Stock Market Fear And Volatility Factor(4)

If nothing has changed in variables that determine future outlook and demand from the past during a market uptrend, your stock may be on sale.

You must look at the technicals as well.

At this point they most likely are broken down. A new down trend is most likely developing.

At this point you should look at past support areas and if the downtrend is broken at these areas of support this may be a good entry point.

We are not suggesting to pick bottoms, but to deploy capital on the way down in the extreme oversold conditions.

If you are a more advance trader options work well in these setups to reduce risk.


Bottom line, in the end supply & demand determines a stock's price, not fear.

It takes time to develop the skill to control your fear and in time you will improve this skill.

This important factor of fear will play a part in the determination in one success in the markets.



By Justin Blasi