The goal of the game here is we are trying to find a pattern in the emotions of people. People tend to buy or sell all at once and it comes in waves. Look at a stock graph and you will notice that normally it consists of up/down/up/down/up/down type movements. We are predicting those movements.
It is important to be doing this with a good solid company. I only say this because you want to keep milking this for as long as you can. If a great company has a bad day, it will come back sooner or later. What goes up, must come down. If a great company keeps being successful, it will eventually come back down. We want to keep that up/down movement going. If you pick a bad company, it might tank and then just stay steady for months to years.
Always be on the lookout for a good stock. Watch it daily over the years. How does it do with earnings? Do they guide low on purpose? Does it tend to go with the market? Does it follow any other stocks?
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