William Au

The Rule of 20%

William Au
Publish date: Thu, 04 Apr 2013, 07:47 PM
William Au
0 1,080
Founder of Trend Traders Network, Equity market Trader/investor, Financial Speaker. Shares his views on the financial market using trend following strategy.

388733_509842315718611_511133940_n

“Buy low sell high” is a famous theory and as easy as it sounds, 95% investors eventually ended up “Buying high selling low” in the stock market.

|The-Rule-Of-20%|
Sometimes when a share price rallied from RM1.10 to the highest RM4.20 and eventually dips all the way down, investors tend to think it is a bargain hunting to buy at whatever price level they think its the lowest hoping it will turn its way up again to RM4.20.

The-Rule-Of-20% is simple. Whenever a stock dips below more than 20% from its highest point and continues to stay below that level for more than 3 months, this particular stock will be in danger of entering a bearish zone.

A healthy and bullish stocks will easily recover from the dip of 20% within 3 months.

This helps investor to ensure they will not end up marrying a stock for the long term and getting their capital stuck.

Try it on all the stocks!
Happy Investing! :)

388608_509853839050792_1574978672_n

Fancy Gold Market At Risk?
“Buy low sell high” is a famous theory and as easy as it sounds, 95% investors eventually ended up “Buying high selling Low” in their investment.
Since Year 2011 we have been putting a sell call for the Gold Market ever since it reached its peak high. Of course everyone loves to own physical gold as part of their investment acting as an insurance to safeguard their we…alth. But it is more towards a warning to the gold traders instead.
|The-Rule-Of-20%|
Whenever a market/stock dips below more than 20% from its highest point and continues to stay below that level for more than 3 months, this particular market/stock will be in danger of entering a bearish zone.
Over the past 2 years the gold price have been trading well above its 20% level from its high, and each time when the price retrace to this level we can see the gold prices tend to rebound strongly keeping itself away from entering the bearish zone.

With the global equities market continuously charging up higher, will it eventually bring the gold market to enter the bearish zone level soon?

The good news is! When gold gets cheaper we get to buy at cheaper price too! :)

544437_509881985714644_156957180_n

Shinning Silver Market Already In The Bearish Zone:
“Buy low sell high” is a famous theory and as easy as it sounds, 95% investors eventually ended up “Buying high selling Low” in their investment.
Since Year 2011 we have been putting a sell call for the Silver Market ever since it reached its peak high. Of course everyone loves to own physical silver as part of their investment acting as an …insurance to safeguard their wealth. But it is more towards a warning to the silver traders instead.
| The-Rule-Of-20%|
Whenever a market/stock dips below more than 20% from its highest point and continues to stay below that level for more than 3 months, this particular market/stock will be in danger of entering a bearish zone.
A healthy and bullish market will easily recover from the dip of 20% within 3 months.
Over the past 2 years the silver price has been trading well below its 20% level from its high entering the bearish zone.

Cheaper price to buy physical silver?

*Try this on the global markets and stocks!

photo
(Founder of Trend Traders Network, Equity Market Investor/Trader, Trend Follower, Financial Speaker)

Discussions
Be the first to like this. Showing 0 of 0 comments

Post a Comment