Diary Thoughts On Tests
Well, I am more of a conservative guy you can say. I think in my weekly post, I talked a lot on looking at tests before going. However, if the STI is going to be up by 30 points everyday, does that mean that we wouldn't be see any tests? Likely yes. If sentiment for the day is really bullish.
But, what comes up must also comes down. When the stock is coming down, that is when you will look for tests for re-entry. When the stock is going up and you are buying on momentum without any real trading setups.
However, does not mean that we shouldn't buy on momentum as well. I think that really depends on the trader/investor mentality. If he is there to scalp, probably it is okay, on a case by case basis.
Meanwhile, as market is going higher, there will be lesser clearer setups to spot. There will be lesser base accumulation kind of stocks that we can watch with enormous risk to reward ratio.
But, what comes up must also comes down. When the stock is coming down, that is when you will look for tests for re-entry. When the stock is going up and you are buying on momentum without any real trading setups.
However, does not mean that we shouldn't buy on momentum as well. I think that really depends on the trader/investor mentality. If he is there to scalp, probably it is okay, on a case by case basis.
Meanwhile, as market is going higher, there will be lesser clearer setups to spot. There will be lesser base accumulation kind of stocks that we can watch with enormous risk to reward ratio.
Comments
Post a Comment