Archive for Trend Lines
2. Trend Lines, read them or weep! Learn Stock Trading
Posted by: | CommentsIn this section we will examine how to look at price movement and use it to evaluate the stock.
Price is known as the most important indicator and so it should be, when it boils down to it the most important thing is the price.
Here we can see a chart of Broadcom (BRCM), one of the darlings of the tech bubble; I lost plenty of money on this one through inexperience and greed I have overcome both of these personal flaws since 2001.
TeleChart2007 chart courtesy of Worden Brothers, Inc.
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3. Using Trend Lines to make buy and sell decisions
Posted by: | CommentsSo we have seen the Sideways Channel and the W bottom. But how do we know when a stock is going to take off. The truth is we never really know. All we can do is make judgments based on what we see.
Do not forget we are only buying Stocks of companies that have
- Excellent Earnings per Share
- Strong acceleration in the growth of Earning per Share
- Excellent Revenue growth
So we are in essence giving ourselves a great head start and reducing our overall risk.
