Safest Buy Level
Where is the safest, or best risk:reward ratio place to buy that also encompasses the characteristics of a trade that will quickly resolve in one direction or the other? Well for the me the safest place to buy is in the long flat base that occurred from August through early December(see the chart above). It is safest because we can be assured if the rally begins we are at a very low buy level. We can also place our stop below the base. Our risk:reward is extremely favorable.
What is the downside? You have dead capital sitting in a trade for who knows how long. I had dead capital sitting in this name for an extremely long time. Looking back on it, what that the best move? As I am always looking to improve, I would have to say no that was not necessarily the best way to play this.
Disclaimer
The advice provided on this website is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. Where quoted, past performance is not indicative of future performance.
SpeculateFreedom.com disclaim all and any guarantees, undertakings and warranties, expressed or implied, and shall not be liable for any loss or damage whatsoever (including human or computer error, negligent or otherwise, or incidental or consequential loss or damage) arising out of or in connection with any use or reliance on the information or advice on this site. The user must accept sole responsibility associated with the use of the material on this site, irrespective of the purpose for which such use or results are applied. The information on this website is no substitute for financial advice.