Saturday, 3 December 2016

Compete with the kings

How to Compete with the big ones

It's easy, in rugby there is a saying: Tackle the biggest player by the ankle and he comes to ground.


So what we needs to do, is buying stocks at the ankles.  Searching for stocks, trading at their support levels and buy them at the support.  If the support is not holding the stock price up and it goes down lower, the tackler needs to release and getting up.  Otherwise he will pay with a penalty.  Put up some defense just below the support line and make use of a stop loss setting. Your goal, once you have bought into the stock, is to get to the other end of the playing field, back at previous resistance levels.  This will then be your target and profit taking area.


Once the support level is defined, you can start buying stock and hold it until it gets at previous resistance levels.  This is then the profit taking area, time to get out.  If you are a swing trader, switch your position to a short.  Continue riding the waves until it becomes invalid.  This trading range offered by the stock price action of MTN was a wealthy 20%.


Currently these stocks are rang bounding and might return some opportunities:



Looking at Shoprite's trading range we will noticed that the price is attempting to re-test support level and will give some buying opportunity, with a 10% target if the price returns to the resistance level.


Trade with caution as the markets are very unstable and uncertain.
@Duplo123 or join us on Skype

No comments:

Post a Comment