•Research extensively. Be (always) mindful of any threats or opportunities going forward.
•Have a 'rough' idea of a Company's valuation, based ultimately on the cash it can bring in. Identify best and worst case scenarios. Can the Company fail? Are we taking on too much debt?
•Know that the share price can trade significantly beyond or beneath what you consider a fair valuation.
•Understand your own tolerance of risk. Set your exposure to particular stocks or sectors accordingly.
•Buy low, sell high. Buy in parcels when the share price represents good fundamental value. If you have done your research and traded within your limits you will actually be happy for prices to come down. Why? Because you now have an opportunity to top up at lower prices. Just be wary of Management. Are they trustworthy? What's their track record?
How does it all relate to the charting thread? Because Chartists generally follow an established trend, they will help drive prices to extreme levels. Profit from them. Just make sure your Company's not a dud.
IMO Galaxy is a good buy after the recent sell-off.
GXY Price at posting:
$1.64 Sentiment: Buy Disclosure: Held