Once you have selected a stock with decent fundamentals (review every month if the stock still fundamentally sound), then you just need the chart to tell you when to buy it.
Trading is all about waiting/patience.
When price is below the 20/50/200, you stay in cash. You wait.
When price is above 20/50/200, you wait for a base/pullback and a trigger.
In this example, there was a decent gap up breakout but got stopped out. So what? A good system just need a 30-40% winning rate.
Look for a base and you WAIT.
Trading is all about waiting/patience.
When price is below the 20/50/200, you stay in cash. You wait.
When price is above 20/50/200, you wait for a base/pullback and a trigger.
In this example, there was a decent gap up breakout but got stopped out. So what? A good system just need a 30-40% winning rate.
Look for a base and you WAIT.