I like to fancy myself as purely a fundamental trader. However, if I'm honest with myself, I probably use fundamental ratios to get me started, and I tend to time the market for the actual buy and sell points. Luckily, I seem to have a knack for "timing" the market since identifying patterns comes so easily for me. Numbers make it that much easier for me.
Don't get me wrong. Using "play" money, I've made mistakes. (Luckily for me, I haven't made too many mistakes with real money so far.)
Last week, I had just a little bit of money in my broker's account. So I decided to buy a speculative stock, which I've been watching for nearly a year now. I decided to use the RSI and Slow Stochastic indicators. Both of them told me it was probably time to buy Enova (ENA) @ $1.48/share. My pattern watching told me that this might not be THE lowest price, but at the time I bought it I figured that its price was closer to its near-term bottom than its top.
I'll keep you posted on how I do with this. Even if I win, I didn't invest/gamble enough for it to change my life. The good news is that if I lose, my life will be unaffected, still.
I want to keep track of this so I can get some practice using technical indicators.
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