Don’t buy stocks after a strong rally – here’s why
03 Nov 2022
Don’t buy stocks after a strong rally – here’s why. The reason is that the markets are governed by the forces of supply and demand, whether we like it or not. These forces move the threads in the background, creating strong market price action. In this video market analysis, I will go over why you should not buy after a strong rally on stocks, Forex, Futures or cryptos.
You are probably trading the daily timeframe or even taking short-term and intraday positions on stocks, Forex and cryptos.
- Stop chasing trades.
- A strong move should make you stop trading.
- Take profits will usually start to happen.
- No need for any indicators to do this.
- Use logic and common sense.
- Supply and demand govern the markets.
Supply and Demand Strategy
You are probably trading the daily timeframe or taking short-term and intraday positions on stocks, Forex and cryptos. You will not know whether you are trading against a bigger timeframe obstacle when using the smaller timeframes. This is one of the most common mistakes the typical trader will make. The video goes more in-depth over several trading scenarios and what you should do to increase your odds of success.
How to Use a Supply and Demand Trading Strategy
As supply and demand traders, we do not need to pay attention to fundamental analysis. Unless you are doing very short-term trading and scalping, you should not worry about fundamentals for stocks and ETFs.
Trading is just waiting for the right trigger points and scenarios to present themselves, this game has a name, and it’s called the waiting game. We must patiently wait for the correct scenarios and setups to happen and for the price to pull back or dip into the price levels we want to trade. These price levels are made of supply and demand imbalances in our case. You can use these imbalances to plan your trades in lower timeframes.
Join our supply and demand online trading academy If you want to learn how to trade stocks using our supply and demand trading strategy.
Trade Idea and Analysis for USD/CNH Forex Cross Pair
August 17, 2023
Trade Idea and Analysis for ZAR/JPY Forex Cross Pair
August 9, 2023
© 2013 – 2023
Set and Forget S.L
All Rights Reserved.
Follow Us
Disclaimer
Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Set and Forget, its employees, or fellow members. Futures, options, and spot currency and stocks trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Forex and futures markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell spot Forex, cfd's, stocks or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in Forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.