Figure 1: PSE Index Chart
Our market did well the previous week. It was able to maintain its upward momentum and push itself higher. I am expecting our market to still continue its movement upward with some probability of market correction/consolidation later in the week as our indicator is indicating a near overbought condition for our market.
epg, with your conservative swing trading strategy, how often do you get whipsawed? 1 out of 10 trades or less?
ReplyDeleteI never get whipsawed because I put my stop loss at area away from market/stock noise. I usually use 5% to 7% below my buying price as area of my stop loss.
ReplyDeleteBy the way, I am not really that conservative. Its just part of my strategy to play the short term movements in price. Usually the price of a certain stock will move sideways 80% of the time with probability of movement around 2% to 5%. There are some stocks which will have a home run move of more than 10% in the short term but the probability is very small. If I have luckily landed on this kind stocks then I will ride it up until its momentum has slowed down or until it has reached my profit target. If you can play the price of a stock repeatedly along this short term boundaries then you will make huge money in the market.
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