Ziad Jasani spoke in a Friday, September 20, 2019 afternoon session. His talk was called “Swing-Trading into Election 2020: A Global-Macro Approach to High-Probability Swing Trading”. He is Managing Director and Partner of Independent Investors Institute. His company’s site is here.
First admit you do not know the future. Humans need rules for investing. It is bad to buy on emotion or on trust. You need a plan, not excess.
We tend to regress under pressure. QE$ (printing money) by Powell and the market has moved up. The market is at an all-time high. To buy, hold or sell is a leap into the unknowable. Fight, Flight, and freeze is the worse response we can have. When we trade, we move into the unknown.
We must know when to add risk (investing) and when to reduce risk (sell). We need to know when to step on the pas and when to step on the brake. No one knows what will happen next. Active trading is a game. Investing is a game of probabilities. An active trader makes mistakes. Making a mistake is not bad but staying there is bad.
You should use common sense. Step away from what the crowd is doing. Become an analyst of crowd behaviour. Swing trading is understanding people. You become an analyst of crowd behaviour. You have to accept that you do not know the future. You can click on the charts to make them larger and then click on the X in the top right corner to go back to the blog.
You need to know what is normal and what is not normal. Use standard deviations to do this.
Ziad Jasani talked about the parts of candle for candle charts. For the green candle, the entry stock price point is at the bottom of the green candle and exit is at the top of the green candle. For the red candle, the entry stock price point is at the top of the red candle and the exit is at the bottom of the red candle.
If you have series of green candles going higher and they are getting shorter then the bulls are weaker. The market is slowing down and there are less people interested in the stock. It may be time to sell or to do a stop loss. If there is a gap with a higher green candle, that is a break out. If there is a gap after a green candle with a lower red candle, that is a reversal as is a red candle and a gap and higher green candle.
On my other blog I wrote yesterday about Finning International Inc (TSX-FTT, OTC-FINGF) ... learn more. Next, I will write about Quarterhill Inc (TSX-QTRH, NASDAQ-QTRH) ... learn more on Wednesday, November 27, 2019 around 5 pm.
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