Random Bits and Bobs Flashcards
Chicken Genius Investment rules
Perfect Finances may still go down Good 1. Good product/service AND Good media Coverage -never bet against these no matter how bad finances are 2. Proof of Concept -used by a few 1000 already eg Tesla had 1000 cars 3. Ability to Scale - This is much harder -1000s employers/ supply chain etc.
Warren Buffet Reddit ost
Pick the 7 you agree with
1 incest iw hat you know and othing more
2 never comromise on business quality
3 when you buy a stock, plan to hold it forever
- diversification can be dangerous
- most news is noise not news
- the best moves are usually boring (buy/hold)
- only listen to those you trust
Keep emotions out of market and have an exit strategy
Three swing trade Strategies
#Winners; Trade if have volity earnings, monekeys like them and high target prices
- . . . .history of volatility
- Monkeys = analysts who write emotionally
- Earnings . . . .. wary of holding over these . . .is if that company responds significantly to them
- Monkey support line. . . … avg analyst target price . . . .. look at articles till you find an analyst consensus . . .. google 12m price target . . . usually extensively generous . . . want it to be above resistance level
Support resistance swing
- often jum between support and resistance
- do to 75% of resistance so lock in profit as does not always get up there
- perfect patter does not exist . . .. . go for good enough and practive risk management
Trading pushbacks from uptrend?
Shorterm corrections that don’t have lasting impact on trend
AMD has lots of pushbacks but still general uptrend . . . . within channel?
Comeback Kings and Queens
Top Stock Pattern easy to understand and do
- Overbought and oversold in the same time period
- Comeback Kings = recent hx oversold/bought . . . must have three of each over recent ime period
- Comeback queens = repearted below fair value and then go to overbought
- Get out before the kings/queens slaughter you
- Note how long these gaps usually are so
- Obvs want big gap
- Scanner: two parametres . . . . .. stops crossing above 70 and below 30 over a certain period
3 most common patterns
3 must know patterns
Pair patterns with other signals
- Uptrending channel
- Two trendlines going up
- Buy at bottom and sell at top
- Run only confirmed when it goes back over the SMA . . . that’s when you buy
- Exit at the top trend line or a validation point
- Wedging before a breakout
- Volatlity > squeezing of volatility > tightening > breakout
- Confirmation over SMA long and short
- Widening wedge – the opposite
- Means a bigger upper potential
- Again confirmation over the SMA lines
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Trading Checklist
Trading Checklist
- Each helps you win or avoid losing
- Look at support and resistance levels . . . whats it closer to
- Could be another type of confirmation – set an alert
- Want at least fair value
- The further above, the stronger the upper direction
- Can mean number of things but could be recent clean break above SMA
- Certain events eg FDA approval or news story
- Look at Day chart to see what overall trends are?
- Want 6/8 to enter?
