/biz/ - Business & Finance

>>16514213
>why not just buy shares of stock in good companies ?

because even "good companies" can fail, as history has proven multiple times over. especially when we're talking decades worth of time here. the real money maker is taking advantage of inefficiencies in the market. every small drop during an uptrend is a buying opportunity, every small uptick is a shorting opportunity during a down trend. the key is knowing when those trends end. hint: it's usually when your indicators disagree with each other.

another simplified example: take SGMO from the end of october to today, daily chart. notice how the HMA is blue that whole time, indicating a longer term uptrend? notice how if you exclude the big new event you could know about ahead of time and avoid, every single red bar you could have bought at the closing of would have been flipped on a green bar profitably? hell even the last 2 red bars could have been flipped this morning if you want to get specific about it to be fair. and this is using on 1 indicator, imagine if you had a whole system of them?

>>16514310
is it $8 yet? no? then yeah don't buy. spikes like this always fuck up TA, it's the whole reason why you want to avoid them like the plague. notice how what i mention works up until this spike which you could easily know about ahead of time, ASH was a big hyped up event.