Trading Trends in Trends ( Review from Chapter 5 -Trade Like A Stock Market Wizard)

Always trade in stocks that are in trend, and always open positions in the same direction

long term trend that occurs , 4 Stages of the stock cycle :

- Phase 1 - Abandonment Phase: consolidation (Neglect Phase)

• During stage 1, the stock price will move sideways

• Stock prices will fluctuate around the 200 day moving average (or 40

weeks), it can take months or years.

• Basing stage of this kind can take place after the stock price has fallen far on

stage 4 for several months or more.

• Generally the trading volume is small or relatively small when compared to

the volume that previously occurred at the time of decline in stage 4.

- Phase 2 - Ascension Phase: accumulation (Advancing Phase)

• The stock price is above the 150 day moving average and the 200 day moving average.

• The 150 day moving average is above the 200 day moving average.

• The 200 day moving average chart begins to climb

• The emergence of higher and higher low prices

• There are high price increases in the weekly period and are supported by surges

volume while the volume formed during pullback, is small.

• There are more price increases supported by high volumes in the period

weekly rather than decreases that occur with the same volume.

- Phase 3 - Peak Phase: distribution (Topping Phase)

• Increased volatility where stock prices move up and down within a range

wider swing. but the price pattern will look the same as stage 2, where

stock prices continue to move up.

• Generally there is a decrease in prices in large quantities with high volume.

• Stock prices may break below the 200 day moving average point.

Price volatility around the 200-day (or 40-week) moving average starts frequently

• The 200 day moving average starts to lose momentum to go up, start leveling off

and turns into a downtrend.

- Stage 4 - Declining phase: defeat (Declining Phase)

• The majority of price behavior will be below the 200 day (40 week) moving average.

• The 200 day moving average which is leveling off or starting downtrend in stage 3, now

confirmed downtrend.

• Share prices start around or reach their lowest point in 52 weeks.

• Stock price patterns are marked as lower low or lower high

• Moving averages on shorter time frames are below the moving averages

on a longer time frame.

• There is a spike in volume on falling prices with a wide range of time

daily and weekly frames and there is a small volume accompanying price increases.

• There is more price reduction on daily and weekly time frames

supported by above average volumes when compared to price increases

supported with above average volumes.

WE WANT ENTRY LEVEL 2, what are the 2 levels? USE TREND TEMPLATE

Trend Template Trade Like A Stock Market Wizard

Trade Like A Stock Market Wizard

There Is a Price Paid to Get Something Worthwhile ( Review from Chapter 4 -Trade Like A Stock Market Wizard)

Don't be fooled by the low PE, because the price may go down.

Don't be afraid of high PE, it could be because the stock price is growing

Trade Like A Stock Market Wizard

Analysis of Specific Entry Points, SEPA Strategies ( Review from Chapter 3 -Trade Like A Stock Market Wizard)

FIVE KEY ELEMENTS OF SEPA :

1.Tren, all superperformance phases occur when the stock price is located

in a confirmed uptrend.

2. Fundamental. Most superperformance phases are controlled by increase

income, income and margins (profits).

3. Catalyst. Every stock that experiences a high price increase has a catalyst

underlying these increases.

4. Entry points. Most superperformance stocks at least give you one

opportunity and sometimes more than one opportunity to be able to take a position on

the stock is at a low risk point.

5. The exit point, you must set a stop-loss point to force you out of

wrong position to protect your capital. Instead, at some point, your stock

must be sold to realize profits to maintain the profits that you have

obtain it.

The process of sorting shares by SEPA can be summarized as follows:

1. To be a potential SEPA candidate, you must meet the Trend criteria

My version template (see Chapter 5).

2. Shares that meet the Trend Template criteria will be filtered through various

kinds of filters based on income, sales, margin growth,

relative Generally 95 percent of all shares that meet Trend qualifications

The template failed to escape this filtering.

3. Shares that have successfully escaped screening will be examined to search

in common with the Leadership Profile to determine whether they are in line with

specific fundamental and technical factors shown by the historical model of

superperformer in the past.

4. The final stage is a manual review, examined individually and given a score

according to the process of ranking "relative prioritizing" which to consider

characteristics as follows:

• Reported income and sales levels

• Movement history both up and down that far exceeds analyst estimates

sales and earnings (sales and earnings surprise)

• Earning per share (EPS) growth and acceleration

• Growth and acceleration of income

• Guidelines regarding estimated future income (Company-issued guidance)

• Revision of analysts' forecasts of earnings forecasts

• Profit margin

• Market and industry positions

• Potential catalysts (new products or services or industrial or corporate development

specifically)

• Performance compared to other shares in the same sector

• Analysis of trading volume and prices

• Liquidity risk

The SEPA ranking process is focused on identifying the potential of things as

following:

1. Future sales & earnings surprises and revisions to estimated positive performance

2. Volume support from institutional investors (significant buying / demand pressure)

3. Rapid price increases based on an imbalance between demand and

supply (small selling pressure and large buying pressure)

Trade Like A Stock Market Wizard

What You Need to Know First ( Review from Chapter 2 -Trade Like A Stock Market Wizard)

-Achieving super results in trading is not a matter of luck, but a matter

knowledge, perseverance, discipline and hard work.

-Marketing is not your biggest challenge, it's itself because you have to

against himself, psychologically, must be as objective as possible in the market.

-Trading is not a matter of being right, when you are wrong, cutloss as soon as possible.

Try your loss as little as possible and your profit as much as possible.

-Exercise will not make your trading perfect. Exercise just forms

habit. If you continue to form the wrong habits, then your trading does not

going nowhere. Discard the wrong habits and form the right habits.

You must have a trading journal and then evaluate your trading journal.

- Treat trading as a business, so you can really make money.

-Don't invest like a fund manager, buy too many shares or just

bluechip

-There is a sacrifice of time, energy, money, and thought if you want to succeed.

-Define your style, whether scalper, swinger or semi-investor. Match the style

with your psychological and trading style.

-Receive that there are times when you don't make a profit. That's

trading dynamics,

-Only your mind has been your limit all this time, when you think you CAN

!! You can do it. If you think you can't, no one in this world can

do it for you.

An Introduction Worth Reading ( Review from Chapter 1 -Trade Like A Stock Market Wizard)

-All of PASSION, without it is impossible to survive trading, when experiencing periods of profit difficult to obtain.

-Don't hear what words, words to demean that can shake you !!

-Don't be busy listening to the chat / pom pom people in the telegram/ whatsapp ( social Media), who are praising him

-The best approach for successful trading is to analyze the risks. Then determine the risk that is ready to be borne, and include it in your trading plan.

-Invest in yourself! Make a commitment to keep learning. You have to take action!

- Success is when Preparation meets opportunity.

-THERE IS NO HOLYGYRAIL. There is no best trading method that can provide the greatest profit for everyone. There is a trading method that suits your personality, which makes you comfortable using that method, so you can make consistent profits.

Trade Like A Stock Market Wizard