Stock Market Rally Needs More than Optimism 3.27.20
The stock market rallied 21% off the lows since the Dow Jones Industrial Average bottomed out at 18,213.
Many are hoping that was the bottom. It wasn't. The coming 12 months of recovery are going to be tough. As a country we need to show resilience.
Stock traders are having a great time but investors have a different time frame. Retirement. Saving for college, stuff like that. Different goals than buying today and selling tomorrow.
Today's episode of Stocks for Breakfast discusses how to analyze your stocks using longer time frames. We review the monthly charts so you understand how to use the indicators on your stocks.
We also discuss the mistake of trading with an opinion and why you should have a a bias. Sounds the same, but they are not. Having an opinion cost me money yesterday by believing stocks were ready to see selling. They weren't. I missed a few longs.
Also discussed:
-- How to reduce risk exposure on a trade that's not working (And why it's not always the right play to exit the entire position)
-- 20 period moving average. What it is and how to use moving averages.
-- Trading scan discussed in today's lesson.
If you have any questions, please leave a comment below the video!.
Have a great day.
Pete
