secrets-for-profiting-in-bull-and-bear-markets.md
The book covered ideas / algorithms for how to buy and sell stocks based on just technical analysis for both traders and investors. Covered specific strategies of when to buy and sell, as promised. Unable to judge how good the ideas are because I haven't read similar books before. I'll revisit the book later.
Chapter 1:
- Buy low, sell high doesn't really tell you how to act. Buy high and sell higher is better.
- There is no bad luck in the market. It's just bad investment choices.
- You just need 1 hour per week to implement these ideas. Presents only the most important ideas.
- Find a good method and stick to it. Don't continuiously juggle with indicators. Don't ignore a method because you think things will be different this time.
- All the relevant information / news about the company is already incorporated in the price of it's stock. Once you hear the news on the paper, it's already too late to act on it.
- Buy on the bad news and sell on the good news. That's a better strategy. Don't follow the media. It's not luck.
- Your philosophy for success:
- Never buy / sell without checking the chart
- Never buy when good news comes out, especially if there is a significant advance prior to the release.
- Never buy a stock because it appears cheap after getting smashed.
- Never buy a stock in a downtrend on the stock
- Never hold a stock that is in a downtrend (no matter how low the price earnings ratio)
- Always be consistent.
- Stock moving below the 30 week MA should never be purchased. Stock above the 30 week MA should never be considered for short selling.
- trader: 2-4 months, investor: 1-year
Chapter 2:
- More information on when to buy and sell. Should review this again.
Chapter 3: ideal time to buy
- We need to decide "what" and "when" to buy.
- Let's figure out the ideal entry point. 80% at the initial breakout and 20% at the second.