Sorry, may be this is bit of naive question. But did you start with any of these intermediate apps for SIP like grow Zerodth ? Or which one did you use? Or at least which you would recommend me? Can add amy piece of advice you have for me... Thanks!!
chart by r/PierresLongTermCharts
I was asked to have a look at Nike as a possible long term buy....
What would you do??
Always always look at the chart before even dreaming of buying.
If you going to invest in stocks or etf's, you must learn to just have a look at price movement first. And the best way is to put up a chart.
But instead of using a daily timeframe, change it to a weekly one.
Then use a candlestick format. You can see more information. And emotion too. Green candles are good up weeks and red ones are bad down weeks.
And then all you do is add a simple moving average, to your chart. Most charting sites come with this indicator.
Change the parameter to 30 and i use a blue one.
Promise yourself to never buy when the price is UNDER the sma, like it is here.
Why?
Because the price is falling. And you never know how far its going to fall.
Rather look for the price to be firstly, above the blue sma.
Then look for the sma to at least have flattened out. (see up arrow "A")
Then look back for previous peaks or some sort of high.
Draw in a line there. (see my two down arrows)
If and only if the price manages to rise above the line, does one start looking to buy.
In this case, the price couldn't even get to the line.
So you do not buy.
And look what happened.
The price fell back below the sma and eventually below an old low too.
The long term trend is very much DOWN.
Stay away for now.
Can you see what I mean?
chart by r/PierresLongTermCharts
I have been asked to have a look at this stock.
If you had bought way back where my buy signal is, at say 21.10 you'd be up over 900% now. And it would have been a hold, all the way.
It is also a buy right now, if this weeks candle, seen top right, closes roughly where it is now, and not below that upper line, right at the top.
So why would you hold, all the way up?
The only way one can tell where a last low is made, is that very moment that a new high is made. Can you understand?
If one draws in a line, at the very top of a high or H, as soon as the price rises above that line or high, and makes a new or higher high, "HH", then look back and you have your low.
Draw in a line where the low is.
Only if the price closes under that line or low, would one look at selling.
If one looks at my first "?" mark, you can see that the red candle never closed below our line, so you simply hold, if you had these of course.
It did open under the line, but that long green candle "engulfed" the red candle before it.
This is a strong buy signal.
And so we go.
With HH's or higher high's and HL's or higher lows.
To try put it simply, when you see a new high, look back for the lowest point between the two high's you looking at, and you'll have you low.
You can see that right now its making a new high.
So then is the lowest point between the two high's, higher than the previous low?
Yes it closed above the line. The green candle that came after, just touched the line briefly.
And so you hold.
Hope this helps a bit.
