Introducing Wall Street to Main Street





Who says you have to work on Wall Street to make a buck in this market. Google jumped as predicted with plenty of upside potential left to go. In the 10-day hourly chart below you can see how my strategy can work for any time frame.

The ascendancy of Google stock came about nine days ago when the MACD and DMI formed a positive divergence (circled in green). Suddenly, about four days ago, the MACD turned negative and many short-term investors liquidated just in case the DMI gave in down the road. The reason the stock only pulled sideways instead of collapsing is due to the fact that the DMI never broke. Instead, it held ground until the MACD had finally collapsed far enough to provide room for another surge. Hence, the reason we saw the big move today. You also may be wondering why there is only one divergence circled in green towards the right side of the graph. It is simply to point out that there is a positive divergence occuring and that the DMI had already been positive. Whenever there are MACD and DMI indicators that have a positive divergence you should consider it a signal to buy.

It is these signs that enable investors like you and I to consistently reap profits again and again. Couple this with my post from yesterday and you can begin to see how the different time frames interweave and actually make sense. With experience, you too can see events unfolding almost like the Matrix.

If anything that I discuss in present or future posts does not make sense please let me know. It is my desire to help making investing fun and easy. If you are tired of hearing me go on about the same ‘ol stocks in the Jutia Portfolio then throw something my way and I’ll analyze it and we can look at it together.

Why study company financials or listen to the news when everything is already priced in the stock? If you put in the time to understand technical analysis, you could save yourself hundreds of hours that would otherwise be wasted on research that will get you nowhere in the market.

So, forget that tip you heard at the bar. I don’t care if it’s a friend who works as an analyst at a large investment firm. No one is going to look after your money better than you. I’m striving hard to be your number one investment resource and sincerely appreciate those of you who come back and inspire me to write about my passion.

Eventually, you may get the feeling that you have learned enough from my site to venture out on your own, but I would strongly encourage you to return for the best investment research, ideas, and helpful commentary. We’re all in this together!

Furthermore, if you are a new or seasoned investor please comment, ask questions, and share your personal investing experiences. Help us build a community to be proud of.

More on this topic (What's this?)
Google Patents: a good idea that needs some work
The Trend Is Your Friend?
Stocks To Watch, Google and NYSE
Read more on Google, Moving Average Convergence Divergence (MACD) at Wikinvest

There Are 4 Responses So Far. »

  1. I just found this blog the other day. It looks great. I’ve been trading for a long time, but am ALWAYS interested in new ideas and new strategies. Keep up the good work.

  2. Thanks Steven for taking the time and helping others. Almost everything I learned has been from quality sites like this one. I mostly daytrade and once in while a few swing trades. The only swing I currently have in my portfolio is HD long. Let me know what you think.

    Bubs

  3. Ku4a,

    It’s nice to see you have an open mind when it comes to experimenting and testing different strategies. I am always looking for ways to tweak and improve upon past results and share my findings with the Jutia community.

    Perhaps you could share some tips/strategies in the forums.

    Good Investing…
    Stephen

  4. Bubs,

    Thank you for your kind words. If there are certain areas/topics that you feel I do not spend enough time on please feel free to let me know. Feedback is very important to me and it will help me assist others in the future.

    I have read many books, studied charting, and tested multiple strategies. I have learned to appreciate the early losses and learning from past mistakes. It has helped me because a more wise, humble, and successful investor.

    Have you tried using the DMI & MACD in your day trading strategies by chance? I would recommend using a “one-day five minute” chart in using these indicators to daytrade. Let me know what you think!

    Expect a post on HD soon!
    Stephen

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