Category: risk reward ratio
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Chart of the day: ARAY
Today’s chart of the day is medical devices maker ARAY. The stock has pulled back to the 50 dma after a strong uptrend and is now oversold. This setup offers great reward to risk with a target near $10, entry around $9 and a stop around $8.75.Subscribe to The Market…
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Example of a Winning Trade and Smart Risk Management: SHAK
We have been talking a lot about risk management and how it relates to being a successful trader. In fact, three of the first five trading quotes in the 100 trading quotes series related to risk management. This should clue you in on how important I believe risk management is…
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100 Trading Quotes To Put Into Action And Change Your Life: Machiavelli On Risk Management
The greatest boxer of our time can’t punch worth a lick. So why is Floyd Mayweather one of the greatest boxers of all time? It is because he is a defensive prodigy. He protects himself. The man is a risk management wizard. Even the most aggressive leaders understand that you…
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Recent Trade: GMCR
Yesterday I entered GMCR off a breakout-pullback setup at $93.44. Stop is under support and the target is the recent high around $98. This gives me a 3:1 reward to risk ratio.
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Today’s Entry: DIG
I entered DIG today. The stock has broke out over a W formation and the 50 day moving average. Another positive is the positive RSI divergence. An entry here around $34.80, with a stop at $33.80 (under suppport) and target at the old high around $38 offers a nice 3:1…
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Trade Entry: AMZN
I entered AMZN based on 1) the oversold stochastic reading and 2) pullback to the 50 day moving average. There is not credible chart pattern, but risk is low and the two elements listed give a slight edge. Stop is below the moving average, around $129. The intital target is…
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Today’s Trade: POT
I entered POT today on pullback. My stop is at $109 and target $117, giving me a 2:1 risk ratio.
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APOL Offers a Low Risk Setup
APOL has a weird, volatile pattern, but still offers a low risk setup off a breakout-pullback. An entry here at $71, with a stop under the moving average at $69.60 and a target at $74, offers a 2:1 reward to risk ratio. CPLA, another education stock, has a similar setup.
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Low Risk AMZN Short
AMZN has been a great “extremes” trade (stochastics 90+ and extended price) for the past few months, both as a long and short. The stock is again extended, and offers a low risk short opportunity. Entry here with a tight stop offers a favorable a reward to risk ratio. Allow…
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AIG is a Great Low Risk Setup
AIG’s volume pattern shows that it is under accumulation. This pullback offers a low risk setup. If entered around $37, with a stop under the 20 day moving average at $34.50 and target near the recent high at $50, we are looking at a 6:1 reward ratio. If you find…
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Is DE (John Deere) a Short Setup?
A Trade Report member sent me an email about DE. Here is the e-mail and my response I think it is great time to short “DE”? RSI, OBV and MACD are all bearish…plus, the Durable good is bad.. While the price pattern is not bearish, I agree in that RSI…
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Today’s Trade: DRYS
1000 shares DRYS at $6.60. DRYS is a focus list stock from the Trade Report I send nightly to subscribers. Setup: Breakout-pullback. The stock broke out over the 50 day moving average and has consolidated on low volume. Trade Management: DRYS offers a good risk ratio and trade management. A…
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Is This Breakout Sustainable?
The market and leading stocks are breaking out after a short consolidation period and overbought readings that are still extreme. Due to the extreme overbought readings, I’m taking a few “speculative” shorts. However, they are done with caution and small positions size. The idea behind these trades is to expect…
Paul J Singh 