Archive for July, 2006
Technical Analysis Trend Down
Many investors are attracted to stocks whose price is falling. These investors are in search of a bargain – a natural human instinct. O’Shaughnessy found that a strategy of investing in stocks whose price had fallen significantly resulted in poor returns compared with other strategies.
Technical Analysis Trend Up
An uptrend occurs when stock prices trace higher highs and higher lows. We can add a rising trendline to a chart by linking the low points. Some trends continue for many months or years, others for days or weeks. We need an objective measure of the point at which a trend begins and ends.
Safe Stocks
In looking for market verification, we’re doing something rather similar to Buffett. One of the rules Buffett sets before he buys a stock is “increasing market value”. This rule requires that for every dollar per share a company has reinvested in itself, the share price should have increased by at least one dollar too.
Most Popular Articles
- Day Trading Tips
- Trading - The Zero Sum Game Not!
- Safe Stocks
- The Trouble With Warren Buffett's Investment Strategy
- Selective Perception in Stock Investing
- Loss of Opportunity is Preferable to Loss of Capital
- Stock Trading System
- Stock Market Timing
- Luck vs Skill in Investing
- Stock Market Technical Analysis
- Stock Trading - Wise Words and Tips
- Selling Stocks - The right time to sell stocks
- Mutual Fund Info - Getting the Best Deal
- Buffettology - Is it worth it?
- Contrarian Investment