Category: Money Tips Date: 2006-07-04
Recent improvements in long-term bullish potential for stocks in its upward course of shock have shown a common feature, which is repeated periodically of its starting points in the region have a stock of short-term bonding and interwoven with the relevant average resonance characteristics, interwoven resonance is generally not a long time, and then on the launching of shock, and then gradually pulled up until the emergence of urgent pull and shot up. There is no doubt that with the average price is the price-cutting resonance region before the start of the best selling points. So, we might follow suit, and a grasp on this at the start point of buying time, this method is called a fool I type to buy shares of France, is a simple, intuitive, quantifiable, operational and effective operation of France.
In actual combat, the use of this method requires two-step operation, the first step is based on the large cycle averages, selected with the goal of long-term potential of stocks, the second step is based on the average small-cycle system to buy time to capture short-term.
With regard to the specific implementation of the process, I try to give a few examples to show.
First, using the big-average long-term potential for stock options can be referenced average system 12,25,37,50,75,100-week average, which principle is to use it a few average number of shares scan and found several items of averages with a certain the stock price and with the formation of a woven sticky resonance phenomenon, can be included as potential target stocks, such as the preferred form of target shares. Second best goal of a particular stock is suspended a few average price slightly above the cutting point, but the difference from the value can not be too large, they could be included in the potential of targeting unit. As the preferred shares because its stock price and long-term average holding cost is very close, which often means the adjustment of stock prices poised to stage the basic end, is about to begin a new round up Quote of the precursor, it could serve as a focus object of concern. Sub-stock selection because of its price and long-term average holding cost of the discrepancy, often short-term can be presented under the relay can be shape, both possible and immediately start a new round of upward price movements may also be short-term moving average will explore the emergence of a back intersection of the action, so the goal is worthy of attention.
Second, the potential of stock options using a small start-point average, be guided by the average system 15,22,30,45,60 day moving average, its principle is to use several of these average shares many of the goals scan and found a few moving averages with a certain stock The shares forming intertwined sticky and with the phenomenon of resonance, you can be involved in the goal can be considered as a unit, this type of targeting unit the first choice. Several moving average divergence, if present cross-shaped or decentralized state, for the second stock selection.
As the preferred shares because its stock price and short-term average holding cost is very close, which often means that stock prices were poised to raise the basic end of the short-term adjustments, is about to start a precursor, it is the focus on the preferred target. Times and short-term stock picking is because the price remains the gap between the average holding cost is often short-term can be presented under the relay can be shape, both possible and immediately start a new round of upward price movements may also be short-term moving average will explore the emergence of a back intersection of the action, so is the second best target.
Third, actual situation equal emphasis on combat strategy. (1) a moderate concentration of a relatively diversified portfolio of stocks. No matter the amount of funding is a big or small, whether it is short-term or long-term operation, should improve the stock portfolio, so you can spread the risk. (2) a moderate concentration of a relatively decentralized funds. As long as meet the technical requirements of the stock, they should overcome their preference tendency to try to split the funds involved in the preparation of a few stocks. (3) volatility in the stock process, in many cases short-term fluctuations in stock price movements are often unexpected, but the medium to long term is easy to see and grasp, so, for it does have the long-term upside potential of stocks, even if the feeling will increase short-term should still be bargain-hunting in batches to test. On the contrary, even if the feeling of short-term through the analysis may occur further back to an exploration of the action, before they can rise to test batches should bargain-hunting, rather than wait for the imagination of the lowest point.
