If you lot were given a meg pesos today to merchandise i stock together with were to guide betwixt these ii stocks together with amongst solely their charts equally available data, which i would you lot pick?
Stock A
Stock B
Remember your answers because today, we'll verbalize almost the ii kinds of traders represented yesteryear Bob (A) together with Carl (B).
Let's start!
Bob is where bulk of traders belong to. He focuses on stock prices together with declines, together with run across these events equally buying opportunities. H5N1 burn downwards sale that would laissez passer on him profits inward the long term.
But what just is long term for Bob?
No i knows just how long it is. It could hold out a year, five years, 10, Indefinite? who knows? For the reply to this inquiry is real subjective. But the most mutual reply Bob has is this:
Time isn't much of an issue. Price is. Or to a greater extent than accurately, feelings are. Basta experience ni Bob magsell, hence he sells. And for this example, he sees the highest cost equally the reward. "Pag bumili ako ngayon at BUMALIK to sa 16, makakabili na ako ng (insert bucket listing detail here)"
Most of the time, this is where speculation together with fundamentals start to creep inward together with play a major business office inward Bob's mind. Because these ii things laissez passer on him the justification for his conclusion together with the promise he needs for his long term dreams.
A twelvemonth together with several months exceed together with nosotros banking concern check on how Bob is doing...
. . .
"Okay lang kahit hindi na hitting yung TP ko. Long term naman ako dito at magandang companya naman tong ininvesan ko, (Insert hereafter fellowship plans here.) Babalik din to sa 16! Buy together with forget! #ProudInvestorHere"
These are the most mutual lines you'll remove heed when traders of this type goal upward amongst a stale or a losing seat together with create non desire to motion on. Add to that their collection of quotes together with wallpapers from Lolo Warren to laissez passer on them encouragement together with forcefulness for the coming years.
"I am a patient trader. I volition concur until thy TP come."
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Let's larn to the sec type of trader, Carl. Now, different Bob, he puts a premium into trends rather than prices together with feelings. For him, at that spot is no such matter equally an expensive or a inexpensive stock. Only trending or non-trending stocks.
Carl understands that fifty-fifty if prices receive got appreciated significantly but still follows the trend, there is nevertheless enough of room to brand money. He doesn't attention almost buying the stock at a cheaper cost similar Bob hence he could experience proficient together with feed his ego, he cares almost feeding his portfolio together with managing his fourth dimension well.
When it comes to trading, agreement trends is equally of import equally breathing inward existent life. We all know at that spot are 3 types of trends right?
Uptrend. Downtrend. Sideways.
Trends don't modify overnight. OK sometimes it does, but that rarely happens. And Carl understands this telephone commutation regulation : That if a stock came from a long downtrend, it outset has to opposite yesteryear consolidating into a sideways trend, hence tardily transition into an uptrend. Obviously, this takes fourth dimension - days, weeks, months, years? Who knows?
So instead of buying into sideways or downtrends together with waiting for these lengthy transitions to finish, Carl instead focuses on buying a stock that has an established uptrend. He knows that if he does this, he volition salve a lot to a greater extent than time. And equally the pop maxim goes: The Trend is Your Friend.
And inward merely a few months, here's what happened...
91% inward 115 days.
So what are you lot maxim Zee?
I'm maxim perspective is everything. If you lot desire to brand coin the faster means inward our market, purchase stocks that are already trending upward together with making novel 52-week highs rather than waste materials your precious fourth dimension buying downtrends together with waiting out the transition period.
Not maxim you lot won't brand coin amongst Bob's method. But merely saying... a moving educate is faster than i that's merely starting its engines for the day.
Exhibit 1
ATH Stock. Holding Period : half dozen Trading days.
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