stocks

What Is Backtesting? Technical analysis (TA) magicians in stock trading look at charts and indicators to forecast if a stock will go up or down. Since they all recognize this is black magic, they “backtest.” Backtesting is merely converting their trade strategies into code, and then looking backwards in time to validate whether or not their strategy works. Example: A trader might have an idea that if a stock exceeds the trailing 20 day’s volume by 15% and has a breakout of 5%, they might place a trade in the same direction to “catch the wave....

FOMO (Fear Of Missing Out) Is Bad For Money You see a stock go up and you want to buy. You buy and it plummets immediately. You tell yourself “I’ll never purchase an asset again based on FOMO,” only to repeat the mistake again a few months later. Conversely, you buy something that’s profitable. You don’t sell because you fear you’ll miss out if the stocks skyrocket. It plummets back below your purchase price and you lose money....