RE: wow good job for those bought at 5p on dip14 Sep 2020 12:53
hi CI, its a tricky game as we all know, but imo, timing is absolutely everything. Even if its only a few %, over a number of trades, over a number of years, it makes a big difference But of course, getting the timing right, well that's another ball of wax completely!
However, that's where I have found charting to be most helpful in conjunction with the RSI indicator. As I always bang on nothing is full proof.
So in terms of explaining my thought process. When I topped up at 5.6p (the SP was 5.4p to sell), the RSI was in the 50's so not shouting as a buy at all, but I thought with the update imminent and CC already saying it was going to be better than forecast, I was concerned in missing out, so I bought.
When it fell further into RSI "buy me" territory, (buy at 4.80) I was then focussed even further and as that was a good deal below my last buy at 5.60 (15% ish) I looked to buy more. (The logic being if I thought it was a good buy at 5.6p then obviously that much further below it looked great value with the added indicator saying it was unlikely to go much if any lower) .
The next day the SP started to move up again, giving me confidence the fall, (actually quite steep), was over. hence when I bought I got in fractionally under 5p.
I mention all this, Genuinely not to show off but if any of my process is helpful then great, and if not then obviously just ignore it. gla