Sunday, January 31, 2016
Monday, January 25, 2016
Executive SummaryWeekly chart formed flat pole(1) and follow by two week correction, It's bottom was found at $2.10 on recent correction which is supported by strong evident of hammer candle (2) formed on last week. I am anticipated correction should end as we can see the correction chart pattern(one hour) double Zig Zag and correction down channel was break out away from the down trend line(3), on top of that daily chart showed morning star(4) formation as well, it is a indication of reversal sign.
I am anticipate it will break immediate resistance at $2.30 and heading to test $2.50. It is high possibility prices will reach $2.80 and $3.60 in med term after (5)wave 3 is confirm which is price go beyond $2.50.
My Trade Plan.I will scale in once prices break $2.30 and apply trailing stop along the way to my short term target of $2.50 and med term target of $2.80/$3.60 and long term of $4.90. If any weakness toward $2.10 is offer opportunity for me to collect, I will stop loss below $1.95.
(1) Flag Pole Formed in weekly chart
(2) Hammer Candle in Weekly Chart
(3)Double Ziz Zag in H1 chart and breakaway from the channel
(5) wave 3 is most strongest and longest in Elliott wave theory
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Many people committed to buy stock is very easy, when come to profit taking and cut loss is one of the most difficult part in trading world, talking about profit taking is dealing with greed and stop loss is dealing with fear, cutting loss is a must in trading world because it stopping my capital continue to loss, in order to stay alive in trading world... it is a must !!! it is not an option, else I suggest you get out of the trading and you are not suitable.
I wanted to used simple example to share on the cut loss ... you bought an egg and prepare to used it for fry rice, some how you notice/suspect the eggs you pick was/may turn bad.... the question now is shall out throw/scrap the bad one and pick another .... or nevermind bet or hope the suspicious "bad" egg will be good and risk the good rice which is ready to cook ? you make the call... I am believed in order to win I got to know how to prevent I am loss in the market... if I notice I am wrong... I got to admit and cut the loss and make a next move.
As a reminder for myself
I am always remind myself If the trend is go again me and violated my SL limit, I will cut loss base on the risk preference.
Stop Loss is painful process because I making loss, but it is necessary to take it, it is very important because it protect my capital to ensure I am stay in the market.
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