How to catch a stock trend and ride it up
- Its all about putting the odds in your favor by minimizing your stop
losses to the maximum extent possible.
- Retry to enter.
- Pay attention to the fundamentals of a stock. Has the company growth
potential? More importantly: Has the stock potential for a price
addvance?
- The entry signal. Astonishingly many methods do work. Probably more
important than the setup itself is to choose one that fits you. You must
feel comfortable to execute it.
How to not catch a trend
- Try to make 100% infallible predictions
- Hope that the market will turn around or even average down after your
position moved against you.
- Analyze the stock, the market or the trend with technical analysis
nitpickingly.
- Be discouraged by high multiples for earnings per share and price to
sales ratios. But beware - this holds only true if you think there is
still price potential.
The opposite of catching a trend
- Act on tips, investment letters or brokerage info
- Try to buy cheap or to buy value