Stock Charts For Dummies

Chapter 23

Ten Tips for Cashing In on Tomorrow’s Amazingly Great Stock

IN THIS CHAPTER

Watching for those big moves

Using volatility to your advantage

Finding the best deals

The only guarantee you have about the stock market is that there will be crazy days. You want to use charts to tame those crazy days by anticipating the swings, buying at good entry points, and selling at good exit points. Notice that we didn’t say the best entry or exit point. No one can consistently do that, but using stock charts wisely, with the help of this chapter, can help you manage your portfolio more prudently when the market goes wild.

Being Prepared for Big Moves in a Short Time

Financial reporters enjoy talking about stocks on a panic run. Don’t join the panic; instead, try to understand the ways these stocks trade to maintain your financial health.

One key example in 2017 was a Bitcoin trust (GBTC). From April to September it rose over 1,000 percent. Within seven trading days in May, it rose $275. Within 20 days it rose $400. The final three days of the surge in May, it was up 127 percent. Within three weeks, it had lost almost 50 percent from the highs.

In mid-July, the Bitcoin trust plummeted ...