Click through image for book link
Click through image for book link

 

Matthew Kratter did a great job in this book explaining a simple strategy for when to buy the dip in your favorite stock. His strategy uses specific settings with Bollinger’s Bands to give you the best risk/reward ratio for your entry. He covers the bases on specific entry signals, position size, your stop loss options, and where to take profits. This was a very clever book that lays out a specific trading strategy that you can add to your trading arsenal. He gives specific parameters on where exactly to buy the dip. This is a reversion to the mean strategy for stocks nearing a level of capitulation of sellers. He also explains the difference in success for doing this in bull markets versus bear markets. Very interesting and thought provoking read that gave me a new filter to look at on stock charts.

Book link: Rubber Band Stocks: A Simple Strategy for Trading Stocks