[Stock FX] How to Identify Changes in Stock Price Characteristics [For Beginners to Intermediates]
The sharp-tongued sister of Stock FX here♪ (▶Twitter)
The person behind this account worked as a fund manager (I'm a former institutional investor), and now I live as an independent stock investor♪
Read the links to my past market predictions here♪ (◀ I've had a nearly 100% success rate with over 30 consecutive rising stocks♪)
<This week's new articles♪>
① [Blog Featured Stock] Muto Seiko rises significantly by 67%! [Stock FX]
② [Stock FX] How to identify changes in shareholder characteristics [For Professionals]
③ [Growth Stock] Creek & River (TSE: 4763)
[Stock FX] How to Identify Changes in Stock Price Characteristics [For Beginners to Intermediates]
When stock prices are falling, aren't you just looking at technical indicators mechanically? There are times when they work and times when they don't♪ For example, when using contrarian technical indicators, first think about the "
reason why the stock price is falling"♪
When a stock price is falling, the situation changes significantly depending on whether "is the price falling because someone is short-selling?" or "is it falling because no one is buying it?"♪
For example, let's say it's an "IPO stock" or a "theme stock" that is currently popular with a daily trading volume exceeding 1 million shares♪ Such stocks fluctuate wildly, sometimes dropping 10% in a day, only to be up 10% the next day.
This is because the reason for the price drop is that "there are many individual and large-scale investors short-selling for the purpose of a money game," and they willbuy back their short positions in the near future♪ Above all, "regardless of the price volatility, the stock is popular, so people who want to buy it when it gets cheaper keep appearing," meaning it's easy for the price to rebound even if it drops sharply♪
Conversely, stocks that have passed their prime or have deteriorating performance will continue to drift lower, not so much because "someone is shorting them," but because "no one is buying them." Once this happens, the stock price will not recover unless another prime season arrives or performance improves, and the "
material or fundamental reason why no one is buying" is resolved♪
As you can see, while numbers like stock indicators and technicals are important, it's crucial to look at the "change in the nature of the stock price decline" before looking at those♪
I plan to explain "changes in the nature of stock price increases" eventually, so if you find this interesting, please follow me on Twitter or note and wait patiently♪
Another equally important technique is "changes in shareholder characteristics." I have a long, thorough explanation of this for professionals♪ Please give it a read♪
Also, regarding contrarian technicals, in "How to significantly increase the win rate of RSI," I have written about how I customized RSI to "significantly increase the RSI win rate to 82-99% and increase the expected value by more than 7 times"♪
Terra or AppBank, as long as it's not a truly terrible company, this RSI method will stabilize your win rate even if you make some mistakes in timing or performance analysis♪ Beginners to intermediates, please start by reading "
How to significantly increase the win rate of RSI" and practicing it♪
Did you learn something new this time too♪
If you did, please read the article below as well♪
<Essential>
★Summary of articles you must read [Super Important]
★[Stocks/FX] Conditions for carefully selecting rising stocks [Thoroughly explained by pros]
<Diary>
◯There are mysterious wins, but no mysterious losses
◯Avoid things that are far away [Thoroughly explained by pros]
◯[Stocks/FX] Should you care about PER and PBR?
<For Beginners to Advanced>
◯How to significantly increase your RSI win rate
◯Winning manual for IPO investment!
<For Pros>
◯How to win at theme stock investing and its essence [Everything condensed into this one volume]
◯How to identify changes in shareholder characteristics [Very much for pros]
Let's keep doing our best together!
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※Notes
◯Explanations are for reference only. (Sometimes I might be wrong)
Please make final decisions at your own risk.
◯Please read "this link" before sending questions♪ If your question is selected, it might lead to a follow-up article or a new article. Sorry if it doesn't get selected♪
◯Please read "here" for detailed notes♪