| | | Your biggest gains always come from stocks that have a lasting trend. Think like what I had with HSAI or many have had with NVDA (I never owned it). Many of stocks that I own/owned went up 2x - 5x within 6 months. take a look at LGND. It is one of my holdings has doubled in 6 months.
However, at one point they were all at the bottom. I have nothing against buying a bounce off of the green rail. That is how these happen, so long as you sell once they close below the green rail.
My method can be summed up as trend following 90% of the times, and countertrend the remaining 10%.
I look at stocks like NTLA, FMC, LRN, etc. and I think, not too long ago they were a lot higher. Why can't they get back on their horse and climb back up? The answer is, of course they can, if/when they address the conditions that knocked them off. So I watch them and wait to see if those conditions develop.
Here's LGND for your viewing pleasure.
Scroll down very slowly.
Cover the right side of the chart and look only at the left of the markers. Without the benefit of the hindsight, would have bought it where the first marker is? Would you have doubled down where the 2nd marker is? Or would you have taken a quick profit?
Now look again.
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