Preferred Strategy, watch only a basket of a few selected stocks
Personal Trading Strategy (Be patience to take advantage only when opportunity arises.)
1) Pick up any 3 to 5 stocks that you like to trade.. Can be any stocks that you
are familiar with. E.g. Cisco, Dell Inc, F5, Fireeye, Pure Storage, Citibank, Tesla,
Apple, Microsoft.
Taking F5 as the stock in the watchlist bucket as an example.
2) Open the chart in C2chart and apply the template “11”.
3) Next, change to weekly chart and take note of recent low point from the upper
chart screen.
4) Check on the middle screen to highlight the lowest point of the moving averages
in sync with the Upper price chart
5) Next using oversold and overbought indicator, identify that the stock has recently
below the overbought level “20” line
6) Remember the area with circles as shown, write down the dates. 1st low on
16/3/2020, 2nd low on 21/9/2020.
7) Go back to daily chart, and look at the price during 16/3 and 21/9.
8) As can see that when go to daily chart to look at the two marked dates from
weekly chart.
We can see that the Price is still trading lower, similarly, if you look at the MA
and Stochastics indicators, both are still pointing to lower Space meaning the
downside move has not yet finished business.
9) In order to have high accuracy entry, watch the stock daily, look out for price
to start to move up and closed positive, watch the two indicators and look out
for bullish cross-over as shown that they happened on 19/03/2020, three days
ago from the rock bottom level.
This is the day that I will take this trade. The cutloss will be place on previous
bar low.
When you trade at the bottom level, you are taking a lower risk then you chase
the stock after it has risen in price.
10) Similarly for 21/9/2020, the indicators and price are still heading down…
Therefore you need to check the stock price everyday until you start to see
that the price begins to move up and the indicators crossover start to appear.
This only happen on 28/09/2020, where you can take a trade to the upside of
the market.
11) Do not rush to buy with all the cash you have. If you decide to buy 10lots for
this trade.
Initial entry is risky as we do not know where the stock price will close higher
or lower from our entry level. Therefore 1st entry will be 20% or 2 lots.
Subsequently as price starts o move away to breakeven level, more the cutloss
level to breakeven so that if the stock is still weak, you can exit without major
losses.
12) As the stock moves away from the breakeven level, watch out for the indicators
crossover as the price head higher, this allow you to average up the stock by
accumulating more lots as the price starts to trend further up.