Share this page!
Business owner - Trader Trading the U.S Markets for 12 years Follow this account to learn how to Trade Stocks for income 📊 Tweets are not financial advice!
Add to My Authors
29 Apr 20
How to gauge risk for a complete newbie:
If you've hesitating, second guessing or wondering where it is a good price to enter a stock while keeping risk low ect.. .
Here is a simple method you can use to gauge risk.
I will keep it very simple, so lets go!
First thing is first, make the 20sma and the 200sma (simple moving average) your friend.
What a moving average does, it simply smooths out the direction of price over the last 200 candles or 20 candles on a chart:
It is as simple as that
To keep this simple, we'll be using the 20sma (pink)
keep this in mind: Price will always return to its moving average, whether through price or time.
Using $SDC as an example, anytime price has moved away from it's 20, it eventually magnets back to the 20 sma
Read 9 tweets