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 Speculator by EmailWith a 4:... Continue Reading →
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 to winning as a trader.My... Continue Reading →
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 can not go haphazardly into battle... Continue Reading →
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.
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 reward to risk ratio.The stock is... Continue Reading →
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 $140, followed by $145.
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.
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 only for a small loss... Continue Reading →
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 enough trades like this, you... Continue Reading →