This is how you determine the optimal entry point
Not only recognizing the trend, i.e. the direction of development, is crucial to successfully trading on the stock exchange. Finding the perfect entry point is at least as important. The right timing for long trend movements from several months to years usually offers scope for minor course corrections if the timing is not optimal. Making investment decisions based on short-term market movements that take place over weeks, days or even within a day (intraday) is a bigger challenge. Clear rules for determining the right timing have proven their worth for many investors.
wikifolio trader Carsten Schorn aka “Abbakus” is a bank employee and day trader with a passion. As a computer scientist with a focus on business administration, stock exchange and automated trading systems, he follows a very systematic approach with clear rules, in which action is only taken when the appropriate signals and indicators deflect.
The optimal time to get started
The best possible entry point is clearly when a stock is about to soar. For Carsten Schorn, the decision to open a position depends on several components. Basic indicators can be company reports (good company figures, takeovers, special dividends, squeeze-outs, the entry of a major shareholder) or high turnover of the respective value on the stock market that far exceeds the average daily turnover. These are usually signs that either a trend is emerging and many market participants have the same idea, or that a single major force is getting on.
The tough nut: the exit time
The goal when selling a share is to realize the maximum possible profit or to limit losses as quickly as possible. Often, when selling stocks, you tend to be led by emotions. It is sold prematurely or the stock is held too long. As with the purchase, the sales decision should have been preceded by a careful analysis process that should include the same factors as to determine when to start. An exchange wisdom sums up the procedure: Sell a stock as soon as you would no longer buy it.
This is how Carsten Schorn determines the right time
As soon as Carsten Schorn sees the first signs of a turnaround, he examines further indicators to make his trading decision for or against buying or selling a particular share. These include, for example, the general market development, current company news, fundamental key figures such as equity and a technical chart analysis with regard to the potential of the share.
At Carsten Schorn, the time is also a decisive factor. As a day trader, Carsten Schorn gets an idea of whether a fallen share still has time to recover on the same day or whether it can hold current profits until the end of the day.
In his career as a trader, Carsten Schorn has repeatedly proven that, in addition to the “hard” indicators or facts and good timing, market feeling and experience also count. His tip to investors: “With a basic stock exchange affinity and regular trading, you can improve relatively quickly in this area. Nevertheless, you should always keep in mind that the stock market is to a certain extent unpredictable. There is no simple rule for getting in and out that is always the same. ”
Look over Carsten Schorn’s shoulder!
Look over Carsten Schorn’s shoulder and see for yourself how he works with great sensitivity on the right market timing in his wikifolio “Abacus”.