STOCK TRADING TIPS
TURN OVER VOLUME / DOLLAR VOLUME
HAVE A LOOK AT THE TURN OVER VOLUME TO FIND SECURITIES WHICH FIT YOUR CAPITAL SIZE. THE TURN OVER VOLUME / DOLLAR VOLUME IS CALCULATED BY PRICE X VOLUME
CLOSE PORTFOLIO SPIKES
ONCE IN A WHILE YOUR PORTFOLIO LOOKS LIKE MOUNT EVEREST. IN THIS RARE SITUATION, CLOSE ALL POSITIONS, IF YOU ARE A TRADER
MOST LIKLEY, BY EXPERIENCE, THE QUICK GAIN WILL BE CORRECTED BY A QUICK LOSS
RESET THE SETUP AND START FRESH
DO NOT TRADE OR INVEST IN A MARKET WHICH YOU CAN NOT SHORT
NO MATTER BY RULE, RESTRICTION, OR MARKET GIVEN INABILITY
A MARKET CAN BE AN ASSET CLASS, COUNTRY OR WHAT SO EVER
MORE RETURN FOR MORE RISK
MORE RISK FOR MORE RETURN
NOTHING IS WITHOUT RISK
THEREFORE, IF A MARKET, ASSET, SECURITY, IS MORE RISK, WITH LOW RETURN, COMPARED TO OTHERS, WATCH OUT
Contrarian Investing is an investment strategy that is characterized by purchasing and selling in contrast to the prevailing sentiment of the time.
In short, do not follow the herd.
A contrarian believes that certain crowd behavior among investors can lead to exploitable mispricings in securities markets.
For example, widespread pessimism about a stock can drive a price so low that it overstates the company's risks, and understates its prospects for returning to profitability.
Identifying and purchasing such distressed stocks, and selling them after the company recovers, can lead to above-average gains.
Conversely, widespread optimism can result in unjustifiably high valuations that will eventually lead to drops, when those high expectations do not pan out.
Avoiding + short-selling, investments in over-hyped investments reduces the risk of such drops.
These general principles can apply whether the investment in question is an individual stock, an industry sector, or an entire market or any other asset class.
2022 07 03