TWEET: Approach to Investing
Added 2024-10-03 10:32:00 +0000 UTCOur Approach To Investing:
- Find fundamentally undervalued positions
- Find the trend (impulse wave or corrective wave)
- If an Impulse (bullish) wave, determine which wave it is in, if you are early: Aim to Buy as Wave 2 completes.
- Determine the Price Target for Wave 3 and Wave 5
- Trim profits when Wave 3 Price target completes, usually at the 1.618 Fib
- Wave 4 usually pulls back to the 0.38 Fib of the length of Wave 3
- Add again when Wave 4 holds support.
- Take up to 50% profit when Wave 5 completes
- Re enter into the position after the corrective Wave A completes, as long as the Fundamentals remain undervalued.
- Trim profits when Wave B rejects.
- Start the cycle again when Wave C completes, usually at the 0.618 Fib again of the entire Impulse Wave structure.
- Constantly assess fundamentals throughout the cycle to make sure they remain as expected, this helps you keep to your strategy above.
Comments
20% at Wave 3, 50% at Wave 5 these are for my core stocks Positions with higher risk I would consider selling my entire position at Wave 5....I did this with $ADA this year.
Gareth Neary
2024-10-03 11:52:20 +0000 UTCI use a number of sources and I have spoken about this in the Learning Centre
Gareth Neary
2024-10-03 11:51:23 +0000 UTCCaptain what criteria do you use to determine if a stock is fundamentally undervalued?
Butterfly
2024-10-03 11:33:16 +0000 UTC50% profits at the end of wave 5 nice hint!
Federico Salerno
2024-10-03 11:05:13 +0000 UTCGreat, thank you! Could you give a rule of thumb how much you trim on each step?
Manuel Hannich
2024-10-03 10:41:17 +0000 UTC
