Good Time to buy the dip? Zoom out!
A lot of people ("average joe" not experienced traders) are talking about buying stocks now because they had such a big dip. Also mass media in my language area (German) are full of buying recommendations now.
Yes, it looks like a big dip on the daily chart, but if you zoom out to the monthly it looks like we are just at the beginning of the crisis. Technical Indicators are far from the bottom and we just hit the monthly 50 MA.
Compare it to the crashes in 2000 and 2008, for me this does not look like the bottom, it rather looks like a small correction until now.
Millions of people lost their jobs or had to shut down their business. People can not pay back their debts. No traveling, no money for expensive stuff.
REAL economy is crashing and the stock market will follow sooner or later.
What do you think?
Always do your own research, do no believe the mass-media and random guys in the internet, and trade save in times like this. Do not let the market makers S(cam) & P(oor) you until you have only 500 bucks left.
Yes, it looks like a big dip on the daily chart, but if you zoom out to the monthly it looks like we are just at the beginning of the crisis. Technical Indicators are far from the bottom and we just hit the monthly 50 MA.
Compare it to the crashes in 2000 and 2008, for me this does not look like the bottom, it rather looks like a small correction until now.
Millions of people lost their jobs or had to shut down their business. People can not pay back their debts. No traveling, no money for expensive stuff.
REAL economy is crashing and the stock market will follow sooner or later.
What do you think?
Always do your own research, do no believe the mass-media and random guys in the internet, and trade save in times like this. Do not let the market makers S(cam) & P(oor) you until you have only 500 bucks left.
Note
There is and always will be a lot of noise in the short term markets, a dead cat bounce is a good example of this.Here is a good story, taken from a book written by Andre Kostolany, i can recommend everyone to read his books:
He explains the relation between the economy and the stock market by comparing it with a man taking a walk(economy) and his dog(stock market). The man just walks straight, up the hill or down the hill, the dog runs up and down and sideways all the time but the dog will always return to his master. So the man walks 1 kilometer straight to his target, but the dog runs 4 or 5 km in the same time. Finally they reach the same target.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.