WFAD #33
$YHOO & $GOOG
Yahoo! Inc., $THOO [NASD]
Technology | Internet Information Providers | USA
The first trading idea was buying stocks of Internet Information Provider — Yahoo! Inc. ($YHOO) (see pic. 1).
The result is shown on the pic. 2
This stock was in a strong uptrend. We recommended to buy the breakout of $42.43 level. This action started several days later after the forecast. We wouldn’t go long, if there was no breakout. But it had happened at last. We set stop under local price minimum. At first sight, it was not very convincing. Nonetheless, 5 days later our target was reached.
Profit from this recommendation = appr. +5.55% in 5 days (+399.6% annually).
The lesson is =>
- Keep “trend is your friend” as the Holy Grail. It’s almost not one of the easiest things. Improve your knowledge of how to determine the beginning of a new trend and moments where it resumes its movement.
$GOOG
Alphabet Inc., $GOOG [NASD]
Technology | Internet Information Providers | USA
The second recommendation was to buy stocks of Alphabet Inc. ($GOOG). (see pic. 3).
The result is shown on the pic 5.
First of all, we want to remind you, that we recommend to buy this stock on RBC-TV (watch). It was the first possibility to go long. Then we recommended $GOOG for buying again (see pic. 4). Secondary entry point gave us an opportunity to go long one more time (addition to the first trade).
It was a rather successful recommendation, but this stock is not highly volatile. We have rather moderate profit from it. In any case. Not bad :)
That’s how a double bottom works. Minimal price target was reached. Correction may start soon.
Profit from this recommendation = +3.33% in 6 days (+199.8% annually)
The lesson is =>
- Adding to profitable position is a much more comfortable activity, than opening a new one. But if you want to do it, manage this activity as if you are going to open a new position (entry point, stop-loss, price target, etc.).
