Are you Buying?
- Buy stocks on their way up.
- Buy stocks moving from a strong base formation. That way if wrong the worst case scenario is the stock moves back into the base.
- Has a stock held above its recent low when the market has not? If so, that stock is much healthier than the market. how stocks hold up on down days shows a lot
Are you Adding?
- Do Not Add on a Losing Position
Are you Chasing?
- Chasing a stock brings emotions into play & emotions cloud judgement. Avoid this scenario, stay calm and everything appears so much clearer.
- With emotions comes clouded judgement and confirmation bias.
If Things Go BAD:
- Treat as number NOT the dollar value