Ok, so I’m a complete newbie and very much still finding my feet. Before I invested anything I did a little bit of reading and watching YouTube vids on various aspects of trading (paper trading alongside). I decided to use a more technical analysis approach rather than a fundamental. Obviously having massive amounts yet to learn, and having my first small deposit burning a hole in my Freetrade account, I picked a stock that I thought may have a bit of potential.
I set out my support and resistance levels, checked the RSI and the moving averages etc and decided it was a good time to buy. I purchased 66 shares @£4.94 and waited for the roof to be lifted in front of my very eyes. Obviously that hasn’t happened and the price fell through any and all lines I had drawn on my charts, leaving me with my first small taste of the reality of trading. I’ve only been in the position for a few days so I’m not needing new underwear just yet.
Having watched the price fall I wondered if it wood (pardon the pun) be a good idea to buy a few more shares, now @£4.46 to bring my average cost down. I still have faith in my novice lines on the chart, hoping that the price will rise from the basement, which is where it appears to be.
I’ve attempted a bit of fundamental analysis to understand the continued drop (reading broker reports etc) but my novice ££ filled eyes have yet to spot anything to scare me off and run for the hills. My question is, in similar situations what or where would you more experienced traders turn to for a bit of a pointer as what to do next?
Granted it’s a small position and I’ve only been in it for a few days or so, but I’m sure similar situations have been experienced by regular traders. So what wood (can’t resist) you guys do?
Apologies for the essay and thanks in advance!