Look at the huge transaction day and wide price range as shown by the enormous volume bar
denoted by the black arrow.
Usually, the stock will be subjected to profit taking. As such, I need to know if the selling pressure
is strong enough to digest all the profits made in a day.
Using the high transacted day price as reference, obtain the Pivot Level for that day. As shown in
the chart, the Pivot Level is $1.20, therefore this value becomes the new profit protect level from
now.
As long as price continues to trade above $1.20 and above, I will continue to hold on to the stock until this level is breached or a new profit protect level is set after the price moves much higher.
In this way, I can secure some profits if the price starts to tumble below the Pivot Level.
The reason why many fails to survive in trading is due to lack of Money Management System which needs not to be complicated. You need to know when to sell or buy, when to cut loss or take profit.
Never be greedy to make another cent. When I sell, I choose to sell to the Ready Buyers and when
I buy, I choose to buy from the Ready Sellers and close my notebook to do my job as an employed
IT Engineer.
You need not stick to watch the stock price ticking real time, that will definitely kill you as a newbie.
I did that for nine solid months full time in 2003, great profits but intense stress and I hate to stress
myself while making money.
Trading should be fun and easy to do like watching a movie and indeed after years of improvising new
trading strategy, I develop this current trading system that can provide me with portfolio income while
working on earned income.
I can be reached at failureisnotachoice@gmail.com if you want to share your trading skills.
Thank you for reading again!
