Malapit na GCQ, I'll wrap this up.
Buy low, sell high! The basic thing to do in stock market. But what people don't know is the importance of a current trend of a specific stock.
Stock Market Trap:
Fear of missing out emotional feeling can be a good ally if the momentum of the price action is continuous and has a confirmed trend.
Fake news can be derived from hyping others, encouraging them to buy for more volume regardless of the intention.
Good news can also cause a reversal price action for the current trend if majority of the market sentiment is against with the news. Reversed psychology can be visible.
Market sentiments according to investopedia, refers to the overall attitude of investors toward a particular security or financial market. It is the feeling or tone of a market, or its crowd psychology, as revealed through the activity and price movement of the securities traded in that market.
Bull trap may happen when someone initiated the buying volume but with the intention of selling off their shares in a short period of time. As I always say, "Don't chase without a solid base."
False breakout can be similar with bull trap.
Fake projected opening/closing price often happens starting 9:00am~9:14am. You can enter your buying or selling price between 9:15am~9:29am but once you have entered your price, it cannot be cancelled until 9:30am. Some wait for the end of the day "EOD" before deciding on the price action. Swing traders may be spotted intraday. The best volume always happen in the opening and closing.
Big players love to shake off weak hands from time to time in order for them to buy in bottom price of a stock again for another future profit taking. Some holders panic when they see a heavy sell off so they follow the trend, not knowingly that the big players who initiated the fear only wants them to go away and buy some other day. Who are the big players? Big institution and foreigns.
Best Strategy:
How to Read Chart?
What to Consider Before Buying?
2 Ways to Enter a Trend:
Actually, after you've identified on how to avoid all potential traps, how to read candlestick patterns, identifying buying and selling signals.. VOLUME and PRICE ACTION will always tell the story. Fortunately, hunch and emotional intelligence can be your life savior. How to Outwit the Stock Market Price Manipulation? Identify the ff.: BULL TRAP = F.O.M.O. / PUMP & DUMP FALLING KNIFE - never make a buying entry which confirms a downtrend reversal HEAVY SELLING - wait for the exhaustion PULLBACK - best to make a bounce play RETRACEMENT / CONSOLIDATION - buy on support & sell on resistance in this level of base area VOLUME + PRICE ACTION predicts the market's behavior Tip: Identify the lower lows, higher highs, lower highs, higher lows to tell if the trend is bullish or bearish in your desired timeframe. "The trend is your friend until it bends." What's the Ultimate Reward in Investing?
Stock Market References:
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AuthorHi! I am Angeli. ArchivesCategories |