Stock Market Tips For Beginners

Stock Market Tips For Beginners

Stock Market Tips For Beginners: Best Time To Buy

Updated Feb 2023

The perfect setup does not occur often and when it does one needs to embrace it with gusto regardless of the terrifying picture the experts and mass media outlets will go out of their way to paint.

 Ideal time to Buy Stocks is when the Masses are Panicking

The chart above is of the Dow. The best time to get in is when it is testing its 90SMA or trading slightly below it (as you can see, this does not occur often) and when the MACDs and RSIA are trading in the extreme to insanely oversold ranges, as indicated in the above charts.  The Trend should be positive and as an added bonus, the masses should be nervous, and that’s what took place in 2008-2009: Nov of 2015 and early 2016 and during the Covid Crash. 

While this is the best time to buy a good stock, there are opportune moments in between. Otherwise, we would not have found plays such as VIPS, EDUC, CRON, etc. that yielded gains as high as 110%.

Stock Market Tips For Beginners: More Tips

The best plan for investing is to keep it simple but have the discipline to stick to something that works regardless of the time factor; patience is a virtue that pays very well.   One of the best times to buy stocks is when the masses are panicking, case and point when the stock is crashing.  When the stock market crashes, you will see the above pattern more often and see this pattern manifest itself in some of the top names.

Therefore when the markets start to crash and the experts start to preach their sermons of doom, instead of joining the crowd and heading for the next cliff, start looking for top candidates. Ideally,  one should have created a list of stocks one would love to own before any market correction. The early bird gets the worm the late bird gets the bullet.

Investopedia On Buying stocks

Trading during the first hours of the morning can be unpredictable and volatile due to the market factoring in all news releases since the previous day’s close. Novice traders may want to avoid this time period to avoid severe losses. In contrast, experienced traders often consider the first 15 minutes following the opening bell as prime time for big trades on initial trends.

The period from 9:30 to 10:30 AM EST is often the best hour for day trading, offering big moves in a short time. For those who want to extend their trading time, trading until 11:30 AM EST can also provide opportunities, as many professional day traders stop selling around this time when volatility and volume taper off. After that, trades take longer, and moves are smaller with less volume.  Full Story

 Buy when Blood Flows

Vast amounts of liquidity are already being added to this market, but you have seen nothing yet. Helicopter money is about to become a reality and regardless of the mantra it is different this time, nobody can fight a fed that is determined to unleash the mother of bailout packages.

The Fed is now buying ETFs to support the market, don’t be surprised if they start to buy everything under the sun to help this market. This exercise is going to prove to those that want to improve their understanding of Mass Psychology just how gullible individuals are when you force them to embrace a narrative by making it look like you are helping. Watch the video by Noam Chomsky titled “manufacturing consent”; it’s very easy to find on Youtube.
 Well before this pandemic hit, we stated that the United States would probably run a deficit of 100 trillion dollars before the masses woke up, and at that time, we had not even hit 20 Trillion. We might have been too conservative in our estimates. Massive stimulus programs will be unleashed. Don’t be surprised if a multi-trillion dollar infrastructure program is launched to save the economy and the average joe from destruction.

Stock Market Tips For Beginners Tip 3: Buy The Fear

The crowd is panicking but insiders are loading up on stocks. Who should you listen to? If you don’t know the answer to that question, then you should not be in the stock market.

Vickers’ benchmark NYSE/ASE One-Week Sell/Buy Ratio is 0.33, and the Total one-week reading is 0.35. Insiders are not just buying shares, they are devouring shares. Insiders behaved in a similar fashion in late-December 2018, after stocks crashed on Christmas Eve; in early 2016 when stocks also corrected; and in late 2008/early 2009.


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