What is a Sideways Price?

 

Many of the Rule #1 investors want to know what is a “Sideways price”?.  Phil Town explains that it means the price is not going over its previous day’s price for several days in a row.  And that can also include a stock price that is dropping day by day.

Basically what’s going on when the price is not pushing upwards is that the big guy investors are unwilling to go over that price.  They are basically saying, “Enough is enough, I ain’t paying no more.”  And at the same time, every time the price starts to go up, some eager beaver big guy seller is dumping some of his stock and getting out of that position.

Phil Town’s RULE #1 investors need to remember that tons of trades are done with computer programs, and that a big guy investor needs to execute 20,000 trades to buy up or sell off everything he wants to buy or sell.  All that trading and investing has limits.  And when the limits are met, the price, she don’t go nowhere.

By itself, “sideways price” doesn’t mean that the price is going to go down tomorrow.  The  sideways price looks downright ominous for the short term for RULE #1 investors.

Phil Town wants to warn you about this way of using the investing tools, if you didn’t find out already.  Things can change in a hurry, and you will sometimes find yourself having to jump back in to an investment.  So there is art involved here, and that’s why I want you to play with this stuff as much as you can before using real money… So you don’t miss out on gains and you don’t get caught like a deer in the headlights while your stunning investment that is supposed to be on sale drops another fifty percent of its current price!

You can stay ignorant of Rule #1 investing but I want to teach you and train you to become a Rule #1 investor.

 

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Tags: phil town, phil town investing