Tracking the Right Buy
Have you ever watched a dog track a smell? I’ve seen dogs sniff smells all the time but never track. That changed with our puppy, Daisy. She’s a seven month old shepherd/lab mix. Just to set the scene, we recently purchased a home sitting on 10 acres. There are pastures on both sides of the house, as well as in the back. The back pasture is bordered by woods, hundreds of acres of woods.
One day my husband went into the woods to hunt. David asked me to keep the dogs inside because he didn’t want them following and disturbing the deer. When I opened the door to go out, Daisy managed to sneak past me like a bolt of lightning barely seen. I called her, she continued running until she got to the back of the house. Daisy stopped and then began sniffing. Not just sniffing I soon realized, but tracking. She had picked up a scent and she was going to track it down. I thought to myself there’s no way she could be tracking David! I watched as Daisy continued to smell and move, retracing her steps to the last spot if the new path was a dead end. Daisy worked meticulously and with certainty of her goal. She disappeared into the woods and I stayed watching for her return. When she reappeared, Daisy was leading the way for David. David, who was sitting in a tree stand, when he heard something coming towards him that sounded like a herd of cattle. It was Daisy at full speed and she stopped right at the bottom of his tree! She looked around seemingly confused that the trail ended but David wasn’t there. Daisy checked her tracking again and came to the same conclusion that she was in the right place and sat down. David sitting in the tree, called her name and she looked up, seemingly happy that her mission ended successfully!
This made me think about trading. How do I know if I’m tracking the right stock? Then I realized the answer is the same as Daisy’s. Test your assumptions and if they aren’t correct, move on to another stock, maybe putting the first one on a watch list. How do I test an assumption?
Like Daisy, we too track. We track stocks, ETFs, futures or options. But instead of our noses, we use our tools. There are three particular studies that I’ve focused on during the first three months of learning to trade. John Carter’s Squeeze Study offers potential insight ahead of a major price move. This information can help to determine my course of action. The Fibonacci Retracements are an invaluable tool to help me determine where we can find support and resistance in a price. The third study is the Moving Average Exponential Ribbon, a favorite of Trader_Joe at http://investorsHELP.net. These ribbons are another way to look at support and resistance.
As new traders, we have to spend much time learning and practicing what we’ve learned. I’ve utilized all these studies with live data in paper trading at www.ameritrade.com . You can open an account free of charge and begin learning and practicing before you to the knowledge to work on the live trading!
Hope you learn to “track” exceptionally well.
Novice_Trader_Cindy
Have you ever watched a dog track a smell? I’ve seen dogs sniff smells all the time but never track. That changed with our puppy, Daisy. She’s a seven month old shepherd/lab mix. Just to set the scene, we recently purchased a home sitting on 10 acres. There are pastures on both sides of the house, as well as in the back. The back pasture is bordered by woods, hundreds of acres of woods.
One day my husband went into the woods to hunt. David asked me to keep the dogs inside because he didn’t want them following and disturbing the deer. When I opened the door to go out, Daisy managed to sneak past me like a bolt of lightning barely seen. I called her, she continued running until she got to the back of the house. Daisy stopped and then began sniffing. Not just sniffing I soon realized, but tracking. She had picked up a scent and she was going to track it down. I thought to myself there’s no way she could be tracking David! I watched as Daisy continued to smell and move, retracing her steps to the last spot if the new path was a dead end. Daisy worked meticulously and with certainty of her goal. She disappeared into the woods and I stayed watching for her return. When she reappeared, Daisy was leading the way for David. David, who was sitting in a tree stand, when he heard something coming towards him that sounded like a herd of cattle. It was Daisy at full speed and she stopped right at the bottom of his tree! She looked around seemingly confused that the trail ended but David wasn’t there. Daisy checked her tracking again and came to the same conclusion that she was in the right place and sat down. David sitting in the tree, called her name and she looked up, seemingly happy that her mission ended successfully!
This made me think about trading. How do I know if I’m tracking the right stock? Then I realized the answer is the same as Daisy’s. Test your assumptions and if they aren’t correct, move on to another stock, maybe putting the first one on a watch list. How do I test an assumption?
Like Daisy, we too track. We track stocks, ETFs, futures or options. But instead of our noses, we use our tools. There are three particular studies that I’ve focused on during the first three months of learning to trade. John Carter’s Squeeze Study offers potential insight ahead of a major price move. This information can help to determine my course of action. The Fibonacci Retracements are an invaluable tool to help me determine where we can find support and resistance in a price. The third study is the Moving Average Exponential Ribbon, a favorite of Trader_Joe at http://investorsHELP.net. These ribbons are another way to look at support and resistance.
As new traders, we have to spend much time learning and practicing what we’ve learned. I’ve utilized all these studies with live data in paper trading at www.ameritrade.com . You can open an account free of charge and begin learning and practicing before you to the knowledge to work on the live trading!
Hope you learn to “track” exceptionally well.
Novice_Trader_Cindy
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