We’ve been busy doing other stuff (e.g. preparing financial statements and income tax returns) but we still managed to finish 2 books about investing for you, guys.
These books are:
- Stock Investing Made Easy
- Winning Strategies for Investing
Both were written by Marvin Germo, a stock market trader, entrepreneur, book author, international speaker, and a personal financial consultant.
The first book I mentioned is interesting but in this blog post, we will just delve on the succeeding aforementioned book.
The book contains valuable techniques that can easily be followed. However, I may not be allowed to disclose too much information about these since I am still requesting for his permission first. Don’t worry, we have the same objective which is to help us all become more financially adept so I am affirmative he will allow us to know more about the subject matter.
Nonetheless there was a checklist in the book which he indicates as his timing and technical analysis checklist and not heavily tackled in his book hence I resolved to understand them myself and share them with you here. Perhaps this is covered in one of his other books.
But before that, I’d like you to know that the DOW Jones has been down recently and it has impacted our market as well. Yet this does not mean that we cannot find good opportunities in this instance. Currently, we are preparing an excel file which shows necessary info about PSE-listed companies and this consolidated info may help us compare companies and find the best deals especially during this season when stock prices are low.
Okay, so the checklist is:
- Short MA
- Long MA
- Ultimate Crossover
- Support and Resistance
- Fibonacci Retracement
MA means Moving Average. It basically means the average of closing prices over a specified period of time. Simply add the closing prices for each day then divide the total with the number of days observed. The length of MA depends on investment objective – short MA for short-term trading and long MA for long-term investing. Widely-followed MAs are 50-day and 200-day MAs.
A Crossover is when the security crosses over the indicator which you have set (perhaps the MA that you have determined beforehand). Crossovers are used as indicator when to buy or sell the shares. As for the “Ultimate” crossover, I have yet to learn this from Marvin’s other books.
Now, Support and Resistance were exhaustively discussed in his book so better yet ask for his permission first.
Trendlines, MACD, DMI, RSI, and Fibonacci Retracement will be discussed in the next blog post.
– Mag, With You Towards Financial Freedom