Just Buy, But Buy Low

Hello everyone. I decided to create this space in order to register my day trade and swing trade operations in the market.

I would also like to talk a little about my trading philosophy.

Well, here we go:

We all know that trying to predict the future in the financial market is extremely difficult. Even so, many bravely try to tame this furious sea. Some succeed with a lot of sacrifice, but most are, unfortunately, swallowed by the owners of the game.

I have been studying the market for almost 10 years and the conclusion I reached was that the best strategy is not to fight the owners of capital. They dictate the rules. I'm just a little fly that tries to catch some leftovers at the banquet of these market giants.

So, what's my strategy?

Well, it's simple. I follow the general (or global) trend of the market.

Look at the chart I published. Note that the "stocks" line is ascending, while the others are more lateralized. Also note that this chart shows the market's behavior over more than 200 years!

See, dear visitor, the Stock Exchange was something designed to make a profit for shareholders. We can say that this is the DNA of the stock market: GENERATING VALUE TO SHAREHOLDERS.

And who are the biggest shareholders in the market? Large investors, financial institutions, hedge funds and even governments!

Now you have realized why it is resistant in the long run.


Based on this premise, we can outline a simple strategy with a long-term profit potential.

First, we must make a filter on the assets that we will operate. Avoid currency pairs, give preference to the stock market. My broker allows you to trade in American and European markets.

After that, select good companies. Give preference to the blue chips of each market. It is historically proven that even governments have a stake in them, not to mention that they are more economically robust and healthy.

My day trade and swing trade system is just BUY. Yes, that's right, just buy. I have a tactic to trigger my purchases. I don't buy at any time or time.

In this created topic, I will try to describe my decision-making process with each operation I do from now on.

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What happened in 2020?


This account was activated in late 2018. I made my first transactions with my strategy. However, still immature, I made some mistakes out of greed.

Even so, I managed to close 2019 with 40% profit. In 2020, I reached 90% growth. However, the fall in markets due to covid 19 made me lose all the profit I had made this year. I got to lose 50% of the 2019 profit, but I managed to revert and I'm already 40% again just following the market recovery.

What did I learn this year?

We must be aware of market cycles.
The year 2020 will be marked by the end of a 10-year bullish cycle in the markets.

That information was exactly what I needed for my improvement. And it is not difficult to keep up with that. Supporters of the Austrian School have already been affirming this hypothesis and, if we observe the behavior of the American market, we can see that there is a cycle of decades marked by crises every 10 years.

CONCLUSION:

This strategy I follow is not perfect and may have its limitations, but it is proven to be profitable in the long run. What we need is to control our greed and not stop studying. ALWAYS STUDY!

Seems interesting, let us know more about your strategy please.

Hello Drsa1970.

Soon I will be making comments on this mode of trade.

I can already say that the basis of everything is buying low. But it takes time. The stock price is expected to fall so that investors find it cheap. Then, the price will rise again in the next trading session.

The graph will show that moment. See you later.

I hope what you have to say is also applicable to forex as well. I for myself and I am sure others are mainly forex traders here. But I am always willing to learn stocks as well. And I will keenly wait for the strategy. I like the we must always study. Thanks and
Regards.

Hello friends. As promised, I am bringing 2 examples applicable to my speculation strategy.

Well, these two examples are with facts that occurred with APPLE in 2019 and can be classified as "profitable situation". We can keep it in our portfolio of profitable situations in case it happens again in the future (and it always will) we can take advantage.

Look at the figure with the date April 30, 2019. On this day, the company had bad news about its iPhone sales in China. Investors divested their positions, causing the price to fall for several days. Note that the price came to break the lower lines of the indicator, forming technical figures.

News link:
https://www.macrumors.com/2019/04/30...-drop-q1-2019/

The yellow arrows point to candlestick figures that in the technical analysis literature suggest a time to buy.

What I want you to realize is that this drop in the price of APLLE caused by bad news from its sales, encouraged other investors to buy in days after the event.

The BIGGER THE FALL, the better for the investor, therefore BETTER FOR THE SPECULATOR.

A very important thing is PATIENCE. We know that the price will return to the high level because our asset (APPLE) has solid economic fundamentals.

So, after all this reasoning, what basically should be done in this model situation is to buy in one of the signs of the technical analysis indicated in the yellow arrows. This is an example of a trigger.

The image dated July 30, 2019, follows the same reasoning.
Linka of the news:
https://www.nytimes.com/2019/07/30/t...gs-iphone.html

Now, I will try to summarize the decision-making process in an understandable way:

1. First, we know that APPLE is one of the largest companies listed on the US stock exchange. As a company of great financial strength and high market value, we have it as a long-lived asset, so its upward trend tends to remain robust in the long run.

2. We know that every company, no matter the size, will have good and bad moments in its trajectory. Our tactic is to wait for these bad times and take advantage of them.

3. Hopefully this moment will happen and we will have to wait for the investors' panic. These will undo their positions causing the price to drop to interesting levels.

4. We will use technical analysis to see good entry points.

5. Ready. Now, we must wait patiently for prices to recover. This can be time consuming or not. It depends a lot on the perception of investors.

I have my own trading style and I don't really like the idea of robotizing my decisions because I believe the market is constantly changing. So, I prefer to take the risks and not use the stop loss feature. I am just careful to place a lot appropriate to the size of my account as I have no way of knowing where the market fund will be. The only certainty I have is that, in the long run, prices will be higher.

That's it friends, any questions, criticisms or suggestions are welcome.

Hmm... nice information btw.

Good afternoon people.

As I commented at the beginning of the topic, I believe that 2020 will be marked by big falls in the stock exchanges. Coincidence or not, we will still have an American election that promises to be very agitated, which will reflect on stock prices.

I made the serious mistake at the beginning of the year of relying too much on consecutive price hikes even though I knew there would be a sharp drop.

Even so, we can turn this shareholders' nightmare into a gold mine with our strategy, if we know how to control our greed and act patiently.

You can try to adapt for Forex.

Regards.

Hello friends, soon I will describe my purchase operation that took more than 30 days to close.

In early September, the US technology companies' stock market went through an earthquake. Companies Apple, Tesla, Microsoft and other giants have seen their shares drop causing a fear of a bubble burst at Nasdaq.
Link: https://www.nasdaq.com/articles/is-t...ain-2020-09-10

I was watching the chart waiting for an opportunity to buy long betting on the recovery of the stock price for the same reason that saved the market six months ago: Government money.

The trade could have been better. I could have done 5% retability in this opportunity, but I ended up rushing in and entering too soon. Trying to find the bottom of the market is a challenge that requires patience.

Below, I show in the image my entry (# 1) in the MSFT that was hasty, although it made some profit.


The other two entries (# 2 and # 3) would be the entries to be made, in case I hadn't bought so soon.

The stock market has this advantage. The government uses the stock exchange as marketing to get elected and can do anything to keep stock prices from falling too much. Logically This is not a perfect system, but it has its advantage when making trades.