RE: Bt8 Mar 2021 18:46
Daniel (vodafone)
I use average, charts, technicals and am aware of reporting dates, dividends, news feed, alerts and do a fair bit of research post market close, sometimes up to midnight. Exhausting at times. Candlesticks serve me well but not just the company, indices, oils metals sectors. I look for rotation. I maintain a list of most stocks ranges and alerts and experience leads me to trade in companies I feel I know well (or at least the trading ranges). If one of the company alerts fall into my price target then depending on the drop % I may take a chance. I can afford to hold if I get it wrong and often do. eg GSK recently.
A recent example would be LRE. I followed it from the Mar 20 lows and noted recovery and spikes as it often popped up on the biggest risers or fallers. Felt the price was safe a £6 but never got any as it was sitting in the 750p range. I deemed this too rich as an entry point. Recently it dropped below £7 and that came into view. Dropped again. Waited for a further drop and entered a small amount (1k shares) around 660 (too high an entry but only a small %) and increased holding as the price fell towards £6. Took a few weeks longer than I hoped to turn around but I expect a full recovery toward £8 but may reduce over £7.20. Hope to make £3k+ on the position. I keep a core holding and then trade an additional position to improve averages until the shares are effectively free to me.
I find a good day to invest is when all indices are falling heavily and shares are falling 10% 15% 20% on top of previous falls. FTSE 100 250 350 etc. Usually when the BBC and Sky are reporting falls in the news programme and saying sell is an ideal time to start buying.
Nobody wants to catch a falling knife and as you say there may be selling reasons which are not known in general. My view is that prices go up and down within a range unless something changes. I stick to entry and exit points and rarely change my mind. You rarely time the near term low. The odd time I do then that is just luck.
LSEG is another example - big falls since reporting and now on my radar but too expensive for me yet. I am looking at 6800 and below and even then I may sit it out or wait for further falls. I may never buy any.
Of course luck plays a part, but luck won't overcome a losing strategy.
There are people on both sides of each trade. Winners and losers. The only ones who risk little are the brokers.
I have many friends who ask me for advice and would trust me to invest their money. It is something I politely decline as it is different if I lose my own funds. I would not want to be responsible.
I try to be helpful on these boards and wish you luck. Have a good evening.
PM me if you want.
DYOR and GL.
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