I spent the past few months doing stock trading.
To be exact from November till today, I have only done 3 trades.
The trading technique I used is actually no technique honestly. I totally ignored the typical technical indicators such as moving average convergence divergence (MACD), relative strength index (RSI) or stochastic oscillator which you would see in any technical analysis guidebook.
The trading technique I used was instead simply observation within my knowledge limited scope of course. Nonetheless, before I apply this technique, I did a general check on the balance sheet of the stock. This counter has more cash than total liabilities. However, its profit margin is low, and it’s profits are definitely not as high as many others in the same industry as it is. To me, this company is like a mom- and- pop store that earns enough to feed everyone, while making sure they …