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How to decide to BUY & SELL with FND Technical Analysis Method? (Deciding to buy takes in avarage 15 minutes, whereas deciding to sell takes in avarage 1 minute)
First of all let's explain
below once again the expressions in the "Daily
Summary Table" in four categories.
Category 1) Black number on green background:
(Ex: 5,82 )
Tells the Stock is in fast rising trend (
) and shows its
percentage rise in that day. (Ex: 5,82 %)
It's a signal for BUY if you don't have a Stock yet, or HOLD
if you already have a Stock.
Category 2) Blue number on green background :(Ex:
114,39 )
Tells the Stock is in fast rising trend (
) and shows its
percentage rise in that day as 100 + percentage rise (Ex: 100 + 14,39 %). It
also shows the Stock is being bought over CCI (Commodity Channel Index) limits,
and attracts attention to the probability of speculative movement.
It's a signal for BUY if you don't have a Stock yet, or HOLD
if you already have a Stock.
Category 3) DECLINING :
Tells the Stock is in declining trend (
).
It's a signal for SELL if you already have a Stock, or
DON'T BUY YET if you don't have a Stock yet.
Category 4)
UNFRUITFUL :
Tells the Stock is in horizontal position (
);
or it's in slow rising trend, the rise and gain is slow(
).
It's a signal for HOLD if you already have a Stock, or DON'T BUY YET
if you don't have a Stock yet.
In the "Daily
Summary Table" the stocks are sorted according to last date datas and
grouped from top to bottom as Category 4), 3), 2), 1)
respectively. The stocks to be used in the next day's BUYing are those
having Category 1) and 2) last date datas. The
stocks to be used in the next day's SELLing are those having
Category 3) last date datas. The stocks to be
continued to HOLD the next day are those having
Category 1), 2),
4) last date datas. The stocks that will not yet be bought (DON'T BUY
YET) the next day
are those having Category 3), 4) last date datas.
"BUY"
Steps:
For Stocks:
1) Look at the
"Daily
Summary Table", find Category 1) and 2)
stocks in the last date column, examine their graphics.
2) According to the graphics,
-those with narrow % change grid lines in the "Y" axis, in other words those that have high percentage change in past times, those that don't have instant decline and instant rise habit.
-those with strong Support and at the same time with weak or no Resistance levels,
-ideally, those showing the buying behaviour as explained in 9 graphics and, stretched and have % increase potential.
-ideally, those just started rising,
3) those with high daily transaction volume, good financial analysis results, and with strong expectations are decided to BUY,
4)
examinations and analysis are finished before the morning session starts, and
BUY decision is delivered to the broker.
For other merchandise:
-The graphics of the concerned merchandise is followed and according to the
behavior as explained in 9
graphics, decision is made.
"SELL"
Steps:
For Stocks:
-"Daily
Summary Table" is examined before the morning session
starts, if the stock is among the Category 3)
stocks in the last date column, SELL decision is delivered to the broker.
For other merchandise:
-The graphics of the concerned merchandise is followed and according to the
behavior as explained in 9
graphics, decision is made.
"HOLD"
Steps:
For Stocks:
-"Daily
Summary Table" is examined before the morning session
starts, if the stock is among the Category 1), 2),
4) stocks in the last date column, stock is HOLD.
For other merchandise:
-The graphics of the concerned merchandise is followed and according to the
behavior as explained in 9
graphics, decision is made.
"DON'T
BUY YET"
Steps:
For Stocks:
-"Daily
Summary Table" is examined before the morning session
starts, if the stock to be bought is among the
Category 3), 4) stocks in the last date column, stock
is not bought yet.
For other merchandise:
-The graphics of the concerned merchandise is followed and according to the
behavior as explained in 9
graphics, decision is made.
How to use resources?
Should the
average number of stocks
kept in the portfolio at the same time is 5, optimum result is got.
But, in practice, keeping 5 stocks at the same time is not always possible. In general, number of stocks varies between 0 and 10. When the number is less then 5, risk is high but follow-up of the stocks becomes easy; when the number is more than 5, risk is low but follow-up of the stocks becomes difficult. In other words, when market dynamics are thought to be highly risky, the number of stocks is decreased; but when it is thought to be less risky, the number of stocks is increased.
When looked from the resource usage point of view,
the resourse is generally used in 5 equal pieces, and this number is sometimes
increased upto 10.