The idea of this section is not to "pick stocks" but rather educate on how to pick Stocks with appropriate risk management, so that we can benefit from gains as well as cut short our losses...
SHARONBIO: This stock did pass the target price and one should consider taking partial profit as explained in our "Stock Selection Technique" to secure partial gains and use trailing STOP on remaining position.
BGRENERGY: This stock spiked and touched our BUY point and came back in the range. Most likely it can breakdown from here or move higher quickly, hence STOP LOSS is essential to avoid major losses.
- Losses are part of investment/trading and cannot be avoided, however the key is to keep them low.
- Always take partial profits and let remaining position ride the move up. This approach ensures securing partial gains along the way in an event Stock goes against you.
- NEVER forget to put a STOP LOSS on each and every position your take in Stocks/ETFs to avoid catastrophic loss.
- Our primary goal is to prevent capital from loss and let it grow in a secured fashion.
If you noticed, this week we did not select any new stock as we could not find a good setup. It is NOT necessary that every week you will get good stock setups, in case if you do not see good setups then simply do nothing. Have patience for stocks to setup and enter at the right time when risk of loosing is lower than gaining.
Good Luck Investing!