How NOT to Invest Lets me discuss basic human psychology.
Most investors only want to invest when stocks are BOOMing and reaching an all time high!
Does this sound like you?
While most investors avoid stocks when they first begin or when they reach their lows.
Some Rules of investing:
1) Buy when the stocks dips at appropriate levels & better yet at early stages - do your due diligence
2) Never buy ATH wait for a pull back or another opportunity (There is always another opportunity)
3) Check RSI Levels (Oversold) & MACD (Cross over downtrend) :: (BASIC TA)
4) Only invest in sound companies that you believe in the long-term
5) Buy the hype sell the news (To an extent)
6) When everybody is talking about it - its time to plan your exit
7) Be an early adopter on the technology bell curve not a late adopter or WORSE a LAGGARD.
(Bitcoin @ $1 = Innovator - Bitcoin @ $100 Early Adopter... ect)
Example: Chinese EV stocks
Here is an example of LI Auto the time to buy was when nobody was talking about EV (Electronic Vehicle stocks) if you perhaps could see the future in these companies & foreign country opportunities. That was the time. Most people rushed in at $50 when the stock was HOT. As you can see the RSI was very overbought & MACD cross over. Now you can buy in at a much more FAIR cost @ 30 & on a 3 point trend line. If you believe in a stock this is the proper way to DCA.
There was also a negative news event (big surprise) but I doubt much traction will come of it. Many Americans invest in Chinese stocks.
Happy Trading!
