from a Finance Manila reader this morning ...
question:
Hi Sir Shoyu
Am a long term here (ACR) . But buys when I think price is
cheap. But using technique as a short term trend follower I entered @
1.45 when MACD is higher at 0.01. I added again April 21 @ 1.53 when
MACD is .02. Am I doing the right thing?
My long term holdings with ACR average 1.25
TIA
my reply:
a
short term trend follower follows the cycle of the stock price ....
when the macd is below the 0 - horizontal and it is going up na (as well
as the price ) you start buying ... then sell when the price is lower
(cutloss) or when it hits your trailing stops (when the price is higher
which means profit ka ) ... one cycle lang .... buy low .. sell high ...
if you are a long term trader ... you wont mind the cycles .. basta buy ka lang ng buy ...
so either short term trend follower ka .. or a buy and hold long term trader .... you cant be both ...
if
you want to be both ... make a distinction .. two positions ... one is
for short term trend following ... one is for long term position trading
... then trade them separately ... wag paghaluin ...
when using
the macd .. i dont look at the numbers ... just look at the positions of
the lines .. if the macd HISTOGRAM is below the 0 - horizontal and is
rising (as well as the price) .. yun .. start buying ako ... walang
number numbers ...
ask lang if may tanong ka pa ...
good luck!