do asked the investor ? , the analyst replied ” I think you should hold on ” . the investor prompted “can I buy more , should I sell some ” . up came the analyst in his humble opinion ” buy on a fall , and sell on a rise ” and in wisdom he added “it is a volatile stock anything can happen “.. I failed to understand what the investor achieved of this conversation . the conversation had incorporated everything viz. . buy ,sell , hold and the standard disclaimer , “anything can happen ” . Investors are bombarded with packets of irreconcilable data which cause their little hard drives to collapse under pressure and confusion . Partly to blame for this are investors themselves , who ,in the quest for more information buy themselves a box of contradictions . !
What an investor needs is a modicum of authenticated information and to be phlegmatic .. however most investors these days are contrarian’s and hence , they follow up with every pink paper , and investment magazine , add to it the daily dose of ‘analysis’ on television … Those Score’s of analyst reciting their pedantic verses and the numerous phone calls by altruists souls that ring in to tell you ‘what’s hot on the street’ .! What do we have at the end of all this ? Ans.: An agglomeration of profligate et irreconcilable information and a confused individual — who can barely find his way in the heap of ‘ information ‘.
Serpents In the financial Eden :
All the information an investor has access to is at most sciolism , what lies beneath is above the reach of the common man on dalal street .Distortion and dilution are the two most plaintive facets of information today . Mostly intentional , distortion and dilution is carried out by interested quarters and the fodder is fed to the people , the public domain as we are all aware has the ability to Xerox information at the speed of light , and before you know it a distorted Piece of information has taken the shape of a ‘hot news’ on the street. (more…)
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