Are Oil, Gold, Transports, Health Care, or Technology Stocks a Good Investment Now?
★ SUMMARY ★
Are Oil, gold, transports, health care, or technology stocks a good investment now? If so, which companies would you recommend?
This is a little bit of a difficult question to answer because of the mindset that many people have when they trade stocks. In general, when you look at the viewpoints of stocks or investments, the traditional way people have been trained to look at stocks is through sectors.
They look at specific categories and try to figure out which ones are doing well, whether it’s healthcare, oil or gold. And then what they do is, they look at companies and make investment decisions in the stock market based on those sectors.
I don’t like that approach because sectors are constantly changing, and it can be a very dangerous way of trading. That’s why I don’t normally like investing based on categories or sectors.
Instead, what I do is look for companies that are consolidating and building for higher moves, and I choose stocks based on patterns and technical analysis. I would much rather choose a stock based on a pattern than choose a category and then try to pick something in that category. It’s much better to just choose a high-quality stock on its own, rather than choosing or forcing myself to pick something within a sector.
When you’re trading based on patterns, there are no emotional attachments. You trade stocks based on their price action, behavior and movement, which helps you make fewer mistakes.
You can take a look at any stock and find patterns that will help you predict the movement of the stock. However, if you can’t recognize a pattern forming, then simply move on to another stock. Because it is much better to trade based on a proper pattern than just trade what somebody says on TV.
How many pattern movements should you learn to recognize?
Obviously, the more patterns you know and recognize, the better you’ll be able to trade. However, you don’t need to know a thousand patterns. Learning to recognize three to five basic patterns is really all you need. Just make sure you don’t confuse yourself trying to learn too many patterns.
In this video, we’re going to take a look at how this works in a real life example. We’ll take a look at some companies, such as Amazon, Wynn, Tesla, and Netflix, and we’ll evaluate some patterns forming in them.
Posted at: http://tradersfly.com/2017/01/types-stocks-companies-recommendation/
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