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Posts tagged RSI
How To Buy Stocks and Not Losing Money
Jan 29th
Do you want to earn money by stock trading? There are several things to think about before jumping into the stock market. If you do it right , the stock trading is rewarding investment, but if you buy stocks without preparation, you will lose the money. Take my three simple advises to buy stocks.
Start investment with small amount of money or the amount you feel comfortable with. When the market is doing well, people think that they would make lots of money right away. So they tend to put large amount of money, even borrowing money by using the margin account. And they end up paying off the dept. Believe me , the feeling would be devastating when your stock drops 50% or more. Always start with small amount of money that you are comfortable with.
Go with large value company stocks. Once I bought penny stocks thinking that the penny stocks would skyrocket. But the result was terrible. The price fluctuation is too severe for regular people to handle. One of the penny stocks was going out of business completely. I mean they are penny stocks company, so they are very dangerous for the long term investment. So my suggestion is to buy a good valued company such as Google, Apple, and IBM when they are cheap during the BEAR period. And it is for sure that they would not likely to go bankruptcy.
Monitor the major stock indexes. The market is always about the fight between the bear and bulls. Year 2012 is time for the bulls. So it’s a great time to start. But when do you jump in? You will need to find the best point when the market price is low. You can easily find the long term chart graphs for the indexes with additional technical indicators such as RSI7 or MACD. When you have low RSI or MACD for longer period time, I say that would be a good time to buy some value stocks. When the technical indicators remain on the upper side over 70, you should just wait until the market excitement settles down.
Thank you. That was the major three ideas for staring stock trading. To buy stock , you would need to do some study to make money, but it is surely worth the time. Please check out my site for more articles on stock trading tips.
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NYSE summation index – Bear Turning Point to Bull for Sept 2010
Sep 1st
Today was great day with Dow Jones jumped 254.75, or 2.54%, to 10,269.47. Many market advisors are saying that many investors were waiting for this moment.
Also according to the NYSE summation index (you can check out here ) , the falling has been stopped and turned into the positive area. As you can see in the past data, this positive trend may not continue, but if it dose for few days, I think we will see bull trend throughout September.
Also look at the RSI14 value, it is touching near 30 and there is lot of room to go upward.
Today’s jump changed market sentiment, and I would recommend to buy ETF if you don’t have specific stock in mind yet, but want to ride the upward trend.
- Direxion Daily Large Cp Bull 3X shs (ETF) BGU ($44.57 9/1/2010 / $75.50 3.09 +4.27% Now / +69.40% Change)
- Direxion Daily Small Cp Bull 3X Shs(ETF) TNA ($37.49 9/1/2010 / $63.13 4.00 +6.77% Now / +68.39% Change)
- Direxion Daily Mid Cap Bull 3X Shs(ETF) MWJ ($29.26 9/1/2010 / $41.02 1.90 +4.86% Now / +40.19% Change)
- Direxion Daily Finan. Bull 3X Shs(ETF) FAS ($19.86 9/1/2010 / $90.80 6.21 +7.34% Now / +357.20% Change)
But these are volatile and sensitive to the market price , so you should be highly alert and careful. If you wan to be more careful, you can simply buy below ETF and directly play Dow Jones or S&P 500 indices.
- SPDR Dow Jones Industrial Average ETF DIA ($102.80 9/1/2010 / $128.37 1.53 +1.21% Now / +24.87% Change)
- SPDR S&P 500 ETF SPY ($108.46 9/1/2010 / $134.54 1.86 +1.40% Now / +24.05% Change)
Happy stock trading!
Hello, my name is Chris. I have started stock trading about 3 years ago. I am not an active or day trader but I learned many valuable lessons. I will try to explain what I learned during the times. So please visit again and leave comments! Thank you.
