12/31/2023 0 Comments Tradestops magic calculatorWe think that you’ll find the results very interesting. So, this week we looked into when it is too late to buy a stock that has already changed from red to green. It’s deeply ingrained in us to try to buy things that have gone down in price … to get a “deal.” Buying a stock that has already gone up a lot has been one of the hardest truths for me to accept as an investor. The team has continued our research in this area because we find it so compelling. A stock changes from red to green in the SSI system only after it has already gone up a healthy amount and has started a solid uptrend. It’s a great point.Īs you know, momentum is a key component of our Stock State Indicator ( SSI) system. We had the chance to discuss this important concept in person last week with Alexander Green, the chief investment strategist of the Oxford Club during a webinar that we hosted together for Oxford Club members.Īlexander made the point that when it comes to investing … higher prices are often predictive of even higher prices to come because higher prices mean that the stock market is actually anticipating more value creation from the company. Last week, we looked at a question that every investor wants to know… How Much Can I Gain?.Īll of these articles have leaned heavily on the idea of momentum – the fact that stocks that are rising in price often keep rising … and stocks that are falling in price often keep falling. Two weeks ago, we focused on the importance of sticking with winners. Three weeks ago, we showed everyone the virtue of buying on strength. We’ve been talking the last few weeks about the power of “going green” … i.e., buying a stock after it has already gone up quite a bit already.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |