SittingPretty wrote:ChessMaster wrote:ChessMaster wrote:Aguytrying wrote:Ze pendulum has swung. The rollercoaster has reached the top and is now catching speed for a free fall.
Stocksmasters projection is now in motion.
Lets not forget this is the time to start identifying bargains.
Ill get interested if the following prices print... Some are dreams
Kplc-14. Kengen- 9 tpse-38. Berg- 30. Kk- 11. etc
By week end I'll try this.This is a good time to learn how demand and supply affects the prices going down.
I have learnt I understand nothing about what is going on so I won't even try.
Someone enlighten me on using supply and demand,and if it can be "depended" upon or, is it open to manipulation!!!
I'm still developing on my system but its helped me identify good entry points this year.Its pretty tasking but I'm planning on automating it.
Concentrate on the demand appetite because that dictates the action. Movements are not made by supply because those are people already locked in the share and are dependent on the demand.
Huge demand is not the thing to watch out for although it is important. The important thing is if the demand is meeting supply at its prices and is generating trades. This shows strong appetite.This will affect supply behaviour because they will start to react to the demand.If they are holding on and not selling shares that's good because they want to milk the demand.
Another thing to watch out for is when a share breaks psychological barriers. Some shares tend to linger for awhile at a certain price.When demand starts meeting the supply at a substantially higher price than the established psychological barrier,that's a strong indication of a good appetite.
You also need to track a share,which is the tasking part. This is so you can get a feel of how the appetite of the share has been then you will notice a change in appetite on both the supply and demand.
The good thing is you can notice both the supply and demand trying to manipulate each other with usually with huge bids/asks at either high/low prices to the normal price.Last advice,don't be afraid to drop your holdings if you feel like something is a miss although this is a strategy for trading not investing.Hope it helps.
Uncertainty is certain.Let go