What do I mean by, "looking for the stormy weather?" Quite simply, you can only make money on a stock if it is moving... or if it pays a dividend. As a trader, you need a stock to be active. You can't be trading stocks that are not moving. Also, when you identify a stock that is moving, you don't know how long the move will last. How many times have you bought a stock when it was really active, only to see it calm down and become "blue sky, sunny and no wind" or "dead." As in dead money.
So, the key is identifying a "stormy" stock. Trade it. Be out before the storm stops. Move on to the next "storm."
No comments:
Post a Comment