Buying Stocks Blindly - Marvin Germo

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Buying Stocks Blindly

Buying Stocks Blindly

By: Marvin Germo | April 11, 2017

“Hi Mr. Germo,

I am writing to you today because I have lost so much money buying FGEN. I was told to just keep on buying it and to add to it every time that I had money. Now I am down and frustrated, I know it’s my fault too because I did not study and I just bought based on what other people told me. 

I was recommend to you from a lot of well meaning friends, that you give an unbiased approach to your analysis. I love how you teach people how to earn and giving them the reason behind why stocks should be bought or sold.

I would just like to ask for your take on the stock from a technical analysis point of view. I have learned my lesson the hard way and I will study technical analysis soon.

Thank you.”

Anna Rachel C.

Buying Stocks Blindly

Catch me in my live training events! (quick plug)

The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.

Hi Anna Rachel! Thank you so much for the trust. I do what I do because I love it and because I know that there is an enormous need in our country to help Filipino gain the confidence to invest. I will never stop and I will just continue to move forward until every Filipino moves from consumer to investor.

Creating Your Own Conviction

I agree to what you say, that it’s time that you study the stock market and that you know what you are getting into. I always tell my private clients that in any investment that they would focus on it is very imperative that they study it very well before they come in. There are risks to each investment and if you buy without having a solid foundation it would cause you to be swayed when volatility would come there way. What I say to them, I also say to you. Study, learn and build your conviction in the stock market. You can never go wrong when you invest in yourself. There are no shortcuts to success and wealth.

My take on FGEN

The stock is still bearish for the long term. That’s why it really hasn’t taken off. The charts area saying that there is a strong resistance at 23.25, that it has to break that level first before it can actually reverse and start trending higher.

On a mid term perspective, the stock is consolidating and it has formed a tradable range from 21 to 22.9. For those who are trading that range you could buy at 21 and take profits close to 22.9, that represent a 8.5% gain in your trade should you trade it properly.

FGEN avoid stock

What if the bears take over?

To balance everything out, should sellers take control and the stock would breakdown from 21, a possible retracement would lead the stock down to 19.4 as its initial support. If that support level does not hold the stock could go lower to 17.6. Should a breakdown happen, the stock now moves out of the consolidation will will proceed into a larger downtrend.

I hope this helps you

I hope this helps you Anna Rachel and I hope this gives you a perspective on where the stock is. I would like to end this post to encourage you that regardless if your stock is up or down, you must not rely on your emotions to make the trade. You must use a set of parameters using both technical and fundamental analysis to be your guide in making the trade. God bless you and I hope the next 8 months of the year work well for you!

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
For more details and to order my other books: Marvin Germo Book Orders
Stock Smarts Book