There are three schools of thought to achieve the best of both worlds in stock trading and investing. To bridge these three schools of thought, i.e. Fundamental Analysis (FA: business and economic performance), Technical Analysis (TA: price movement) and Personal Analysis (PA: emotional management), I have formulated the Optimism Strategies.
The essence of the optimism strategies is to identify fundamentally strong stocks, and buy/sell at a time aligned with technical analysis indicators, matching our personalities to take the right actions: Buy, Hold, Sell, Wait, Short.
It may seem hard to practise the above when pessimism is looming over the markets, but as investors, we all need a bit of optimism.
To make things simpler, I measure optimism on a 0 to 100% scale, where 0% stands for fearfulness or extreme pessimism, and 100% stands for greed or …