Interesting fact, in America it is called a Russian roller coaster π
In the last post, I touched on one of the possible tactics, how to exit trades correctly, and I would like to reveal my strategy, which allows you to get more profit and significantly reduce the risk in the rally.
The tactic is quite simple and clear - after a deep analysis of the company (everyone determines the depth for himself) and the desire to buy its shares, because in your opinion they should grow by 20% or more in the near future (day, month, year) (and at the same time you do not see objective reasons why the stock may fall) - you buy a share.
As an example, I can give you $SPCE, where I know who the founder is, what the name of the CEO and chairman of the board of directors is, how much and who owns the shares, when they sold or bought shares last time, I know the history of the company and their goals, plans and hopes, I watch their presentations and conference calls for investors, I ask questions. So I invested in my time in $AMZN, $WISH, $LGIH, $RCL, $CCL, and now I'm sitting in $VIPS, $BABA, etc.
Then it would be necessary to set the stops in case of unforeseen circumstances. I usually bet 5% down, but a year ago I closed $TSLA at only 200%, although it could have been 700 if I hadn't come out then (now I just buy more if I'm sure of growth). How did it happen that with plans for 20%, I made 200%?
It's very simple, I don't put a take profit if I feel that there may be a rocket, but at the same time I move the stop loss higher and higher every time, so it's quite easy for most stocks to break even and I don't limit growth.
Everyone can have their own numbers, but now I move the stop loss every 10% increase by -10% from the current price, as soon as the stop loss becomes equal to or greater than the purchase amount.
Example: let's say I bought $RIG, $MSTR or $ALRS shares for $ 1000, they rose to $ 1200 (+20%), I put a stop at 1080 (-10% of the current price - a minimum profit of 8%), and then along the ladder, with an increase to $ 1500 (+50%), stop at 1350 (-10% of the current price - a minimum profit of 35%)
β There is almost no risk of such a strategy, but this is not an investment recommendation, always think for yourself.
Tell us in the comments what you would be interested in learning about in the future. Have a good evening, everyone.! picture from the internet - ttps://financial-news24.ru/wp-content/uploads/2019/05/analitycs_27_11_18_mar_f_1.jpg
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