Buy stocks

[Eugine]

If you want to buy stocks which has reversed at a major support level. To sell a stock, many technicians use the reverse signal of the same indicator they used to enter the stock. For instance, if you purchased on a positive MACD breakout, you could sell is the stock falls thru that support level. Many technical financiers utilise a break in the trendline as a sell signal, which would force watching the stock with your chart.

[Buhari]

It is not entirely clear why this strategy works. Perhaps the reason is that those companies had "extremely bad luck", and that in the following years the "bad luck" will turn around. For a certain period of time the loser stocks will continue to lose, and the winner stocks will continue to win, but after that "the wheel of fortune" should turn around. Therefore, selling stocks in the first year is likely to generate a loss. If you might need that money soon, this is not a good strategy for you.

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