New to the game

Gringotts Bank said:

As a dollar cost averaging method, you could just buy every time the standard stochastics cross up from below 50. That would ensure you catch most of the decent dips with hardly any work at all, and should achieve a much better ave price than buying once a week/month. Do this as long as the SP is above the 200EMA, and pause whenever the SP drops below.

Green arrows indicate where you'd be buying.

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FIGJAM said:

I see, so you buy on the downward trend to help save on stock costs. Then when it moves closer to the average and peaks it is worth more. Giving a greater profit % (if you sell at those times).

To understand that better I come back to needing to know how to read and set charts to suit.

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Gringotts Bank said:

This method would only be for the regular accumulation of small amounts of stock, then selling the whole lot 10+ years later. If you want to trade in and out, the stochastics won't make you profitable.

Any charting software will have stochastic indicators, even the free ones your broker offers. It consists of two lines, K% and D%. When they both go below a value of (say) 50, wait for the K line to cross upwards over the D line.
That's all there is to it. Buy at that point. Just an example. There would be more profitable ways of doing it.

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hangseng said:

Oh and I don't sleep much so I had plenty of time to put this info together

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hangseng said:

I am humbled, my first involvement in a sticky

Thank for all of the kind words.

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