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Kindle Notes & Highlights
“When in doubt, get out.”
“Nothing gives one person so much advantage over another as to remain cool and unruffled under all circumstances” ~Thomas Jefferson
Gaps are not always closed – but the market does not like Gaps, and Gaps are historically closed, more often than not.
“The time to buy is when blood is running in the streets” ~Baron Rothschild
before entering the market, you have to ask yourself: 1) What is the market currently doing 2) Where is the market in relation to the moving averages 3) What does the volume tell you 4) What is the risk/reward 5) Are you buying a bottom or are you chasing the market 6) How do you protect your investment capital
Never buy a stock based on some investment firm raising their rating. Never, ever…
Check a 2-year, 6-month, and 3-month chart on the company you are interested in. 2) Check the overall market with the same charts. Make sure the general market is moving in your direction. 3) Apply 50 and 200 DMA to the 2-year and 6-month charts. 4) Apply 20 and 50 DMA to the 3-month chart. 5) Then if you need to, use a 30-day chart to take a closer look at what is currently happening. You can even apply a 10 DMA on this one.
