Learning to Accept Stock Market Loss
If a person has the right conception of the mistake he has done and has analyzed the motives of failure in the stock market, he will be able to better understand the road to success. One should never buy on the same day they sell out a mature position, since the person will probably buy expensive by doing a switch off or changing one of the stocks for others. Out of the three existing phases, which are selection, execution and administration, the proposed system covers them integrally. Inertia is statistically determined and the go ahead for buying is given. In the measure in which the price evolves and gets near to the top band of the mobile average price, and the position inside its channel, it can be determined if it is time to get out. The best recipe to get out is after the signal of selling of the method has been reached, to sell fifty percent. Through observation of the positive directional and position inside the channel the evolution can be seen to confirm if the other fifty percent should be sold or is left until the cycle definitely expires when the rupture of the support line of the ascending channel is brought about. When a high tendency is detected and confirmed, the recommended way is to make the buying investment in a pyramid way. Given that the price will go marking peaks and adjustments, it is suggested that the descents of adjustment reinforces the buy with a pyramidal sequence of the following kind: 50%, 30%, and 20%. The proposed procedure almost always realizes the trap of the bull and the trap of the bull, even though it sometimes produces false signals, which are due to noise from the system and should be diluted with the analysis of the other indicators.
