The Magical 50 Day Line

So, all of your stock picking schemes trying to trade stock have ended in shambles. You have no idea when to buy and when to sell. The stockmarket is up but your way down. We need to get down to the basics of the stockmarket and how to pick a good stock.
The best way to help you to buy a stock is to see patterns and this involves using charts. One of the most basic tools on a chart is its 10 week line or also known as the 50 day moving average. The line is calculated by taking the last 50 days of the stocks closing prices adding them up and dividing buy 50. Bingo you got your line.
Now we know what the line is when your looking at a stock the one thing you want to look at is the trend, is it up or down. Now the good companies that have strong fundamentals will generally show really strong up-trends in a bull market and will still be fairly strong in a bear market. The key is again the fundamentals. Once you have determined it is a good company lets look for out entrance into the stock using the 50 day moving average as a guide.
Monsanto an agriculture company has been on a dramatic climb since the end of 06’ it had strong fundamentals.