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This is how you determine the optimal starting point

Not only recognizing the trend, i.e. the direction of development, is crucial to trading successfully on the stock exchange. Finding the perfect entry point is just as important. The right timing for long trend movements of several months up to years usually offers scope for minor course corrections if the timing is not optimal. Making investment decisions based on short-term market movements that happen over a period of weeks, days or even within a day (intraday) is more of a challenge. For many investors, clear rules for determining the right timing have proven successful.

wikifolio trader Carsten Schorn aka “Abbakus” is a bank employee and day trader with a passion. As a qualified computer scientist with a focus on business administration, stock exchange and automated trading systems, he pursues a very systematic approach with clear rules, in which trading is only carried out when the corresponding signals and indicators work.

The ideal time to start

The best possible entry point is clearly when a stock is about to soar. For Carsten Schorn, the decision to open a position depends on several components. Basic indicators can be company reports (good company figures, takeovers, special dividends, squeeze-outs, the entry of a major shareholder) or high turnover of the respective value on the stock market, which far exceeds the average daily turnover. These are usually signs that either a trend is emerging and many market participants have the same idea or that a single larger force is stepping in.

The tough nut to crack: the exit point

The aim when selling a share is to realize the maximum possible profit or to limit losses as quickly as possible. Often, especially when selling stocks, one tends to be guided by emotions. It is sold too quickly or held on to the stock for too long. As with a purchase, the decision to sell should be preceded by a careful analysis process, which should include the same factors as those used to determine when to start. A stock market wisdom sums up the process: sell a share as soon as you would no longer buy it.

This is how Carsten Schorn determines the right time

As soon as Carsten Schorn notices the first signs of a trend reversal, he checks further indicators in order to make his trading decision for or against buying or selling a certain share. This includes, for example, the general market development, current news about the company, fundamental key figures such as equity and a technical chart analysis with regard to the potential of the share.

In addition, the time is also one of the deciding factors for Carsten Schorn. As a day trader, Carsten Schorn gets an idea of ​​whether a stock that has fallen has time to recover on the same day or whether it can hold current profits until the end of the day.

In his career as a trader, Carsten Schorn has repeatedly demonstrated that, in addition to the “hard” indicators or facts and good timing, market feeling and experience count. His tip to investors: “With a fundamental affinity for the stock market and regular trading, you can improve relatively quickly in this area. However, one should always keep in mind that the stock market is unpredictable to a certain extent. There is no simple rule for entering and exiting, which must always be applied in the same way. “

Look over Carsten Schorn’s shoulder!

Look over Carsten Schorn’s shoulder and see for yourself how he works with great sensitivity on the right market timing in his wikifolio “Abacus”.

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