"We want to get the trend right first"
There is no reason to invest in someting that doesn´t have a trend. One can always make up reasons for investing, like "I am ahead of the heard" or "I am a contrarian investor". That is fine, but don´t overinvest on those premises. There is always the possibility of changes that makes a dream become nothing.
In my trading there is certain indicators but only a few. I don´t think it is neccessary with several screens and lots of indicators and graphs. It looks fancy but you will not need it. You can use Elliot Wave techniques, Fibbonacci levels and a wide selection of indicators but that will not neccessary make you a better Trader.
It is mostly about Time, Price and Distance. And Emotions. Stockprices are always affected by emotions by the investors. If a stock price doesn´t move there is not enough emotions to make it move. My job as a trendfollower is to find the prices that move.
I have certain rules:
- Never overinvest
- Wait for the price trend
- Have a long term approach. The strategy will not work all the time.
- Volatility is not the same as risk. Volatility is opportunity.
- Let the winners ride but watch for exit on large moves.
- Cut your losses as soon as possible.
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