Oh My Gosh, I’m Obsessed.
I could be putting my socks on before my boots here, but the more I dig in to the stock market the more I am fascinated by it.
There are patterns everywhere. I almost enjoy hunting those out more than I do actually buying and selling them, which I haven’t really done a lot of yet.
I think the analyzing helps me get a better idea of how it works. Different ways to look at it and anticipate what is about to happen. Well, I don’t think there is any way to anticipate what is about to happen… but to at least be ready when what you think may happen actually does.
One thing that I’m a little worried about right now is that I will begin to over analyze stocks. For instance this stock above. I found this upward trend starting on the far left, but then it settled in to this little channel that I created. Of course, what comes up must go down and all of a sudden I found a downtrend. Is it really a downtrend or just the pullback back to the lower support after the sellers came back in? Though it lined up perfectly with with the trend line I made.
Don’t you think that you could make a line to support anything you wanted to see, really?
That is why I’m not getting too excited or tied to any of my findings. All I can do is see what I see and then act if I get what I think is a good signal.
I will give an example.
So this stock, CLDX is something I found the past couple of days.
I’ve been really only paying attention to moving averages, MACD, different indicators. But for some reason I started playing around with support, resistance and trying to look at bigger trends. I think I got caught in a couple of trades that were really at their breaking point and they went the other way on me. I’m not really interested in getting caught up in that.
Anyways, You can see for the past year that this stock has been bouncing back and forth in between 3.14 and 4.42. It’s just about to the bottom of that trend again. I don’t even have any moving averages or indicators on… just looking at the psychology of the stock. Now, what it will do this time around I have no idea. Will I be looking for a signal to buy? Probably.
Until then, I will be reading and looking at more stocks to find opportunities. Because every day the scanner brings something different and more stocks for me to look at.
There are over 6,000 of these little buggers, who knows what is around the corner.
