Think of it as a auction, you make your offer, if you get it. You now begin to look for a bigger fool to sell it to. The only value a stock has is the last price paid for it. It is a good stock to you only if it moving in the direction of your trade. The faster and the further it moves away from your buy, the better a stock it is.
Try going into a mode where you don't care what the company does or what people with hidden agenda say about it. I don't know what 3/4 of the stocks I trade do. But, thru TA, I know where price is from measurements that have been accurate in the past in predicting movement and direction. TA is not voodoo, it is objective. The smoke and mirrors all come from the funnymentals/news/advocates side. If you can't tell me why a stock should move from a chart, it is a waste of time for me. Outside the house staff (brokers, MMs, analysts) there are very few who are trying to take your money, they are just trying to make money with their plan. The "New york" professionals usually do it with other people's money and don't do a good job at that. Yet you see them being interviewed in a wizard book and being a talking head on TV.
All stocks' mood is controlled by the crowd at the auction, a stock goes up when there are more buyers than sellers and down when there are more sellers than buyers. Each can decided for a million reasons, what he will be at any minute. There is no "reason", only price movement. Measure that movement.
I have rambled on enough. |
