How to decide when to buy or sell
Truth be told there is no 100% guarantee that your decision to buy or sell will pay off. There only exists probabilities.
As you read on, these are just general opinions so if you are looking for financial advice, please do your own due diligence or seek help from your professional financial adviser instead.
1) Charts
They do divulge important information such as stock price trends and what is the current stock price in comparison to the historical stock price behaviour. Of course, there are illustrations out there "predicting" future stock price movement based on certain patterns. Sounds baffling? Let's look at a case example then
As you read on, these are just general opinions so if you are looking for financial advice, please do your own due diligence or seek help from your professional financial adviser instead.
1) Charts
They do divulge important information such as stock price trends and what is the current stock price in comparison to the historical stock price behaviour. Of course, there are illustrations out there "predicting" future stock price movement based on certain patterns. Sounds baffling? Let's look at a case example then
Based on the $Chipotle Mexican Grill(CMG.US$ chart above, one can spot the cup-and-handle setup, with the bottom of the cup above the "Jun" label and the handle is above the spot between "Jul" and "Aug". The cup-and-handle is a bullish setup justified with the stock's price movement after the handle phase where it rocketed to around $1900 range. To answer to the topic, I would place a long position once there is confirmation to this setup as the setup is clear and there is a larger probability for this to payoff.
2) Business Fundamentals
This is what I learn from school. Basically, the actual worth of the business that you are paying to invest for. As what Mark Cuban mentioned on his social media before, quote: "when I buy a stock, I make sure I know why I'm buying it. Then I HODL until I learn that something has changed, .. If something changed that I didn't expect, then I look at selling" This is his reply to how he determine whether to hold or sell a stock. It may sound like any other "gurus" who would tell you to do your homework for the umpteen times but is that really the case? I guess one would be able to interpret what he really meant with some real trading experience. Being clear about the intrinsic value is key here, despite the blips created by the external factors, one can decide better to buy, hold or sell their investments with such insights.
I hope my 2-cents above would aid in your course to seek the truth behind the trades. Follow me for more honest content and don't forget to like this post. @Investing with moomoo Pick me for the stocks please!![]()
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2) Business Fundamentals
This is what I learn from school. Basically, the actual worth of the business that you are paying to invest for. As what Mark Cuban mentioned on his social media before, quote: "when I buy a stock, I make sure I know why I'm buying it. Then I HODL until I learn that something has changed, .. If something changed that I didn't expect, then I look at selling" This is his reply to how he determine whether to hold or sell a stock. It may sound like any other "gurus" who would tell you to do your homework for the umpteen times but is that really the case? I guess one would be able to interpret what he really meant with some real trading experience. Being clear about the intrinsic value is key here, despite the blips created by the external factors, one can decide better to buy, hold or sell their investments with such insights.
I hope my 2-cents above would aid in your course to seek the truth behind the trades. Follow me for more honest content and don't forget to like this post. @Investing with moomoo Pick me for the stocks please!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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