Day 3: Find the right price to enter
$Reddit(RDDT.US$ There are 3 ways to determine the right price to enter:
1. TA Indicators
The most obvious way is to use Technical analysis which Moomoo has several TA indicators to use. Only KDJ indicator showed that the stock is oversold. KDJ uses a specific period (usually 9 days, 9 weeks, etc.), the highest price, the lowest price, and the closing price of the last calculation period and the proportional relationship between these three are used to calculate the last calculation period's RSV(Row Stochastic Value), then calculate the K value, D value and J value to study the stock trend. Although the J line is less than 10 indicating a short term bottom, the D and K lines are not clear. It is suggested to monitor the indicator for a much longer period to be useful. Other indicators have a neutral rating. We should also look at the volume (VOL) which is relatively not high compared to Meta.
1. TA Indicators
The most obvious way is to use Technical analysis which Moomoo has several TA indicators to use. Only KDJ indicator showed that the stock is oversold. KDJ uses a specific period (usually 9 days, 9 weeks, etc.), the highest price, the lowest price, and the closing price of the last calculation period and the proportional relationship between these three are used to calculate the last calculation period's RSV(Row Stochastic Value), then calculate the K value, D value and J value to study the stock trend. Although the J line is less than 10 indicating a short term bottom, the D and K lines are not clear. It is suggested to monitor the indicator for a much longer period to be useful. Other indicators have a neutral rating. We should also look at the volume (VOL) which is relatively not high compared to Meta.
2. Market Position Overview
I can also use the Market Position Overview which indicates that the resistance and support prices are 56.10 and 45.8 respectively. The support price may be a good price to enter.
I can also use the Market Position Overview which indicates that the resistance and support prices are 56.10 and 45.8 respectively. The support price may be a good price to enter.
3. DCA (Dollar Cost Averaging)
Moomoo has a feature called Stock RSP in which you can set aside a sum of money to invest on a stock on a regular basis e.g. daily, weekly, monthly. The objective is similar to DCA. If you have confident in the company for a long term, this buying strategy will eliminate emotional trading - panic sell (fear) and fomo buy (greed). If Stock RSP is not available, just buy manually the frequency will depend on how long you wish to hold the stock.
Bottom line
I would recommend using papertrade to test the above. Stock RSP is not available in papertrade, so you have to buy manually. It is also suggested to set a stop loss (say about 10%) and duration (e.g. for 3 months) the figures depend on individual risk appetite. The next article will be on higher risk investors - options.
Disclaimer: The above is not financial advice and for the purpose of education. Please do due diligence (DYODD) if you wish to enter a trade.
Moomoo has a feature called Stock RSP in which you can set aside a sum of money to invest on a stock on a regular basis e.g. daily, weekly, monthly. The objective is similar to DCA. If you have confident in the company for a long term, this buying strategy will eliminate emotional trading - panic sell (fear) and fomo buy (greed). If Stock RSP is not available, just buy manually the frequency will depend on how long you wish to hold the stock.
Bottom line
I would recommend using papertrade to test the above. Stock RSP is not available in papertrade, so you have to buy manually. It is also suggested to set a stop loss (say about 10%) and duration (e.g. for 3 months) the figures depend on individual risk appetite. The next article will be on higher risk investors - options.
Disclaimer: The above is not financial advice and for the purpose of education. Please do due diligence (DYODD) if you wish to enter a trade.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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Pinkki_doll : TA does not work for IPO, TA needs historical data to support it.
ZnWCOP Pinkki_doll: That was mentioned in the article. In fact many tools are not suitable to forecast price trends for new stock.