How to determine the optimal starting point
Not only the trend, i.e. the direction of development, is crucial to successfully act on the stock exchange. The perfect entry time is at least as important. The right timing with long trend movements from several months to years usually offers scope for smaller course corrections if the time has not been optimally hit. Making investment decisions based on short -term market movements that happen in the period of weeks, days or even within a day (intraday) is a greater challenge. For many investors, clear rules to determine the right timing have proven themselves.
Wikifolio-Trader Carsten Schorn Aka “Abbakus” is a passionate of the bank and daytrader. As a studied computer scientist with a focus on business management, stock exchange and automated trading systems, he pursues a very systematic approach with clear rules, in which it is only traded if the corresponding signals and indicators are excluded.
The optimal starting point
The best possible starting point is clear when a share is currently on a high -altitude flight. For Carsten Schorn, the decision to open a position depends on several components. Basic indicators can be company reports (good corporate figures, takeovers, special dividends, squeeze-outs, the entry of a major shareholder) or high sales of the respective value on the stock market, which far exceed the average daily turnover. These are mostly signs that either a trend is created and many market participants have the same idea or that a single greater force gets.
The hard nut: the time of exit
The aim when selling a share is to implement the maximum possible profit or to limit losses as quickly as possible. Often you tend to be guided by emotions when selling shares. It is sold prematurely or held on the stock for too long. As with the purchase, the sales decision should have been a careful analysis process, which should include the same factors as to determine the starting point. A stock exchange wisdom sums up the procedure: sell a share as soon as you would no longer buy it.
This is how Carsten Schorn determines the right time
As soon as Carsten Schorn perceives the first signs of a trend reversal, he checks further indicators to make his trading decision for or against buying or selling a determination. This includes, for example, the general market development, current news about the company, fundamental key figures, such as equity and a chart -technical analysis with regard to the potential of the stock.
In addition, Carsten Schorn is also one of the decision factors. As a DayTrader, Carsten Schorn gets an idea of whether a fallen share on the same day still has time to recover or whether she can keep current profits until the end of the day.
In his career as a trader, Carsten Schorn has repeatedly demonstrated that in addition to the “hard” indicators or facts and good timing. His tip to investors: “With a fundamental Afraid of the stock exchange and regular action, you can improve relatively quickly in this area. Nevertheless, you should always keep in mind that stock exchange is unpredictable. A simple rule for entrances and exits that are always used immediately.”
Look over Carsten Schorn over his shoulder!
Look at Carsten Schorn over his shoulder, and see for yourself how he with a lot of tact at the right market timing in his Wikifolio “Abacus” works.