New to the game

[FIGJAM]

As a dollar cost averaging method, you could just buy every time the standard stochastics cross up from below 50. That would ensure you catch most of the decent dips with hardly any work at all, and should achieve a much better ave price than buying once a week/month. Do this as long as the SP is above the 200EMA, and pause whenever the SP drops below.

Green arrows indicate where you'd be buying.

I see, so you buy on the downward trend to help save on stock costs. Then when it moves closer to the average and peaks it is worth more. Giving a greater profit % (if you sell at those times).

To understand that better I come back to needing to know how to read and set charts to suit.

 

[Gringotts Bank]

I see, so you buy on the downward trend to help save on stock costs. Then when it moves closer to the average and peaks it is worth more. Giving a greater profit % (if you sell at those times).

To understand that better I come back to needing to know how to read and set charts to suit.

This method would only be for the regular accumulation of small amounts of stock, then selling the whole lot 10+ years later. If you want to trade in and out, the stochastics won't make you profitable.

Any charting software will have stochastic indicators, even the free ones your broker offers. It consists of two lines, K% and D%. When they both go below a value of (say) 50, wait for the K line to cross upwards over the D line.
That's all there is to it. Buy at that point. Just an example. There would be more profitable ways of doing it.

 

[FIGJAM]

This method would only be for the regular accumulation of small amounts of stock, then selling the whole lot 10+ years later. If you want to trade in and out, the stochastics won't make you profitable.

Any charting software will have stochastic indicators, even the free ones your broker offers. It consists of two lines, K% and D%. When they both go below a value of (say) 50, wait for the K line to cross upwards over the D line.
That's all there is to it. Buy at that point. Just an example. There would be more profitable ways of doing it.

Awesome, thanks for that mate, I will be looking into it in the very near future.

 

[timeless]

Oh and I don't sleep much so I had plenty of time to put this info together

Hi Hangseng
I do not sleep much but for a different reason.
I would love to be where you are.
Yours is a great article and something I was looking for: that is there is a chance of success in stock market for a determined individual who is prepared to learn and apply strict rules in business.
I have determination and some skills that will be useful to achieve this goal but no experience in markets and trading.
As you can see from my screen name I have not much time to achieve my goals. Starting from scratch after divorce and little supper balance I have no chance to age gracefully unless I do something.
Thanks so much for encouragement and sharing your valuable resources and experience.
Cheers

 

[mikepowers]

I am humbled, my first involvement in a sticky

Thank for all of the kind words.

I am still learning whenever i read threads,
I am new to this forum and came across with this thread,
As i read through pages i can't stop thinking what are the reasons
why am i on the Forex world https://www.aussiestockforums.com/forums/images/smilies/banghead.gif

Thanks for reviving my passion on trading
https://www.aussiestockforums.com/forums/images/smilies/smile.gif

 

[Benjaz]

I am currently a high school student and I have found an interest in the stock market and I was hoping any elite traders out there could give me some pointers in which direction I should start in. Help like which books or which websites I should use to get me started would be much appreciated.

Thankyou,
Benjaz

 

[Joe Blow]

Hi Benjaz, welcome to ASF!

There are a lot of threads in the forums that cover these sorts of topics, mostly in Trading/Investing Resources and Beginner's Lounge. Here are a couple to start you off:

https://www.aussiestockforums.com/forums/showthread.php?t=11507
https://www.aussiestockforums.com/forums/showthread.php?t=14370

The key to tracking down threads of interest is to use the search function and enter keywords such as "books" and "websites". There are more than 22,000 threads here at ASF, many of them filled with knowledge and useful information. Your job is to track them down and read them.

Best of luck!

 

[Jonbra]

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