Disclaimer: This is a legal notice. Please read it carefully in its entirety. It is your responsibility to understand this notice. If you do not understand it, please seek the assistance of a competent advisor.The content in Trend Follower is for educational purpose only. This is not a recommendation to buy or sell any security and no information contained here should be interpreted or construed as investment advice. My opinion is subject to change without notice. Trend Follower will not accept any responsibility or be liable for any investment decisions based on the information discussed here.

Thursday, December 23, 2010

Buy up or Dips

                 Low       Computed entry as posted above.
Nov 4    -  2.48      2.50
Nov 5    -  2.52      2.63
Nov 8    -  2.95      3.0    
Nov 19  -  2.96      3.01
Nov. 25 -  3.07      3.26
Dec 3    -  3.7        3.77
Dec 17  -  3.83      3.88

My computed entry is base on Fibonacci which is quiet accurate for catching tops and bottom.
If you notice, almost 95% of it did not get hit. Meaning is it hard to buy. If it is hard to buy, interested traders are force to buy at higher prices.

Thats is why if you like to buy the dips, should be 2 of more flucs above the computed price, since it is very crowded in that area.

I will not show you an example if your dips get filled the stock is weak, because somebody might say I am selective. Everybody love to maixmize profit that is why 95% of traders lose. No need for samples.

There is always an exceptional trader who can buy the dips almost all the time, but they are exceptional breed, 1 in a thousand.



2 comments:

Anonymous said...

great job on this blog, tracer. You've been an influence to me in seeking trend following style of trading. Merry Xmas!

- TC
turtlecapital.wordpress.com

About tracer said...

thanks, I was influenced by the Turtle Traders book of Covel. Have been turtle trading for more than a year now and I think it is great.