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... It might not look like anything to you but institutions can use these levels to buy and sell based on people's greed and fear. ...
So, institutions are trading on the basis of exploiting trends. But against whom are they trading? Surely, the counterparties aren't idiots. They're observing the same trends and have similar analysts and computer programs and so forth. What percentage of volume is institutions trading against each other?
If everyone is expecting a bounce off of the support-level, and trades accordingly, then what's going to happen? We can't all be "smart money", you know.
He said he got wiped out trying to trade awhile back. Is it any wonder if you don’t believe in trading ranges, trends entry points, etc.?, and think it’s all black magic? Many people assign blame where it isn’t due and ignore their own stupidity. I am not shocked to hear he lost a bundle. I would be kinder but this sort of obstinance can’t be ignored. Nobody likes to admit they lost money because they are a gigantic ignoramus.
Excuse me? When did I say I got wiped out?
Thanks to Covid, and a nationwide shutdown...2020 was a complete anomaly, even more crazy than the dot.com meltdown in early 2000's which was actually pretty easy to see that stock prices might be a bit high relative to earnings.
I was down quite a bit in the first half of 2020 and that is all I said. I think at the worst spot I was -20%. I was long when I should have been in cash (March), and then was short with triple inverse tickers in April when I should have been long. Finally when it was apparent that the markets were coming back by July I started putting in some good trades, and I actually got above break even for the entire year.
Whether or not I'm a technical chart reader, or not, had nothing to do with 2020 at all.
Last edited by BeerGeek40; 04-14-2021 at 05:23 AM..
Good call. I will never understand trying to trade without a chart.
So, in the case of my recent single share of AMZN purchase..... I looked at the history of the stock, I saw it was about $400 below its all time high, and was on a downtrend, (aka on sale) and I bought a share, which we still have. Was that using a chart? I guess it was to a degree, but it's not technical analysis like you do.
Thanks to Covid, and a nationwide shutdown...2020 was a complete anomaly, even more crazy than the dot.com meltdown in early 2000's which was actually pretty easy to see that stock prices might be a bit high relative to earnings.
I was down quite a bit in the first half of 2020 and that is all I said. I think at the worst spot I was -20%. I was long when I should have been in cash (March), and then was short with triple inverse tickers in April when I should have been long. Finally when it was apparent that the markets were coming back by July I started putting in some good trades, and I actually got above break even for the entire year.
Whether or not I'm a technical chart reader, or not, had nothing to do with 2020 at all.
Florida said he got wiped out I wasn’t posting about you. Anyway we could debate trading strategies somewhere else and leave this to AMZN.
So, in the case of my recent single share of AMZN purchase..... I looked at the history of the stock, I saw it was about $400 below its all time high, and was on a downtrend, (aka on sale) and I bought a share, which we still have. Was that using a chart? I guess it was to a degree, but it's not technical analysis like you do.
According to sentiment expressed earlier on this thread, that makes you a chartist. Welcome to the club. We're a friendly bunch.
I would follow that up with a question: Do you have an exit price established?
Once COVID is under control people will get back to their old habits which includes going back to brick and mortar for purchases. I hate ordering online, not touching what I am getting is a high risk. What if that’s a 20% reduction in revenue for Amazon, likely more. That’s a bet I would take over paying their stock price. I know that’s my trend. Good luck.
Ummm, you know Amazon was up like 120,000% before COVID, right?
Per Investopedia: "Amazon.com Inc. held its initial public offering (IPO) on the Nasdaq on May 15, 1997, at a price of $18 per share.1 Notably, $10,000 invested on that day and price would be worth more than $12 million as of May 2020."
Florida said he got wiped out I wasn’t posting about you. Anyway we could debate trading strategies somewhere else and leave this to AMZN.
I never said I got wiped out! Are you just making stuff up now? I said I lost money on individual stocks that never got back above my purchase price, for the record I can count these on one hand. The vast majority of my individual equity holdings have done quite nicely over the past decade without trading in and out based on perceived dips.
I never said I got wiped out! Are you just making stuff up now? I said I lost money on individual stocks that never got back above my purchase price, for the record I can count these on one hand. The vast majority of my individual equity holdings have done quite nicely over the past decade without trading in and out based on perceived dips.
It's interesting. He responded to a post with my screen name on it, and made the "wiped out" comment, but now he says it was you he was talking about.... and apparently you didn't get wiped out either!
I never said I got wiped out! Are you just making stuff up now? I said I lost money on individual stocks that never got back above my purchase price, for the record I can count these on one hand. The vast majority of my individual equity holdings have done quite nicely over the past decade without trading in and out based on perceived dips.
I'm with you Florida. I'm a long term value/gaarp investor and I never use charts. I don't need a chart to tell me whether something on my watch list is on sale or not, and I don't much care what a stock did yesterday, last week, or the last 3 months, unless of course it's pulled back significantly, and again, I don't need a chart to tell me that.
I have a watch list of some 30 stocks that I follow very closely. I use a DCF valuation to determine an estimated intrinsic value, mark that number down 20-30%, and buy only at or very close to those levels, and hold long term. Of course, there are other considerations such as dividend yield and growth, insider ownership levels, balance sheet, etc, but those all have to meet my criteria before I even consider adding it to the list.
This method has worked out very, very well for me and that's what I'll continue to do, no charts needed. Now, I'm not saying charts aren't a useful tool, they're just not useful to me because I don't much care about short term movements, as in "should I sell AAPL because it pulled back from $140ish to $120ish. I don't think so lol. I don't invest for 5, 10 or 20% gains, I'm in this for multibaggers, which three of my 6 long positions are (the other three are much more recent investments). As I've said before, you don't hit many home runs if you bunt every time you're at the plate.
There are many schools of investing thought, and all of them have pros and cons. I do what works for me, and others will do what works for them. No message board arguments necessary.
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