Before Indicators
I don't really publish but I do get a lot of messages/questions about how to trade successfully.
The most common question that I get is "what indicator do you use?" or "what is your trading strategy?"
So, I decided to answer these questions in this article.
I believe those questions are actually the wrong questions to ask and therefore, you will get a dis-satisfactory answer 9 times out of 10.
I think the write question would be "how do I know where the money is?"
Once you know where the money is, you can than use the indicators to make an investment decision.
I always tell people:
"Securities (stocks) are within the sector, the sector is within the index and nobody beats the index."
It maybe confusing to you but to explain in brief, the institutional investors invest in a sector rather than one security.
Let's take a look.
CELS
chart for Nasdaq Clean Edge Green Energy
Then compare to ENPH (solar panels)
ENPH
Also, BLDP (fuel cells for electric vehicles - clean energy)
BLDP
What do you see? Any similarities? I have more examples but I would think you would get the idea.
Korean Market examples: please look at the low of 2020.10.27 - though you get minute differences of the chart appearance, I think you get the idea.
0089980
247540
3336370
When you compare these charts, what do you see?
Personally, before I use any candles, moving averages, or any other lines or indicators that people ask me about, I look for accumulation within a sector.
Then I pick the security that I want to trade in....
I hope that helps!
PS. I started trading ENPH and BLDP on April 3rd 2020. Went long...swing trading within the long investment and made a full exit of both investments on the 10th of Feb. 2021.
The most common question that I get is "what indicator do you use?" or "what is your trading strategy?"
So, I decided to answer these questions in this article.
I believe those questions are actually the wrong questions to ask and therefore, you will get a dis-satisfactory answer 9 times out of 10.
I think the write question would be "how do I know where the money is?"
Once you know where the money is, you can than use the indicators to make an investment decision.
I always tell people:
"Securities (stocks) are within the sector, the sector is within the index and nobody beats the index."
It maybe confusing to you but to explain in brief, the institutional investors invest in a sector rather than one security.
Let's take a look.
CELSchart for Nasdaq Clean Edge Green Energy
Then compare to ENPH (solar panels)
ENPHAlso, BLDP (fuel cells for electric vehicles - clean energy)
BLDPWhat do you see? Any similarities? I have more examples but I would think you would get the idea.
Korean Market examples: please look at the low of 2020.10.27 - though you get minute differences of the chart appearance, I think you get the idea.
0089980
2475403336370
When you compare these charts, what do you see?
Personally, before I use any candles, moving averages, or any other lines or indicators that people ask me about, I look for accumulation within a sector.
Then I pick the security that I want to trade in....
I hope that helps!
PS. I started trading ENPH and BLDP on April 3rd 2020. Went long...swing trading within the long investment and made a full exit of both investments on the 10th of Feb. 2021.
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