Invest in yourself before invest your moneyIs buy & hold a strategy for penny stocks?
Some says yes, some says no. The answer really depends how skillful the investors are.
In this penny stock example, buy and hold is definitely a poor choice.
A 30% gain in 171 days VS a 255% gain in 80 days.
I pointed out many alert positions. Please move your cursor to the blue spots.
These alerts tell you to think about STOP LOSS to protect your PROFIT.
You may have to develop some technical analysis skills like below:
Left chart
Understand candlesticks pattern
Spot moving averages crossovers
Spot MACD crossover
Apply Fibonacci Retracement
Draw one or more trend line(s)
Right chart
Understand candlesticks pattern
Check S/R levels
Spot Tenkan-sen & Kijun-sen crossovers
Check Chikou-span position
Check price is under cloud
The next step is to develop your mindset:
According to a Stanford Research Institute report, 87.5% of our success in life comes from our attitude, with only 12.5% coming from skill.
If there were only 50 technical analysis methods in the world, then you learnt only 10 of them. You got only 2.5%, a tiny portion of your success. You attitude then will be a massive action that move you forward.
Do you know the power of beliefs? There are many people giving up trading because they cannot handle their negative emotions. I knew you're thinking fear & greed, but you may probably forget some emotions holding you back such as distress, disappointment and discouragement. The more bad news your heard from TV, magazines, and forums, your mind is filled with a lot of negative comments. Why not you go to hang around with positive thinking traders, fully technical analysts in some trading seminars face to face. They will encourage you and sometimes empower you, much better than sharing with your own friends. You must find the way to improve yourself. You must dump the past trading experience in order to absorb professional advice.
Do you have the best place to do your chart analysis? I was telling some of my students “Can you not doing your analysis on a dining table; not analyzing & watching TV at the same time; not Facebook messenging while you are doing day-trades?” You need a FOCUS on what you are trading. Some says trading bitcoins can generate a lot of money, then you jump from your boat into their boat with no understandings their structure and foundation. If you lose, then it is your responsible, not others.
At last I encourage all of the beginners that we are all riding the waves in the many markets (Forex, shares, crypto, indices, futures, options, etc). Therefore, you are not alone. Do not underestimate the negative emotions sometimes engulf someone's lives. As you are not alone, you are in this tradingview family !!
When you make money, share it. Share how you make it win (not by gambling)
When you lose money, share it, too. Share how to make it lose (no excuses).
Be a responsible generous trader you are, find your peak performance, equip your skills to unleash your momentum to success.
The PAST does not equal the FUTURE unless you live there.
Thank you for reading.
All the best
