More important, there are stocks with different type price trends need to be analyzed (see Fig. 6.1.4, Fig. 6.1.5 and Fig. 6.1.6). Figure .. and Shape Price Trend “U” “N” From the Figure 6.1.4, we can see that the price trend over a week has a few and “U” “N” shaped curves. The stocks with this type of price trend is preferred because it creates high price difference which means high profit, and within a day, the stock prices are relatively stable. However, high profits come with high risks. Figure .. Increasing Price Trend The Figure 6.1.5 shows an increasing price trend, investing on stocks with this type of price trend will promise profit but not high profit. It is preferred for beginning investors. Figure .. Decreasing Price Trend The Figure 6.1.6 shows a decreasing price trend, investing on stocks with this type of price trend will definitely causes loss. Therefore, the stocks with decreasing price trend should be sold as earlier as possible to avoid continuous losses. The last thing we learned from our simulation is that the first half of the week has high possibility to earn, and the second half of the week has high possibility to loss. Therefore, we trade more in beginning of each week and trade less in the end. Also, trading less stocks with more shares is another good practice to earn profits.
More important, there are stocks with different type price trends need to be analyzed (see Fig. 6.1.4, Fig. 6.1.5 and Fig. 6.1.6). Figure .. “U” and “N” Shape Price Trend From the Figure 6.1.4, we can see that the price trend over a week has a few “U” and “N” shaped curves. The stocks with this type of price trend is preferred because it creates high price difference which means high profit, and within a day, the stock prices are relatively stable. However, high profits come with high risks. Figure .. Increasing Price Trend The Figure 6.1.5 shows an increasing price trend, investing on stocks with this type of price trend will promise profit but not high profit. It is preferred for beginning investors. Figure .. Decreasing Price Trend The Figure 6.1.6 shows a decreasing price trend, investing on stocks with this type of price trend will definitely causes loss. Therefore, the stocks with decreasing price trend should be sold as earlier as possible to avoid continuous losses. The last thing we learned from our simulation is that the first half of the week has high possibility to earn, and the second half of the week has high possibility to loss. Therefore, we trade more in beginning of each week and trade less in the end. Also, trading less stocks with more shares is another good practice to earn profits.