My friends always ask me, "When should I buy?"
Instead of trying to guess the bottom, look for signs of a trend change on higher time frames—don’t just chase one good day in the market.
What should you be looking at?
- Is the MACD curling up?
- Have we broken a downtrend line?
- Are we above key moving averages?
- When is earnings?
Looking at price action, these are the questions you need to ask yourself.
Let’s take $SMCI as an example. The earnings reaction was lower, compounded by a weak overall market.
Do I own $SMCI? Yes, I added around $300 and have reduced my position 4x, so I’m comfortable holding a runner position now. But what if you didn't add last year?
If you missed the earlier move, this might look like a good buy opportunity for the long term.
