FurnitureWhat if, someones intention has been to drive the stock...

Furniture

What if, someones intention has been to drive the stock down in order to accumulate at very low prices and they have the time and money to do it, with a view to a longer term turnaround when they are ready.

Not saying this is the case but surely this scenario is just as plausible as all the other rot that is fitted to the chart action.

Personally I don't concern myself with any of it, i just look at the chart, all the info I need about the price action of the stock and the flow of the smart money is there. I then decide when my conditions for a trade are met, and there are about 8, enter the stock, set good risk management in place and manage the trade. If its successful i make money , if not I take as small a losss as possible and get out and the loss is the cost of doing business. I don;t care about upcoming reports or media releases or speculation on how much coal is gonna be dug out of the ground. Those facts will mislead you simply because you don;t know what is true and what isn't. If someone wants to manipulate the sentiment towards a stock and drive the price down and shake everyone out do you really think you will be getting the full story?

Continua declining prices can also mean the business is bad too, Hence we wait for a break of trend and higher highs and lows in place. Never average down and never try to pick the bottom.

Simple eh?

Cheers