My Trading Plan.
I am buying this stock around $0.715 to $0.730, because an important change has occurred from a mixed outlook to CLEAR positive prospect. The moment these changes occur are normally the moments to trade and invest.This sudden change makes a very strong acceleration imminent. I am anticipating it likely will test $0.775 and I will scale in more when the resistance broken convincingly with volume . because this is a very positive signal! which were 4 consecutive wave degrees show a clear POSITIVE trend, it also indicates that the target has not yet been reached. More and more wave degrees showing a positive trend increases the probability of strong acceleration!
This signal applies to long term investors for price moves of possibly 30% or more, since Primary, Intermediate and Minor Wave degrees are all up. The most certain price target is the target of the Minor wave degree, which is in wave 2, at 0.900 or percentage wise 20.01%.
I will lock partial profit and raise up my trailing stop along the resistance line and full profit at my target. I will stop loss if < $0.690.
Note: Observed price well supported above $0.690. which may indicator investors are collecting when it reach this level. FA analysis show this stock is worth of $0.980
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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