Just a few tips on the reading of this daily version of the Merv’s Daily Uranium Index Table.
Trend changes usually can be seen in the short term information first. Extra risk is involved if trading or speculating against the short term information.
For reduced risk, short term trading or intermediate term speculating should usually be done with the intermediate term direction in your favor.
Too many whip-saw effects can occur while acting on the price moving across its moving average line. To try and eliminate as many of these occurrences wait for the moving average to turn (or be) in your direction. This is one reason for using either a simple or weighted moving average, NOT an exponential one. An exponential moving average automatically changes direction when the price crosses the line.
If your action was a short term trade and it goes against you, DO NOT then convert your thinking and make it an intermediate term speculation. If your action was an intermediate term speculation and it goes against you, DO NOT then convert your thinking and make it a long term investment. In both cases one should get out and wait for the next opportunity.
If the technical information suggests you should get out, then GET OUT. Holding on and praying to “get even” is not the path to stock market profits. Yes, that action itself could be an error but then you have your cash to get back in.
You WILL sooner or later experience a losing trade or speculation. If you cannot accept the loss quickly then you should not be in the market. Market winners and losers are distinguished by how quickly they accept that the market has turned on them and get out with a minimum loss.
I realize that over the past couple of years many reading these comments may fall under the loser definition. It is not a disgrace to have lost investment capital. It is a disgrace if you have not learned any lessons from it.
Trend changes usually can be seen in the short term information first. Extra risk is involved if trading or speculating against the short term information.
For reduced risk, short term trading or intermediate term speculating should usually be done with the intermediate term direction in your favor.
Too many whip-saw effects can occur while acting on the price moving across its moving average line. To try and eliminate as many of these occurrences wait for the moving average to turn (or be) in your direction. This is one reason for using either a simple or weighted moving average, NOT an exponential one. An exponential moving average automatically changes direction when the price crosses the line.
If your action was a short term trade and it goes against you, DO NOT then convert your thinking and make it an intermediate term speculation. If your action was an intermediate term speculation and it goes against you, DO NOT then convert your thinking and make it a long term investment. In both cases one should get out and wait for the next opportunity.
If the technical information suggests you should get out, then GET OUT. Holding on and praying to “get even” is not the path to stock market profits. Yes, that action itself could be an error but then you have your cash to get back in.
You WILL sooner or later experience a losing trade or speculation. If you cannot accept the loss quickly then you should not be in the market. Market winners and losers are distinguished by how quickly they accept that the market has turned on them and get out with a minimum loss.
I realize that over the past couple of years many reading these comments may fall under the loser definition. It is not a disgrace to have lost investment capital. It is a disgrace if you have not learned any lessons from it.
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