“It is not only reasonable to question when it comes to matters of faith, but also responsible. If we are not open to questioning certain beliefs, held by ourselves or by others, whether secular or sacred, then we will be tossed about on the waves of popular opinion, or become potential victims of those wolves in sheep’s clothing who prey on the ignorance of others.” - G.S. West
Our human tendency to consciously make sense of things is both a gift and a burden. The market is down? That’s because of ‘poor manufacturing data from China.’ Gold is down? That’s because ‘demand from India has reached an all-time low.’ I believe that our desire to acquire a sense of reasoning clouds our human faith. Faith, not only in a religious sense, but rather towards the natural occurrence of the market based on human behavior. Sometimes we lose faith that the market will reach the proper equilibrium between buyers and sellers. Our sense of reasoning prevents us from understanding that sometimes the market sells; sometimes it sells for no apparent reason except for the fact that it’s time to profit. Industries as a whole can become bullish strictly because the market decides so. The media does a fantastic job providing reasons for EVERYTHING….
Which is why I love charts. Charts provides clarity between reason and faith. It consist of only 2 things: price and volume. The simplicity behind charts is what makes complicated things easier to understand.
My investment strategy consist primarily on small cap companies. Specifically, I research and analyze companies that I feel have potential value, but are suppressed due to unfavorable market conditions. I also focus on industries that show signs of a cyclical change based on Technical and Fundamental Analysis. I devote the majority of my research to charts. I believe understanding and interpreting charts is key to evaluating buy and sell point signals. I do spend time researching company fundamentals as well, but sometimes if the chart is telling me to buy, fundamentals go out the window. Additionally, I also keep into account news and social media groupthink to help evaluate buy and sell signals, as well as industry trends.
As the weeks progress, I will be posting my chart analysis for various types of small cap stocks that I feel are approaching low-risk entries. I will ONLY post if I find a stock that I feel have potential based on its chart and the research that I’ve done, and if the stock itself is approaching a low-risk entry. So with that being said, I don’t expect myself to post daily. From time, I will also post opinion articles if time allows me. Currently, the site is brand new, so the amount of analysis provided will be low. However, as time progresses, more articles will be available.
Please feel free to email me at firstname.lastname@example.org if you have any questions. Follow me on Stocktwits @charteristics to receive updates on new analysis.