Support and Resistance

“In stock market technical analysis, support and resistance is a concept that the movement of the price of a security will tend to stop and reverse at certain predetermined price levels. These levels are denoted by multiple touches of price without a breakthrough of the level.”

After a month of jumping into some stocks quicker than I should have (in other words, I did ZERO technical analysis) I have put the brakes on my buying until I feel I have thoroughly analyzed their charts and made a plan of what price to best buy them at.

Have I lost some money? Yes. However, I learned the most after picking a stock incorrectly. My confidence has increased.

I love the TD Web broker platform. They do a lot of the technical analysis and guide me to the correct information.

My favorite days are red days as most stocks go on sale! Prior to this I was seeing good news about a certain stock and would buy it, only to have it drop drastically. I don’t recommend this method!

One thought on “Support and Resistance

  1. Buy low sell high right?

    Most have no idea how to actually do this, or the understanding that you will have to walk into a purchase of a stock or instrument going down as you are buying in order to catch good prices. Most people can’t even get their head around that simple fact. All will say they understand “buy low sell high”, but when it comes time to buy, most will instead be more likely sell.

    Nice write up DiverSHAfy! Hope all is well in your world!

    -JP

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