Trading Diary, page-17

What is the 'perfect' buy?

The perfect trade is one where the price will not reasonably retrace anytime soon. It is a trade where we could set and even forget for a time, knowing that the prices will not retrace to that price in the short term. It is the ultimate 'buy low' trade.

Conceptually, this is easy:

Understandably, this is hard. However, from this simple concept, we now know that we need to find stocks/instruments with the following attributes:
* Strongly trending
* Low deviation from moving average for where we need to buy them

I will discuss this in each of my sub-diaries and explain what this will mean in each of the timeframes.