Stock Analysis – What To Look For

As always take my advice at your own risk. I am not responsible be the outcome of your endeavors positive or negative. First here are the references so you know what I’m talking about.

The definition of Murphy’s Law is: “Anything that can go wrong will go wrong” See detailed explanation in link below.

https://en.wikipedia.org/wiki/Murphy%27s_law

Now for the meat and potatoes. I made money off the stock below and here’s how I did it. Study the example below it for future reference. Hopefully this information will make you money as well.

I want to emphasize this is not a hindsight analysis. I actually thought about these things in real time. It’s also what you need to think about in real time if you want to follow this as a blueprint. Also the numbers in the picture above refer to the peaks and valleys of the stock. They are also circled for convenience.

#1 – low point – extremely important data – expect Murphy’s law. I mean the stock will probably go this low again.
#2 – High point – extremely important data – expect Murphy’s law. I mean the stock will probably never go higher than this.
#3 – suckers bought in during this bump. They didn’t take Murphy’s law into consideration.
#4 – this was a good point to buy in – but stocks are unpredictable.
#5 – This is where I bought in.
#6 – This is where the suckers from point 3 made panic sells I assume.
#7 – Presentation from the business starts.
#8 – This is where I sold. Remember my tip? Never expect double plateaus.
#9 – This was the true peak. Even though many people held their stock and made money I think that was the wrong decision. After point 9 suckers late to the game lost money.

I took a risk waiting from point 5 to point 7. That’s part of the game and I won. For the first two points I was collecting data. Knowledge is power. Use all information to your advantage.