RE:passed 50dma and 200 dmawideopenthrottl wrote: so if you were advising new investors what would you tell them about a stock that broke through both in less than a week...GLTA
Lines on a chart do not limit a shareprice from going up, nor does a line on a chart prevent it from going down. The key mover behind the movements of a Shareprice is news.
Sector news (in the case of AC) would be a positive or negative outlook for the travel industry
Stock news (again with AC) is a positive or negative QTR report.
A shareprice movement can be unexpected, it can ramp up hard on what appears to be negative news but it can also trend down unexpectedly on what appears to be good news. These movements tie back to how Long vs Short positions trade and where the current Short Position resides on the stock itself.
If you want to be really successful in the market then you need to see a trend that will kick in LONG before it appears and start establishing a position in that sector, on a stock of your choosing, and patiently wait.
Going back to AC (for example). During Covid lockdowns no one was allowed to (or very limited) in regards to travel. How did that make you feel ? Did you long for the days when travel would be allowed again ? Did you make a bucketlist of the places you want to see before any other such lockdown would kick in again?
I would bet that the majority of people did indeed feel as if they needed to travel more.
If you look back at the SP of Air Canada during Covid Years it was down, and down greatly. Those who speculated that they could buy those shares and wait for the lockdowns to lift likely did so and are now starting to see the re-newed (and likely stronger) trend in air travel.
Why was AC down during Covid ? -> Fear and the thought that we would never exit the lockdowns and air travel would be a thing of the past. To have bought during that time you would have had to speculate otherwise and get past the fear of buying those lows.
When you view the market as a maraton vs a sprint you are likely going to take a whole different view and strategy to investing. Think longer term and you will likely manage your dollars more carefully and have the time to ponder and speculate on what the future will bring.
What i am describing it likely the final outcome for anyone who ventured into investing and tried every approach under the sun and finally concluded that "Timing the Market" is simply not worth it and realize that "Time in the Market" is what ultimately wins out.
That's it for me today, I have some running around to do so I do wish everyone the best. I hope I provided some value here today with this post to someone out there in the universe.
Best Regards,
Q