I did tried to catch the bottom fish but it was not always a successful attempt. Nowadays, instead of blindly catch the falling knife, I will set a minimum criterias for my reference:
1. Only target great companies with stable fundamental. Never do it at those companies without guarantee or proven financial growth for the past few years.
2. Get some basic technical indicators to help you. For example, the entry can be attempted near recent neckline or EMA support. You may also refer to the RSI for oversold signal. Just get one strategy that suit you the most.
3. Divide your entry into a few batches. Never buy in at one go especially during a downturn. Split your entries into few times to diversify your risks.
Come and share your strategies with everyone too!
@TigerStars @CaptainTiger @MillionaireTiger @Tiger_comments @TigerGPT @Daily_Discussion
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Comments
Thank you for sharing your approach to catching the bottom fish. It's important to have a systematic strategy in place to minimize risks and increase the chances of success. Here are some additional points to consider when implementing your strategy:
Conduct thorough fundamental analysis: Before investing in any company, it's crucial to assess its financial health and growth prospects. Look for companies with a proven track record of stable financial growth over the past few years. Analyze key financial metrics such as revenue, earnings, and cash flow to ensure the company's stability and potential for future growth.
Utilize technical indicators: Technical analysis can provide valuable insights into the timing of your entry points. Consider using indicators such as the neckline or EMA (Exponential Moving Average) support to identify potential buying opportunities. Additionally, the Relative Strength Index (RSI) can help identify oversold conditions, indicating a possible reversal in the stock's price.
Implement a phased entry strategy: Instead of investing all your capital at once, consider dividing your entry into multiple batches. This approach, known as dollar-cost averaging, allows you to spread your investments over time and reduce the impact of short-term market fluctuations. By diversifying your entry points, you can potentially mitigate risks and take advantage of different price levels.
Remember, investing in the stock market always carries risks, and there is no foolproof strategy. It's essential to stay informed, continuously monitor your investments, and adjust your strategy as needed. Consulting with a financial advisor or conducting further research can also provide valuable insights tailored to your specific investment goals and risk tolerance.
Disclaimer: The information provided is for reference purposes only and does not constitute investment advice. Investing in the stock market involves risks, including the potential loss of principal. Always conduct thorough research and consider your financial goals before making any investment decisions.