Monday, May 23, 2016

Bison(5275): Wave 3 bull rally was resume ! I am anticipating the new high is on the way of making ...

Trading plan.
I am bought in this stock because of  wave 3 breakout happen on 17/5/2016 with volume, immediate support found at $1.35 on recently correction. Technical perspective, this stock is ready to break $1.48 and make new high to reach $1.59 in near term and $1.89 in med term, which is fibo extension 161.8% and 261.8% respectively. Any weakness toward $1.35 is offer opportunity to collect this stock.I will scale in more when break $1.48, I will stop loss if end of day close below $1.29.



Trading Challenge
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.

DISCLAIMER:
Stock analysis and comments presented on klseelwavetrading.blogspot.com are solely for education purpose only. They do not represent the opinions of klseelwavetrading.blogspot.com on whether to buy, sell or hold shares of a particular stock.
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